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Target said Tuesday that it will close nine stores in major cities across the country, citing violence, theft and organized retail crime.

The company will close one store in New York City’s Harlem neighborhood, two locations in Seattle, three stores in the San Francisco-Oakland area and three more in Portland, Oregon. The discounter said it will shutter the stores for good on Oct. 21.

“We cannot continue operating these stores because theft and organized retail crime are threatening the safety of our team and guests, and contributing to unsustainable business performance,” Target said in a news release.

“We know that our stores serve an important role in their communities, but we can only be successful if the working and shopping environment is safe for all.” 

Target, which has nearly 2,000 stores in the U.S., has been outspoken about organized retail crime at its stores. It has said theft has driven higher levels of shrink, an industry term used to describe losses from goods that were damaged, misplaced or stolen.

With its announcement Tuesday, Target also stands apart in its decision to both shutter stores and to explicitly blame that decision on retail crime.

When the company reported fiscal second-quarter earnings in mid-May, CEO Brian Cornell said organized retail crime had shot up at its stores. He added shrink overall is expected to reduce Target’s full-year profitability by more than $500 million compared to the year-ago period. 

When asked if the company plans to close stores because of rising shrink, Cornell stressed Target’s reluctance to shutter locations.

“We do not want to close stores. We know how important our stores are. They create local jobs, they generate taxes, they’re very important for those local shoppers, and they play a critical role in communities across the country,” Cornell said on a call with reporters in May.

“We’ll continue to do everything in our power to keep our doors open,” he added. “At the same time, we’ll be closely monitoring the safety of our team and guests as well as the financial impact to our business as we determine the right path forward at Target.” 

The retail executive’s comments led other companies to speak out on the problem, too, and to advocate for legislative reform. Following the passage of the Inform Act, which requires online marketplaces to disclose the identities of certain high-volume sellers to deter the sale of stolen and counterfeit goods, retailers and trade associations are now pushing for the passage of another bill called the Combating Organized Retail Crime Act. 

The bill, which Target said it supports in Tuesday’s news release, proposes stiffer penalties for theft offenses and calls for a change in the threshold prosecutors must meet before bringing federal theft cases. It would also provide retailers with a formal venue to exchange information with one another and law enforcement through the proposed Organized Retail Crime Coordination Center.

Since 2022, at least nine states — six so far this year — have passed similar laws to impose harsher penalties for organized retail crime offenses. Behind the sweep of legislation are retailers and trade associations, which are using their collective power to get the bills written and past the finish line.

Store closures, or the threat of them, have been a major factor in retailers convincing lawmakers to get on board, policy experts previously told CNBC. 

Target’s mounting struggles go deeper than theft

Target’s business has struggled for more than a year with company-specific challenges, including a glut of unsold inventory, backlash to its Pride merchandise collection and a pullback in consumer spending on discretionary items such as apparel and home goods.

Over the past two decades, Target had not mentioned shrink hitting its margins during earnings calls until August 2022, when the company’s and other retailers’ profits were getting hurt by higher markdowns while trying to unload unwanted merchandise, CNBC previously reported. When inventories rise, shrink tends to increase as well, industry experts told CNBC.

The company previously said its shrink numbers vary widely by location and do not correlate with inventory levels.

Target said Tuesday that it has taken a variety of steps to stop crime at its stores. Those measures include adding locked cases for some merchandise, hiring third-party guard services, training store leaders about how to de-escalate potentially dangerous situations and investing in cyber defense to stop fraud or organized crime.

Yet, Target said at the affected stores, a larger security team and theft-deterrent tools weren’t enough.

“Despite our efforts, unfortunately, we continue to face fundamental challenges to operating these stores safely and successfully,” Target said in the release.

The company said it will work with employees at the closed stores to give them an opportunity to transfer to another Target location. 

It’s not clear what actions the company is taking to improve inventory management. 

Despite store closures, shrink data is murky

Target announced the store closures on the same day the National Retail Federation, the industry’s major trade association, released its latest National Retail Security Survey. The survey found the effect of theft on retailers’ bottom lines is about the same as it has been for years.

Total retail shrink grew to more than $112 billion in 2022, up from $93.9 billion the year before, according to the survey. The metric is calculated using total U.S. retail sales and generally rises as retail sales climb. 

