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5 Worst Dow Jones Stocks Of 2021 Include Disney, Boeing

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The worst-performing Dow Jones stocks this year include Walt Disney (DIS), Verizon (VZ), Merck (MRK), Boeing (BA) and Honeywell (HON).




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Disney stock and Verizon saw double-digit percentage losses while the overall Dow Jones stock index finished up 19% for the year. Boeing stock, Merck and Honeywell booked losses in the single digits.

Worst Dow Jones Stock

Disney stock tumbled 14.5% through Dec. 29, making it the worst-performing Dow Jones stock for the year. DIS stock sank 8.5% in Q4.

A slowdown in Disney+ subscriber growth hurt the media and entertainment giant. In 2020, Disney’s streaming service had offset the pandemic’s negative impact on other Disney businesses, ranging from movies to cruises to parks. But Disney+ subscriber growth had slowed recently as Covid restrictions loosened and people sought entertainment outside their homes. Then the omicron variant set things back again.

Disney stock is trying to reclaim the 10-week line but remains well below the 40-week line. The relative strength line is lagging, near multiyear lows, according to MarketSmith chart analysis. The RS line measures a company’s performance against the S&P 500 index.

For its latest quarter, Disney missed earnings and sales views. But Wall Street analysts expect Disney earnings to jump 80% in fiscal 2022 as sales climb 24%. They’re seen growing further in 2023, but at a slower pace.

Verizon Stock

Shares of Verizon fell 10.9% this year, earning the telecom giant the second worst Dow stock title. In Q4, Verizon stock has dipped 3.1%.

Analysts warn that Verizon risks losing its “best network” status to T-Mobile (TMUS). It faces a tough competitive environment more generally. For example, the company relies on cable companies Comcast and Charter Communication for its MVNO (mobile virtual network operator) deals, which underlie earnings growth.

Verizon stock has regained the 10-week line but remains well under the 40-week line. Its RS line plunged this year after making a high in 2020.

In its latest quarter, Verizon delivered a mixed report. Analysts foresee Verizon earnings rebounding 10% in all of 2021 as sales rise 4%. Both earnings and sales are seen falling in 2022.

Merck Stock

Shares of Merck shed 5.9% this year, making it the third worst Dow Jones stock. In Q4, Merck stock is up 2.4%, but with some wild swings.

Analysts worry that Merck’s oral coronavirus pill molnupiravir may not compete effectively against a rival Pfizer (PFE) product. That could mean billions in lost coronavirus drug revenue.

Merck stock is retaking the 40-week line but is still under the 10-week line. It undercut the 10-week line, a key support level, in late November amid molnupiravir concerns. Its RS line has slid to multiyear lows.

For its most recent quarter, Merck beat earnings and sales estimates. In all of 2021, Merck earnings are seen rising just 3% as sales grow 1%. But they’re seen leaping 24% in 2022 as sales increase 17%.

Boeing Stock

Shares of Boeing gave up 4.9% this year, making it the fourth worst Dow stock. In Q4, Boeing stock sank 7.4%.

The plane-maker battled production issues with the 787 Dreamliner in 2021. And it faced lingering 737 Max issues after the jets were grounded following two fatal flights. Now Boeing’s mulling a stock sale to pay down debt from the 737 Max grounding.

Boeing stock is fighting to take back the 10-week line and is below the 40-week line. The lagging RS line is at multiyear lows after a plunge in 2019 and 2020.

For its latest quarter, Boeing posted an overall miss. But analysts expect the aerospace giant to trim net losses per share in 2021. They see Boeing earnings returning in 2022 as sales jump 35%.

Honeywell Stock

Shares of Honeywell lost 2.4% this year, making it the fifth worst Dow Jones stock. In Q4, Honeywell stock retreated 2.2%.

The aerospace supplier faces supply chain and inflation challenges, analysts say. More generally, surging raw material prices and supply constraints raised costs for many industrial companies. Amid those woes, Honeywell’s defense and space business was especially hard hit.

Honeywell stock remains stuck below both the 10- and 40-week lines. The 10-week line is below the 40-week line, an uninspiring sign. The RS line for HON stock shows severe lag.

For its latest quarter, Honeywell beat on earnings but missed on sales. Analysts forecast Honeywell earnings will grow 14% in 2021 as sales rise 6%. Growth rates are expected to be roughly similar in 2022.

Find Aparna Narayanan on Twitter at @IBD_Aparna.

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Teladoc Tumbled 38% After Big First-Quarter Loss. Is It Just a Pandemic Play?

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After pandemic drop, Canada’s detention of immigrants rises again By Reuters

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© Reuters. FILE PHOTO: Two closed Canadian border checkpoints are seen after it was announced that the border would close to “non-essential traffic” to combat the spread of novel coronavirus disease (COVID-19) at the U.S.-Canada border crossing at the Thousand Isla

By Anna Mehler Paperny

TORONTO (Reuters) – Canada is locking up more people in immigration detention without charge after the numbers fell during the pandemic, government data obtained by Reuters shows.

