Nvidia reports amid renewed questions over AI progress
CNBC's Deirdre Bosa joins 'The Exchange' to discuss some key AI models facing issues and delays.
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CNBC
4 hours ago
- CNBC
Investors are piling into big, short Treasury bets alongside Warren Buffett
Investors always pay close attention to bonds, and what the latest movement in prices and yields is saying about the economy. Right now, the action is telling investors to stick to the shorter-end of the fixed-income market with their maturities. "There's lots of concern and volatility, but on the short and middle end, we're seeing less volatility and stable yields," Joanna Gallegos, CEO and founder of bond ETF company BondBloxx, said on CNBC's "ETF Edge." The 3-month T-Bill right now is paying above 4.3%, annualized. The two-year is paying 3.9% while the 10-year is offering about 4.4%. ETF flows in 2025 show that it's the ultrashort opportunity that is attracting the most investors. The iShares 0-3 Month Treasury Bond ETF (SGOV) and SPDR Bloomberg 1-3 T-Bill ETF (BIL) are both among the top 10 ETFs in investor flows this year, taking in over $25 billion in assets. Only Vanguard Group's S&P 500 ETF (VOO) has taken in more new money from investors this year than SGOV, according to data. Vanguard's Short Term Bond ETF (BSV) is not far behind, with over $4 billion in flows this year, placing with the top 20 among all ETFs in year-to-date flows. "Long duration just doesn't work right now" said Todd Sohn, senior ETF and technical strategist at Strategas Securities, on "ETF Edge." It would seem that Warren Buffett agrees, with Berkshire Hathaway doubling its ownership of T-bills and now owning 5% of all short-term Treasuries, according to a JPMorgan report. "The volatility has been on the long end," Gallegos said. "The 20-year has gone from negative to positive five times so far this year," she added. The bond volatility comes nine months after the Fed's began cutting rates, a campaign it has since paused amid concerns about the potential for resurgent inflation due to tariffs. Broader market concerns about government spending and deficit levels, especially with a major tax cut bill on the horizon, have added to bond market jitters. Long-term treasuries and long-term corporate bonds have posted negative performance since September, which is very rare, according to Sohn. "The only other time that's happened in modern times was during the financial crisis," he said. "It is hard to argue against short term duration bonds right now," he added. Sohn is advising clients to steer clear of anything with a duration of longer than seven years, which has a yield in the 4.1% range right now. Gallegos says she is concerned that amid the bond market volatility, investors aren't paying enough attention to fixed income as part of their portfolio mix. "My fear is investors are not diversifying their portfolios with bonds today, and investors still have an equity addiction to concentrated broad-based indexes that are overweight certain tech names. They get used to these double-digit returns," she said. Volatility in the stock market has been high this year as well. The S&P 500 rose to record levels in February, before falling 20%, hitting a low in April, and then reversing all of those losses more recently. While bonds are an important component of long-term investing to shield a portfolio from stock corrections, Sohn said now is also a time for investors to look beyond the United States with their equity positions. "International equities are contributing to portfolios like they haven't done in a decade" he said. "Last year was Japanese equities, this year it is European equities. Investors don't have to be loaded up on U.S. large cap growth right now," he said. The iShares MSCI Eurozone ETF (EZU) is up 25% so far this year. The iShares MSCI Japan ETF (EWJ) Japan ETF is up 25% over the last two years.
