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Weak Trade Data From China Has Investors Worried — and Wynn Resorts Stock Falling

Here’s one reason why Wynn Resorts stock has fallen over 40 percent since last May.


3 min read

Opinions expressed by Entrepreneur contributors are their own.


Weak trade data from China renewed investor worries about slowing global economies, sending share prices down for the day.

Both imports and exports in China declined in December year over year while the country’s trade surplus with the U.S. expanded. The sluggish data from the world’s second biggest economy dragged down the price of West Texas crude oil by nearly two percent and hurt sentiment in the stock market.

The Dow and S&P 500 indexes were off 0.36 percent and 0.53 percent respectively, and the Nasdaq Composite index fell 0.94 percent. The Entrepreneur Index™ was also down 0.94 percent on the day.

Wynn Resorts had the biggest decline on the Entrepreneur Index™, falling 4.76 percent. The company’s stock is hyper-sensitive to economic data from China because it operates three casinos in the former Portuguese colony of Macau. Wynn shares have fallen 46 percent since last May.

Liquor-maker Brown Forman Corp. (-2.84 percent), which has broad sales exposure to overseas markets, was also down sharply.

Tesla shares fell 3.71 percent today as competitors Ford Motor Co. General Motors and Nissan revealed their plans to invest in electric vehicles at the Detroit auto show. Ford Chairman Bill Ford said the company would spend $11 billion by 2022 on as many as 40 hybrid and all-electric models.

Ford had the largest gain on the index today, rising 1.93 percent. The company is expected to announce details of a broad alliance with German carmaker Volkswagen AG sometime this week. Ford’s stock fell more than 20 percent in December but has been on a roll so far this year. It has not cracked the $10 level since last August.

Technology stocks were mixed, with more companies down than up. Chipmaker Analog Devices had the biggest decline, falling 2.84 percent. Three of the four FANG stocks were down on the day, with Amazon.com, (-1.42 percent), posting the sharpest decline. Facebook was up 1.11 percent, the biggest gain in the sector.

Retailer Bed Bath & Beyond failed to post the biggest gain on the index for the third consecutive trading session, but it was up 0.72 percent. Other gains on the day included Jefferies Financial Group, (1.1 percent), NVIDIA Corp. (1.08 percent) and Ralph Lauren Corp. (1.19 percent).

Drug-makers Alexion Pharmaceuticals, (-3.18 percent) and Regeneron Pharmaceuticals, (-1.9 percent), were both down for the day. Homebuilder D.R. Horton Inc. (-2.95 percent), was also down sharply.

Earnings season gets under way this week, and it could be a bumpy ride for investors. Investment bank Goldman Sachs issued a report suggesting that based on the market prices of stock options, the volatility of share prices on earnings announcements could be as high as it’s been since the financial crisis.

Let’s hope it’s the good kind of volatility.

The Entrepreneur Index™ collects the top 60 publicly traded companies founded and run by entrepreneurs. The entrepreneurial spirit is a valuable asset for any business, and this index recognizes its importance, no matter how much a company has grown. These inspirational businesses can be tracked in real time on Entrepreneur.com.

Source: Entrepreneur
Author: Andrew Osterland

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System Of A Down’s Shavo Odadjian Gets Into the Weed Business

The bassist’s company, 22Red, introduces cannabis lifestyle brand.


3 min read

Opinions expressed by Green Entrepreneur contributors are their own.


System of a Down’s bass player, Shavo Odadjian is a man of many talents. On top of playing numerous instruments, he DJs, directs music videos, acts, and even paints.

Add “cannabis entrepreneur” to his list of accomplishments. His company, 22Red, combines his passions for weed, fashion, and music into one company. He calls it “the new face of urban sub-culture” for Millennials.

“We wanted to create something we could all stand by,” Shavo says. “We wanted to wear our own clothes [both literally and metaphorically].”

While the details of 22Red’s cannabis line are still a secret, Shavo says it will include vapes and pre-rolls made with lab-tested, compliant cannabis.

Currently, pre-rolls made with Shavo’s own “Church” and “Sunkiss” strains are available in California. Vapes will follow suit soon, the musician assured.

Related: Julian Marley Thinks Cannabis Should Be Free

Balancing Music and Weed

Like many entrepreneurs, Shavo’s had to balance his day job (bassist for System of a Down) with his business. When he first founded 22Red, he was touring with the band but he found a way to do both. 

