Congratulations if you\u2019re the winner of the Mega Millions jackpot, that\u2019s a nice chunk of change. <\/p>\n
The bad news is that $1.6 billion doesn\u2019t go as far as it used to. Time to think about how to invest your windfall.<\/p>\n
If you still see gambling as a winner, consider buying shares of Disney. Its ESPN unit just agreed to a $2 billion deal with Penn Entertainment to get it into sports betting. Penn\u2019s shares surged overnight after a 30% drop over the past year.<\/p>\n
Disney stock has also been beaten down, having declined more than 20% from 12 months ago. The entertainment giant reports earnings after the bell on Wednesday, giving investors a sense of how CEO Bob Iger is coping with a raft of problems at the company he returned to.<\/p>\n
The ESPN Bet move could be a sign that the company is making plans to sell ESPN. It\u2019s hard to imagine a place for gambling in Disney\u2019s wholesome Magic Kingdom in the longer term. Beyond that, watch out for progress on the Disney+ streaming service, and whether parks business is perking up this year.<\/p>\n
Investing is certainly a good option for those with billions\u2013or less\u2013in the bank. The stock market\u2019s strong performance has led some of the most outspoken bears to change their tune recently. <\/p>\n
Of course, a bullish consensus itself could be a contrary indicator. As any investor knows, it\u2019s not enough to be right about a company to make money in the market\u2013you have to be right and bet against the herd. When everyone expects values to rise, that may well be a sign they won\u2019t.<\/p>\n
For you, Mega Millions winner, playing the stock market may feel harder than playing the lottery. But at least your odds are better than the 1 in 302,575,350 that got you this far.<\/p>\n
\u2014Brian Swint<\/em><\/p>\n *** Join MarketWatch reporter Jessica Hall and Susan Hirshman, director of wealth management at Schwab Wealth Advisory, today at noon for a discussion about the great wealth transfer happening right now. Sign up here.<\/em><\/em><\/em><\/p>\n Try your hand at this morning\u2019s Barron\u2019s Daily crossword puzzle and sudoku games. For all games, including a digital jigsaw based on the week\u2019s cover story, click here.<\/em><\/p>\n China Consumer Prices Fall But It\u2019s Not Quite Deflation<\/h2>\n Chinese consumer prices fell in July for the first time since the depths of the pandemic the latest indication that the world\u2019s second-largest economy is weak. It\u2019s a sign that consumer demand isn\u2019t strengthening enough after the country emerged from lockdowns at the end of last year.<\/p>\n What\u2019s Next:<\/strong> China\u2019s government and central bank have so far been reluctant to unleash massive stimulus to combat the slowdown, but it may still continue to come up with some more measures.<\/p>\n \u2014Brian Swint<\/em><\/p>\n \n Rivian Automotive What\u2019s Next:<\/strong> Germany\u2019s \u2014Al Root and Liz Moyer<\/em><\/p>\n The Federal Reserve won\u2019t meet to discuss interest rates until September, but officials have been talking about what their next move could be. Philadelphia Fed President Patrick Harker said in a speech Tuesday that the central bank could be near a point where it can hold rates steady.<\/p>\n What\u2019s Next:<\/strong> New York Fed President John Williams told the New York Times they\u2019re close to what a peak rate would be. Indicators say the economy is strong, but he expects \u201cwe will need to keep a restrictive stance for some time.\u201d It depends on the data, he said.<\/p>\n \u2014Liz Moyer<\/em><\/em><\/em><\/em><\/p>\n Movie theater giant What\u2019s Next:<\/strong> AMC stock surged last month after the judge blocked its stock conversion proposal but the opposite could happen if the company\u2019s modified plan addresses the court\u2019s concerns. <\/p>\n \u2014Jack Denton and Liz Moyer<\/em><\/em><\/em><\/em><\/p>\n Someone in Florida has won the Mega Millions jackpot, which had grown to $1.58 billion, the largest in its 21-year history. No winning ticket had been drawn since April. The winner could get a lump sum amount of $783.3 million before taxes. <\/p>\n What\u2019s Next:<\/strong> Tuesday\u2019s jackpot amount was the third biggest lottery grand prize in U.S. history. The player with the winning ticket has the option to claim it as an annuity, including an upfront payment and then 29 annual payments that increase 5% each time.<\/p>\n \u2014Liz Moyer<\/em><\/em><\/p>\n Dear Quentin,<\/p>\n I have a girlfriend and things are progressively getting more serious. I am starting to feel that she\u2019s anticipating a proposal, at least within the next year or two. <\/p>\n I am not where I want to be in my career, but I am financially stable and that is supremely important to me. My air-conditioning unit broke down a year after moving into my house in 2022. I have racked up about $7,000 on my credit card.<\/p>\n This whole situation has made me leery of the proposition of marriage to my girlfriend. We have completely different perspectives on spending and budgeting. We both have decent jobs, but not great. I make about $40,000 a year, and she makes about $50,000. She has no fear of bad debt. She has student-loan debt, about $12,000 or more in credit-card debt, a car loan, and very little savings. <\/p>\n She lives well above her means and most of that is due to shopping, drinks and eating out. To top it all off, her dad is on state assistance for medical care and, unfortunately, he is not doing well and needs a liver transplant.<\/p>\n How do I bring up these topics and not make her feel bad? Should I just support her through this journey with her dad, and call it quits if I can\u2019t come to grips with paying off someone else\u2019s debts?<\/p>\n***<\/h4>\n
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Rivian, Li, Lucid Report. More EV Earnings Are Here.<\/h2>\n
\n beat expectations on second-quarter earnings and raised its outlook for electric vehicle production for the full year. It now expects to produce 52,000 vehicles in 2023, which is more than twice what it made last year and higher than its earlier forecast.<\/p>\n\n
\n Li Auto
\n also beat expectations and profit margins were 21.8%, higher than
\n Tesla\u2019s<\/span>
\n 18.2%. After delivering a record number of EVs in July, Li said it expects third quarter deliveries of 100,000<\/strong> to 103,000 vehicles. It delivered 86,533 units in the second quarter.<\/p>\n<\/li>\n
\n had a wider than expected second quarter loss of 40 cents. It sells $100,000 cars, a small market, and data show it\u2019s better<\/strong> to sell $50,000 cars or $500,000 cars. Luxury cars account for about 2% of the total U.S. auto market, according to Cox Automotive.<\/p>\n<\/li>\n<\/ul>\n
\n Porsche<\/span>
\n has cars that sell for more than $275,000. Its gross profit margin is 30%. Italy\u2019s
\n Ferrari
\n is even more profitable. It sold 3,392 units in the second quarter at an average price of roughly $478,000, for a gross profit margin around 50%.<\/p>\n***<\/h4>\n
Fed Officials Make Rounds as Attention Turns to September Meeting<\/h2>\n
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AMC Beat Expectations, and Earnings Didn\u2019t Even Include \u2018Barbenheimer\u2019<\/h2>\n
\n AMC Entertainment
\n reported a surprise profit for the June quarter. But better things are yet to come, it noted, as the mega-hit movie combo of Barbie<\/em> and Oppenheimer<\/em> only arrived in theaters in the third quarter, making July revenue the highest in the 103-year old AMC\u2019s history.<\/p>\n\n
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Another Lottery Drawing; Another $1 Billion Jackpot<\/h2>\n
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