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U.S. new vehicles sales softened in January, the Commerce Department said Friday.
January sales of lightweight trucks and autos fell 6.8% to 15.0 million annual rate.
That followed a revised 6.8% gain to a 16.1 million unit rate in December.
The drop was larger than expected. Economists surveyed by Econoday expected a slight slowdown to a 15.7 million rate in January.
A separate measure by Autodata Corp. estimated that auto and truck sales fell 6.6% to a 15.1 million rate in January.
Lydia Boussour, senior economist at EY, said that cold weather in January might have been a factor in the surprise decline. She said she didn’t think the slowdown would persist.
The data showed that consumer spending started the year at a slower pace than the solid 2.8% rate in the fourth quarter.
Will Compernolle, economist at FHN Financial, said the January level was at the lower end of monthly sales over the past year, which have been in a range of 14.8 million units to 15.9 million.
“I wouldn’t take it as a red flag that consumer spending has necessarily reached a meaningful inflation point just yet,” Compernolle said.
He added that the retail sales data on Feb. 15 may offer a better look at how consumer spending started the year.
Michael Pearce, U.S. economist at Oxford Economics, said consumer spending is on track for a 2.5% rate in the first quarter.
Pearce said he expected rate cuts from the Federal Reserve later this year will help auto sales reach a 16 million rate, up from 15.6 million in 2023.
Ford (F) reported a strong start to the year in the US, with sales jumping in January and even topping those of Toyota (TM), last year’s sales king. However, electric vehicle sales suffered a setback.
Ford reported January US sales climbed 4.3% to 152,617 vehicles, with the automaker’s US market share hitting 13.7%, up 0.3% from a year ago. Toyota reported that US sales rose 23.3%, but it sold only 143,241 vehicles in January. Toyota has been hit by chip shortages and inventory issues since 2023 and is still working to build up supply.

As for Ford, the company said results were driven by record sales of its Maverick compact pickup (12,443 units) and trucks and vans overall, which hit over 80,000 vehicles. Ford estimated it sold 15,000 more trucks and vans than its next biggest rival, General Motors (GM). (GM does not release monthly sales data, however.)
Ford’s hybrid sales once again charged higher, with overall hybrid sales up 42.7% compared to a year ago to 11,157 units.
The good news with hybrid sales, however, comes as EV sales suffered in January, with all-electric sales down 10.9% year over year to 4,674 units. The loss of federal EV tax credits for the Mustang Mach-E, colder weather, concerns over range, and higher interest rates likely hurt EV sales to start the year.
Ford has had to revamp its EV gameplan, pushing out investments in the space and cutting production for models like the Lightning EV pickup.
Ford CEO Jim Farley discussed concerns over the EV landscape earlier with Yahoo Finance in mid-January, suggesting that price was key to the demand equation.
“So our EV [sales] are growing, but the prices have to come down, and what that really is telling us is that it’s mainstream customers. They’re not willing to pay the same premiums as early adopters,” Farley said.
Farley was bullish on hybrid sales, however, stating Ford was No. 2 in hybrid sales in the US behind only Toyota, by offering truck options like the F-150 with gas, hybrid, or EV powertrains.

Investors will be looking for more color on what’s next for EVs and the company’s 2024 outlook when Ford reports results after the bell next Tuesday. Farley believes the upcoming year will be a big one for the Dearborn, Mich.-based automaker.
“I’ve been leading the company for three years, and 2024 is the first year I can say we really have a chance to have a breakout year for a lot of reasons,” Farley said. “We’re past our labor issues and negotiation in the US, but most importantly, we’re launching like six new products, and we already have a fresh new lineup of Broncos and Mavericks.”
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.
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Beazer Homes USA Inc. said late Thursday that a cybersecurity “incident” delayed closings of some of its new homes at the end of last year.
Beazer Homes’ stock
BZH,
dropped more than 4% in the extended session Thursday after the builder reported fiscal first-quarter revenue of $387 million, which compares with revenue of $445 million in the year-ago quarter.
Analysts polled by FactSet expected revenue of $421 million for the period. The drop in total revenue included a 14% year-over-year decline in homebuilding revenue.
Beazer earned $21.7 million, or 70 cents a share, in the quarter, compared with $24.3 million, or 80 cents a share, in the fiscal first quarter of 2023. FactSet consensus called for EPS of 71 cents a share for the quarter.
