Stocks closed lower Tuesday, giving up earlier gains, as concerns such as rising rates and high inflation that knocked the market down last year continued to trouble investors in the new year.
The S&P 500 fell 0.40% to close at 3,824.14 slipping from highs of the day when December's manufacturing index declined at the fastest pace since May 2020. The Dow Jones Industrial Average ended the day down 10.88 points, or 0.03%, to 33,136.37 as shares of Boeing offset losses. The Nasdaq Composite shed 0.76% to 10,386.99.
Shares of Tesla and Apple both slipped, weighing on the broader market and carrying forward a main theme from 2022, when the technology sector was hit hard as the Federal Reserve raised rates to fight inflation. Tesla fell 12.24%, hitting its lowest level since August 2020, following disappointing fourth-quarter deliveries. Apple shed 3.74% on reports that it will cut production due to weak demand.
The sentiment may continue in 2023 as the central bank is poised to continue to hike interest rates in the coming months, stoking fears that the U.S. economy may fall into a recession.
"A recessionary environment in 2023 could further hamper tech stock performance in the new year, as investors' thirst would increase for value oriented companies and those with higher profit margins, more consistent cash flows, and robust dividend yields," wrote Greg Bassuk, CEO of AXS Investments in New York.
The major averages closed 2022 with their worst annual losses since 2008, snapping a three-year win streak. The Dow ended the year down about 8.8%, and 10.3% off its 52-week high. The S&P 500 lost 19.4% for the year and sits more than 20% below its record high. The tech-heavy Nasdaq tumbled 33.1% last year.
Of course, there may be brighter days ahead. History shows the U.S. stock market tends to rebound after down years. In fact, the S&P 500 has, on average, rebounded by 15% in the next year following a year where it lost more than 1%.
Investors are getting a bundle of data in the first trading week of the year that will give further information on the state of the economy.
On Tuesday, the U.S. purchasing managers index for manufacturing came in lower than expected, signaling the fastest slip since May 2020. Later in the day, construction spending for November ticked up slightly, showing that the industry may be recovering.
Wednesday is a big day with the Job Openings and Labor Turnover Survey, better known as JOLTS, due out in the morning and the minutes of the Fed's latest policy meeting set to come out in the afternoon.
They're also looking forward to Friday's December jobs report, the final employment report the Fed will have to consider before its next meeting on Feb. 1. There are also several speeches by Fed presidents scheduled Thursday and Friday.
Netflix is among the best positioned stocks as advertising recession looms, Evercore ISI's Mahaney says
Netflix is among the best positioned mega cap tech names to weather an advertising recession, according to Evercore ISI's Mark Mahaney.
"Netflix in particular has got the most interesting new product catalysts out in the space with this ad offering that is taking off slowly," the top tech analyst told CNBC's "Closing Bell" on Tuesday. "But there's a lot of potential here, and Netflix wins so many different ways from the rollout of this ad-supported offering."
Looking ahead, Mahaney expects revenue growth to slow across the sector given its connection to consumer discretionary spending.
"Revenue growth is going to be slowing down for almost all of these names unless they have a new product cycle, unless they're somewhat recession resilient," he said.
— Samantha Subin
Stocks close lower on first trading day of 2023
Stocks started the new year off with a disappointing first day as some of the same themes that weighed on markets in 2022 continued in 2023.
The S&P 500 fell 0.40%, slipping from highs of the day when December's manufacturing index declined at the fastest pace since May 2020. The Dow Jones Industrial Average ended the day down 12.66 points, or 0.04%, as shares of Boeing bolstered losses. The Nasdaq Composite shed 0.76%.
Tech stocks led the slide, with shares of Tesla and Apple weighing most on markets.
Energy is the worst-performing sector in the S&P 500 today
After a blockbuster year in 2022, the energy sector has started off the new year with a disappointing performance. The sector shed more than 4% on Tuesday, the first trading day of 2023, and was the worst performer in a down day for the stock market.
