Finance

Demand for at-home Covid tests has grown as new U.S. virus cases have risen, fueled by the omicron and delta strains.
Scammers are trying to take advantage by selling bogus tests online, according to a Federal Trade Commission alert published last week.
Consumers can protect themselves by taking a few simple steps, the agency said.

Hache | E+ | Getty Images

New Covid cases are rising fast and at-home rapid tests are in high demand.
But consumers scrambling to buy tests online — especially as brick-and-mortar retailers sell out or limit supply — may get duped into buying a fake or unauthorized test kit.

Demand for test kits may increase after the Biden administration announced it will require health insurers to cover costs for home tests starting Saturday.
“Using these fake products isn’t just a waste of money; it increases your risk of unknowingly spreading Covid-19 or not getting the appropriate treatment,” according to a Federal Trade Commission alert published Jan. 4.
More from Personal Finance:Have Covid? You can’t get unemployment benefitsHere’s how to insure your trip amid airline cancellationsMany surprise medical bills are now banned
New daily cases in the U.S. topped 1 million for the first time during the pandemic last week, according to Johns Hopkins University data, with swelling caseloads fueled by the highly contagious omicron and delta virus variants. Average new daily cases are more than five times higher than a month ago, according to Centers for Disease Control and Prevention data.
Rising infections coincide with an elevated incidence of fraud against consumers during the pandemic, with online shopping accounting for the largest share of scams reported to the FTC.

Consumer tips

Here are the ways consumers can ensure they’re not buying an unauthorized, fraudulent test from online sellers, according to the FTC.

Check the list: The Food and Drug Administration has issued an “emergency use authorization” to many companies for at-home tests. Consumers should consult the list of tests — antigen diagnostic tests and molecular diagnostic tests — approved for home use before buying. (Some deliver results at home, while others require consumers to ship their test sample for analysis.) The FDA also publishes a list of fraudulent Covid products, including tests.
Do your research: Research a seller before you buy a test kit, especially if it’s from a site you don’t know. Search online for the company or seller plus words like “scam,” “complaint” or “review.” You can compare online reviews on retail or shopping comparison sites to a good sense of a company, product or service.
Pay with a credit card: Consumers may be able to dispute a charge with the credit card company, if the charge is for an order that was never received or for a product that’s not as advertised.

Other things to know

Americans may soon be able to get home tests for free or get fully reimbursed for a purchase.
Starting Saturday, private health insurers will be required to cover up to eight home Covid-19 tests per month for people on their plans. Americans can either buy home kits for free under their insurance plan or submit receipts for the tests for reimbursement from insurers. (Reimbursement doesn’t apply to tests purchased before Jan. 15.)
In December, the White House also announced an initiative to distribute 500 million rapid at-home test kits that Americans can order for free from a website and would be delivered by mail. The website is expected to launch later this month.

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Take a look at some of the biggest movers in the premarket:
Illumina (ILMN) – Illumina issued a 2022 revenue outlook that exceeded consensus analysts’ estimates, noting strong demand for its gene sequencing treatments as well as new partnerships with four health care companies. Illumina jumped 4.1% in the premarket.

Rivian (RIVN) – Rivian fell 3.5% in premarket trading following news that its Chief Operating Officer Rod Copes had left the electric truck maker.
Juniper Networks (JNPR) – Juniper shares rallied 5.3% in the premarket following a double upgrade by BofA Securities to “buy” from “underperform.” The firm said that most networking vendors are still attractively valued and said Juniper’s current guidance from management appears conservative.
Albertsons (ACI) – The supermarket operator reported quarterly earnings of 79 cents per share, 19 cents a share above estimates. Revenue also topped Wall Street forecasts. Albertsons shares jumped 3.5% in premarket trading.
Intel (INTC) – Intel named Micron Technology (MU) Chief Financial Officer David Zinsner as its new CFO, effective next Monday. At the same time, the chipmaker announced the departure of client computing group head Gregory Bryant at the end of January. Intel rose 1.7% in the premarket, while Micron was down 1%.
Accolade (ACCD) – The workplace benefits technology company surged 10.9% in premarket action, following better-than-expected quarterly results. Accolade earned 31 cents per share, compared to analysts’ forecasts of a 74 cents per share loss. The company also issued an improved full-year revenue outlook.