Beazer said net new orders grew “significantly” as compared with the previous year. “With a large backlog, improving cycle times and community count growth, we’re on track to meet our growth and profitability goals for the fiscal year,” the company said.
The company did not provide details about the cybersecurity issue except to say that it happened at the end of December and affected one of its title-insurer providers.
“Although the delayed closings led to slightly lower revenue and earnings in the quarter, I’m pleased to report that these delayed closings were all completed during the first two weeks of January and that the title-insurance provider has returned to normal operations,” Chief Executive Allan P. Merrill said in a statement.
Shares of Beazer Homes have soared 95% in the past 12 months, compared with an advance of around 20% for the S&P 500 index
SPX.
Group 1 Automotive cutting 10% of U.K. jobs on losses in its used-car sales
Group 1 Automotive Inc. said Wednesday it will reduce its U.K. workforce by 10% or roughly 358 people as the latest company to cut jobs to reduce costs in the face of an uncertain economy.
Group 1 also warned it expects losses on used-vehicle wholesale sales in the U.K. to continue into the current quarter, which ended March 31.
The Houston-based auto dealership and collision-repair company also fell short of analyst estimates for fourth-quarter profit as costs rose, but it posted a slight beat on revenue.
Group 1’s stock
GPI,
rose 2% to $282.29 on Tuesday. It was not trading in the premarket on Wednesday. The stock has fallen by 7.4% so far in 2024, compared to a 3.3% rise by the S&P 500
SPX.
While Group 1’s U.S. operations have executed well in an “evolving” market, its U.K. unit experienced challenges with used vehicles, said Chief Executive Daryl Kenningham.
Group 1 said it recognizes that “we have some work ahead of us to bring our costs back in-line with recent trends.”
Based on 3,487 U.K. jobs disclosed in its annual report, Group 1
GPI,
will reduce its head count by about 348 people out of a total companywide head count of 15,491 employees. Out of that total, the auto dealer and collision repair specialist employs 12,004 workers in the U.S.
A company spokesperson did not immediately reply to a query on an exact head-count-reduction figure.
The company’s fourth-quarter profit fell by 30.3% to $106.2 million, or $7.87 a share, from $152.4 million, or $10.76 a share, in the year-ago quarter.
Adjusted earnings in the latest quarter were $9.50 a share, below the FactSet consensus estimate of $10.44 a share.
Revenue rose 10% to $4.48 billion, ahead of the analyst estimate of $4.41 a share.
While new-vehicle units rose by 14.8%, margins fell due to higher selling, general and administrative expenses (SG&A).
SG&A as a percentage of gross profit increased 7.5% in the U.K., driven by higher expenses and lower margins on both used and new cars, the company said.
“Our U.K. operations began a rebalancing of our used vehicle inventory in response to market changes, which generated losses on used vehicle wholesale sales in the current quarter, which are expected to continue into the quarterly period ended March 31,” the company said.
Netflix’s stock jumps 8% on huge spike in new subscribers, surge in ad sales
Netflix Inc.’s stock popped nearly 9% after hours Tuesday following its quarterly results, which showed a splurge in ad-fueled sales and a healthy increase in new subscribers.
The video-streaming behemoth
NFLX,
reported fourth-quarter earnings of $938 million, or $2.21 per share, compared with $55 million, or 12 cents per share, in the same quarter a year earlier. Sales improved 12.5% to $8.83 billion from $7.85 billion in the year-ago quarter.
Highlighting the three-month period was a huge hike in net subscriber additions, a whopping — and record — 13 million. Analysts were forecasting an increase of 8.7 million.
“Our healthy top-line growth reflects the benefits of paid sharing, our recent price changes and the strength of our underlying business driven by a strong slate,” Netflix executives said in a letter to shareholders announcing the results.
Netflix vowed to forge ahead in a fast-changing industry roiled by escalating content costs and internal austerity programs. On Tuesday, it inked a 10-year, $5 billion deal to stream the World Wrestling Entertainment Inc.’s
TKO,
flagship “Raw” program on Mondays, starting in 2025.
Read more: WWE’s ‘Raw’ to run exclusively on Netflix for 10 years
During its first livestreamed call Tuesday with questions from analysts, Netflix co-chief executive Ted Sarandos said the WWE deal “fits inside” its annual content budget of $17 billion. He said it does not signal a change into other forms of live programming for major sports leagues.