“While I was rehearsing for the tour, I put together a great team for 22Red. So I had my team working with me as I did as I went to rehearsal. During the day I had my meetings, I did what I had to do, set up the tour, and then I’d go at night and I’d rehearse,” he says.

“I know how to manage my time and that’s how I’ve been doing it. I’ve always been someone that always likes to do things, and I don’t like to be sitting around: I get nervous when I sit around. I like having things to do. I like to always be busy.”

Shavo sees the one common denominator in all that he does is quality, saying “I think everything that I’ve done is high quality – and I think a lot of people could agree with that. I’ve taken that to the cannabis world. I would never want to put my name on a crappy thing. So, everything that has my name on itis pretty high quality: I put my heart and soul into it. I want to be proud of everything I do.”

Band vs. Business

Shavo admits there are differences in being in a band and running a separate business. 

“In System of a Down, I’m a member of a band, four guys that make a decision unanimously. So, say I want to do something specific, I have to have the other three guys one hundred percent agree or else it’s not going to happen.

“When it comes to 22Red, pretty much my partners all agree with me and they’re letting me run it, they trust my feelings, my gut. So I’m able to do everything I want without having anyone try to change it,” he says, adding that in a business, the leader’s vision is enough to mark the right path, while in a band, consensus and collaboration are key to creating better art.

“‘System of a Down’ is more of a collaboration; 22Red is more of me kind of releasing everything myself.”

Source: Entrepreneur
Author: Javier Hasse

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The 10 Weirdest Devices We Found at CES

It seems straight out of an episode of Black Mirror, but wearable tech company OrCam showed off a new device at CES called MyMe. The company says it has a host of uses, such as the idea that it “monitors social interactions, quantifies work-life balance, enables social goals and gathers and provides data to the user.” One of the strangest? In networking situations, MyMe automatically reads business cards and name tags, groups new contacts and — perhaps most eyebrow-raising — recognizes faces via blurred photos taken with an onboard camera.

Source: Entrepreneur
Author: Hayden Field

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This 22-Year-Old Entrepreneur’s Business (and Confidence) Got a Major Boost From an Amazing First Customer

How Jacob Dockery stitched together a successful t-shirt company.


4 min read


In this ongoing series, we are sharing advice, tips and insights from real entrepreneurs who are out there doing business battle on a daily basis. (Answers have been edited and condensed for clarity.)

Who are you and what’s your business?

My name is Jacob Dockery. I’m a son, a brother, an uncle, a business owner and a father to my dog Wyatt. I’m 22 years old and I started a company in 2018 called MidWest Tees from the ground up, with a little guidance. We sell Bella Canvas tees with graphics starting at $12.99, tailored to boutique owners and wholesale. We had 235 members in April of 2018 and by the end of December, we hit 4,075 members.

How did it feel the first day you opened?

I was filled with excitement, I was stoked, I was thrilled, but I was really scared. I went from a steady job where I was about to get a promotion and a raise to not knowing when I was going to start making money. I didn’t know if I was going to fail and what I would do if this didn’t succeed. But in the first hour, I sold something. It may have been to my mother, but a sale is a sale!

Related: This Couple Built a Company That Stops Painting From Being a Pain in the Can

What advice would you give entrepreneurs looking for funding?

Go to your local bank — if anyone will listen to you, it will be them. They know you and they know your business. If they don’t lend you money, just start saving every penny until you can start investing in products. Start making friends in your industry, discuss your opportunity with them and see what they would charge you.

What does the word “entrepreneur” mean to you?

It means a lot of different things to me. It means staying up until one o’clock in the morning building your company in the first three weeks, working on designs and strategizing on your next move. Business is chess, not checkers. An entrepreneur is always looking for the best way to make money in the most efficient way possible. You always have to been thinking forward to next season, next year.

What was your toughest challenge and how did you overcome it?

My toughest challenge had to be the Christmas season, which for retailers starts in September and ends the second week of December. We did about $147,000 during that time. For a company that just started in March, that is insane! We had a high volume of tees we had to get out and delivered within seven days. We got to work at 8 a.m. and left at 7 or 8 p.m. every day just to catch up. To solve our production problem, we bought another Brother GTX garment printer and hired another person to print and a couple more employees to pull orders. We stayed late every night and worked every weekend, and eventually got caught up and made a ton of customers super excited. So just keep hustling and don’t stop!

Related: Finding the Right Idea Is Like Falling in Love, According to This Entrepreneur

Is there a particular quote or saying that you use as personal motivation? 

