NEW YORK (Reuters) – News Corp (NASDAQ:NWSA) said on Wednesday that investors rejected a proposal by activist investor Starboard Value to break the Murdoch family’s grip on the publisher by ending a dual class voting structure.

The company said the hedge fund’s non-binding shareholder resolution fell short of securing the number of votes needed to pass at today’s annual meeting. The Murdoch Family Trust owns more than 40% of the voting shares.

Starboard won support from powerful proxy advisory firms and a number of other investors who argued that good corporate governance dictates each share should have one vote.

By Abigail Summerville and Lisa Pauline Mattackal

(Reuters) -Wall Street’s main indexes dipped on Wednesday, taking a break from the prior session’s rally as investors worried about escalation of Russia-Ukraine tensions and weak results from Target (NYSE:TGT), while awaiting earnings from megacap Nvidia (NASDAQ:NVDA).

Stocks fell after a report said Ukraine fired long-range British Storm Shadow missiles into Russian territory. On Tuesday, Ukraine launched U.S.-made ATACMS missiles into Russia, and Russia announced it had lowered the threshold for nuclear action.

Wall Street’s “fear gauge” jumped to 18.79 before easing to 18.04, still at its highest since the Nov. 5 U.S. presidential election.

“It’s gotten a little more defensive today after a strong rally yesterday from growth stocks and the tech sector,” said James Regan, Director of Wealth Management Research at D.A. Davidson

“Maybe there’s a conservative view ahead of Nvidia earnings or a broader reaction from Target’s earnings which is a consumer bellwether. There are also more geopolitical concerns with tensions in Ukraine and Russia and the U.S. evacuating embassies,” Regan said.

AI leader Nvidia fell 2.2% ahead of its results that are scheduled for after the bell. The index heavyweight dragged the Information Technology sector down 1.15%, as well as the tech-heavy Nasdaq.

Target plunged 20.7% after the retailer forecast holiday-quarter comparable sales and profit below Wall Street expectations following a third-quarter estimate miss.

The consumer discretionary index was the biggest sectoral decliner, falling 1.3%.

Growth stocks like Tesla (NASDAQ:TSLA) and Amazon.com (NASDAQ:AMZN) shed 1.5% and 1.6%, respectively.

All eyes remained on Nvidia, which has nearly tripled in value this year, accounting for about 20% of the S&P 500‘s returns over the last 12 months, according to BofA Global Research.

However, given the lofty earnings expectations, the company could struggle to impress investors. Options traders are primed for a nearly $300-billion swing in Nvidia’s market value after the results.

“We’re starting to see commentary from larger companies that have been deploying capital in the AI, tech spend space talking about examples of how that spend is converting to either higher revenue or cost savings. That bodes well for companies like Nvidia that are on the picks and shovels side of that tech, AI spend trade,” said Bill Merz, head of Capital Markets Research for U.S. Bank’s asset management group.

At 2:10 p.m. ET, the Dow Jones Industrial Average fell 131.56 points, or 0.30%, to 43,137.38, the S&P 500 lost 40.45 points, or 0.69%, to 5,876.53 and the Nasdaq Composite lost 183.64 points, or 0.97%, to 18,803.83.

Cryptocurrency stocks ticked higher as bitcoin jumped above $94,000, with MicroStrategy and MARA Holdings up 14.5% and 17.7%%, respectively.

Traders have increased bets on the U.S. central bank leaving interest rates unchanged at its December meeting in the wake of strong economic data and signs of persistent inflation.

Declining issues outnumbered advancers by a 2.17-to-1 ratio on the NYSE and a 1.74-to-1 ratio on the Nasdaq.

The S&P 500 posted 28 new 52-week highs and 12 new lows while the Nasdaq Composite recorded 81 new highs and 138 new lows.

By Nell Mackenzie

LONDON (Reuters) – Muddy Waters (NYSE:WAT) has taken a short position in cosmetics company Elf Beauty, the hedge fund’s chief executive Carson Block said at the Sohn conference in London on Wednesday.

Shares in Elf were down 10% on the day after Block alleged at the event that Elf had overstated its revenue over the past three years, possibly by as much as $190 million.

California-based Elf did not immediately respond to Reuters email and phone requests for comment on Block’s allegation.

Block said that Muddy Waters would sell down its short position in Elf upon publishing its report about the company, for fiduciary responsibility and risk management purposes.

Block questioned Elf’s explanation at the time of its results in November last year for an additional $37 million of inventory in the second quarter.

The company said at the time this was as a result of it taking ownership of inventory from China when it shipped rather than waiting for it to arrive at its U.S. distribution center.

Block said on Wednesday that Muddy Waters had spoken to Elf’s Chinese suppliers and a former manager in China and concluded that the way these inventory numbers had been accounted for were “categorically false”.