When reported as a percentage of sales as is commonly done, average annual shrink increased to 1.57%, up from 1.44% in 2021. The share is largely in line with past years and is considered a normal and healthy level of shrink by industry experts. Generally, retailers plan for about 1% to 2% of shrink each year. 

Target joins a growing list of retailers that have shuttered stores in major cities, including Walmart, Nordstrom and Walgreens Boots Alliance.

Nordstrom closed its San Francisco flagship store and Nordstrom Rack location in the city this summer after operating there for more than 35 years.

Yet, the company cited market dynamics rather than crime. In a message to employees at the time, then-Chief Stores Officer Jamie Nordstrom said changes in downtown San Francisco had hurt “customer foot traffic to our stores and our ability to operate successfully.”

A brazen smash and grab in August at one of Nordstrom’s other locations, a store in Los Angeles, made national headlines.

On an earnings call in late August, the company was asked about the widely circulated video of the crime. CEO Erik Nordstrom described the incident as “disturbing to all of us,” and said losses from theft are “at historical highs.” But, he added, theft is included in company guidance and not higher than expected.

In a December interview with CNBC, Walmart CEO Doug McMillon warned that stores will close if shoplifters aren’t aggressively prosecuted.

Walmart has also closed some stores, including four in Chicago in April, but didn’t blame theft. In a news release at the time, the retailer said it has struggled to make the locations profitable and challenges have intensified. It said the stores “lose tens of millions of dollars a year, and their annual losses nearly doubled in just the last five years.”

Walgreens, similar to Target, specifically pointed to organized retail crime as the reason for shuttering some stores in San Francisco in 2021.

More from CNBC:

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Canada’s House speaker is facing a growing chorus of opposition lawmakers demanding his resignation after a Nazi fighter was honored during Ukrainian President Volodymyr Zelenskyy’s visit to Parliament last week, as Prime Minister Justice Trudeau is also being torched by conservatives over the ‘massive diplomatic embarrassment and shame.’ 

In Ottawa, opposition leader Pierre Poilievre blamed Trudeau and the Liberal government for creating a ‘massive diplomatic embarrassment and shame’ for not properly vetting Yaroslav Hunka, a man who fought for a Nazi military unit during World War II. 

‘The prime minister is responsible,’ the Conservative leader said. ‘Will he take responsibility for his latest embarrassment?’

Just after Zelenskyy – who is Jewish and lost relatives in the Holocaust – delivered an address in the House of Commons Friday, Canadian lawmakers gave the 98-year-old Hunka a standing ovation when Speaker Anthony Rota drew attention to him. Rota introduced Hunka as a war hero who fought for the 1st Ukrainian Division. 

The 1st Ukrainian Division was also known as the Waffen-SS Galicia Division, or the SS 14th Waffen Division, a voluntary unit that was under the command of the Nazis.

Rota, who issued a written apology Sunday and repeated it in the House on Monday, did not immediately resign.

In his apology, Rota said he alone was responsible for inviting and recognizing Hunka. 

‘I am deeply sorry that I have offended many with my gesture and remarks,″ he said.

‘No one – not even anyone among you, fellow parliamentarians, or from the Ukrainian delegation – was privy to my intention or my remarks prior to their delivery.’

Issuing a statement Sunday, the Friends of Simon Wiesenthal Center for Holocaust Studies was the first to publicly clarify the Waffen-SS Galicia Division ‘was responsible for the mass murder of innocent civilians with a level of brutality and malice that is unimaginable.’

Addressing the incident on camera to a reporter, Trudeau acknowledged it was ’embarrassing,’ but also separately warned against Russian propaganda and ‘disinformation.’ 

‘Obviously it’s extremely upsetting that this happened. The speaker has acknowledged his mistake and has apologized, but this is something that is deeply embarrassing to the parliament of Canada and by extension all Canadians,’ Trudeau said. ‘I think particularly of Jewish MPs and all members of the Jewish community across the country who are celebrating… commemorating Yom Kippur today. I think that it’s going to be really important that all of us push back against Russian propaganda, Russian disinformation and continue our steadfast and unequivocal support for Ukraine as we did last week with announcing further measures to stand with Ukraine in Russia’s illegal war against it.’ 

Peter Julian, the New Democratic Party House leader, and Bloc Quebecois leader Yves-Francois Blanchet both said Rota should step down.

‘For the good of the institution of the House of Commons… I don’t believe you can continue in this role,’ Julian said. ‘Regrettably I must respectfully ask that you step aside.’