IBM (IBM) – IBM shares fell 2.3% in the premarket after UBS downgraded it to “sell” from “neutral,” citing risks to operating results as well as what it feels is an “elevated valuation.”
CVS Health (CVS) – The drug store operator and pharmacy benefits manager raised its full-year earnings outlook, now expecting a profit of $8.33 to $8.38 per share. That compares to a prior outlook of “at least” $8.00 per share and a current consensus estimate of $8.03 per share. CVS rose 1.1% in the premarket.
Big Lots (BIG) – Big Lots said it has seen a softening of traffic and sales trends this month, with the discount retailer citing winter weather and the spread of the Covid-19 omicron variant. Shares tumbled 7.4% in premarket trading.
Abercrombie & Fitch (ANF) – Abercrombie rallied 5.9% in the premarket, despite a cut in the apparel retailer’s quarterly sales outlook. While issuing that outlook, Abercrombie also said it had seen a pickup in post-holiday sales.
CORRECTION: This article has been updated to show that Albertsons reported quarterly earnings of 79 cents per share, 19 cents a share above estimates.

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In a filing on Tuesday, Hong Kong-listed Shimao Group made its first public response to media reports about the sale of its real estate projects.
Shimao it is in talks with potential buyers and might sell some properties “in order to reduce the indebtedness of the Group.”
Over the weekend, Chinese financial news site Caixin reported that Shimao put all its properties up for sale.

An elderly couple walk past a sign in front of Shimao Tower, developed by Shimao Group Holdings Ltd., in Shanghai, China, on Saturday, Jan. 8, 2022.
Qilai Shen | Bloomberg | Getty Images

BEIJING — Chinese real estate developer Shimao Group Holdings pushed back Tuesday on reports of default and sales of prime property.
Shimao is one of China’s healthier developers. However, the company’s Hong Kong-listed and mainland-listed stocks and bonds have plunged in the last few months after warnings of a shortfall in sales. The volatility comes amid broader concerns about the Chinese real estate industry’s ability to pay off high amounts of debt.

In a filing on Tuesday, Hong Kong-listed Shimao Group made its first public response to media reports about the sale of its real estate projects.
“Certain media reports have alleged that the Group has not fulfilled its financial obligations under a fund,” Shimao said in the filing. The company distanced itself from the unspecified fund, claiming that the developer’s subsidiaries were not directly involved with repayment, but were guarantors.
Over the weekend, Chinese financial news site Caixin reported that Shimao put all its properties up for sale, which included a preliminary 10 billion yuan ($1.57 billion) deal with a state-owned company to buy Shimao International Plaza in downtown Shanghai.
That followed a Reuters report Friday that Shimao failed to make full repayment on a trust loan, sending the company into default.

Read more about China from CNBC Pro

“The Company has not entered into a preliminary agreement in relation to the disposal of Shanghai Shimao International Plaza,” Shimao said. The company also said it’s in talks with potential buyers and might sell some properties “in order to reduce the indebtedness of the Group.”

“As of the date of this announcement, the Company has no outstanding asset-backed securities due and payable,” the company said in the filing.
Shimao shares traded slightly higher Tuesday morning, after surging by just over 19% on Monday.

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Market bull Julian Emanuel sees a dot-com era dynamic that could shatter the S&P 500’s record highs.
In his first TV interview since starting at Evercore ISI, Emanuel told CNBC’s “Fast Money” an electrified public could drive the index to 5,509 this year.

“They really haven’t committed sort of every last dollar in the way that was the case in ’99 and ’00,” the firm’s senior managing director of equity, derivatives and quantitative strategy said Monday. “If you get that kind of emotion, particularly if the pandemic turns endemic at mid-year, that’s how you get that kind of overshoot.”
It is Emanuel’s best case market scenario for 2022. The move implies an 18% jump from the current S&P 500 level and an 8% gain from his official 5,100 price target. The index’s all-time high is 4,818.62.