“As our competitors adjust to these changes, it’s logical to expect further consolidation, particularly among companies with large and declining linear networks,” the letter added. “We’re not interested in acquiring linear assets. Nor do we believe that further M&A among traditional entertainment companies will materially change the competitive environment given all the consolidation that has already happened over the last decade.”
Analysts tracked by FactSet projected Netflix to report $2.22 a share in adjusted earnings on $8.72 billion in revenue.
Shares of Netflix have climbed 35% over the past 12 months. The S&P 500
SPX
is up 21% over the same period.
Netflix offered robust fiscal first-quarter revenue guidance of $9.24 billion, vs. a $9.27 billion forecast by FactSet.
“These results offer a proof point that you can spend less on content and still attract and retain subscribers,” Scott Purdy, U.S. national media leader for KPMG, said in an email message on Tuesday. “Today’s results show going back to the basics — ads and bundling — will be the blueprint other streaming companies follow to turn a profit.”
In the weeks leading up to Tuesday’s report, analysts had been predicting big numbers for Netflix’s new advertising-supported tier.
Its pace of growth “suggests plenty of room for [subscription] growth in 2024,” Oppenheimer analyst Jason Helfstein said in a Jan. 12 note, while raising his price target on Netflix shares to $600. Helfstein also raised his fourth-quarter estimates for net additions to more than 10 million from 9 million, and for 2024 additions to more than 24 million from 21 million-plus.
Read more: Netflix’s ad model and sharing crackdown are paying dividends
Johnson & Johnson’s earnings beat estimates with boost from medical-technology sales
Johnson & Johnson posted stronger-than-expected earnings for the fourth quarter early Tuesday and offered guidance that topped consensus estimates, but the news failed to prop up the stock, which fell 1.9%.
The company
JNJ,
which spun off its consumer-health operations into the separately listed Kenvue Inc.
KVUE,
last year to focus on innovative medicines and medical technology, posted net earnings of $4.132 billion, or $1.70 a share, for the fourth quarter, up from $3.227 billion, or $1.22 a share, in the year-earlier period.
Adjusted per-share earnings came to $2.29, just ahead of the $2.28 FactSet consensus.
Sales rose to $21.395 billion from $19.939 billion a year ago, also ahead of the $21.022 billion FactSet consensus.
By segment, sales at the company’s innovative-medicine business, which includes its COVID-19 vaccines, rose 4.8% to $13.722 billion, while sales at the medical-technology segment rose 13.3% to $7.673 billion.
Growth in innovative medicine was driven by cancer drugs Darzalex and Carvykti as well as psoriasis treatment Stelara, which was one of the 10 drugs selected in late August for the first round of Medicare drug-price negotiations under the Inflation Reduction Act.
That was partially offset by weakness in cancer drugs Zytiga and Imbruvica and immunology treatment Remicade.
In the medical-technology segment, growth was driven by electrophysiology products in interventional solutions, contact lenses in vision, wound-closure products in general surgery, and biosurgery in advanced surgery. The acquisition of Abiomed in 2022 contributed 4.7% of that segment’s growth.
Abiomed makes medical technology that supports circulation and oxygenation. It was acquired by Johnson & Johnson in a deal valued at $16.6 billion.
Johnson & Johnson said it’s now expecting 2024 adjusted earnings per share of $10.55 to $10.75 and sales of $87.8 billion to $88.6 billion. The FactSet consensus is for EPS of $10.68 and sales of $87.9 billion.
Separately, Chief Financial Officer Joseph Wolk told the Wall Street Journal that the company has tentatively agreed to pay about $700 million to settle a probe brought by more than 40 states into the marketing of talcum-based baby powder, which has been the subject of lawsuits by plaintiffs who claim that the powder caused cancer.
The agreement in principle with attorney general offices in most U.S. states is an “important step” for the New Brunswick, N.J.-based company as it tries to “reasonably put the matter behind us,” Wolk told the paper.
That settlement would address only a portion of the litigation, which involves more than 52,000 plaintiffs. Last year, Johnson & Johnson sought to settle the suits by paying at least $8.9 billion in a bankruptcy plan that would be filed by a subsidiary. The plan was rejected by a bankruptcy judge.