In a statement written in French, Blanchet said Rota had lost the confidence of the House.

House government leader Karina Gould said the incident ‘hurt all of us in Parliament.’

‘It’s been deeply embarrassing for Canada, and I think it was deeply embarrassing for the president of Ukraine,’ said Gould, who is a descendent of Holocaust survivors.

Gould said it was Rota’s decision to invite Hunka. 

‘Neither the government of Canada nor the delegation of the Ukraine had any knowledge of this,’ she said.

In Moscow, a Kremlin spokesman said it was ‘outrageous’ that Hunka received a standing ovation during a visit to Ottawa. 

Kremlin spokesman Dmitry Peskov said memory of the Nazis must be preserved. He said Canada is among the Western countries that have raised a young generation who don’t understand the threat of fascism. ‘Such a sloppy attitude toward this memory is, of course, outrageous,’ Peskov said during his daily conference call with reporters.

Russian leader Vladimir Putin has painted his enemies in Ukraine as ‘neo-Nazis,’ despite Zelenskyy’s background.

The Associated Press contributed to this report. 

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House Speaker Kevin McCarthy, R-Calif., said the chamber would vote on a short-term spending bill soon after holding a key vote to proceed with four year-long appropriations bills on Tuesday night

‘The Republicans will put on the floor a move to secure our border. I think that’s the appropriate way to be able to keep government funded, secure border while we continue to keep government open to work on the rest of the appropriations process,’ McCarthy told reporters in the morning. 

He reiterated that lawmakers would be back within hours to vote on a procedural measure, known as a rule, to proceed with debate on four of 12 appropriations bills that the House GOP pledged to pass. Conservatives have insisted that each individual bill should get a separate vote, in contrast with the all-in-one ‘omnibus’ spending bill Democrats passed when they controlled the previous Congress.

‘Tonight we’re back in session. We will vote on a rule to bring up four more appropriation bills. That will be a total of five more than the Senate has been able to pass. If we get through these next four, that would be 72% of all the discretionary spending,’ McCarthy also said.

‘I would also this week put on the floor, [a] continuing resolution that secures our border.’

The House and Senate must come to some kind of agreement on how to fund the government by the end of the fiscal year, Sept. 30, or risk a partial government shutdown.

Leaders in both parties have agreed that a stopgap funding bill, known as a continuing resolution (CR), will be needed to give lawmakers both time to cobble out all 12 bills. A CR is normally an extension of the current fiscal year’s policies.

However, conservative opposition to extending the previous Democratically-held Congress’ priorities has inspired several House GOP proposals for CRs that would enact deep spending cuts for a 30-day duration. Even still, attempts so far to pass a CR in the House have been scuttled over hardliners refusing to vote for one on principle. 

Each of those proposals has also included the House GOP’s border security bill, known as H.R. 2.

The House is returning Tuesday after a week of disarray that saw two key procedural votes on military spending go down in flames over disagreements over how to avoid a government shutdown. 

But sources who spoke with Fox News Digital indicated there was some optimism that Tuesday night’s rules vote, lining up individual House votes on the military, agriculture, Homeland Security and State Department appropriations bills, will pass. 

One GOP aide described the sentiment as, ‘Cloudy with a chance of miracles.’

Speaking to reporters on Tuesday, however, McCarthy did not say what would happen to the CR if the evening rules vote failed.

‘Well, the CR is under another rule,’ McCarthy said when asked if the CR would still get a vote. ‘Let me be clear. Tonight, there’s a rule about four appropriations bills. We’ve already passed one of them. There’s 12 overall. If we finish these four with the other… that would be 72% of all discretionary spending of the 12 bills that need to get taken up.’

‘We believe in securing the border. If the president’s willing to do that, we will continue to fund government for a short time period to finish the rest of the job.’

Fox News’ Tyler Olson contributed to this report

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FIRST ON FOX: An Indiana Republican congressman running for Senate secured a major endorsement from a former Cabinet secretary.

Fox News Digital has learned that former Secretary of State Mike Pompeo is endorsing Indiana Republican Rep. Jim Banks for Senate.

Banks is running to replace outgoing Senator Mike Braun, R-Ind., who is running for the Hoosier State governorship.

‘Jim Banks is the America-first leader we need in the United States Senate,’ Pompeo said in a statement obtained by Fox News Digital. ‘Jim served our nation in Afghanistan, served Indiana in the State Senate, and fought unabashedly for a strong America in Congress.’

