2024-03-15 23:04

Chip stocks end down for the week Adobe drops after dour Q2 revenue forecast Indexes: Dow down 0.5%, S&P 500 down 0.7%, Nasdaq down 1% NEW YORK, March 15 (Reuters) - U.S. stocks fell on Friday, led by technology-related megacaps that have propelled this year's rally, while investors weighed the interest rate outlook ahead of next week's Federal Reserve meeting. Traders have reined in bets of a June rate cut by the Fed after this week's hotter-than-expected inflation data. Shares of Adobe (ADBE.O) , opens new tab dropped 13.7%, a day after it forecast second-quarter revenue below analysts' estimates, citing competition and weak demand for its artificial intelligence-integrated photography, illustration and video. The S&P 500 technology index (.SPLRCT) , opens new tab was down 1.3% on the day, leading declines among sectors. Microsoft (MSFT.O) , opens new tab fell 2.1% and was among the biggest drags on the index. An index of semiconductors (.SOX) , opens new tab was down 0.5% on Friday and registered its biggest weekly percentage decline since early January. The Nvidia (NVDA.O) , opens new tab GTC developer conference scheduled for March 18 to 21 will be watched closely for AI-related announcements. "We seem in a period here where everyone knows rates eventually will be lowered. The expectation of when it happens keeps getting slightly pushed back, but investors still believe it will happen," said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey. "It's been a back-and-forth market as people reposition and consider whether some of the real winners have just gone a little bit too far, so you're seeing them trade off." The Dow Jones Industrial Average (.DJI) , opens new tab fell 190.89 points, or 0.49%, to 38,714.77. The S&P 500 (.SPX) , opens new tab lost 33.39 points, or 0.65%, at 5,117.09 and the Nasdaq Composite (.IXIC) , opens new tab dropped 155.36 points, or 0.96%, to 15,973.17. Major indexes registered slight declines for the week. The Dow was down 0.02%, the S&P 500 was down 0.1% and the Nasdaq was down 0.7%. The small-cap Russell 2000 index (.RUT) , opens new tab fell 2.1% for the week. Friday also marked the simultaneous expiry of quarterly derivatives contracts tied to stocks, index options and futures, also known as "triple witching," which can boost volume. Friday's volume was the year's highest by far on U.S. exchanges, with 18.76 billion shares traded. The average volume for a full session over the last 20 trading days was about 12.4 billion. The week started with investors' options positions leaning toward call contracts - typically bought to express a bullish bias, said Brent Kochuba, founder of analytic service SpotGamma. However, the S&P 500's failure to rise quickly eroded the value of upside call options, putting further downward pressure on the market, he noted. While Wall Street's AI-driven rally has stalled, the S&P 500 remains up 7.3% for the year to date. Among data released on Friday, production at U.S. factories increased more than expected in February, but the January figure was revised sharply down as manufacturing remains hamstrung by higher interest rates. Also, the University of Michigan's preliminary reading on the overall index of consumer sentiment came in at 76.5 this month, versus an estimated reading of 76.9. All eyes are now on next week's Fed meeting and any clues on the central bank's outlook for rate cuts. Among other declining shares, Ulta Beauty (ULTA.O) , opens new tab fell 5.2% after forecasting full-year profit below Wall Street estimates, as elevated supply-chain costs and increased promotions hurt its margins. Advancing issues outnumbered decliners on the NYSE by a 1.11-to-1 ratio; on Nasdaq, a 1.12-to-1 ratio favored advancers. The S&P 500 posted 27 new 52-week highs and no new lows; the Nasdaq Composite recorded 53 new highs and 134 new lows. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/markets/us/futures-nearly-flat-ahead-fed-meet-next-week-2024-03-15/

2024-03-15 21:56

TSX ends up 0.1% at 21,849.15 For the week, the index gains 0.5% Materials sector adds 2% Copper hits highest since April 2022 March 15 (Reuters) - Canada's main stock index edged higher on Friday to notch its fifth straight weekly gain, led by gains for the materials group as copper prices climbed to a near one-year high. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) , opens new tab ended up 19.3 points, or 0.1%, at 21,849.15, trading near its highest closing level since April 2022. For the week, the index was up 0.5%. The weekly winning streak was the longest in 11 months. "The big thing we're seeing is a nice rotation into some of the cyclicals," said Greg Taylor, a portfolio manager at Purpose Investments. "That had been something that held back the TSX for the last six months ... but this week has been pretty positive with oil going over 80 bucks and copper breaking out over 4 (dollars)." Copper rose 2% to trade at its highest level since April last year as investors weighed a potential output cut in top producer China, while oil settled at $81.04 a barrel, trading near a four-month high. Resource shares have a roughly 30% weighting on the Toronto market. The materials group, which includes precious and base metals miners and fertilizer companies, added 1%. "We are seeing that rotation as the techs and semis (semiconductor stocks) that have been leading are coming under a little pressure," Taylor said. The technology sector fell 0.8%, with shares of BlackBerry Ltd (BB.TO) , opens new tab falling 7.7%. Still, the sector has gained 6.5% since the start of the year. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/markets/tsx-futures-gain-copper-surges-chinas-potential-output-cut-2024-03-15/