Newsweek
12 hours ago
- Newsweek
List of Walgreens Stores Closing This Month
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Walgreens is closing more than 20 stores this month as the drug store giant looks to boost revenue and shutter underperforming locations. The closures arrive after Walgreens announced in October it would be closing roughly 1,200 underperforming stores across the U.S. over the next three years. In 2025, 500 locations will say goodbye to shoppers. Why It Matters Many retail giants have slimmed down their national footprint in the years following the COVID-19 pandemic. Lower brick-and-mortar demand as a result of online shopping as well as inflationary effects on spending have played a role. Malls have long been falling out of favor, with almost 25 percent of America's largest anticipated to close by 2027, according to research from real estate services firm Green Street Advisors. Facade of a Walgreens store in Laurel Heights, San Francisco, on April 30, 2025. Facade of a Walgreens store in Laurel Heights, San Francisco, on April 30, 2025. Smith Collection/Gado/Getty Images What To Know While Walgreens operates roughly 8,500 stores nationwide, the pharmacy and drug store chain has closed about 2,000 locations over the past decade. Why is Walgreens Closing Stores? The closures arriving this month as CEO Tim Wentworth said Walgreens is embarking on a "turnaround plan." "We are confident it will yield significant financial and consumer benefits over the long term," Wentworth previously said. Because more consumers are using online prescription services like pharmacies have felt pressure on their bottom line as costs rise. In the last quarter of fiscal year 2024, Walgreens reported a $3 billion loss, an increase from $180 million the year before. Only 6,000 of its stores are still profitable, Wentworth said. "This solid base supports our conviction in a retail pharmacy-led model that is relevant to our consumers, and we intend to invest in these stores over the next several years," he said. Walgreens had sales of $37.55 billion for the fourth quarter, a year-over-year increase of 6 percent and fourth-quarter sales and adjusted profit above Wall Street expectations, according to CNBC. The $3 billion loss reflects the so-called valuation allowance that is meant to reduce deferred tax assets mainly related to opioid settlements, CNBC reported. Which Walgreens Locations Are Closing in June? In June, Walgreens is closing stores across several states, including: California Salinas, N. Sanborn Road – June 25 Florida Jacksonville, Dunn Avenue – June 26 Miami, NW 7th Avenue – June 25 Illinois Chicago, N. Sheffield Avenue (Northstar Health Care) – June 23 Massachusetts Brockton, Pleasant Street – June 23 Fall River, S. Main Street – June 26 Gloucester, Eastern Avenue – June 23 Springfield, Boston Road – June 24 Swansea, Wilbur Avenue – June 23 Webster, Main Street – June 24 Worcester, Grafton Street – June 25 New Jersey Pleasantville, N. Main Street – June 23 New York New York City, Lexington Avenue (Duane Reade) – June 24 Syracuse, Genesee Street – June 26 North Carolina Durham, Broad Street – June 24 Raleigh, Wake Forest Road – June 26 Ohio Garfield Heights, Turney Road – June 24 Reynoldsburg, Brice Road – June 10 Washington Bremerton, State Highway 303 NE – June 23 West Virginia Clendenin, Elk River Road N. – June 25 Follansbee, Main Street – June 11 Mullens, Moran Avenue – June 23 New Martinsville, 3rd Street – June 10 Oceana, Cook Parkway – June 26 Whitesville, Lewis Street – June 24 Which Stores Have Already Closed? Walgreens shuttered many other locations in 2025 so far. The full released list is: California Hayward, Jackson Street – May 22 Los Gatos, Blossom Hill Road – May 22 Colorado Lakewood, 7665 W. Jewell Avenue – May 22 Connecticut East Hartford, Silver Lane – May 20 East Haven, Main Street – May 22 New Britain, Stanley Street – May 19 New Milford, Danbury Road – May 21 Florida Jacksonville, Soutel Drive – May 19 Georgia Decatur, Hairston Road – May 22 Lawrenceville, Old Norcross Road – May 19 Macon, Mercer University Drive – May 21 Snellville, Hewatt Road – May 20 Stone Mountain, Memorial Drive – May 19 Indiana Indianapolis, E. Thompson Road – May 20 Maryland Essex, Marlyn Avenue – May 20 Massachusetts Framingham, Waverly Street – May 19 Lakeville, Main Street – May 21 Peabody, Andover Street – May 20 Salem, Boston Street – May 19 New Jersey Cherry Hill, Kings Highway N. – May 19 New York Brooklyn, 5th Avenue – May 21 Middletown, Fitzgerald Drive – May 21 North Carolina Richlands, Richlands Highway – May 21 Sanford, Spring Lane – May 20 Pennsylvania Norristown, Dekalb Pike – May 19 Southampton, 2nd Street Pike – May 22 West Chester, E. Street Road – May 22 Wyncote, W. Cheltenham Avenue – May 15 Texas Dallas, Camp Wisdom Road – May 21 Newsweek reached out to Walgreens for comment via email. What People Are Saying Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: "Walgreens is just the latest casualty in the private equity game of cost-cutting. This is about reducing retail footprint, shrinking lease obligations, and driving return on equity. It's textbook: slash costs, close underperforming stores, and try to recoup the investment." Drew Powers, the founder of Illinois-based Powers Financial Group, told Newsweek: "Not that long ago it seemed like there was a drugstore on every corner, and many of those were Walgreens. But foot traffic has slowed for Walgreens as more big-box stores and online outlets added pharmacy services. Add to slower sales the evermore stringent regulations, decreased reimbursements, and increased cost of staff and Walgreens posted a $3 billion loss in the 4th quarter of 2024. While they can weather that storm for a while, the only survival plan is to close more retail locations." Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "Walgreens is encountering what many other large nationwide retailers are: higher prices combined with more online competition, particularly in groceries and pharmaceuticals, have meant some locations are less profitable. After trying to turn business around at these locations the last few years, Walgreens has made the decision to close them." What Happens Next Thompson said more store closures are likely in the months ahead. "Consumers should prepare for fewer nearby locations, longer drive times or in some areas, no local access at all," he said. Powers said Walgreen's financial situation is indicative of the larger pharmacy industry, and a shift is already underway. "It's an unfortunate situation that's not limited to their stores," Powers said. "Other pharmacies will more than likely have to make similar tough decisions in the years ahead."
