Author

admin

Browsing

Tesla CEO Elon Musk said Sunday that his involvement in the Trump administration could be hurting the automaker’s stock price.

Speaking at a town hall event in Wisconsin, Musk said his role with the so-called Department of Government Efficiency — which is pushing for widespread government job cuts — is creating backlash against his electric car company and hurting the stock.

“What they’re trying to do is put massive pressure on me, and Tesla I guess, to … stop doing this,” Musk said, according to Bloomberg News. “My Tesla stock and the stock of everyone who holds Tesla has gone, went roughly in half. I mean it’s a big deal.”

Elon Musk at a Cabinet meeting at the White House on March 24.Win McNamee / Getty Images

Shares of Tesla entered Monday already down more than 34% year to date, and the stock has been cut nearly in half from its peak in December. Shares were down an additional 6% in premarket trading Monday.

Tesla’s stock is trading at a little more than half of its highest level from December.

The drop for the stock could be a “buying opportunity” for the long term, said Musk, who was in Wisconsin ahead of a state supreme court election there. Musk has campaigned for the conservative candidate and spent more than $12 million on the race, in addition to giving $1 million each to two voters at Sunday’s rally for signing a petition against “activist judges.”

The slumping stock isn’t the only sign of public anger with Musk for his political work. Protesters demonstrated at Tesla dealerships over the weekend, and there have been reports of vandalism against vehicles and dealers across the country.

Musk’s role in politics is not limited to DOGE. He publicly campaigned with Trump in 2024 and has been a regular presence at the White House since the new administration took over in January. He also regularly comments on many different political topics on X, the social media company he owns.

The CEO’s rising political profile comes amid signs that Tesla’s core business is slowing. The automaker’s vehicle deliveries declined in 2024, and preliminary data has shown that sales are down again early this year, especially in Europe. In a note to clients Sunday, investment firm Stifel trimmed its price target on the stock and lowered its sales projections for Tesla.

Musk’s political dealings may not be the only reason for Tesla’s struggles. Other U.S. auto stocks have also labored in recent weeks, partly because of threats of higher tariffs on imported goods into the U.S. and retaliation from overseas trading partners, adding uncertainty to an industry whose supply chains are tightly woven among the U.S., Canada and Mexico.

This post appeared first on NBC NEWS

Restaurant chain Hooters of America filed for bankruptcy protection in Texas on Monday, seeking to address its $376 million debt by selling all of its company-owned restaurants to a franchise group backed by the company’s founders.

Hooters, like other casual dining restaurants, has struggled in recent years due to inflation, the high costs of labor and food and declining spending by cash-strapped American consumers. The company currently directly owns and operates 151 locations, with another 154 restaurants operated by franchisees, primarily in the United States.

The privately-owned company, which shares a private equity owner with recently-bankrupt TGI Fridays, intends to sell all corporate-owned locations to a buyer group comprised of two existing Hooters franchisees, who operate 30 high-performing Hooters locations in the U.S., mainly in Florida and Illinois.

Hooters did not disclose the purchase price of the transaction, which must be approved by a U.S. bankruptcy judge before it becomes final.

Founded in 1983, Hooters became famous for its chicken wings and its servers’ uniform of orange shorts and low-cut tank tops.

The buyer group is backed by some of Hooters’ original founders, and it pledged to take Hooters “back to its roots.”

“With over 30 years of hands-on experience across the Hooters ecosystem, we have a profound understanding of our customers and what it takes to not only meet, but consistently exceed their expectations,” said Neil Kiefer, a member of the buyer group and the current CEO of the original Hooters’ location in Clearwater, Florida.

Hooters said it expects to complete the deal and emerge from bankruptcy in three to four months. The company has lined up about $35 million in financing from its existing lender group to complete the bankruptcy transaction.

Casual dining restaurants have been hammered by rising costs in 2024, with well-known chains like TGI Fridays, Red Lobster, Bucca di Beppo, and Rubio’s Coastal Grill all filing for bankruptcy last year.

