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These are the top 3 stocks to watch in 2022: Analyst

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Investors should keep an eye out for casino and real estate stocks next year, according to Gerber Kawasaki Wealth & Investment Management CEO Ross Gerber.

MGM (MGM), Lennar (LEN), and Tesla (TSLA) were selected as the top three stocks poised to rise in 2022 in Gerber’s preview. He joined Yahoo Finance Live on Thursday to discuss which stocks should perform best next year.

“MGM is a long-term holding of ours and we’ve been adding to it on the weakness because of Omicron,” Gerber said. “And we absolutely believe this is the endgame for Corona, this winter being sort of one of the tougher winters again. But as each winter rolls on, this will become much more normal and much less disruptive.”

MGM Resorts International, a giant in the hospitality and entertainment industry, specializes in casinos, hotels, and resorts. As the global outlook continues to improve and the economy adjusts to the new realities concerning COVID, Gerber noted, the hospitality sector could stand to benefit greatly.

The prospect of interest rate hikes in 2022 looms over the economic picture for next year and has dampened some analysts’ expectations for stock market growth. “The probability of a 10% correction in the near term or over the next 12 months is elevated,” Bank of America’s (BAC) U.S. stock and quantitative strategy chief Savita Subramanian told Bloomberg earlier this month.

Gerber, who expressed doubt that all three Fed rate hikes would come in 2022, had a more optimistic disposition.

“We actually don’t think the Fed will actually hit their three rate hikes next year, we’ll see,” he said. “But if it does happen, it won’t be till the end of the year, and so housing is a supply and demand imbalance on a massive scale. And home builders like Lennar, especially Lennar, which is a really large, established home builder in multiple regions, are just benefiting from this enormous demand. So every house they’re building, the profits just go up every month because prices keep going up.”

Lennar, a Florida-based home construction company, has suffered recently from supply chain disruptions related to the pandemic. However, industry experts expect many of these challenges within the housing market to be overcome next year. Research and Markets reported that the U.S. construction industry is expected to grow by 3.7% in 2022.

NEWARK, CALIFORNIA – DECEMBER 15: A worker makes repairs to a home under construction at the Lennar Bridgeway home development on December 15, 2021 in Newark, California. Homebuilder Lennar will report fourth quarter earnings today after the closing bell. (Photo by Justin Sullivan/Getty Images)

Throughout most of the year, the housing market has remained hot. Similar to other industries, like electronics, housing has faced supply bottlenecks and labor shortages which have restricted supply in the face of rising demand. The Federal Housing Finance Agency reported that housing prices grew 18.5% through 2021 Q3 compared to a year ago, culminating in the largest annual increase in the agency’s House Price Index.

Tesla was Gerber’s last recommendation, and his number one pick for investors in 2022. He had some bold predictions for the EV maker in his interview with Yahoo Finance Live.

“I think over the next decade, Tesla will be the most consequential company in the history of business,” Gerber said. “I think in 12 months, we’re going to see amazing breakthroughs in AI and technology. And what Elon has done yet, we don’t know, you want to own stock in this future. So with robotics, AI, and the dominance in the EV and climate space, Tesla is the best stock of all time.”

Tesla certainly rewarded bullish investors in 2021. This year, Tesla stock has gained 56%, more than double the S&P 500’s 27% rise.

Even so, challenges remain. The company recalled nearly half a million of its Model 3 and Model S over safety issues concerning the cars’ rear view cameras and trunk. Industry experts have raised concerns regarding the sustainability of Tesla’s high market share in the EV market, as well as the possible emergence of competitors.

Gerber cautioned investors not to be too concerned about the recalls. Recalls are relatively normal for car companies, and Tesla’s main strengths lay outside of their automobile services, anyway, he added.

“Tesla is a better AI technology company than a car company, as we’ve all learned over the last 10 years,” he said. “They build cars, but they’re basically building an iPhone on wheels. And so the entire infrastructure that they’ve been building around service, for example, has been a big challenge for them. They’ve innovated some amazing things like mobile service.”

Overall, stocks stayed flat on the final trading day of 2021, giving this year’s Santa Claus Rally a rather muted finish. The S&P 500 reached an intraday high Thursday but fell in the afternoon. This year, the index reached a record high every month, a feat achieved only once before, in 2014.

Ihsaan Fanusie is a writer at Yahoo Finance. Follow him on Twitter @IFanusie.

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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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