Shares in Trump’s Truth Social fall to record low following presidential debate
(NEW YORK) — Shares in former President Donald Trump’s social media company fell to a record low Wednesday on the heels of Tuesday’s presidential debate, which a CNN poll indicated was won by Vice President Kamala Harris.
Shares of Trump Media & Technology Group, the parent company of Truth Social, closed down 10.5% Wednesday to end the day at a record low.
Shared dipped as much as 17% Wednesday before slightly improving at the close of trading.
For some investors, Trump Media serves as a bellwether for the former president’s odds in the upcoming presidential election. When Trump was convicted on 34 felony counts in New York in May, the company’s stock price tumbled — but the stock surged in the days following the July presidential debate and the assassination attempt on the former president.
Analysts have said that the company’s stock performance is removed from the financial outlook of the company, which reported losing more than $16 million over a three-month period ending in June during which it only brought in $836,000 in revenue.
The stock price has been buoyed by a number of passionate individual investors who bought shares in the company to support Trump or because they believe in the company’s mission.
Next week, Trump faces a pivotal choice about his investment in the company. The lockup provision that barred him from selling his shares for the first six months since the company went public expires next week, meaning that Trump could begin selling his shares in the company as early as Sept. 19.
According to filings with the Securities and Exchange Commission, Trump owns approximately 115 million shares of the company, which are worth nearly $2 billion based on Wednesday’s stock price.
On paper, Trump has lost more than $4 billion in his stake over the last six months as the company’s stock price has declined.
A representative for Trump Media & Technology Group did not immediately respond to a request for comment from ABC News.
(NEW YORK) — The Federal Reserve cut its benchmark interest rate a half of a percentage point on Wednesday in a landmark decision that dials back its years-long fight against inflation and could deliver relief for borrowers saddled with high costs.
The central bank’s first rate cut since 2020 came after a recent stretch of data had established the key conditions for a rate cut: falling inflation and slowing job gains.
In theory, lower interest rates help stimulate economic activity and boost employment. The Dow Jones Industrial Average surged 200 points in the immediate aftermath of the announcement on Wednesday afternoon.
The S&P 500 and the Nasdaq also climbed following the news.
Speaking at a press conference in Washington D.C. on Wednesday, Fed Chair Jerome Powell described the rate decision as a shift in policy at the central bank.
“This recalibration of our policy stance will help maintain the strength of the economy and the labor market, and enable further progress on inflation,” Powell said.
“The U.S. economy is in good shape,” Powell added. “We want to keep it there.”
The Federal Open Market Committee, a policymaking body at the Fed, on Wednesday forecast further interest rate cuts.
By the end of 2024, interest rates will fall nearly another half of a percentage point from their current level of between 4.75% and 5%, according to FOMC projections. Interest rates will drop another percentage point over the course of 2025, the projections indicated.
Over time, rate cuts ease the burden on borrowers for everything from home mortgages to credit cards to cars, making it cheaper to get a loan or refinance one. The cuts also boost company valuations, potentially helping fuel returns for stockholders.
Earlier this year, mortgage rates reached their highest level in more than two decades; while the average rate for credit card holders topped anything on record at the Fed. Interest rates for car loans have soared to levels last seen at the onset of the 2008 financial crisis, Edmunds found.
Interest rate cuts will bring many of those payments down, delivering gains for borrowers.
However, borrowers should not expect immediate relief from the Fed’s initial rate cut, Elizabeth Renter, senior economist at NerdWallet, told ABC News in a statement prior to the decision.
“This initial rate cut will have little immediate impact,” Renter said. “I anticipate many consumers and business owners will take the beginning of this change in monetary policy as a sign of hope.”
Inflation has slowed dramatically from a peak of about 9% in 2022, though it remains slightly higher than the Fed’s target of 2%.
Meanwhile, the job market has cooled. A weaker-than-expected jobs report in each of the last two months has stoked concern among some economists.
“We will do everything we can to support a strong labor market as we make further progress toward price stability,” Powell said last month.
Prior to the decision, the chances of a rate cut were are all but certain, according to the CME FedWatch Tool, a measure of market sentiment.
Market observers, however, had been divided over whether the Fed will impose its typical cut of a quarter of a percentage point, or opt for a larger half-point cut. The tool estimated the probability of a half-point cut at 65% and the odds of a quarter-point cut at 35%.
A half-point cut risked overstimulating the economy and rekindling elevated inflation, while a quarter-point cut threatened to delay the type of economic jumpstart that may be required to avert a recession, Seema Shah, chief global strategist at Principal Asset Management, told ABC News in a statement.
“Rarely have market expectations been so torn” on the eve of a rate decision, Shah added.
The rate cut on Wednesday went into effect less than 50 days before the November election.
The decision deviated from the policy approach taken by the Fed prior to many recent presidential elections, a Reuters analysis found. Policy rates were left unchanged for six to 12 months before the 2020, 2016, 2012 and 2000 U.S. presidential elections, according to Reuters.
To be sure, the Fed says it bases its decisions on economic conditions and operates as an independent government body.
When asked about the 2024 election at a press conference in Washington, D.C., in December, Powell said, “We don’t think about politics.”
(NEW YORK) — Chuck E. Cheese has just the ticket for parents looking to save some cheddar on family fun outings, thanks to its new membership plans.