The slip was driven in part by natural gas prices, which plummeted amid warmer weather and weighed on company shares. In addition, stocks such as APA, Devon Energy, Coterra Energy, Hess Oil and Marathon Oil slipped.
In 2022, the energy sector was the best performer in the stock market as rising oil prices boosted shares of industry companies.
Fed tightening has already tamed inflation expectations says Rosenblatt Securities.
The Federal Reserve's aggressive tightening cycle has already tamed both fears and expectations related to the high inflation that dominated 2022, according to Rosenblatt Securities.
"As inflation decelerates, it may linger longer than many suspect, however the Fed has given signals that they will err on kicking inflation to the curb, at the risk of growth," Michael Kiernan, Rosenblatt's director of research, said in a note Monday. "If we do get another scare during the 1st half of 2023, that scenario likely triggers an entry point for many investors that have been comfortably sitting on the sidelines in T-bills with 4%+ yields."
"When this liquidity returns to equities there likely will be a hunger for long-duration equities, particularly in the high-growth [technology, media, and telecom] sector," he added. "Demand for growth will also face much less of a valuation headwind in 2023 as fundamentals rule the day."
The firm expects a strong second half of the year for stocks, led by tech, but noted that investors should focus We expect a particularly strong 2nd half 2023 for equities, led by Tech.
— Tanaya Macheel
Stocks are down heading into the final hour of trading Tuesday
Stocks fell Tuesday, erasing gains from earlier in the day, as some of the same fears from 2022 weighed on markets in the first trading day of 2023.
The Dow Jones Industrial average slid 90 points, or 0.27%. The S&P 500 and the Nasdaq Composite were down 0.52% and 0.73%, respectively. Shares of Tesla and Apple lost 11% and 4%, respectively, weighing on the broader market.
Bernstein expects the crypto industry to rebound from this latest ‘winter’ like it has before
If history is any indication, crypto prices will rally exponentially when this crypto winter is over, according to Bernstein.
Bitcoin finished 2022 at $16,664, posting a 64% loss for the year and ending more than 75% off its November 2021 all-time high. Even at the current lows, however, the cryptocurrency is up roughly 60% from its 2014 bottom and is 5 times greater than its 2018 lows.
"Investors should continue to focus on the long-term consumer adoption of crypto" which "should mirror the growth of the internet, as blockchain applications become more mainstream," said Bernstein analyst Gautam Chhugani in a note Monday.
Read the full story on CNBC Pro.
— Tanaya Macheel
Only 3 S&P 500 sectors are positive today
Only three sectors in the S&P 500 are in the green Tuesday as 2022's stock market slump continues into the new year.
The top performing sector is communications, which is up about 0.6% boosted by shares of Verizon, AT&T and Lumina.
Non-energy materials and Commercial services were also positive for the day. Shares of PayPal, Meta and Newell-Brands boosted the sectors.
U.S. will avoid recession in 2023, Goldman Sachs says
Goldman Sachs has an out-of-consensus forecast for the U.S. economy in 2023.
"Our economists continue to believe that the US will avoid recession as the Fed successfully engineers a soft landing of the economy," analysts wrote Tuesday.
"This out-of-consensus forecast partly reflects our view that a period of below-potential growth is enough to gradually rebalance the labor market and dampen wage and price pressures," the note said. "But it also reflects our analysis that indicates that the drag from fiscal and monetary policy tightening will diminish sharply next year, in contrast to the consensus view that the lagged effects of interest rate hikes will cause a recession in 2023."
In addition, the bank today raised its 4Q22 GDP growth forecast by 10bp to +2.1% on the back of a surprisingly strong November Construction Spending release
"The disconnect between the resilience of the US economy in 2022 and the downdraft experienced by stocks is has been a key narrative of the past year," Goldman said. "And, whether this disconnect continues, or the economy matches the market downdraft, or the market rebounds in the wake of an economic soft landing may be at least part of the narrative of 2023."