Arrows pointing outwards

“We’ve seen very vigorous participation for the last year and a half without actually the concurring emotions that you tend to get with that kind of participation,” said Emanuel, who left BTIG in October.
According to Emanuel, the Federal Reserve would have to assure investors they would avoid derailing market rallies.
“Ultimately to get stock prices to move to those kinds of extremes on the upside through our price target, you’re going to need a perception that inflation is going to moderate,” he said. “We actually do think it moderates later in the year, but stays high for an extended period.”

Given strong earnings and economic momentum, Emanuel believes the broader market can withstand pricing pressures.
His worst case scenario implies the S&P 500 would fall to 3,575 this year. In his recent research note, Emanuel cited a prolonged pandemic — as well as a potential debt and spending “hangover” similar to the period after World War I and the 1918 flu epidemic.
In the meantime, Emanuel is sticking to his 2022 game plan. He prefers value stocks over growth, and sees trouble ahead for the Nasdaq due to high valuations and rising rates.
He believes industrials will get a bid from easing supply chain concerns and health care will insulate investors from tightening Fed policies.
Emanuel also likes financials.
“Those stocks still in comparison to their weighting are barely off their financial crisis lows,” Emanuel said.
Disclaimer

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AMERICA’S FISCAL largesse during the pandemic has fuelled not just economic growth but also, more surprisingly, a lively hip-hop niche. Over the past two years musicians have released no fewer than 30 different songs referring to the government’s stimulus cheques, known as stimmies. “Yeah, check, I need a stimmy. S-T-I-double M-Y, tell ‘em gimme,” raps Curtis Roach in one snappy track. The accompanying video seems to confirm the worst fears about how the money was spent. Mr Roach, a Detroit-based artist, fans himself with hundred-dollar bills and sprays them about at parties. But a closer listen reveals a conservative streak that would do fusty financial planners proud. “Generational wealth, that’s where it’s at…save a lil’ bit for the rainy days on yo’ back, never slack.”The question of how Americans spent and, crucially, saved money over the past two years looms large over the economy today. In spring 2020, when millions lost their jobs overnight, a reasonable assumption was that personal finances would suffer. Instead, government handouts, from the stimmies to more generous unemployment benefits, propped up incomes. Moreover, as people stayed home, their spending fell well below normal levels.The result was a piggy-bank boom. Americans have accumulated some $2.5trn in extra savings compared with the pre-covid trend. Higher-than-expected incomes account for two-thirds of the stockpile, while lower-than-expected expenditures explain the other third, according to calculations by The Economist (see chart 1).This stash of cash could, in theory, provide a pillar for the economy over the coming year as policymakers withdraw support. With inflation running at around 7%—a four-decade high—the Federal Reserve has signalled that it intends to raise interest rates as soon as March. Some economists expect as many as four rate increases this year. Fiscal policies are also becoming more parsimonious. Many of the benefit top-ups expired in the autumn. The Democratic party’s inability thus far to pass President Joe Biden’s “Build Back Better” programme will lead to further retrenchment.Will the extra savings blunt the impact of all this policy tightening? There are reasons to be sceptical. Were the $2.5trn shared equally across the country, it would amount to about $7,500 for every American—more than the combined total of the three rounds of stimulus cheques. In practice the distribution is far from equal. In the decade before covid-19 the wealthiest 1% of Americans had, in aggregate, about twice as much cash and chequable bank deposits as the bottom 50%. The pandemic has skewed this further: the top 1% now has four times as much as the bottom half.That matters in trying to assess the potential impact of excess savings. The wealthy typically spend a low share of their incomes. The extra cash sitting in their hands is more likely to go towards investment accounts than grocery purchases.Another dampener may be the nature of the economic recovery. In a paper last year Martin Beraja and Christian Wolf of the Massachusetts Institute of Technology showed that recoveries from recessions where falls in spending were concentrated on goods tend to be stronger than those with cuts concentrated on services. Pent-up demand for, say, smartphones can be released in a flood. By contrast, demand for beach holidays returns more slowly: vacationers can only be in one place at a time. This logic suggests that as the pandemic fades away, the flow of savings into long-deferred services such as travel and entertainment may be sluggish.Another obvious concern is high inflation. That eats into both wealth and incomes. Adjusted for rising prices, wage growth in America has turned sharply negative over the past half year. Similarly, the real value of savings looks a little less impressive given the reduction in purchasing power.That, though, is not the end of the story. Surveys by the Fed’s New York branch indicate that stimulus recipients saved about one-third and used another third to pay down debts. Such decisions help explain why household balance-sheets are healthier today than before the pandemic. Regardless of their wealth, Americans have lower debt-to-asset ratios than two years ago (see chart 2). That could give them scope to borrow and spend more.This may already be happening. Consumer borrowing soared in November by $40bn, the most on record, as credit-card usage soared. Some observers saw that as a sign that households were strapped for cash. Alex Lin of Bank of America disagrees. “An increase in credit-card spending can be a function of greater re-engagement in the economy,” he says. “Americans like to use their credit cards to rack up points for travel or restaurants, and that is not necessarily a sign of danger.”The damage from inflation may also prove tolerable, especially if the Fed’s tightening, plus supply-chain improvements, brings prices back under control. Wage growth has been stronger for those on lower incomes, the group most vulnerable to a reduction in real spending power. In November annual nominal wage growth for the bottom quartile of earners reached 5.1% versus 2.7% for the top quartile, according to the Atlanta Fed.As a whole, Americans saved about 6.9% of their incomes in November, lower than the 7.4% average in the five years before the pandemic. Yet that is exactly what should be seen if some people are dipping into their excess savings. It is also one key reason why most forecasters think America’s economy will grow by about 4% this year, a robust pace in the face of headwinds.And that barely grapples with the changes that the extra cash enabled for many recipients. In another hip-hop track, Reneé the Entertainer sings of a woman who splurged on a buttock-augmentation procedure: “She spent the stimmy/on the booty/in Miami.” Reneé, whose real name is Maria Pizarro, in fact put her money to what is arguably a more productive use. “I used them to get a more reliable vehicle,” she says. Although Ms Pizarro dreams of a music career, the car has for now facilitated a less glamorous occupation. It lets her drive to work at an Amazon warehouse. For more expert analysis of the biggest stories in economics, business and markets, sign up to Money Talks, our weekly newsletter. More