Pompeo said Banks’ ‘conservative record is clear, and now more than ever, we need fighters like him who won’t back down on securing our border, strengthening our military, and pushing back against Biden’s woke agenda.’

‘It is an honor to have Secretary Pompeo’s support in our campaign to bring our Hoosier conservative values to the United States Senate,’ Banks said.

‘I am grateful for his hard and important work to champion our conservative, America-first values on the world stage during the Trump Administration and beyond,’ he continued.

‘I hope to fight for these same principles in the Senate and am grateful for his support,’ Banks added.

Banks has been the favorite in the race for months, having snagged endorsements from a litany of local, state and federal Republicans.

Earlier this month, Banks told Fox News Digital that he would ‘welcome competition’ in the race, but did not hesitate to cut deep into his new opponent’s perceived flaws — including an ongoing lawsuit over accusations of price gouging and coordinating to maximize profits. 

John Rust, chairman of Rose Acre Farms and a sixth-generation Indiana egg farmer, recently announced a long-shot bid for the spot being vacated by current Sen. Mike Braun, R-Ind., who is running for governor. 

Banks accused his primary challenger for Indiana’s open Senate seat of trying ‘to screw’ Indiana families during the height of inflation.

‘This fella has a lot of obstacles overcome to actually get on the ballot. But if he does, we’ll have a spirited race and talk about the differences between my proven conservative track record and his lifetime of voting for Democrats,’ Banks said in an interview at the National Republican Senatorial Committee. 

‘I find that to be just disgusting that this guy, and his family, would be a part of a scheme to screw people in Indiana who are trying to put food on the table, and they made it even harder on them during COVID to do that,’ Banks said. ‘His business is being sued for it. I’m going to make sure that a guy like that never goes anywhere near the United States Senate.’

Rust, who spoke with Fox News Digital last month, said at the time he was a lifelong conservative who only voted for Democrats when he ‘knew people personally’ who were running in left-wing primaries.

But Banks is still considered the favorite for the deep-red state’s Senate seat. He told Fox News Digital that Indianans want a senator who’s committed to restoring Trump administration policies on China, the border and the economy, among other issues. 

Get the latest updates from the 2024 campaign trail, exclusive interviews and more at our Fox News Digital election hub.

Fox News Digital’s Elizabeth Elkind contributed reporting.

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Lawmakers in the upper chamber are gearing up for a cloture vote measure Tuesday evening to end negotiations and extend government funding past the Sept. 30 deadline with a ‘clean’ continuing resolution (CR).

Sources indicate, however, that the measure — which has yet to be revealed — may not allocate significant resources toward disaster relief or aid for Ukraine.

Locking arms across the aisle, both Senate Majority Leader Chuck Schumer, D-N.Y., and Minority Leader Mitch McConnell, R-Ky., want to prevent a government shutdown that is fast approaching if a funding patch isn’t agreed on by Sept. 30. Senators have already lost a business day from the Yom Kippur recess on Monday. 

‘We now have four days to go until funding expires on Saturday at midnight, we are now right at the precipice,’ Schumer said Tuesday on the Senate floor. ‘Over the weekend, Senate Democrats and Republicans together worked in good faith to reach an agreement on a continuing resolution that will keep the government open beyond Sept. 30. We are very close to finishing our work and hope to release text very soon.’

Schumer called the CR ‘a bridge towards cooperation and away from extremism’ while McConnell said that ‘colleagues in both chambers are rightly concerned about a number of distinct priorities and are focused on taking further action to rein in reckless spending as we continue to rebuild our national defense.’

‘They’re concerned about addressing the consequences of the bad administration’s failure to secure our southern border,’ McConnell said of the House. ‘We are eager to provide relief to communities recovering from natural disasters from Hawaii to Florida, and bipartisan majorities recognize the ongoing need to counter Russia and China and continue to provide lethal aid to Ukraine.’

But the CR, which is a temporary protocol used by Congress to fund the federal government when the regular appropriations process has not been completed by the end of the fiscal year, may leave out most of President Biden’s $24 billion aid to Ukraine request, according to a Senate aide close to the matter.

The aide told Fox News Digital on Tuesday afternoon that ‘reports about a small amount of Ukraine money is true, but it’s nowhere near the full package amount.’

‘Goal here is to keep the government open while House and Senate move through the appropriations process,’ the aide said.