Natural gas plunges on wamer weather, chart shows negative head and shoulders formation
Natural gas fell sharply on a warmer-than-normal U.S. weather outlook as a negative technical formation signaled more declines.
"Until mid-January, it's going to be above normal for most of the country," said John Kilduff of Again Capital. He said the latest National Weather Service forecast shows the warmer weather lasting into the middle of the month before returning to more normal temperatures.
Natural gas futures for February fell to a low of $3.959 per million British thermal units Tuesday and was trading in early afternoon at $3.997, a decline of 10.7%.
According to Katie Stockton, founder of Fairlead Strategies, when the futures contract fell through $5.50, it broke a neckline in the head and shoulders pattern in its chart. "A clear downtrend has emerged," she said, adding the next support is $3.20 per mm/Btu.
Evercore ISI's Ed Hyman said in a note that the sharp drop in natural gas may be a deflation bellwether.
"The surge in nat gas in 2021 was disregarded by the inflation-transitory camp," he wrote in a note.
Michael Burry calls for more inflation and a U.S. recession
"The Big Short" investor Michael Burry who predicted the 2008 financial crisis said that inflation will likely pick up again as the Federal Reserve and the government provide stimulus to rescue the economy from a recession next year.
Burry, the founder of Scion Asset Management founder, said the U.S. recession will be inevitable. The widely followed investor had been warning about a market crash throughout 2022, drawing parallels between today's market environment and that of 2008.
— Yun Li
Evercore ISI downgrades CVS to in line
CVS shares appear fairly valued for now, according to Evercore ISI.
Analyst Elizabeth Anderson downgraded shares to in line from outperform, saying the pharmacy operator is dealing with three main challenges: a "highly competitive" annual enrollment period for health care plans, an uncertain outlook on the company's 2024 operating profit, as well as its valuation.
A review of data from the Medicare Advantage enrollment period showed Humana and UnitedHealth gained market share, while gains from CVS' Aetna were "less robust" when compared to previous years, according to the analyst.
At the same time, CVS is expecting a hit to operating profit after losing a pharmacy benefits contract with Centene, and because of its Medicare Advantage star ratings.
"We see valuation as relatively range bound in 2023 until we see greater certainty regarding ultimate portfolio composition of CVS as well as see a greater portion of the long-term double digit EPS growth coming from operating income," Anderson wrote.
"In addition, when we compare CVS to other large-cap healthcare services names, we see current valuation levels as fair," Anderson added.
CVS shares were down nearly 10% in 2022, outperforming a roughly 19% decline in the S&P 500. The analyst's revised price target, down to $100 from $120, implies about 7% upside from Friday's closing price.
— Sarah Min
Stocks making the biggest moves
These are the stocks making some of the biggest moves midday:
Tesla – The electric-vehicle maker shed 13% after the company announced fourth-quarter vehicle deliveries that fell short of Wall Street's expectations. Tesla delivered 405,278 cars in the fourth quarter, below the average analyst estimate of around 427,000, according to FactSet.
Wynn Resorts – Shares rose 2% after Wells Fargo upgraded the hotel and casino operator, saying it sees a significant reopening opportunity as China's moves toward a full reopening. The call also boosted Las Vegas Sands, which added about 3% as well. MGM Resorts gained 1%.
T-Mobile — The stock slid 1.7% following a downgrade to peer perform from perform by Wolfe. The firm cited slowing growth within telecommunications, while noting T-Mobile "remains a great story."
— Alex Harring
Molson Coors dips after downgrade
Shares of Molson Coors Beverage Company were under pressure on Tuesday after Wells Fargo downgraded the beermaker's stock to underweight from equal weight.
Analyst Chris Carey said in a note to clients that there is "too much risk" for the company's earnings in its fourth quarter report, citing rising costs and sluggish growth.