Muddy Waters alleged in a presentation that Elf overstated its inventory numbers in order to cover for insufficient sales.

Elf said in a public filing it had net sales worth just over $1 billion in the fiscal year ended March 31, 2024.

By Savyata Mishra

(Reuters) -Target forecast holiday-quarter comparable sales and profit below estimates on Wednesday as value-conscious consumers shopped for low-priced essentials at rival retailers including Walmart (NYSE:WMT), sending its shares tumbling nearly 20%.

The results are in contrast to the world’s no. 1 retailer Walmart, which raised its annual sales and profit forecast for the third consecutive time a day earlier, as it took marketshare in groceries and merchandise.

Minneapolis-based Target (NYSE:TGT) now expects flat comparable sales in the fourth quarter and a profit of $1.85 to $2.45 per share. Analysts on average had expected a 1.64% rise in sales and profit of $2.66 per share.

The U.S. retailer has cut prices on thousands of essential and gift items ahead of the holiday season. It is also offering discounts on food, beverages and toys, while expanding its private-label brand, dealworthy, to include items such as smartphone chargers and toiletries.

Still, those efforts have so far failed to attract shoppers to its stores as customers were willing to wait for deals and hunted multiple retailers to find them.

“We’re seeing a strong response to promotions than we’ve seen in some time yet,” Target CEO Brian Cornell said on a post-earnings call.

For instance, Target saw a “more pronounced sales dip” both the week before and a week after its Circle Week event between Oct.6 and Oct. 12 as consumers remained intensely promotion focused.

Apparel sales were soft as warmer-than-usual weather across the U.S. deterred spending on winter clothing, although spending on essentials and beauty was strong during the quarter.

“Things have taken a turn (for Target) in Q3. And it seems that the softness is going to linger into the holiday season as well,” CFRA analyst Arun Sundaram said.

Lingering weakness in higher-margin categories such as home decor, electronics has hurt Target this year, as shoppers watch their budgets in the face of still-high inflation.

“Consumers tell us their budgets remain stretched and they’re shopping carefully … they are becoming increasingly resourceful in their shopping behaviors,” CEO Cornell said.

Rival Walmart on Tuesday said it saw share gains across income cohorts mainly led by households which make more than $100,000 a year.

“With Walmart’s marketshare gains coming largely from higher income consumers, Target seems to be the one most at risk of losing additional share,” said Citi analyst Paul Lejuez.

With five fewer holiday shopping days between Thanksgiving and Christmas in what is expected to be a so-so holiday season, retailers such as Target face competition as promotions at Walmart and Amazon.com (NASDAQ:AMZN) kicked off earlier than usual.

Meanwhile, the company’s efforts to pull forward holiday inventory in preparation for the U.S. ports strike in the East and Gulf Coast led to additional costs in its supply chain, Target’s executives said.

Target said it “acted quickly and decisively to reroute select shipments … that came with additional cost” which hurt its profit in the reported quarter.

“My biggest worry for Target has been marketshare losses versus some of the more cash-rich companies like Walmart and Amazon, who have a competitive edge,” said Dave Wagner, portfolio manager at Aptus Capital Advisors that holds Target’s shares.

Target also trimmed its annual forecast for per-share earnings to between $8.30 and $8.90 from its prior range of $9 to $9.70 after weaker-than-expected third-quarter results.

The company, which operates nearly 2,000 U.S. stores, reported third-quarter adjusted earnings of $1.85 per share. Analysts on average were expecting $2.30 per share.

Overall, shopper visits rose 2.4% in the three months ended Nov. 2, lower than 3% traffic growth in the prior quarter. Store-originated comparable sales dropped 1.9%, partly offset by a 10.8% jump in digital sales.

It posted a comparable sales increase of 0.3%, well below analysts’ average estimate of 1.4%, according to data compiled by LSEG.

Target’s shares were trading at $123.80, on pace for their biggest intraday percentage fall since May 2022.

By Nora Eckert

DETROIT (Reuters) – A majority of workers at a Ford Motor (NYSE:F) joint-venture battery plant in Kentucky have signed cards indicating their support for the United Auto Workers, the union said on Wednesday.

The Blue Oval SK plant is owned by a partnership of South Korea’s SK On and Ford, and is the latest electric vehicle-related battleground for the union as it seeks to grow its membership.

The UAW earlier this year invested $40 million to organize non-union automakers across the United States, a push that included companies such as Tesla (NASDAQ:TSLA) and Toyota (NYSE:TM).

The UAW said a “supermajority” of workers at the Ford Kentucky battery plant had signed union cards indicating their support. It did not specify the percentage.

Battery plants owned by Ford and General Motors (NYSE:GM) have been in UAW President Shawn Fain’s sights since he led a six-week strike against the Detroit Three last autumn, and demanded workers at EV-related plants be union members as well as those at existing gasoline-engine plants.