U.S. stocks were flat on Monday evening after the major averages extended declines, until the Nasdaq rallied to snap a four-day losing streak.
Futures tied to the Dow Jones Industrial Average fell 17 points, or 0.05%. S&P 500 futures edged 0.01% lower, and Nasdaq 100 futures were slightly higher.

In regular trading, the Nasdaq turned slightly green into the close after a day of continued declines from the previous week’s sell-off, sparked by a rate in bond yields and worries about upcoming actions by the Federal Reserve. It closed 0.05% higher and erasing a 2.7% loss. Meanwhile, the Dow lost 162 points, or 0.4%, while the S&P 500 slid 0.1%.
Stocks remained under pressure as bond yields continued to rise. On Monday the 10-year U.S. Treasury yield rose to 1.8%, after ending 2021 at 1.5%.
On Monday JPMorgan’s Marko Kolanovic put out a note saying markets can withstand higher yields, as well as omicron, and that investors should buy the dip in the tech stocks.
“The pullback in risk assets in reaction to the Fed minutes is arguably overdone,” he said. “Policy tightening is likely to be gradual and at a pace that risk assets should be able to handle, and is occurring in an environment of strong cyclical recovery.”
The Leuthold Group’s Jim Paulsen said that while the stock market is likely to encounter a correction this year – and last week’s action could perhaps have been the start of one – it will be met by strong company fundamentals.

“Historically, the stock market has suffered some nasty ‘temper tantrums,’ and numerous rate hikes eventually led to recessionary bear markets,” Paulsen said in a note Monday evening. “However, the current focus among investors may be misplaced. The stock market’s response may have less to do with the timing and number of rate hikes than it does with the ‘direction’ of real earnings.”
Earnings season will be in full swing by the end of this week with the big banks set to report starting Friday. In the more immediate term, Albertson’s is scheduled to report its quarterly results before the bell Tuesday.
It’s a big week in economic data as well, including key inflation data. On Tuesday Federal Reserve Chairman Jerome Powell’s confirmation hearing will take place. Kansas City Fed President Esther George is also scheduled to speak about on economic policy, as is St. Louis Fed president James Bullard later in the day.