The Texas-based pizzeria and family entertainment chain that brings arcades and animatronic shows under one roof, announced its first-ever nationwide, unlimited-visit monthly membership program to help unlock new discounts for one low monthly fee.
After a successful test run of its Summer Fun Pass boasting strong consumer demand, Chuck E. Cheese laid out details for the new program that will allow families to “visit Chuck E. Cheese as often as they want, play up to 250 games per day, and enjoy discounts of up to 50% off on most food and drinks,” the company said in a press release.
“We wanted to create a program that makes Chuck E. Cheese more affordable for families,” Mark Kupferman, the chain’s executive vice president, said in a statement. “Amid rising costs, our goal was to offer great value, and develop an easy, and fun solution for everyone. After nearly a year of successful testing in several markets, and great demand, we’ve seen firsthand how much families love it. We’re thrilled to launch this program nationwide.”
Personal finance expert and senior editor for Business Insider Katherine Fan told ABC News’ Good Morning America that “families can get a lot of value out of the Chuck E. Cheese Fund Pass, because it allows them to bring up to six family members on a single power pass.”
She added, “let’s say you go in on a Tuesday and you have the highest tier pass, which gets you 250 points. You can go right back again the next day and play 250 games again.”
What’s included in Chuck E. Cheese new membership plan?
There are three tiers with varying levels of gameplay and pricing, two of which are monthly memberships with unlimited visits. A single Fun Pass can be shared by a family with multiple children.
The Monthly Fun Pass Membership offers unlimited daily visits for one low, recurring monthly fee, whereas the Two-Month Fun Pass provides unlimited visits for two months for a one-time charge. Both packages offer the same benefits, with the main difference being the billing method.
The three tiers of Fun Pass are: Bronze Fun Passes for $7.99 per month with 40 games per visit and 20% off most food and drinks; Silver Fun Pass for $11.99 per month with 100 games per visit and 30% off most food and drinks, plus extra play points; and the Gold Fun Pass for $29.99 a month with 250 games per visit, plus 50% off most food, drinks and extra play points.
“For families looking for unlimited visits over a short period, like a holiday break or summer, the Two-Month Pass is a perfect fit,” Kupferman explained. “For those who love the idea of visiting year-round, the Monthly Membership is an outstanding choice. Both options provide incredible value and endless fun.”
Passes may be used at over 470 participating Chuck E. Cheese locations throughout the U.S.
New pricing plans from Chuck E. Cheese signals reboot
Like most indoor event spaces and restaurants, Chuck E. Cheese struggled amid the COVID-19 pandemic, and declared bankruptcy in 2021. But now the family entertainment chain is looking for a reboot to draw families back to their arcade style restaurant.
“The hardest part of any business is getting people in through the door or to your website. And with this fun pass — members are more incentivized to go through Chuck E. Cheese on a more regular basis,” Fan explained. “You’ll then be tempted to buy some drinks or get some food. Or maybe you’ll want to pay a little bit extra to play the crane games or have your kids play on the trampoline.”
This comes on the heels of other entertainment companies, including movie theaters, that have opted to test subscription pricing.
AMC Theaters reported the average ticket price in 2023 was $11.23, which for a family of four makes an outing to the movies $45, without any concessions.
But for regulars moviegoers, memberships can offer an opportunity to save. MoviePass, for example, starts at $10 a month for three free movies.
AMC Stubs A-List offers 3 free movies a week for a $25 monthly fee, with price contingent on location.
(NEW YORK) — More than 9,500 cases of 100% apple juice that were sold at Walmart have been recalled due to high levels of arsenic.
The U.S. Food and Drug Administration upgraded the level of the apple juice recall, originally issued on Aug. 15, from unclassified to class 2, which indicates “a situation in which use of, or exposure to, a violative product may cause temporary or medically reversible adverse health consequences,” but is unlikely to cause “serious adverse health consequences.”
“Product contains inorganic arsenic above action level set in industry guidance (13.2ppb),” meaning parts per billion, the FDA said of the juice.
The agency’s enforcement report stated that 9,535 cases of Great Value brand apple juice sold at Walmart in 25 states, Puerto Rico and the District of Columbia had been voluntarily recalled by the manufacturer Refresco Beverages US Inc.
A representative for Refresco told ABC News in a statement, “We are aware that certain lots of the 100% apple juice we previously manufactured contains inorganic arsenic slightly above the FDA’s 10 ppb (parts per billion) action level in the FDA Final Guidance to Industry on Action Level for Inorganic Arsenic in Apple Juice, which aims at reducing the dietary exposure of contaminants to as low as possible. As a result, impacted products are being voluntarily recalled.”
The statement continued, “At this time there are no reported complaints or incidents of illness caused by the product. Per the FDA, it is not possible to completely prevent arsenic from entering the food supply, yet exposure to high levels of inorganic arsenic can have adverse health effects.”
The representative added that “the safety of consumers and the satisfaction of our customers are our top priorities” and that the company is “working diligently to address the situation.”
Product details of recalled apple juice
The contaminated Great Value beverages in question were sold in six-packs of 8-ounce plastic bottles with the UPC code 0-78742-29655-5.
The recalled apple juice has a “Best if used by” date code of DEC2824 CT89-6.