2024-03-15 21:22

March 15 (Reuters) - A U.S. appeals court on Friday temporarily paused new rules issued by the Securities and Exchange Commission (SEC) requiring public companies to report climate-related risks. The New Orleans-based 5th U.S. Circuit Court of Appeals granted a request from Liberty Energy Inc. and Nomad Proppant Services LLC to put the rules on hold while it considers the oilfield companies' lawsuit challenging them. The 5th Circuit did not explain the reasoning behind the order. It was the first court action on a flurry of lawsuits filed over the rules since the SEC approved them , opens new tab March 6. The rules aim to standardize climate-related company disclosures about greenhouse gas emissions, weather-related risks and how companies are preparing for the transition to a low-carbon economy. The SEC did not immediately respond to a request for comment. First proposed in 2022, the rules are part of Democratic President Joe Biden’s efforts to leverage federal agency rulemaking to address climate change threats. The companies said in court filings that the rules would force companies to collectively spend over $4 billion in compliance costs and could open companies up to increased litigation. They argued the rules go beyond the SEC's authority under U.S. securities law, and that they are a "thinly veiled attempt" to inject the SEC into climate policy by requiring disclosure of a "breathtaking volume of information" about greenhouse gas emissions and other climate concerns. On Wednesday, the SEC told the 5th Circuit that a pause was unnecessary, since the rules have extended compliance deadlines that do not require disclosures before March 2026. The agency said any potential harm to the companies is therefore not imminent. The agency also said the rules "fit comfortably within" its authority to require disclosure of information important to investors, and that they would provide "consistent, comparable and reliable information" about climate risks. At least 25 Republican-led states including West Virginia, Texas and Ohio and major business groups like the U.S. Chamber of Commerce have challenged the rules in court, including in the 5th, 6th, 8th and 11th U.S. Circuit Courts of Appeals. The Sierra Club, one of the largest environmental advocacy groups in the U.S., has meanwhile challenged the rules in the U.S. Court of Appeals for the D.C. Circuit, arguing they do not go far enough to protect investors. It is unclear whether the 5th Circuit or one of the other courts will ultimately hear the challenges, since the cases are expected to be consolidated and the venue picked via a lottery. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/sustainability/us-appeals-court-temporarily-pauses-sec-climate-disclosure-rules-2024-03-15/

2024-03-15 21:18

WASHINGTON, March 15 (Reuters) - Volkswagen Group of America's wholly owned finance unit has agreed to pay $48.75 million to resolve a government lawsuit that accused the German automaker and its former CEO of defrauding investors in U.S. bond offerings. The Securities and Exchange Commission filed a civil lawsuit in March 2019 accusing Volkswagen AG (VOWG_p.DE) , opens new tab, two subsidiaries and former chief executive Martin Winterkorn of defrauding investors. The SEC is dismissing claims against Volkswagen AG and Winterkorn. The settlement with Volkswagen Group of America Finance filed Friday marks the last significant legal action related to the diesel emissions scandal in the United States. This cost the German automaker more than $20 billion in fines, penalties and settlements after it admitted in 2015 it had cheated emissions tests by installing "defeat devices" and sophisticated software in nearly 11 million vehicles worldwide. Volkswagen in 2017 pleaded guilty to criminal conduct as part of a $4.3 billion Justice Department settlement and offered to buy back about 500,000 polluting U.S. vehicles. A Volkswagen spokesperson said its finance unit was "pleased to have reached an agreement with the SEC". The settlement requires approval by a U.S. judge in San Francisco. The VW finance unit did not admit or deny the SEC allegations. The SEC, which did not immediately comment Friday, had sought about $350 million plus interest. The SEC complaint said from April 2014 to May 2015, Volkswagen issued more than $13 billion in bonds and asset-backed securities in U.S. markets when senior executives knew more than 500,000 U.S. vehicles dramatically exceeded legal vehicle emissions limits. VW could have faced another $350 million if civil penalties had been imposed. The settlement includes $34.35 million and interest of $14.4 million that will be distributed by the SEC to investors in the 2014 and 2015 bond offerings. Stay up to date with the latest news, trends and innovations that are driving the global automotive industry with the Reuters Auto File newsletter. Sign up here. https://www.reuters.com/business/autos-transportation/vw-us-finance-unit-pay-4875-million-resolve-sec-diesel-suit-2024-03-15/

