California Reaches $321 Billion Budget Deal Boosting Hollywood
California Governor Gavin Newsom and state lawmakers struck a budget agreement that provides $750 million in tax credits for Hollywood while scaling back free health care for undocumented immigrants.
The $321 billion spending plan for the fiscal year that begins July 1, marks Newsom's third consecutive year facing a deficit, forcing trade-offs between the progressive policies he has championed and pro-business priorities. The agreement avoids higher levies on corporations and includes tax incentives for the film industry as well as cuts to some social programs.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
32 minutes ago
- Yahoo
Nike Stock (NKE) Hits 6-Year Low as Market Braces for Q4 Earnings
Things aren't looking great for Nike (NKE) shareholders. Since Nike's previous fiscal Q3 earnings report, despite beating expectations across the board, the company's shares have dropped another 17%, bringing total losses to over 38% in the past twelve months. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Now trading below $70, the stock has reached its lowest level since 2018, highlighting the rate of decline the company has faced in recent years, driven by a combination of structural headwinds, cyclical challenges, and operational missteps. In contrast to the S&P 500, NKE stock has underperformed by ~16% this year. That said, the Beaverton, Oregon-based apparel giant is set to report its fiscal Q4 earnings on June 26, after the closing bell. I believe there are a few reasons that suggest a consistent shift in bearish sentiment. The good news is that with the market prepared for the worst, even small improvements and progress in the turnaround strategy could have a more positive—or less negative—impact. For now, Nike is a Hold ahead of its earnings. For starters, there's a secular shift—not just a temporary trend—where consumers are moving toward smaller, niche brands like On (ONON), Hoka (DECK), and Lululemon (LULU), rather than global giants like Nike. China, once a significant growth engine for Nike, has also become a major headwind, pressured by the rise of local competitors, geopolitical tensions, and weak consumer spending. Additionally, Nike's global shift to DTC (Direct-to-Consumer) has led to higher logistics costs, steeper customer acquisition expenses, and greater operational complexity. This has been exacerbated by a lack of meaningful product innovation, with the company still relying heavily on legacy franchises like Air Jordan and Air Force 1, rather than introducing new, tech-driven products. In the most recent quarter, Q3 2024, Nike once again posted disappointing numbers. Revenue dropped 9%, marking the fourth consecutive quarter of negative growth. Net income collapsed 32% year-over-year, while EPS fell 30%. In my view—and likely the market's—these financial results only reinforce the idea that Nike's challenges are more than just temporary; they're structural. It's essential to clarify that structural headwinds don't necessarily mean the end of the road for Nike's investment thesis; instead, they signal that changes are needed for a successful turnaround. Under the new leadership of CEO Elliot Hill, Nike has been working to rebuild wholesale partnerships (like (JD), Foot Locker (FL), Dick's Sporting Goods (DKS)), investing in new tech-driven product launches slated for 2025 (including collaborations with influencers like Kim Kardashian), and announcing plans to cut $2 billion in costs over the next three years. On the short-term cyclical side, Nike has also focused on addressing its inventory issues, moving away from excess stock that had led to heavy discounting over the past two years. In the last quarter, inventory levels fell by 2% year-over-year, although they remain elevated across all regions. Since these strategies don't produce immediate results, Nike's management has guided that Q4 revenues will likely still decline in the mid-teens. At the same time, gross margins are expected to contract by 400 to 500 basis points—to a range of 39% to 40%—which is well below the five-year average of 44%. The silver lining is that management attributes this margin compression mainly to inventory liquidations and restructuring charges, which are expected to be temporary. With that in mind, I expect the primary focus on earnings day—beyond beating the $0.12 EPS and $10.7 billion revenue estimates—to be on any early signs of progress in turnaround efforts, such as cost-cutting and less severe negative growth, along with continued reduction in inventories at a healthy pace. What's interesting is that despite the current depressed share price, Nike still trades at a free cash flow yield of 5.7%—well above the U.S. 10-year Treasury yield (~4.4%) and roughly in line with its cost of capital (~8% to 9%). That's pretty normal for a brand-heavy company. However, at 15x cash flows, Nike is trading below traditional peers like Adidas (ADDYY), which trades at a rate of 17x, and well below newer competitors stealing market share, such as On Holdings, which trades at 36x cash flows. In my view, Nike's bearish sentiment is so high that even if the stock disappoints the market, it might struggle in the short term but probably won't collapse—since the worst could already be priced in. For those familiar with options and a trading mindset, a good strategy to consider here is a diagonal put spread, which basically involves buying a longer-dated put and selling a shorter-dated put at a higher strike price. Basically, traders who buy a long-term bearish position (or protection) expiring in October—say, the October $56 strike put—and sell a short-term bearish position expiring right after earnings (like the June 27th $58 strike put) can take advantage of the high implied volatility around earnings by collecting premium on the more expensive short-term option. Things are shaping up to be volatile. According to Nike's option chains, the 'expected earnings move,' calculated via the at-the-money straddle on options closest to expiration, implies a potential move of approximately 8.3% up or down after the earnings release. The main risks of this strategy include