At the time, Ford CEO Jim Farley said Fain was “holding the deal hostage over battery plants.”

Representatives for Ford and Blue Oval SK did not respond to requests for comment.

Fain has said unionizing these battery and EV manufacturing centers will be critical to the UAW’s future success, especially as its ranks dwindle.

The union previously notched victories with Ultium Cells, a joint venture between GM and LG Energy Solution at plants in Ohio and Tennessee. In June, the union reached a tentative contract at an Ohio GM battery plant, and in September, GM agreed to recognize the union at an Ultium plant in Tennessee.

If the process continues at Ford’s Kentucky battery hub, workers will hold a formal vote on whether to join the union.

A UAW win would mean starting pay for workers there will increase from $21 an hour to $26.32, the union said, with the potential to make over $42 an hour after three years, in line with the current contract with Ford.

investing.com -EVgo Inc (NASDAQ:EVGO). is poised to close its $1.05 billion loan from the U.S. Department of Energy (DOE), JPMorgan analyst wrote after CEO Badar Khan expressed confidence at an investor meet. 

The move is expected to accelerate the company’s expansion in the electric vehicle (EV) charging market.

Analyst at JP Morgan in a note said the loan process is largely within the company’s control, citing minimal risk due to EVGO’s proven business model and limited technical or permitting challenges.

“We not only emphasize our confidence that the loan will close, but potentially as soon as in the coming weeks and before year-end. We are placing EVGO on Positive Catalyst Watch,” analyst wrote in the note.

Note mentions that the loan process is largely within the company’s control, citing minimal risk due to EVGO’s proven business model and limited technical or permitting challenges.

The loan is expected to support EVGO’s goal of significantly expanding its charging infrastructure. Currently operating at an 800-stall run rate, the company plans to ramp up its installations to 1,500 stalls or more by the end of the decade.

Despite concerns around potential changes to U.S. policy under a second Trump administration, JPMorgan remains optimistic about EVGO’s prospects.

The company’s business model, which is not heavily reliant on federal incentives, is seen as resilient to policy shifts. Only around 10% of EVGO’s capital expenditures per stall are tied to federal funding, with the rest offset by OEM payments and state-level incentives.

By Nathan Vifflin and Toby Sterling

(Reuters) -Computer chip maker STMicroelectronics pushed back its long-term financial targets on Wednesday, saying its future remains bright but a downturn in its key automotive and industrial markets is dragging on into 2025.

ST, one of Europe’s largest semiconductor firms, now expects to hit annual revenue of $20 billion and an operating margin above 30% by 2030, instead of 2027 as previously forecast.

CEO Jean-Marc Chery told investors in Paris the company will remain the biggest seller of energy-efficient silicon carbide chips. The company expects to benefit from parts of the artificial intelligence boom, with power chips for data centres and ‘edge’ AI in electronics devices.

2025 will be a “transition year,” Chery said, even though he expects strength in industrial and personal electronics markets in the second half.

Analysts said this was to be expected after earlier warnings.

“The reiteration of ST’s financial targets today confirms our view that the current weakness the company is going through is cyclical, not structural,” brokerage Stifel said in a note.

ST shares, down 49% so far this year, closed down 1.2% at 22.95 euros.

The company detailed plans to save hundreds of millions by 2027, with workforce reductions from attrition and early retirement, and no factories shuttering in the near term.

Chery said unpredictable government policies have stressed the company, leading to “distortions” such as firms double booking and holding excess capacity, and over-investment.

The U.S. and Europe have joined China in subsidising their semiconductor sectors, with ST a beneficiary of aid in Europe, though Chery said he expects capital spending to decline over the next three years.

Investing.com — Lynx Equity Strategies said investors should exercise patience with Nvidia (NASDAQ:NVDA)’s stock, stating they should “step aside and look for a better entry point” in a note Wednesday. 

The firm’s analysts highlight growing uncertainties tied to Nvidia’s product transitions, particularly the launch of its Blackwell GPUs, which have faced delays and technical issues.

While Nvidia’s CEO has described Blackwell demand as “insane,” Lynx points out that the high expectations for the product could be problematic if supply constraints persist or technical issues remain unresolved. 

“Are customers willing to plunk down ~$1bn-$2bn in upfront hardware cost for a 20K GPU datacenter without first gaining conviction that the problems associated with the initial delay in launch have been resolved? We do not think so,” the analysts state.

Adding to the concerns is the declining momentum for Nvidia’s Hopper GPUs. Lynx notes signs of softening demand for Hopper, highlighted by disappointing results from key partners like SMCI. 

The firm questions whether Nvidia’s current data center revenue growth expectations, which are projected at 50% year-over-year for late 2025, are realistic.