2024-03-15 20:35

March 15 (Reuters) - Berkshire Hathaway (BRKa.N) , opens new tab said Warren Buffett raised the pay of his designated successor Greg Abel to $20 million last year, as the conglomerate posted a record operating profit. The company also urged the rejection of six shareholder proposals, including that Berkshire disclose more about its plans to reduce greenhouse gases and improve diversity, monitor the safety of its BNSF railroad unit more closely, and discuss how much its operations depend on Chinese government activities. Berkshire disclosed executive pay and the recommendations on shareholder proposals in its annual proxy filing on Friday, ahead of the Omaha, Nebraska-based conglomerate's May 4 annual meeting. Abel's salary comprised virtually all his compensation, which grew from $19 million a year earlier. That sum included a $16 million salary and $3 million bonus. The 61-year-old vice chairman oversees Berkshire's non-insurance operations such as BNSF, Berkshire Hathaway Energy and dozens of chemical, industrial and retail operations. Vice Chairman Ajit Jain, who oversees insurance operations such as Geico, also received $20 million, up from $19 million. Buffett's own pay totaled $413,595, comprising a $100,000 salary unchanged for more than 35 years, plus personal and home security. But the 93-year-old Buffett also owns 15.1% of Berkshire, and his $135 billion fortune ranks sixth worldwide according to Forbes magazine. Berkshire's operating profit totaled $37.4 billion in 2023. BNSF, CHINA PROPOSALS Some of the shareholder proposals on Berkshire's climate and diversity efforts mirror proposals offered at last year's meeting, none of which , opens new tab drew more than 27% support. Buffett controls 31.2% of Berkshire's voting power, making passage of proposals he opposes an uphill battle. The BNSF proposal by the AFL-CIO Equity Index Funds urges independent Berkshire directors to form a railroad safety committee to monitor financial risks. Those funds said the February 2023 Norfolk Southern (NSC.N) , opens new tab train derailment in East Palestine, Ohio, that caused a health and environmental crisis illustrated a need for Berkshire to do more to avert derailments and the resulting harm. But Berkshire said BNSF already has state-of-the-art safety programs, and a committee was inconsistent with Berkshire's culture of letting its operating units handle their own affairs. It also said BNSF is the only major U.S. railroad not to adopt "Precision Scheduled Railroading," which relies on longer and heavier trains that require fewer workers, and which some observers believe may have contributed to the Ohio crash. The China proposal from the conservative National Legal and Policy Center said Berkshire "does not seem to take the China threat seriously." It cited late Vice Chairman Charlie Munger, who drew applause , opens new tab at last year's annual meeting when he said: "If there's one thing we should do, it's get along with China. And we should have a lot of free trade with China, in our mutual interest." Berkshire called issuing a report unnecessary, and said its "Prohibited Business Practices Policy" specifically addresses transactions with China and human rights issues. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/business/berkshire-raises-pay-buffetts-successor-greg-abel-20-million-2024-03-15/

2024-03-15 20:31

WASHINGTON, March 15 (Reuters) - U.S. Vice President Kamala Harris on Friday said "nobody should have to go to jail for smoking weed," as she met to discuss the topic with rapper Fat Joe and others pardoned for marijuana convictions. Harris added that "far too many people have been sent to jail for simple marijuana possession." President Joe Biden, seeking a second four-year term in November's election, has sought to appeal to young voters, some of whom are dissatisfied with his sluggish policy reforms.. Harris called on the Department of Health and Human Services and the Department of Justice to hasten a reclassifying of marijuana as less harmful than drugs like heroin. "Marijuana is considered as dangerous as heroin and more dangerous than fentanyl, which is absurd, not to mention patently unfair," Harris said. The Department of Health and Human Services last year recommended that cannabis be reclassified from its current treatment as a "Schedule I" to a Schedule III drug with a moderate potential for causing addiction. The decision now rests with the Department of Justice's Drug Enforcement Administration. Nearly 40 U.S. states have legalized marijuana use in some form, but it remains completely illegal in some states and at the federal level. Harris convened a roundtable discussion Friday with Fat Joe, Kentucky Governor Andy Beshear, White House Director of Public Engagement Steve Benjamin and others. The U.S. jails more people than any other country. One in five of those 1.9 million people are behind bars for a drug-related offense. Black and Latino people are disproportionately incarcerated, while drug law reform has the broadest support among young voters. Each constituency favors Democrats. Biden, who has sometimes disappointed activists with conservative views about narcotics use, has nonetheless proposed easing the treatment of marijuana under federal law and has pardoned thousands of convictions for mere possession of the psychoactive plant. He mentioned both positions during his State of the Union speech last week, marking the first time a president used the congressional address to tout easing marijuana policy. Some activists favor full legalization of the drug, and they have faulted the administration for dismissing some employees for past drug use. Biden said racial equity would be one of his administration's top priorities. He was elected in the aftermath of widespread street protests over the 2020 murder of George Floyd, who was Black, by a Minneapolis police officer. The president has pursued executive actions including banning most choke-holds and restricting no-knock warrants for federal law enforcement but more sweeping reforms have been sidelined or stalled in Congress, disappointing liberal voters. Get weekly news and analysis on the U.S. elections and how it matters to the world with the newsletter On the Campaign Trail. Sign up here. https://www.reuters.com/world/us/us-vp-harris-talk-marijuana-reform-white-house-friday-2024-03-15/