One particular quote I live every day by has to be, “You will face your greatest opposition when you are closest to your biggest miracle,” written by author Shannon L. Alder. It makes me strive to never give up, even if I think it’s going to be a bad design or a bad pitch. It reminds me to take a step back, reevaluate the problem and create a new point of attack. Never stop believing in your business or your product, because once you lose your focus or passion you cannot easily get it back. You have to love what you do because as an entrepreneur, you will work on this business every minute of every day.

Source: Entrepreneur
Author: Dan Bova

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This Woman Just Made NFL History

Sarah Thomas became the first woman to be an on-field official at a playoff game.


2 min read


This Sunday, during the matchup between the New England Patriots and the Los Angeles Chargers, NFL referee Sarah Thomas became the first woman to be an on-field official at an NFL playoff game. It wasn’t the first time that Thomas made football history.

In 2015, she became the first female official hired by the NFL, and before her hiring in 2011, she was the first female official to work in a Big Ten stadium. In 2009, she was the first woman to officiate a college football bowl game, and in 2007, she was the first woman to work at a major college football game.

Before her career as a football official, Thomas, a Mississippi native and married mom of three, was a college basketball star at the University of Mobile.

Related: 4 Branding Lessons From Nike’s Colin Kaepernick Ad

At the start of her NFL career, she shared with CBS News how her tenure as a scholar-athlete informed her career.

“Maybe at times when they made a controversial call that I didn’t think was right, I voiced my opinion, but I think they would get just as aggravated with me at times, too,” Thomas told CBS. “When I started in football officiating, I had no idea the pride and the amount of time that they put into trying to get the game right.”

On social media, Jennifer Welter, the NFL’s first female assistant coach, congratulated Thomas.

Source: Entrepreneur
Author: Nina Zipkin

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European markets seen higher ahead of crucial Brexit vote

European stocks are set to open higher Tuesday morning, with market participants braced for a showdown in Westminster over the U.K. government’s Brexit plan.

FTSE 100 is seen 41 points higher at 6,896, the CAC is expected to open up around 32 points at 4,794, while the DAX is poised to start 83 points higher at 10,938, according to IG.

Market focus is largely attuned to an all-important vote on Prime Minister Theresa May‘s much-maligned Brexit deal on Tuesday.

Remarkably — with less than 75 days to go before the country is set to leave the EU — May’s template to withdraw from the bloc faces virtually certain defeat.

That leaves the prospect of a complete collapse of government, a disorderly exit from the bloc or even the entire Brexit process being scrapped altogether over the coming weeks.

Sterling has fallen more than 10 percent against the U.S. dollar since reaching a peak of $1.4335 in April 2018, in part due to rising fears over the course of the Brexit process. The U.K. currency was trading at around $1.2905 Tuesday morning.

On the data front, France and Spain are both expected to publish a final reading of annual inflation figures for December at around 8:00 a.m. London time. The euro area will publish trade balance data for November later in the trading session.

In Asia, MSCI’s broadest index of Asia-Pacific shares, excluding Japan, rose around 0.5 percent. It comes after China signaled more supportive measures to stabilize its cooling economy.

Source: Business News
Author:

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‘Populist spending’ ahead of elections in Asia could boost consumer stocks

A pick-up in spending ahead of several elections in Asia this year will boost the consumer sector even though the region is bracing for slowing growth, an analyst told CNBC’s “Street Signs” on Tuesday.

India, Indonesia and Thailand are due to hold general elections this year, and government stimulus is expected ahead of those polls.

Thailand has lined up a number of schemes including welfare programs to help the poor in utility payments and cash handouts for low-income workers, while the Indonesian government is rolling out cash food aid programs and setting up village funds, according to a Jan. 4 note by DBS Group Research.

Such stimulus will help boost consumer spending, especially in rural areas, DBS noted.

Expected investments into infrastructure projects in India and Indonesia would also help boost certain sectors, such as the cement and construction industries, said Png from AIA.

Although unexpected election outcomes will be a risk factor for the markets, valuations for stocks are now attractive after last year’s market selloff, said Png.

DBS — which is also positive on consumer plays in Indonesia and Thailand ahead of the elections — also pointed out that despite concerns that “any unforeseen and unexpected outcome may create volatility,” the bank believes “there are opportunities in the lead up to these events,” analysts said in the recent note.

While India is also one of the top picks for Mark Mobius, the prominent investor told CNBC earlier this month he was “very much” concerned that Prime Minister Narendra Modi’s economic reforms may take a back seat ahead of the general election. He warned that populist moves by the government could derail reform plans and measures to keep India’s fiscal balance in check.