The cloture vote is just ‘one step of many’ in the process, and a bill text either late Tuesday or early Wednesday is expected, the source said.

Several GOP senators have signaled they’re prepared to slash a large budget for Ukraine aid, including Sen. Rand Paul, R-Ky., who sits on the Committee on Foreign Relations. 

‘I will oppose any effort to hold the federal government hostage for Ukraine funding. I will not consent to expedited passage of any spending measure that provides any more U.S. aid to Ukraine,’ Rand threatened on X, formerly known as Twitter.

And disaster relief is another point of contention as some Senate Democrats want to lump in disaster relief with Biden’s emergency funding request, which includes aid to Ukraine and firefighters, instead of voting on each bill one by one. Conservatives in the chamber, such as Sen. Rick Scott, R-Fla., are in favor of singling out the packages.

On Tuesday, Scott demanded passage of his Federal Disaster Responsibility Act, which would replenish the Federal Emergency Management Agency’s budget. Last week, Democrat Sen. Sheldon Whitehouse of Rhode Island blocked Scott’s request on the Senate floor for a vote on the bill because it didn’t include Ukraine aid.

‘I’ve heard rumors that the continuing resolution will have $20 billion for the Disaster Relief Fund,’ Scott said Tuesday in a statement. ‘That’s $16 billion less than what FEMA has told us it needs to be whole and continue showing up for disasters. That’s why my bill would authorize additional funding — on top of whatever funding is in the CR — so we can deliver urgently needed supplemental disaster funding for families in Florida, California, Hawaii and other states recently impacted by disasters, as well as block grants for American farmers.’

For cloture to pass, it will require the support of 60 senators. The vote is scheduled for 5:30 p.m. ET.

Meanwhile, the House is also expected to vote on a short-term spending bill soon after holding a key vote to proceed with four yearlong appropriations bills on Tuesday night, with border security leading the discussion.

‘The Republicans will put on the floor a move to secure our border. I think that’s the appropriate way to be able to keep government funded, secure border while we continue to keep government open to work on the rest of the appropriations process,’ McCarthy told reporters Tuesday morning.

Fox News’ Elizabeth Elkind contributed to this report.

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EXCLUSIVE: Hunter Biden received wires that originated in Beijing for more than $250,000 from Chinese business partners during the summer of 2019 — wires that listed the Delaware home of Joe Biden as the beneficiary address for the funds, Fox News Digital has learned from a congressional committee.

House Oversight Committee Chairman James Comer, R-Ky., has been investigating the Biden family business dealings and President Biden’s alleged involvement in those ventures.

As part of the investigation, Comer subpoenaed financial records related to a specific bank account and received records of two wires originating from Beijing and linked to BHR Partners.

BHR Partners is a joint-venture between Hunter Biden’s Rosemont Seneca and Chinese investment firm Bohai Capital. BHR Partners is a Beijing-backed private equity firm controlled by Bank of China Limited. Hunter Biden reportedly sat on the board of directors of BHR Partners.

The first wire transfer sent to Hunter Biden, dated July 26, 2019, was for $10,000 from an individual named Ms. Wang Xin. There is a Ms. Wang Xin listed on the website for BHR Partners. It is unclear if the wire came from that Wang Xin.

The second wire transfer sent to Hunter Biden, dated Aug. 2, 2019, was for $250,000 from Li Xiang Sheng — also known as Jonathan Li, the CEO of BHR Partners — and Ms. Tan Ling. The committee is trying to identify Ling’s role.

The beneficiary for the wires is listed as Robert Hunter Biden with the address ‘1209 Barley Mill Rd.’ in Wilmington, Delaware. That address is the main residence for President Biden.

Comer and the House Oversight Committee have obtained bank records as part of their investigation, alleging that the Biden family and their business associates received millions of dollars from oligarchs in Russia, Ukraine, Romania and Kazakhstan during the Obama administration.

Fox News Digital has also learned that the committee has records that allegedly reveal that from 2014 to 2019 the Biden family and their associates received $24 million in foreign payments — $15 million to the Bidens and $9 million for their business associates, $4 million more than previously known.

Committee aides told Fox News Digital that beneficiary addresses are either the address listed to the recipient account or listed by the individual sending the wire. It is unclear, based on the wire records, who listed the address.

Hunter Biden spent time in 2017, 2018 and 2019 living at the Biden family home in Wilmington. It is unclear if he was living at the home at the time of the wire transfers in July and August 2019.