Restaurant prices have risen about 30% in the last 5 years, outpacing consumer prices overall, according to the Federal Reserve Bank of St. Louis.

This post appeared first on NBC NEWS

Meta’s head of artificial intelligence research announced Tuesday that she will be leaving the company. 

Joelle Pineau, the company’s vice president of AI research, announced her departure in a LinkedIn post, saying her last day at the social media company will be May 30. 

Her departure comes at a challenging time for Meta. CEO Mark Zuckerberg has made AI a top priority, investing billions of dollars in an effort to become the market leader ahead of rivals like OpenAI and Google.

Zuckerberg has said that it is his goal for Meta to build an AI assistant with more than 1 billion users and artificial general intelligence, which is a term used to describe computers that can think and take actions comparable to humans.

“As the world undergoes significant change, as the race for AI accelerates, and as Meta prepares for its next chapter, it is time to create space for others to pursue the work,” Pineau wrote. “I will be cheering from the sidelines, knowing that you have all the ingredients needed to build the best AI systems in the world, and to responsibly bring them into the lives of billions of people.”

Pineau was one of Meta’s top AI researchers and led the company’s fundamental AI research unit, or FAIR, since 2023. There, she oversaw the company’s cutting-edge computer science-related studies, some of which are eventually incorporated into the company’s core apps. 

She joined the company in 2017 to lead Meta’s Montreal AI research lab. Pineau is also a computer science professor at McGill University, where she is a co-director of its reasoning and learning lab.

Some of the projects Pineau helped oversee include Meta’s open-source Llama family of AI models and other technologies like the PyTorch software for AI developers.

Pineau’s departure announcement comes a few weeks ahead of Meta’s LlamaCon AI conference on April 29. There, the company is expected to detail its latest version of Llama. Meta Chief Product Officer Chris Cox, to whom Pineau reported to, said in March that Llama 4 will help power AI agents, the latest craze in generative AI. The company is also expected to announce a standalone app for its Meta AI chatbot, CNBC reported in February. 

“We thank Joelle for her leadership of FAIR,” a Meta spokesperson said in a statement. “She’s been an important voice for Open Source and helped push breakthroughs to advance our products and the science behind them.” 

Pineau did not reveal her next role but said she “will be taking some time to observe and to reflect, before jumping into a new adventure.”

This post appeared first on NBC NEWS

An American citizen has been detained in Belarus after being accused of attempting to sneak into the country on a cargo train by Belarusian authorities.

The 27-year-old unnamed American man was traveling in the empty carriage of a train from neighbouring Lithuania when he was found by custom officers at Maladzyechna train station, Belarus’ customs authority said in a statement on Monday.

The man, identified as a “border violator,” was promptly detained by customs officials before being handed over to the border service for further investigation, the statement said.

Earlier this year, the Trump administration secured the release of two US citizens who were being held prisoner in Belarus. One American, who was not named out of a request for his privacy, was among a group of three political prisoners freed in February, while Anastassia Nuhfer was released in January.

The state department has advised Americans not to travel to Belarus, citing the Belarusian authorities’ arbitrary enforcement of local laws and the risk of detention as key factors.

Belarusian President Alexander Lukashenko’s government has long been accused of a crackdown on dissidents and opposition detaining scores of them.

Europe’s longest-serving leader extended his 31-year rule in Belarus in January, with Lukashenko winning a presidential election that was widely denounced as a sham by his exiled opponents and Western countries.

Under the first Trump administration, the US had sought diplomatic rapprochement with Minsk. Those efforts were put aside after Lukashenka self-proclaimed electoral victory and massive crackdown on protesters and civil society in August 2020, which Trump administration officials condemned at the time.

This post appeared first on cnn.com

The Chinese military on Tuesday said it had begun conducting joint exercises involving its army, navy, air force, and rocket force to “close in on” Taiwan from “multiple directions,” according to a statement posted on the Eastern Theater Command’s official social media account.