Source: Business News
Author:

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Cramer Remix: PVH just changed the retail narrative

The parent company of Calvin Klein and Tommy Hilfiger has “changed the narrative” for the retail sector, and its stock still has more upside, CNBC’s Jim Cramer said Monday after the major averages fell slightly on earnings worries.

PVH had a very rough time in the second half of 2018. Even though shares have rallied $18 from their Christmas Eve lows, … the darned thing is still down $65, or 38 percent, from its highs last summer,” the “Mad Money” host said.

But after PVH recently raised its fourth-quarter and full-year guidance, announcing it would restructure the struggling parts of its Calvin Klein business, the prospects seriously improved for the international retailer and its counterparts, Cramer said.

“Contrary to the worries on Wall Street, PVH is actually doing better than expected across all of its businesses, whether you go by brand or by geography,” he said, recapping the announcement. “Even their Chinese business is pretty much unchanged, and North America’s strong. And, hey, if PVH can breath new life into Calvin Klein, that will be a huge positive.”

All in all, with PVH’s stock trading at only nine times next year’s earnings estimates, Cramer said investors were getting a buying opportunity in the apparel play — and some welcome relief in other retail names.

“These numbers showed that PVH’s earnings are much, much, much more resilient than most people believed,” he said. “I say there’s a lot more upside.”

Citigroup’s earnings report may have just proved that investors don’t have as much to fear as they think, Cramer said Monday after a worry-driven trading session on Wall Street.

The Citibank parent was the first of the major U.S. banks to report its fourth-quarter results. While Citi missed analysts’ revenue estimates due to late-2018 trading weakness, it handily beat profit expectations.

“When I listened to Citigroup’s terrific conference call this morning, the one that sent the stock soaring 4 percent, I sure got the sense that we have a lot less to fear than we think,” Cramer said.

The declines in the major averages, which were largely tied to concerns about 2019 earnings and an economic slowdown in China, “obscure the real story,” he argued.

Click here to read more.

Activist hedge fund Starboard Value might be making a mistake with its involvement in Dollar Tree, but that doesn’t mean the stock’s not worth buying, Cramer says.

Having just taken a stake in the discount retailer, Starboard is calling on Dollar Tree to spin off Family Dollar and demanding seven out of its 12 board seats to ensure that happens. It has also suggested reworking Dollar Tree’s pricing model.

But after speaking with Dollar Tree President and CEO Gary Philbin after the company’s most recent earnings report, Cramer harbored some doubts about Starboard’s plans for Family Dollar.

Thankfully, he sees a few ways for investors to win regardless of which side gets its way.

Click here for his full analysis.

Technology executives are telling Cramer that they’re willing to endure short-term pain from the U.S.-China trade war in favor of the long-term payoff.

“When I went out to San Francisco last week, I heard the same thing from a surprising number of people in the tech industry who do not like President [Donald] Trump one bit,” the “Mad Money” host said Monday.

“What they said was ‘If we’re going to take on China, now’s the time to do it,'” he said. “They may not be fans of the president, but they’re on board with the trade war.”

Part of the reason could be tied to the pain points emerging in China’s economy, Cramer said.

Click here to read more.

In Cramer’s lightning round, he zipped through his responses to callers’ stock questions:

Square Inc.: “Absolutely[, I still recommend Square as a long-term hold]. Square is not a value stock. Square is a growth stock. Yes, we will all miss [former CFO] Sarah Friar. She went to Nextdoor, where she’s doing a fantastic job, and she’s just monster good. But I think Square’s franchise is a terrific fintech franchise and I think they’ll do just fine and I think the customers really like Square and, full disclosure, [at my Mexican restaurant] Bar San Miguel, we use it. We use Caviar. We like it. What can I say?”

Alibaba Group Holding Ltd.: “I am not a recommender of any Chinese stocks. That said, if you had to own one, it would be Alibaba, which is an amazing company. I worry about the trade talks. A breakdown will cause a breakdown in Alibaba’s stock.”

Disclosure: Cramer’s charitable trust owns shares of Citigroup.

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Source: Business News
Author:

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Tech execs tell Cramer behind closed doors they support Trump’s hardline trade policy on China

Technology executives are telling CNBC’s Jim Cramer that they’re willing to endure short-term pain from the U.S.-China trade war in favor of the long-term payoff.

Donald] Trump one bit,” the “Mad Money” host said Monday.

“What they said was ‘If we’re going to take on China, now’s the time to do it,'” he said. “They may not be fans of the president, but they’re on board with the trade war.”