Beyond product-specific challenges, the analysts observe broader market dynamics, suggesting the AI hype cycle may be waning. They caution that as hyperscale customers increasingly prioritize return-on-investment metrics, Nvidia’s growth rates could decelerate significantly.

Despite Nvidia’s leadership in AI and a robust position in the GPU market, Lynx concludes that the stock’s current valuation leaves little room for error. They feel investors should wait for clarity on Blackwell’s performance and market adoption before making significant commitments.

Investing.com – Delta Air Lines Inc (NYSE:DAL) in its investor day on Wednesday projected financial targets, assuring investors around carrier’s post-pandemic recovery and operational efficiency.

The company projects a 10% compound annual growth rate (CAGR) in its per share profit, aiming to hit $8.65 by 2027, up from a midpoint of $6.10 in 2024. The Atlanta-based company expects its high-margin premium offerings to outpace its main cabin by 2027.

For 2025, Delta expects capacity growth of 3-4% and mid-single-digit revenue growth, supported by rising premium travel demand. Non-ticket revenue sources, such as credit card partnerships, checked baggage fees, and extra-legroom seats, are also expected to boost profitability.

Since the pandemic, premium travel has surged, with consumers willing to spend more on amenities like extra-comfortable seating.

By doubling down on premium travel and maintaining a focus on operational efficiency, Delta is positioning itself for sustainable growth, even as it navigates broader industry pressures.

While its Free cash flow is expected to range between $3 billion and $5 billion annually, driven by mid-teens operating margins and disciplined cost management.

The airline plans to bolster margins, projecting an expansion to 15% by 2027, well above the 10.5% forecast for 2024. This trajectory is supported by Delta’s focus on premium revenue streams, which are expected to account for over 60% of sales by 2027, as demand for upgraded seating and loyalty programs continues to outpace main cabin growth.

By Ankika Biswas, Joao Manuel Vicente Mauricio and Pranav Kashyap

(Reuters) -Europe’s main stock index closed flat after a volatile session on Wednesday as investors remained on edge over geopolitical tensions between Ukraine and Russia which continued to cast a shadow over the markets.

The pan-European STOXX 600 held its ground at 500.53 points. It declined for a fourth straight session – logging its longest losing streak in over two months.

It touched a three-month low on Tuesday amid an investor rush to safe-haven assets.

Ukraine fired a volley of British Storm Shadow cruise missiles into Russia on Wednesday, a day after it fired U.S. ATACMS missiles upon approval to do so from the outgoing administration of U.S. President Joe Biden.

Russia lowered its threshold for a nuclear strike, and Reuters reported Russian President Vladimir Putin’s openness to discuss a Ukraine ceasefire deal with U.S. President-elect Donald Trump, provided it rules out major territorial concessions and that Kyiv abandons plans to join NATO.

Main bourses in Germany, France, and Spain, also gave up early gains and ended the session in the red.

The Euro STOXX volatility index closed at 20.06.

Automobile stocks led sectoral declines, falling 1.2%.

Rate sensitive real estate stocks were the biggest drag on the index, down 0.7%.

Euro zone negotiated wage growth accelerated in the third quarter, adding to the case for caution in cutting interest rates quickly as the labour market remains tight despite some signs of cooling.

“Europe’s been driven by the geopolitical uncertainty – fears of the conflict between Ukraine and Russia take a more dangerous turn after Ukraine struck twice inside the Russian territory, ” said Elias Haddad, senior markets strategist at Brown Brothers Harriman.

“You’ve also got sluggish euro zone growth outlook that’s also a big factor from a more cyclical perspective that is weighing on Europe.”

Focus is also on U.S. President-elect Donald Trump’s administration appointments, including the search for a Treasury secretary. Wall Street CEO Howard Lutnick will lead Trump’s trade and tariff strategy.

ArgenX gained 4% after the biotech company announced progress in the development of its flagship drug Vyvgart. It lifted the healthcare sector as well.

Keeping the technology index’s in the green was Sage Group (LON:SGE)’s 17.8% jump, after announcing better-than-expected annual operating profit and the software firm’s launch of a 400-million-pound share buyback.

The tech sector’s performance outlook also hinges on quarterly results from the world’s most valuable company Nvidia (NASDAQ:NVDA), seen as a barometer for the sector’s shift to AI, due after market close.

The ECB has warned about a “bubble” in AI-related stocks, which could burst abruptly if investors’ rosy expectations are not met.

La Française des Jeux fell 4.4% after Credit Agricole (OTC:CRARY) Assurances unveiled plans to sell 2.2% of the French gaming group’s share capital.

Admiral Group (LON:ADML) lost 4% after Jefferies cut its price target to 2,550 pence from 3,025 pence.

Elsewhere, UK stocks lost 0.2% after domestic inflation came in above the central bank’s 2% target last month, underscoring the BOE’s caution on rate cuts.