CNBC
17 hours ago
- CNBC
Safer to stay home? European firms rethink travel policy over U.S. border control concerns
Some European companies are growing wary about sending their employees to the U.S. It comes amid volatile policymaking by the Trump administration, more stringent immigration checks, and an uptick in reports of detentions and deportations. Some businesses CNBC spoke to, in areas including engineering and accounting, stressed that their work trips to the U.S. continued unabated. But others, usually in more politically sensitive fields, flagged employee welfare concerns. Their responses ranged from issuing new travel guidance — such as advising workers to bring wiped electronic devices or entering the U.S. via Canada — to encouraging attendance at U.S. events or conferences online where possible. Business travel is a significant revenue source for the U.S. economy. According to a report published by the Global Business Travel Association (GBTA) last year, total spend in the sector generated a total $421 billion and $119 billion in tax revenue in 2022, the most recent year in which full data was available. That came from an estimated 429.9 million business trips supporting 6 million jobs. Business travel is also a key revenue-maker for the aviation industry, generating between 50% and 75% of profit for airlines in many cases. In a survey of 900 global travel buyers conducted by GBTA in April, 29% said they expected a decline in business travel volume at their companies in 2025 as a result of U.S. policy across both travel and tariffs. The survey also found a decline in overall optimism in the sector. Any chilling effect would also come with international tourism expected to be dented this year, costing $12.5 billion in spending, due to negative perceptions of trade and immigration policy. Border control and foreign visas have been highly charged issues since President Donald Trump took office in January, with reports of tourists being held in detention centres for long periods. The White House pledged in January that all foreigners seeking to enter the U.S. would be "vetted and screened to the maximum degree possible." Relations between the U.S. administration and the academic community have also soured, following moves to pause international student visa issuance and "aggressively revoke" visas for Chinese students, as well as the detention of some foreign students on apparently political grounds. "We're hearing some international travellers have expressed unease about visiting the U.S. due to increased visa scrutiny, social media monitoring, and incidents of detention or deportation despite valid documents," said Prashray Kala, a partner at management consultancy Everest Group. "Those with a visible online footprint are more cautious, especially with the 'Catch and Revoke' policy enhancing surveillance," Kala said. Announced April 30, this policy means that anyone with a U.S. visa will lose their immigration status after one strike for any violation of U.S. law, regardless of severity. One European fund manager who frequently travels to the U.S. for business said he was concerned immigration authorities at airports could hinder his travel plans due to a change in political attitude, rather than policy. "Business travel on an ESTA [visa] is no longer what it used to be", the fund manager said. The head of an international non-government organization with headquarters in London told CNBC that they had devised a new travel protocol for the U.S. The policy goes beyond their usual requirements for information about an employee's movements and contact details, into issues around physical and information security. The NGO produces investigative reports into topics spanning climate change, corporate malpractice and corruption. Employees CNBC spoke to for this story requested anonymity to be able to discuss internal workplace matters. "On one level for us as an organization, that shouldn't really require us to break into a sweat, we do that for lots of places that our staff travel to," the NGO chief executive said. "But from a personal perspective, this is very illuminating — in a not very pleasant way — because these are the sorts of things I think about when I travel to, say, China or Azerbaijan, autocratic regimes. The idea that we would have to apply that approach to travel to the U.S. is something which would never have occurred to me until just a few months ago." Examples include taking "burner" phones or computers only used for the trip, and preparing employees for scenarios in which they are aggressively questioned about their travel intentions or things they have published online, they said. Separately, an academic researcher at a university in Switzerland told CNBC that they had been provided with guidance to ideally travel into the U.S. via Canada where possible, or to attend conferences virtually to avoid any visa complications. They noted that some of their colleagues were still making trips to the U.S. without incident, but others had been questioned at the border for longer, and some had decided not to attend summer academic conferences stateside. Visiting programs to U.S. universities have been particularly affected and even put on hold, they added. All of those CNBC spoke to across a range of industries agreed that the prevailing climate around U.S. travel was one of uncertainty. "There is, of course, a risk of overreacting to this ... ploughing more of our time and resources into preparing for this than actual, tangible risk warrants," the NGO chief said. "There's always this question of how you separate out the outright bluster from what might be substantive and might actually be acted on. I think probably this time around, we take more of the bluster seriously."