The wires were sent just several months after then-Vice President Joe Biden announced his 2020 presidential campaign. Joe Biden, in August 2019, said he ‘never discussed with my son or my brother or anyone else anything having to do with their business, period.’

As for Jonathan Li, according to testimony from Hunter Biden’s former business associate, Devon Archer, as part of the House Oversight Committee’s investigation, Joe Biden sat down for coffee in Beijing with the CEO of BHR. Archer also testified that Biden wrote a college recommendation letter for Li’s daughter to Georgetown. Archer said Hunter Biden put his father on speakerphone for at least one call with Li in addition to meeting for coffee.

Separately, Fox News Digital first reported in 2022 that Biden wrote a college recommendation letter for Li’s son to Brown University.

‘Bank records don’t lie, but President Joe Biden does,’ Comer told Fox News Digital.

‘In 2020, Joe Biden told Americans that his family never received money from China. We’ve already proved that to be a lie earlier this year, and now we know that two wires originating from Beijing listed Joe Biden’s Wilmington home as the beneficiary address when he was running for president of the United States. When Joe Biden was vice president, he spoke on the phone and had coffee with Jonathan Li in Beijing and later wrote a college letter of recommendation for his children,’ Comer said.

‘Joe Biden’s abuse of public office for his family’s financial gain threatens our national security. What did the Bidens do with this money from Beijing? Americans demand and deserve accountability for President Biden and the first family’s corruption. The Oversight Committee, along with the Judiciary and Ways and Means committees, will continue to follow the evidence and money to provide transparency and accountability.’

Despite Hunter Biden receiving more than a quarter of a million dollars in the summer of 2019 from BHR-linked individuals, in October 2019, then-attorney for Hunter Biden, George Mesires, explained Hunter’s role at the company by saying he ‘served only as a member of the board of directors, which he joined based on his interest in seeking ways to bring Chinese capital to international markets.’

‘It was an unpaid position,’ Mesires said on Oct. 13, 2019. ‘In October 2017, Hunter committed to invest approximately $420,000 USD (as of 10/12/2019) to acquire a 10% equity position in BHR, which he still holds. To date, Hunter has not received any compensation for being on BHR’s board of directors. He has not received any return on his investment; there have been no distributions to BHR shareholders since Hunter obtained his equity interest.’

Hunter resigned from the board of BHR at the end of October 2019.

The White House, attorneys for Hunter Biden and Mesires did not immediately respond to Fox News Digital’s request for comment. The White House maintains that the president was ‘never in business with his son.’

The subpoenaed financial records come amid House Republicans’ impeachment inquiry investigation against President Biden.

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House Speaker Kevin McCarthy, R-Calif., said Tuesday that it would be ‘important’ to meet with President Biden to discuss averting a government shutdown and how to secure the border.

‘I think it would be very important to have a meeting with the president,’ McCarthy told reporters when asked if he wanted to sit down with Biden.

Lawmakers have until Saturday at midnight to forge a path forward on funding the government or risk a partial government shutdown. The House has passed just one of its 12 appropriations bills, but disagreements within the GOP majority have stymied virtually all progress over the last week. The Senate has yet to pass a single spending bill.

McCarthy said House lawmakers would vote to advance four more appropriations bills on Tuesday evening, and suggested he would tee up a vote for a stopgap funding bill, known as a continuing resolution (CR), later this week.

He did not give details on the top line funding numbers, but said it would include border security measures that conservatives have long demanded but that have little, if any, chance of passing in the Senate and getting the president’s signature. 

‘I believe in good faith, if the president wants to help secure this border, which Americans on both sides of the aisle are asking… if he’s willing to take some actions to even sit down with us to make some changes along that border, we can keep government open while we finish,’ McCarthy said Tuesday.

He blamed Biden unilaterally for the current border crisis, claiming it was his policies that have led to a surge in undocumented migrants overwhelming U.S. cities and towns.

‘The only person that can deal with this is the president because the president is the one who made the policy decisions that were different,’ McCarthy said.

McCarthy and Biden previously met at the White House to hash out a deal to raise the debt ceiling, which also included a commitment on the top line government spending number for fiscal year 2024.

But while the Senate has been putting together its bills with that limit in mind, House GOP leaders have given into conservative hardliners’ demands to pass even deeper cuts, with a top line that’s roughly $120 billion below the deal.