Authorities cite an overall rise in foreign travelers amid easing restrictions but lawyers say their detained clients came to Canada years ago.

Canada held 206 people in immigration detention as of March 1, 2022 – a 28% increase compared with March 1 of the previous year. Immigration detainees have not been charged with crimes in Canada and 68% of detainees as of March 1 were locked up because Canada Border Services Agency (CBSA) fears they are “unlikely to appear” at an immigration hearing, according to the data.

The rise puts Canada at odds with Amnesty International and other human rights groups that have urged Ottawa to end its use of indefinite immigration detention, noting CBSA has used factors such as a person’s mental illness as reason to detain them.

A CBSA spokesperson told Reuters that “when the number of entries (to Canada) goes up, an increase in detention is to be expected.” CBSA has said in the past it uses detention as a last resort.

A lawyer told Reuters her detained clients have been in Canada for years.

In the United Kingdom, too, immigration detention levels rose last year after dropping earlier in the pandemic, according to government statistics. Unlike Canada, the United States and Australia, European Union member states have limits on immigration detention and those limits cannot exceed six months.

The rise in detentions puts people at risk of contracting COVID-19 in harsh congregate settings, refugee lawyers say.

Julia Sande, Human Rights Law and Policy Campaigner with Amnesty, called the increase in detentions “disappointing but not surprising,” although she was reluctant to draw conclusions from limited data.

The number of immigration detainees in Canada dropped early in the pandemic, from a daily average of 301 in the fourth quarter (January through March) of 2019-20 to 126 in the first quarter (April through June) of 2020-21.

FEW NO-SHOWS AS DETENTIONS DROPPED

Detaining fewer people did not result in a significant increase in no-shows at immigration hearings – the most common reason for detention, according to Immigration and Refugee Board data.

The average number of no-shows as a percentage of admissibility hearings was about 5.5% in 2021, according to that data, compared to about 5.9% in 2019.

No-shows rose as high as 16% in October 2020, but a spokesperson for the Immigration and Refugee Board said this was due to people not receiving notifications when their hearings resumed after a pause in the pandemic.

Refugee lawyer Andrew Brouwer said the decline in detention earlier in the pandemic shows Canada does not need to lock up as many non-citizens.

“We didn’t see a bunch of no-shows. We didn’t see the sky fall … It for sure shows that the system can operate without throwing people in jail,” Brouwer said.

He added that detainees face harsh pandemic conditions in provincial jails – including extended lockdowns, sometimes with three people in a cell for 23 hours a day.

Refugee lawyer Swathi Sekhar said CBSA officials and the Immigration and Refugee Board members reviewing detentions took the risk of COVID-19 into account when deciding whether someone should be detained earlier in the pandemic but are doing so less now.

“Their position is that COVID is not a factor that should weigh in favor of release,” she said.

“We also see very, very perverse findings … [decision-makers] outright saying that individuals are going to be safer in jail.”

The Immigration and Refugee Board did not immediately respond to a Reuters request for comment.

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Nasdaq futures rise as market attempts comeback from April sell-off, Meta shares soar

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Stock futures rose in overnight trading as the market shook off the April sell-off and investors reacted positively to earnings from Meta Platforms.

Futures on the Dow Jones Industrial Average added 70 points or 0.2%. S&P 500 futures gained 0.7% and Nasdaq 100 futures jumped 1.2%.

The moves came as shares of Meta surged more than 18% after hours following a beat on earnings but a miss on revenue, a sign that investors may see signs of relief in the beaten-up tech sector. Shares were down 48% on the year heading into the results.

Meanwhile, shares of Qualcomm gained 5.6% in extended trading on the back of strong earnings while PayPal rose 5% despite issuing weak guidance for the second quarter.

“I think a lot of people want to believe that earnings are going to pull us out of this, but earnings are not what got us into this,” SoFi’s Liz Young told CNBC’s “Closing Bell: Overtime” on Wednesday. “… But the reality is there are so many macro headwinds still in front of us in the next 60 days that the market is just hard to impress.”

The after-hour activity followed a volatile regular trading session that saw the Nasdaq Composite stoop to its lowest level in 2022, as stocks looked to bounce back from a tech-led April sell-off. The index is down more than 12% since the start of April.

In Wednesday’s regular trading, the tech-heavy Nasdaq ended at 12,488.93, after rising to 1.7% at session highs. The Dow Jones Industrial Average rose 61.75 points, or 0.2%, to 33,301.93 propped up by gains from Visa and Microsoft, while the S&P 500 added 0.2% to 4,183.96.

Investors await big tech earnings on Thursday from Apple, Amazon and Twitter, along with results from Robinhood. Jobless claims are also due out Thursday.

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