The drills mainly focus on sea-air combat-readiness patrols, joint seizure of comprehensive superiority, assault on maritime and ground targets, and blockade on key areas and sea lanes so as to test joint operations capabilities of its troops, the post said.

“It is a stern warning and forceful deterrence against ‘Taiwan Independence’ separatist forces, and it is a legitimate and necessary action to safeguard China’s sovereignty and national unity,” the People’s Liberation Army said in the statement.

China claims the self-governing democracy of Taiwan as its own and has vowed to take control of the island, by force if necessary.

Its military in recent years has ramped up regular patrols as well as military exercises in the air and waters around the island.

This is a developing story and will be updated.

This post appeared first on cnn.com

Israel has launched a strike on Beirut for the second time in days, further testing the shaky ceasefire with Hezbollah struck four months ago.

Lebanon’s Health Ministry said three people were killed, including a woman, and seven injured in the strike early Tuesday, which Israel said had targeted a Hezbollah militant.

Two missiles hit the top three floors of a building in the southern suburbs of Beirut, Lebanon’s national news agency NNA reported. Witnesses told Reuters that no evacuation warning was issued ahead of the strike and that families who lived there have now fled to other parts of the city.

Israel’s military said in a statement the militant had allegedly “recently directed Hamas operatives and assisted them in planning a significant and imminent terror attack against Israeli civilians.”

Lebanon’s President Joseph Aoun condemned the attack. “Israel’s persistence in its aggression requires us to exert more effort to address Lebanon’s friends around the world and rally them in support of our right to full sovereignty over our land,” he said.

The US State Department said on Tuesday that Israel was defending itself from rocket attacks that came from Lebanon and that Washington blamed “terrorists” for the resumption of hostilities, Reuters reported.

“Hostilities have resumed because terrorists launched rockets into Israel from Lebanon,” a State Department spokesperson said in an email to Reuters, adding Washington supported Israel’s response.

The attack comes just days after Israel launched its first strike on the Lebanese capital since a ceasefire with Hezbollah came into effect in November. Israel accused Hezbollah of launching two rocket attacks from southern Lebanon that crossed Israel’s border, a claim the Iran-backed group denied.

“We will not allow firing on our communities, not even a drizzle … We will attack everywhere in Lebanon against any threat to the state of Israel, and we will ensure that all our residents in the north return to their homes safely,” said Prime Minister Benjamin Netanyahu on Friday.

The Lebanese army called Friday’s strike on the southern Dahieh neighborhood “a blatant and repeated violation of Lebanon’s sovereignty and the security of its citizens, a challenge to international law, and a flagrant breach of the ceasefire agreement.”

The US-brokered ceasefire agreement brought about a significant reduction in violence following more than a year of cross-border strikes and months of a full-scale war.

However, Israel has continued to conducted dozens of strikes – mostly in southern Lebanon – on what it calls Hezbollah targets, and maintains a military presence at multiple locations in southern Lebanon, despite having agreed to withdraw as part of the deal.

This post appeared first on cnn.com

A colossal fire erupted Tuesday in a Malaysian suburb outside Kuala Lumpur due to a burst gas pipeline, prompting evacuations of nearby homes.

The towering inferno near a gas station in Putra Heights in central Selangor state was visible for miles. National oil company Petronas said in a statement that the fire broke out at one of its gas pipeline at 8:10 a.m.

It said in a brief statement that the affected pipeline has been isolated. Three gas stations nearby the fire site were not affected but have been temporarily closed as a precautionary measure, Petronas said, adding that investigations are still underway.

The Selangor Disaster Management unit said in a statment that the blaze spread to several houses in a nearby village, and efforts were efforts being made to rescue trapped residents. It added that several people suffered burns and will be taken for treatment, but the extent of the full damage is being assessed, and said that the valve to the pipeline has been shut, and that will eventually snuff out the fire.