The stock has fallen 5% in the last 12 months, while the S&P 500
SPX,
has gained 20.7% in the same period.
The world’s biggest diamond producer reportedly slashed prices at its first sale of the year, in a bid to stimulate a flagging market.
DeBeers, majority owned by Anglo American
AAL,
reduced prices by 10% at its first sale of diamonds, Bloomberg reported on Tuesday, citing sources. Some of its larger stones saw cuts of 25%.
A global economic downturn, increasing popularity of lab-grown diamonds and fewer marriages and engagements following the pandemic have weighed on demand for the gems in recent years.
DeBeers announced in December that it expected to sell two-thirds fewer diamonds in the final sales cycles of 2023 than in the same period last year, aimed at reducing a market glut.
It and other gemstone sellers divide the year into a series of five-week sales cycles that correspond to amounts of time it takes for manufacturers to cut and polish the rough diamonds they purchase. DeBeers had previously started limiting its sales in its eighth sales cycle last year as demand fell throughout 2023.
De Beers last year tried to spur some demand by resurfacing a newer version of its classic “A Diamond is Forever” advertising campaign in the U.S. and China.
MarketWatch has reached out to DeBeers for comment.
What’s next for stocks as ‘tired’ market stalls in 2024 ahead of retail sales
U.S. stocks are struggling to advance early in 2024, as investors digest the start of company earnings reports kicked off by Wall Street banks and eye inflation ahead of a closely watched retail-sales report.
“The stock and bond markets are marking time,” said Yardeni Research in a Jan. 11 note. “They might continue to do so during the first half of this year,” the firm wrote, but “the stock market should resume its advance during the second half.”
The S&P 500 index has been trading near its all-time closing peak reached more than two years ago, briefly rising above it on Thursday as it flirted with a fresh record close, but the index ended the session with a slight decline, and its gains last week left it barely in the green for January.
The two other major U.S. stock indexes, the Dow Jones Industrial Average
and Nasdaq Composite
,
ended Friday with modest declines to date in 2024 despite weekly gains. Investors are now looking ahead to a report on U.S. retail sales in December, due out on Wednesday, for a window into the strength of consumers to keep fueling the economy.
“We know the consumer, largely because of the job market, has held our economy up reasonably well,” said Bob Doll, chief investment officer at Crossmark Global Investments, in a phone interview. “The question will be, are they still able to spend money?”
Doll said he expects consumer spending in December probably slowed a bit from November, as people no longer have the same pile of excessive savings they built up during the pandemic.
He forecasts the S&P 500 may end 2024 at 4,350, which is down 9% from its closing level Friday, saying he expects companies’ earnings growth to be lower than current consensus estimates.
The S&P 500
edged up on Friday to close at 4,783.83 — its highest level since Jan. 4, 2022, and 0.3% below its record close of 4,796.56 on Jan. 3, 2022, according to Dow Jones Market Data.
“I think it’s fully valued,” said Doll. The index’s current price-to-earnings ratio, at 20, is “probably not sustainable.”
As for the start of earnings season, shares of JPMorgan Chase & Co.
JPM,
Bank of America Corp.
BAC
and Wells Fargo & Co.
WFC
all ended down on Friday after reporting their fourth-quarter results.
Goldman Sachs Group Inc.
GS
and Morgan Stanley
MS
are set to release their quarterly earnings on Tuesday, following the federal holiday honoring the civil-rights leader Martin Luther King Jr.
Meanwhile, UnitedHealth Group Inc.
UNH
was the worst-performing stock in the Dow Jones Industrial Average on Friday after reporting its fourth-quarter earnings, FactSet data show.
‘A big ask’
“The market is looking for a trifecta,” including the U.S. avoiding “even a mild recession,” the Federal Reserve making around six interest-rate cuts by the end of December, and inflation falling sooner to the Fed’s 2% target than expected, said Sandi Bragar, chief client officer at Aspiriant, in a phone interview.
“Those are three pretty lofty things,” she said. “[Betting on] all three of those things happening is a big ask.”
Investors last week saw two readings on inflation in December, covering both consumer and wholesale prices. The consumer-price index on Thursday showed a slightly bigger rise than Wall Street anticipated and accelerated to a year-over-year rate of 3.4%, while a Friday report on wholesale inflation measured by the producer-price index was softer than anticipated.