Nike dropping below $58 before June 27, or if the stock moves sharply up or down after (or even before) the earnings announcement, causing both puts to lose value. Such volatility could reduce the value of both put options. That said, any losses would be limited to the premium initially paid. On Wall Street, NKE stock carries a Moderate Buy consensus rating based on 13 Buy, 12 Hold, and zero Sell ratings over the past three months. NKE's average stock price target of $71.41 implies approximately 16% upside potential over the next twelve months. All signs point to Nike's Q4 earnings being relatively transactional, without any major surprises—just steady, incremental steps toward a turnaround. Given the company's lackluster performance over the past few years (and recent months), the market's patience is running thin. Even the depressed valuations haven't convinced many to go long yet. That said, while I expect this quarter might still disappoint in terms of progress, I don't see it signaling a more profound decline, so a full-on stock price collapse seems unlikely. For now, I would say Nike is best avoided for new longs, with a solid Hold call for long-term investors. Traders, though, might find good opportunities with bearish strategies that also capitalize on short-term spikes in implied volatility. Disclaimer & DisclosureReport an Issue
Yahoo
32 minutes ago
- Yahoo
Oklahoma Supreme Court begins oral arguments on State Question 836
OKLAHOMA CITY (KFOR) – Voters in Oklahoma could see a change in their voting process as oral deliberations begin in the Oklahoma Supreme Court regarding State Question 836. State Question 836 aims to reform the state's primary election system, allowing all registered voters, regardless of party affiliation, to participate in primary elections. Oklahoma Standard: Thunder celebration comes full circle 30 years after OKC bombing Currently, voters are only allowed to vote for their designated registered party, with Independents voting in Democratic primaries. Republicans are asking the Oklahoma Supreme Court to intervene, claiming open primaries could potentially spark confusion. Oklahoma Standard: Thunder celebration comes full circle 30 years after OKC bombing Supporters of SQ 836 are looking to score the Supreme Court's favor and begin gathering signatures for Oklahomans to vote on the matter. Tony Stobbe, a proponent for SQ 836, an independent voter and a retired U.S. Coast Guard Commander, witnessing the proceedings, says, 'This is not a partisan issue,' said Stobbe. 'Let the people vote. That's all we're asking. The only reason party insiders are trying to block SQ 836 in court is because they know it has real momentum. Oklahomans are ready for a system where every voter gets to vote in every election—and the political elites are clearly scared of that.' For more information or to support the campaign, visit This story is developing. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
34 minutes ago
- Yahoo
Should You Be Adding Petra Energy Berhad (KLSE:PENERGY) To Your Watchlist Today?
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away. So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Petra Energy Berhad (KLSE:PENERGY). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. In the last three years Petra Energy Berhad's earnings per share took off; so much so that it's a bit disingenuous to use these figures to try and deduce long term estimates. Thus, it makes sense to focus on more recent growth rates, instead. It's good to see that Petra Energy Berhad's EPS has grown from RM0.18 to RM0.20 over twelve months. That's a 16% gain; respectable growth in the broader scheme of things. Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. Despite consistency in EBIT margins year on year, Petra Energy Berhad has actually recorded a dip in revenue. This does not bode too well for short term growth prospects and so understanding the reasons for these results is of great importance. The chart below shows how the company's bottom and top lines have progressed over time. Click on the chart to see the exact numbers. See our latest analysis for Petra Energy Berhad Petra Energy Berhad isn't a huge company, given its market capitalisation of RM356m. That makes it extra important to check on its balance sheet strength. It's a necessity that company leaders act in the best interest of shareholders and so insider investment always comes as a reassurance to the market. Petra Energy Berhad followers will find comfort in knowing that insiders have a significant amount of capital that aligns their best interests with the wider shareholder group. To be specific, they have RM56m worth of shares. That's a lot of money, and no small incentive to work hard. As a percentage, this totals to 16% of the shares on issue for the business, an appreciable amount considering the market cap. As previously touched on, Petra Energy Berhad is a growing business, which is encouraging. For those who are looking for a little more than this, the high level of insider ownership enhances our enthusiasm for this growth. These two factors are a huge highlight for the company which should be a strong contender your watchlists. You still need to take note of risks, for example - Petra Energy Berhad has 3 warning signs (and 1 which shouldn't be ignored) we think you should know about. While opting for stocks without growing earnings and absent insider buying can yield results, for investors valuing these key metrics, here is a carefully selected list of companies in MY with promising growth potential and insider confidence. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. — Investing narratives with Fair Values A case for TSXV:USA to reach USD $5.00 - $9.00 (CAD $7.30–$12.29) by 2029. By Agricola – Community Contributor Fair Value Estimated: CA$12.29 · 0.9% Overvalued DLocal's Future Growth Fueled by 35% Revenue and Profit Margin Boosts By WynnLevi – Community Contributor Fair Value Estimated: $195.39 · 0.9% Overvalued Historically Cheap, but the Margin of Safety Is Still Thin By Mandelman – Community Contributor Fair Value Estimated: SEK232.58 · 0.2% Overvalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