The Star English newspaper said that fire and rescue teams had rescued seven victims, including two elderly individuals. No casualties have been reported so far.

Dozens of Selangor firefighters have been dispatched to the scene. Selangor Chief Minister Amirudin Shari said the fire department has quickly evacuated residents from nearby homes as a safety measure. He said they will be temporarily placed in a mosque nearby until the situation is under control.

Pictures and videos of the fireball went viral on social media, with some residents saying they felt the doors and windows of their homes shaking believed to be due to the fire explosion earlier.

This post appeared first on cnn.com

Embattled South Korean superstar Kim Soo Hyun has personally addressed a growing scandal about the nature of his relationship with late actress Kim Sae-ron for the first time, in a closely watched saga that has roiled the country’s entertainment industry.

Speaking at a press conference Monday, a tearful Kim Soo Hyun, 37, said accusations made by a YouTube channel in March that he had entered into a relationship with his fellow performer when she was still a minor were untrue. He has repeatedly denied the allegations.

“I did not date her when she was a minor,” Kim said at the emotional news conference, where he declined to take questions. “Apart from the fact that we were both actors, we were just an ordinary couple like anyone else. We had feelings for each other, and as time passed, we eventually parted ways. After that, we rarely kept in touch.”

Kim Sae-ron was found dead at home in February at 24 years old, nearly two years after she retreated from public view following a drunk-driving conviction that prompted heavy public backlash and reputational damage.

The allegations made by the YouTube channel, known for covering political news, started an online firestorm against Kim Soo Hyun despite his denials. His talent agency previously said that while the two actors had been in a relationship, it took place when both were adults, according to the Chosun Ilbo, one of South Korea’s newspapers of record.

The fallout for the actor has been swift, with luxury fashion house Prada and popular Korean cosmetics brand Dinto both ending their collaborations with Kim Soo Hyun in the weeks after the scandal broke. A star at home and across Asia, Kim Soo Hyun is best known for the award-winning series “It’s Okay to Not be Okay” and “My Love from the Star.”

On Monday, he also apologized for staying quiet for the first few days after the allegations emerged last month, saying he was worried about the consequences for his recently aired Netflix series “Queen of Tears.”

“If you want to criticize me for being cowardly or selfish, I will accept that,” he said.

Kim Sae-ron was a prolific actor who shot to stardom as a child, but her career stalled after she crashed her car in the South Korean capital in 2022. In April 2023, a Seoul court found her guilty of driving under the influence. She avoided jail but was fined about $14,000.

Kim Soo Hyun also claimed that many text messages that had been distributed online, purportedly between him and Kim Sae-ron, were false.

This post appeared first on cnn.com

Financials take the lead.

No changes in the composition of the top 5 this week, and only one change of position within the top 5.

Financials (XLF) leapfrogged to the number one position, sending Communication Services (XLC) to the #3 position. Energy (XLE) remains #2 while Utilities (XLU) and Healthcare (XLV) remain in positions #4 and #5.

Let’s examine the details and see what the Relative Rotation Graphs tell us about the current market dynamics.

Sector Lineup

  1. (3) Financials – (XLF)*
  2. (2) Energy – (XLE)
  3. (1) Communication Services – (XLC)*
  4. (4) Utilities – (XLU)
  5. (5) Healthcare – (XLV)
  6. (6) Industrials – (XLI)
  7. (7) Consumer Staples – (XLP)
  8. (8) Real-Estate – (XLRE)
  9. (9) Consumer Discretionary – (XLY)
  10. (10) Materials – (XLB)
  11. (11) Technology – (XLK)

Weekly RRG: A Tale of Three Leaders

The weekly Relative Rotation Graph now shows three sectors firmly planted inside the leading quadrant.

XLF has rotated back into leadership after a brief sojourn, while Communication Services (XLC) maintains its strong position. Energy (XLE) is the latest entrant, crossing over into leading with a positive RRG heading—a trajectory that bodes well for continued outperformance.