The consumer-price-index reading was “hotter” than forecast, “but underneath the surface it shows that the Fed is very close to achieving” its 2% inflation target, according to a DataTrek Research note emailed Thursday. The federal-funds-futures market took the inflation data “as a sign that the Fed will be more, not less, likely to cut rates this year,” said DataTrek co-founder Nicholas Colas, in the note.
But Crossmark’s Doll worries “inflation may not fall as fast as people” are hoping. It’s probably “a little more on the sticky side than the market thinks,” he said.
Meanwhile, the U.S. unemployment rate has remained historically low, even amid the Fed’s effort to slow the economy and bring down inflation through restrictively high rates.
Against the backdrop of a resilient labor market, real wage growth has “provided a boost to consumers’ pocketbooks,” helped in part by a decline in gasoline prices, said David Doyle, head of economics at Macquarie Group, said in a phone interview.
But he worries the U.S. may see an “undesirable rise” in the unemployment rate this year, potentially nearing 5%, up from 3.7% in December. “Our base case is that you have a year of flat real GDP growth” in 2024, said Doyle, but “certainly a softer economic-growth environment.”
Doyle said such a rise in the unemployment rate would justify a significant portion of the 225 basis points in rate cuts he expects in 2024, beginning in June. That implies nine quarter-point rate cuts.
The fed-funds-futures market is anticipating the Fed may start reducing rates as soon as March, possibly by as much as 175 basis points through December, from its current target range of 5.25% to 5.5%, according to the CME FedWatch Tool on Friday.
‘Not leaning into them’
As for portfolio positioning, Bragar said Aspiriant favors a split in equity portfolios between opportunistic and defensive bets while underweighting the seven megacap tech stocks that carried the S&P 500 to its huge gains last year.
“We have them in the portfolio, but we are not leaning into them,” she said.
The so-called Magnificent Seven stocks, with their outsized weighting in the S&P 500, are “quite expensive,” although most other equites in the index are “fairly priced,” Neuberger Berman’s senior investment strategist, Raheel Siddiqui, said by phone.
Big Tech’s massive surge propelled a 24.2% rise by the S&P 500 in 2023.
Now, “the market is tired,” said Doll. “It ran so hard off that October low, it’s just taking a pause and a breather and hoping that fundamentals can catch up to the higher prices.”
The U.S. stock market will be closed on Monday for the Martin Luther King holiday, even as Iowa Republicans convene for the caucuses that kick off the presidential primary season.
Read on: A weekend of ferocious winter weather could see low-temperature records set in the U.S. heartland
Elon Musk, Tesla No Longer Top Dog In EV Sales (Warren Buffett Says Hello)

Elon Musk has grown Tesla Inc. into one of the world’s most recognizable brands — and not just in the automotive space. But while Tesla has been the top dog in the U.S. electric vehicle (EV) market, BYD Auto Co. Ltd., a publicly listed Chinese multinational manufacturing company, has been making noise overseas.
Chinese automaker BYD — a company that Warren Buffett’s Berkshire Hathaway Inc. owns about 6% of — beat out Tesla to become the leader in global electric car sales in the fourth quarter of 2023.
Tesla and BYD were both startups. Investing in the hot startups of today could make you a very wealthy person in the future. Here are some of the top offerings of 2024.
Don’t Miss:
Tesla Vs. BYD: What Happened?
The fourth quarter of 2023 saw BYD surpass Tesla in global EV sales, delivering 526,409 cars compared to Tesla’s 484,507.
Despite Tesla’s higher annual sales of 1.8 million vehicles against BYD’s 1.57 million, this quarterly achievement signals a potential shift in the EV market. That’s especially true if BYD someday finds itself making a dent in the U.S. market.
While these two EV giants continue their battle for dominance, U.S. manufacturer Rivian Automotive Inc. continues to struggle. The company reported a 10% decrease in deliveries from the previous quarter, totaling 13,972 EVs, which fell short of expectations.
The Year Ahead
There’s sure to be a battle between Tesla and BYD in 2024 and beyond. However, these companies don’t control their own fate. There are other factors at play, such as changes in U.S. tax credit eligibility that have already affected popular EV models including the Tesla Cybertruck All-Wheel Drive and some Tesla Model 3s.
Keep a close eye on demand for EVs in 2024, as a loss of momentum could impact sales across Tesla, BYD, Rivian and other manufacturers.
Read Next:
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