Part of the reason could be tied to the pain points emerging in China’s economy, Cramer said. On Sunday, Chinese government data revealed that China’s overall December exports fell by 4.4 percent and imports sank by 7.6 percent year over year. The data also showed the largest trade surplus with the United States in more than a decade.

“This harsher-than-expected view … may be more realistic than you think” when it comes to how tech leaders feel about China’s unfair trade practices, Cramer said.

“I think it’s because the Chinese economy has never been more vulnerable than it is right now, and our economy has rarely been this strong,” he explained. “If we’re ever going to do anything about China, this is the perfect time. If we’re ever going to stop them from forcing our companies into dubious joint ventures that represent ridiculous technology transfers and often outright theft, this is the moment.”

And while no one in Silicon Valley wants to trigger a recession, “the consensus out there is that the Chinese may be forced to cave,” the “Mad Money” host said.

“They export more than $500 billion worth of goods to the United States [and] only import … less than $200 billion,” he noted. “China has a lot more to lose than we do. But beyond that, a lot of these executives believe that the Chinese economy is much, much, much weaker than we think.”

Cramer pointed to the various devices the Chinese government is using to keep its markets afloat, from one-year junk bonds to risky lending practices. If the United States and China part ways, China could go into a recession, he said; the United States “may not even notice.”

“The reality of the situation may be that China is teetering here, something that keeps coming up in behind-the-scenes discussions with anyone who examines the People’s Republic from a financial angle,” Cramer said. “The trade war is not about soybeans, people; it’s about balance sheets. And, believe it or not, our balance sheet is much, much, much, much better than theirs.”

And while trade talks between the two countries are allegedly still ongoing, Cramer doubted that something would get done before Trump’s next round of tariffs on China are instated in March.

“But, again, a surprising number of executives are willing to accept the pain, precisely because they know there can be real gain when the Chinese finally open their markets,” Cramer said. “See, it’s when, not if, because China’s economy is actually far weaker than people seem to realize. That’s why these execs want to press the bet, and you know what? I agree with them.”

Questions for Cramer?
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Source: Business News
Author:

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Cramer’s lightning round: The way to play Goldman’s downgrade of Starbucks

Starbucks Corp.: “I think that Starbucks got hit by a downgrade last week by Goldman [Sachs] and it was very chilling, and yet I think that [CEO] Kevin Johnson pretty much acquitted himself well. I think there’s probably $2 down and maybe $5 up [in terms of risk-reward]. Look, the stock was at $52, $53, so it’s hard to just come out with guns blazing and say, ‘Buy it here,’ but that’s my take.”

Dynavax Technologies Corp.: “Very controversial in terms of infectious disease. I’d love to have them on. I think the stock’s too low to sell, but I don’t have a catalyst.”

ArcelorMittal SA: “The only steel company I’m recommending is Nucor, NUE. I’m steadfast about that. I think, if you want to own a steel company, you own Nucor. [CEO] John Ferriola – good job there.”

Aimmune Therapeutics Inc.: “I think the stock’s too low. It’s part of the bear market in biotech, and yet I believe that their peanut allergy [medication] is going to be very, very big and a lot more people are impacted by that than people realize.”

Square Inc.: “Absolutely[, I still recommend Square as a long-term hold]. Square is not a value stock. Square is a growth stock. Yes, we will all miss [former CFO] Sarah Friar. She went to Nextdoor, where she’s doing a fantastic job, and she’s just monster good. But I think Square’s franchise is a terrific fintech franchise and I think they’ll do just fine and I think the customers really like Square and, full disclosure, [at my Mexican restaurant] Bar San Miguel, we use it. We use Caviar. We like it. What can I say?”

Alibaba Group Holding Ltd.: “I am not a recommender of any Chinese stocks. That said, if you had to own one, it would be Alibaba, which is an amazing company. I worry about the trade talks. A breakdown will cause a breakdown in Alibaba’s stock.”

Clearway Energy Inc.: “It’s been terrible. It’s been terrible for this kind of flotsam-and-jetsam solar and infrastructure play. That yields 9 percent. To me, when I see a yield like that, that is strictly a red flag, a challenge flag, and I’m going to have to challenge that one. I do not know if that company is doing as well … as once thought.”

PetIQ Inc.: “We’ve got to take advantage of the fact that Idexx Labs, which was at $256, is now down to $189. I like that a lot more.”

Disclosure: Cramer’s charitable trust owns shares of Goldman Sachs.

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

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Source: Business News
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