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Signage at the entrance to the Intel headquarters in Santa Clara, California, U.S., on Tuesday, Oct. 19, 2021.
David Paul Morris | Bloomberg | Getty Images

Check out the companies making headlines in after-hours trading.
Intel — The tech giant jumped more than 4% after hours after the company confirmed the appointment of David Zinsner as chief financial officer. Current CFO George Davis will retire from Intel in May.

Micron Technology — Shares of the chipmaker fell more than 1% in extended trading after New Street Research initiated the stock at a buy with a price target of $135, implying about 43% upside from its closing price Monday.
Wynn Resorts — The hotel and casino stock fell 1% after Citi on Monday downgraded it to neutral from buy. The move after hours followed a trading day when its peer, Las Vegas Sands, declined about 2% on a downgrade of its own. Investors in both stocks have been focused on the renewal of their concession licenses to operate in Macau, which will expire in June.
Amgen — Biotech company Amgen’s shares fell more than 1% after the European Commission granted the company conditional marketing authorization for its medication that treats adults with advanced non-small cell lung cancer.

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Pedestrians seen walking past Canadian athletic apparel retailer Lululemon in Shanghai.
Alex Tai | SOPA Images | LightRocket | Getty Images

Check out the companies making headlines in midday trading.
Zynga, Take-Two Interactive — Shares of the mobile gaming company Zynga soared 40.6% after Take-Two Interactive, another gaming company, revealed plans to buy it for $12.7 billion, or $9.86 a share, in a cash and stock deal. That’s a roughly 64% premium to Zynga’s closing price Friday. Shares of Take-Two tumbled by 13.1%.

Moderna — Moderna shares jumped 9.2% after the company’s CEO said Monday that it’s working on a booster that targets the omicron variant of Covid-19 “with public health leaders around the world,” targeting a fall rollout. The booster will enter clinical trials soon, he added.
Lululemon — Shares of the athletic apparel maker shed 1.9% after the company said it now expects weaker results for the fourth quarter due to the omicron Covid-19 variant. Lululemon said Monday that its fourth-quarter earnings and revenue to come in at the low end of its projected ranges as staffing shortages and reduced store hours are weighing on results.
Apria — Home health-care company Apria saw its shares surge 26.1% following news it will be acquired by health-care equipment company Owens & Minor for about $1.45 billion in cash, or $37.50 per share. Owens & Minor shares gained about 3%.
Tilray — The cannabis stock surged 13.5% after the company reported an unexpected quarterly profit. Tilray said its revenue increased by about 20% from a year earlier on stronger demand for cannabis products.
Beam Therapeutics — Beam, the gene-editing company, saw its shares fall 2.7% following news about a partnership with Pfizer. The two will collaborate to develop therapies for rare genetic diseases. Pfizer shares rose slightly.

Cardinal Health — The health-care company saw its shares drop 5.9% after it provided a full-year 2022 update saying it expects to see more inflationary impacts and lower volumes as a result of global supply chain constraints. The company’s pricing actions are also expected to offset those impacts less than it expected.
Shockwave Medical — Shares of Shockwave Medical rose 4.5% after Bloomberg reported rival medical device maker Penumbra is exploring a merger. However, a Penumbra representative said in a statement to Bloomberg that it is not in discussions with Shockwave to pursue a business combination or similar transaction.
Airbnb — Shares of Airbnb retreated 3.2% after Piper Sandler downgraded the stock to a neutral rating from overweight. The firm also cut its price target on the stock. Piper Sandler said travel patterns should return to pre-pandemic trends in 2022 and consumers are more interested in traditional lodging and air service companies.
Crypto stocks — Crypto-related stocks fell sharply on Monday as the price of bitcoin briefly tumbled to its lowest point since September. Coinbase declined 3.1% while Silvergate Capital lost 4%. MicroStrategy fell slightly and Block slid 3.8% before bouncing back. The moves come amid a broader sell-off in risky assets as the 10-year U.S. Treasury yield climbed.
 — CNBC’s Yun Li and Hannah Miao contributed reporting

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