Utilities (XLU) and Health Care (XLV)—our fourth and fifth-ranked sectors—currently reside in the improving quadrant. However, their strong RRG headings suggest they’ll likely leap into leading territory in the coming weeks. It’s worth noting that Health Care is flexing its muscles with the highest RS momentum value among all 11 sectors.

On the flip side, we’re seeing only two sectors with negative RRG headings—the same culprits as last week. Technology (XLK) is pushing further into the lagging quadrant, while Consumer Discretionary (XLY) is rapidly approaching a crossover from weakening to lagging. This persistent weakness in these typically high-flying sectors is something to keep an eye on as it coincides with general market weakness.

Daily RRG: Short-Term Shifts

Zooming in on the daily RRG, we get a more nuanced picture of short-term rotations. Financials are holding steady in the leading quadrant with a neutral heading—there has been little movement over the past week.

Energy, which boasts the highest RS ratio, is losing some momentum. However, given its elevated RS ratio, this is likely just a temporary setback.

Utilities and Health Care are showing some interesting moves on the daily chart. XLU is currently in the weakening quadrant with a negative heading, but XLV is starting to curl back up—a positive sign that aligns with its weekly chart momentum.

XLC’s daily tail is painting an intriguing picture. It’s barely inside the lagging quadrant, but its positive heading pointing towards leading suggests it may soon start supporting the positive direction we see on the weekly chart.

In the bottom half of the rankings, we see some weekly weakness confirmations. Technology is rolling over in the improving quadrant, while sectors like industrials and materials are rotating from leading to weakening, all of which aligns with their lower positions in the portfolio ranking.

Financials (XLF)

XLF has bounced off support around 47, but the price chart still looks precarious.

The relative strength picture, however, is much more encouraging. We’re seeing a clear uptrend in the raw RS line, which is pulling both RRG lines higher. Keep an eye on that 47 level as key price support.

Energy (XLE)

Energy is currently trading in a range between roughly 84-85 and 98.

The real action is in the relative strength- we’re seeing a breakout from a falling channel, which is now pulling both RRG lines above 100.

This is what’s driving XLE’s move into the leading quadrant.

Communication Services (XLC)

XLC is holding above support around 94, but only just.

A break below 93-94 could trigger more downside.

Relative strength still looks good, but the raw RS line is at the top of its rising trend channel. The high RS ratio reading gives some wiggle room, but it’s a situation to monitor closely.

Utilities (XLU)

Utilities remain stuck in a trading range, which is keeping its raw RS line range-bound as well.

It’s strong enough to keep the RRG lines rising, but we’ll need to see a relative strength breakout to push XLU into the leading quadrant.

Health Care (XLV)

Health Care is bumping up against resistance near 150 and remains range-bound.

A potential head-and-shoulders pattern is forming, but support is still a ways off around 135.

Relative strength is pushing against resistance, and with both RRG lines rising, XLV looks poised to cross into the leading quadrant soon.

Portfolio Performance Update

After last week’s hiccup, the RRG portfolio has not only erased its underperformance but actually flipped to outperformance.

As of last week, the portfolio stands at -4.86% YTD, compared to the S&P 500’s -4.96%. That’s a reversal from a 1.4% underperformance to a 10 basis point outperformance — not too shabby for a week’s work.

The market is sending plenty of mixed signals, but the sector rotation story is becoming clearer. Financials are stepping up, Energy is making moves, and the traditionally defensive sectors are showing strength. Meanwhile, Tech and Consumer Discretionary continue to lag—a trend that could have significant implications if it persists.

These rotations can shift quickly, so stay nimble and keep your eyes on the charts. The market never sleeps, and neither should your analysis.

#StayAlert –Julius


It was an ugly close to another roller-coaster trading week as the stock market struggled with several moving parts. Wednesday’s Evening Doji Star in the S&P 500 ($SPX) showed its power. The trading week didn’t end on a pretty note. 