The White House and Biden allies have accused McCarthy of reneging on the bipartisan agreement, positioning to blame a possible shutdown squarely on the House GOP.

When reached for comment, a White House spokesperson did not weigh in directly on McCarthy’s comments about a meeting, but pointed Fox News Digital to comments from press secretary Karine Jean-Pierre made last week.

‘This is something for House Republicans to deal with. It is their job. It is one of their basic duties to keep the government open. It truly is,’ Jean-Pierre said at her regular press briefing. ‘The President did his job, right? He helped broker a bipartisan legislation that two thirds of that… was voted by Republicans. And so, a deal is a deal. They need to stick to what they agreed upon — what they, themselves, voted on. And so, that is for Speaker McCarthy… to figure out how he’s going to move forward here. But this is for them to fix.’

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Former President Donald Trump is gaining momentum among Hispanic voters, according to a recent Univision poll, which claims to be the largest Hispanic bipartisan primary public polling of the 2024 election cycle so far.

Among Hispanic Republicans, Trump maintains a strong lead, with 50% responding they would vote for him in the GOP primary, the poll found. Meanwhile, Florida Gov. Ron DeSantis follows in second place with 12%, and pharmaceutical businessman Vivek Ramaswamy trails behind at 9%.

Despite four federal indictments, Trump is dominating among Hispanic voters and stands at 36%, a four-point increase from when he left office in January 2021, as per a previous Univision News poll.

Overall, the poll garnered 1,400 registered voters and 759 Republican respondents, making it one of the largest samples of Hispanic voters so far in the election cycle.

‘This first of its kind national poll demonstrates the wants and needs across the Hispanic community, and particularly an in-depth insight into the Republican Primary Hispanic Voter. This poll provides an opportunity to understand the complex and varied sentiments within the community across the country,’ García-Rios, Director of Polling and Data at Univision Noticias, said Monday in a statement.

Nevertheless, if a presidential election were held today between incumbent President Biden and Trump, 58% of Hispanics would vote for Biden, while 31% would support Trump.

While Trump maintains popularity within Hispanic Republicans, the broader Hispanic voter base has not shifted towards the right, pollsters noted.

A majority of Hispanic voters in the poll — more than 50% — regardless of party affiliation were deeply concerned about the economy, but believe Democrats can better address the issues.

Worries about day-to-day expenses such as healthcare costs and housing prices are prominent, at 27% and 25%, respectively.

However, the largest share of voters feel that neither party offers a satisfactory solution to pressing economic issues.

Behind economic issues, a growing number of Hispanic voters believe mass shootings and gun control policies ranked as the number two most important issues facing the country.

Border security remains a complex issue for Hispanic voters, but Republicans have a slight edge, with 41% of voters trusting them compared to 40% who trust Democrats to get the migrant crisis under control. Both Hispanic Democrats and Republicans largely agree on the need for increased border security.

Meanwhile, Trump is currently leading President Biden by 10 points among voters, according to a new poll by The Washington Post and ABC. The poll found that if the 2024 presidential election were held today, Trump would win 52% to 42% over Biden. Respondents also held a poor view of Biden’s handling of the economy and the U.S.-Mexico border, in addition to his age.

Biden’s approval rating sits at 37%, according to the poll, while 56% of respondents actively disapprove of his presidency.

Fox News’ Anders Hagstrom contributed to this report. 

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The Energy sector has the highest percentage of analyst buy ratings (around 64%) of all S&P sectors in the US stock market.  

The kicker, however, is that these same analysts project Energy to have the smallest price increase (a mere 10.7%) among all sectors in the next 12 months.

So, is the energy sector worth buying or not? Does it have room to run, and if so, how far can it go? We can see the tailwinds (recovering fuel demand and elevated oil and gas prices), but do we see any headwinds along the way?

OPEC+’s Surprise Power Play

In an unexpected move, the oil cartel slashed oil production by a whopping 1.66 million barrels per day on April 2. This catapulted the oil price and fueled a 4.5% surge in most energy stocks.

OPEC+ aims to induce a substantial market deficit through the end of the fourth quarter 2023. The global oil market responded to the drop in supply, with crude oil futures soaring over 30% from its 2023 low (reached in March and retested in May). 

In a StockCharts article last Thursday, Arthur Hill sliced into the price dynamics of the United States Oil ETF (USO), unveiling how it’s breached into “oversold” territory. Now, it’s recoiling from those elevated levels, taking a slight dive from its RSI-filtered peak.

But that’s not the case with the Energy sector, according to its proxy, the Energy Select Sector SPDR Fund (XLE).

Energy Stocks Have Room to Run, Say (Fundamental) Analysts

Anxieties stemming from the OPEC+ production cuts caused energy stocks to jump over 15% in the abovementioned period. Crude oil futures are now hovering at $90 a barrel. Citibank forecasts the global benchmark Brent crude can surpass $100 a barrel this year. Plus, energy stocks are churning out some of the most lucrative dividends among all 11 S&P sectors. And energy companies are hesitant to axe these incentives. So, what do the technicals say? Let’s look at the weekly chart of XLE (see below).

CHART 1: WEEKLY CHART OF ENERGY SELECT SECTOR SPDR FUND (XLE). A long ascending triangle, an RSI that’s not in an overbought level, Williams True Seasonal indicator showing that demand for fuel could increase till summer, and an Ichimoku cloud driving higher indicates that energy stocks could rise further. Chart source: StockCharts.com. For educational purposes.

When we talk about ascending triangles, we typically refer to the pattern as it appears on the daily chart. The average ascending triangle lasts 20 days. The example above is much longer (over a year long) but it still exhibits the same market dynamics, which is bullish.

Consider the following:

On a weekly scale (similar to what you’d find it you looked at the daily chart), XLE doesn’t occupy “overbought” territory, according to the Relative Strength Index (RSI), unlike USO (which is correlated to the price of WTI crude oil futures).  XLE has room to run.Looking at the Williams True Seasonal, XLE tends to trough toward the beginning of the year and peak in the summer, when fuel demand is at its highest.Plotting an Ichimoku Cloud, the Kumo, though red (meaning, bearish) and thin, is drifting upwards and serving as support.

The likelihood that XLE will break out toward the upside is high, as ascending triangles have a 17% failure rate. So, technically, you might want to wager on the upside. 

But there are headwinds, not only fundamentally but technically.

CHART 2: MONTHLY CHART OF XLE. If XLE breaks above the 2008 high, it could reach or break above its all-time high of $101.32. Chart source: StockChartsACP. For educational purposes.

Current resistance happens to coincide with the 2008 highs. And should XLE break above it, it also has to clear its all time high, reached in 2014, of 101.32. Will it break above this without a longer-term correction? 

The Bottom Line

The Energy sector holds a strong 64% of analyst buy ratings, dwarfing all other sectors and flashing a bullish signal, yet analysts project a mere 10.7% price increase in the next 12 months. Thanks to OPEC+’s slash in oil production, the sector has seen a sharp surge, with attractive dividend yields on the table. But is it a siren song for investors? The Energy Select Sector SPDR Fund (XLE) shows some promising technicals, signaling room for a potential climb and a strong chance for a breakout to the upside. But it may also be treading on thin ice, facing formidable headwinds ahead.

Geopolitics holds the wild cards here. There’s likely some upside in the near term. But what happens afterwards can send you into a spin. Be prepared for anything and be ready to shift direction if necessary.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

Stocks fell sharply in September with the S&P 500 SPDR (SPY) breaking below its August low. Chartists can now use this low as a benchmark low to gauge relative performance. Stocks that held above the August low are showing relative strength. This is valuable information because stocks that hold up better during declines have a better chance of moving higher. Let’s look at an example.

Finding the Leaders after a Sharp Decline The first chart shows SPY breaking below its August low with the decline to around 430. The ETF is also well below its 50-day SMA (green dashed line). Keep these characteristics in mind when analyzing the next chart.

The next chart shows Paccar (PCAR) hitting a new high in July and moving sideways the last few months. Instead of falling in September, PCAR edged higher and did not break the July-August lows. PCAR also closed above its 50-day SMA on Monday. Clearly, PCAR is holding up better than SPY and showing relative strength.  We used these techniques to identify five Nasdaq 100 stocks holding up well in September.

As far as chart patterns are concerned, PCAR hit a new high in July and then consolidated into August. I view this consolidation as a rest within the uptrend. Put another way, this is a bullish continuation pattern. A breakout is in the making and I expect PCAR to continue higher.

Tuesday’s Chart Trader Report and Video featured PCAR and five other stocks. These stocks have similar characteristics: long-term uptrends, bullish consolidations and relative strength. Click here to learn more and gain immediate access.

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