The S&P 500, Nasdaq Composite ($COMPQ), and Dow Jones Industrial Average ($INDU) all closed lower and are trading below their 200-day simple moving average (SMA). And the selloff is across the board. It’s not concentrated in the heavily weighted stocks. 

The headwinds: Auto tariffs, declining consumer confidence, and hotter-than-expected PCE data. These have raised investor fear once again. The Cboe Volatility Index ($VIX) spiked higher on Friday, closing at 21.65.

From a sector perspective, Utilities was the only S&P sector that closed in the green on Friday, which reiterates defensive investor sentiment. This could continue for as long as investors worry about inflation and weakening U.S. economic growth. In addition to defensive sectors, other areas of the market show some bullish strength. 

What Are Investors Eyeing? 

Bond prices are rising. The daily chart of the iShares 20+ Year Treasury Bond ETF (TLT) is trading above its 50- and 100-day SMA. A break above the 200-day SMA would set a positive tone for bond prices although if past price action is of any value, TLT didn’t have much success the last couple of times it crossed above the 200-day. It could be different this time.

FIGURE 1. BOND PRICES SHOW SIGNS OF LIFE. Bond prices are now starting to rise. Will we see an RSI above 70 when TLT crosses above its 200-day simple moving average? Chart source: StockCharts.com. For educational purposes.

The relative strength index (RSI) in the lower panel is above 50. The last couple of times TLT crossed above its 200-day SMA, RSI failed to cross above 70, indicating a lack of momentum. However, if TLT crosses above its 200-day SMA and coincides with an RSI cross above 70, that could be an alert for a gain in momentum. 

Bonds were starting to trend higher after hitting their January lows but that uptrend consolidated from early March. There needs to be an upside follow-through for an uptrend to resume in bonds. There’s still time for it to play out but keep your eyes on this chart for the next few weeks.

Gold and silver prices have also been on a tear. Gold hit an all-time high on Friday while silver pulled back on Friday after Thursday’s price spike. Overall, the uptrend is still intact in both metals.

If you’re a regular reader of our ChartWatchers Newsletter, you’ll recognize the chart below which looks at the performance of various asset classes.  

FIGURE 2. PERFCHART OF DIFFERENT MARKETS. Gold and silver have outperformed most other asset groups. Chart source: StockCharts.com. For educational purposes.

Note how gold and silver prices are outperforming equities.  

Last but not least, let’s analyze the performance of the automobile sector, the most impacted industry group this week. Automobile stocks continue to slide. The daily chart of the Dow Jones US Automobiles Index ($DJUSAU) below displays a clear picture of the state of the industry. 

FIGURE 3. THE AUTOMOBILE INDUSTRY. Things aren’t looking great for the automobile industry. After attempting to cross above the 200-day SMA, the Dow Jones Automobiles Index fell and is trending lower. Chart source: StockCharts.com. For educational purposes.

After a healthy run in the second half of 2024, the industry has been in a steep decline, with any attempts of a rally being short-lived. On March 25, $DJUSAU crossed above its 200-day SMA but failed to hold above it. There’ll be more tariff news between now and April 2. So be prepared for more volatility in the automobile industry.  

The Bottom Line

Q1 has been pretty dismal, mainly due to tariff policies. There’s more to come. With “Liberation Day” approaching, expect more volatility in the stock market. There’s also the March jobs report on Friday. Equity futures are trading lower ahead of Monday’s open. 

We’ll end with a chart that every investor should be monitoring closely as we get through the next few months—a three-year weekly chart of the S&P 500. Feel free to save this to your ChartLists.

FIGURE 4. WEEKLY CHART OF THE S&P 500 INDEX. The index attempted to move beyond its July and August highs but didn’t succeed. With more tariff news on the horizon, will the S&P 500 succeed or will it move toward its March highs? Chart source: StockCharts.com. For educational purposes.


Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.