"Beer industry volumes have been weak in Q4, per data, and we think volumes are a valid concern for Q422. Domestic tax paids (brewer wholesale shipments) were -5.3% in October (-0.1% year-ago comp) and -4.0% in November (-1.6% year-ago comp), and TAP specifically has tough comps in the Americas due to year-ago inventory replenishment fill," the note said.
It also seems likely that the high inflation that ate into Molson Coors' profits last year will continue in 2023, Carey said.
Shares of Molson Coors were down 3.6% in midday trading.
— Jesse Pound
RBC downgrades Reynolds Consumer Products, Mondelez
The firm sees limited upside for both consumer names, with Reynolds trading at 20 times two-year forward P/E — a 23% premium to its historical average return, analyst Nik Modi wrote in a note. Mondelez also experienced strong outperformance during 2022 and is well-positioned in the packaged food space, he said.
"With that said, as the global macro environment weakens, it is hard to justify further upside to our EPS estimates — which is what would be required given the stock is near our price target," Modi said of Mondelez.
— Michelle Fox
Apple market cap falls below $2 trillion
A selloff in Apple shares pushed the iPhone maker's market capitalization below $2 trillion on Tuesday.
Shares shed 4% amid news that it's reportedly cutting production on some items due to weak demand. Concerns over iPhone supply during the holiday period have mounted in recent weeks and pressured shares as shutdowns rippled through Apple's major supplier in China.
The drop in shares contrasts a year ago, when Apple became the first U.S. company to hit a $3 trillion market cap.
Apple was the last of the mega cap technology stocks to hover above the $2 trillion level.
— Samantha Subin
Buy beaten-down consumer finance stocks including AmEx, Wells Fargo and Capital One, Baird says
U.S. banks represent a "favorable risk/reward" compared to the broader market after underperforming last year, according to Baird analyst David George.
"With absolute and relative valuations 20-25% below fair value, we feel like the setup for financials entering the year is reasonably good," George said Tuesday in a research note.
The group began 2022 on strong footing, thanks to expectations that Federal Reserve rate hikes would benefit banks' core lending and deposit activities. While that came to pass, it was overwhelmed last year by concerns that the Fed would cause a recession, leading to a wave of loan defaults.
George acknowledged the chance of rising defaults, but said that bank valuations already reflect that risk.
Apple, Amazon posted biggest market cap losses in 2022
They were two the biggest losers by the metric at losses of $846.34 and $834.06 billion, respectively. According to Bespoke, that $830 billion figure — which is just the loss, not the actual remaining market cap — is nearly equivalent to:
- 10 of PayPal's market caps
- 8 of Intel's market caps
- 18 of Snowflake's market caps
- 49 of Rivian's market caps
— Alex Harring
Tesla sheds 13%, hits new 52-week low
Shares of Tesla continued to fall after the electric vehicle maker announced that deliveries in the fourth quarter fell short of Wall Street's expectations.
The stock slipped more than 13%, hitting levels not seen since August 2020. The slide is coming off the worst annual performance for the stock - Tesla fell 65% in 2022.
Be selective when investing in restaurant stocks this year, Baird says
Baird is recommending investors act picky when considering investments in restaurant stocks amid a more challenging environment in 2023.
Analyst David Tarantino said investors should consider a near-time buying approach, while favoring franchisors such as McDonald's, Wingstop, Domino's and Taco Bell parent Yum! Brands. He said brands that have shown the ability to sustain demand in prior periods of economic downturn, including Chipotle and Portillo's, could also be stocks to look into.
"We believe some exposure to the Restaurants sector is warranted when considering many restaurant business models contain attributes that should be considered attractive amid current macro uncertainties," Tarantino said in a Monday note to clients. "That said, with prospects for a difficult consumer spending backdrop in 2023, we are still favoring shares of companies with defensive/durable business models and/or those we believe are best positioned to perform well in tough economic conditions."
— Alex Harring
Piper Sandler upgrades Coty
Piper Sandler upgraded shares of Coty to overweight from neutral, saying the beauty stock could have a strong 2023.
"Since launching on COTY roughly six months ago, we've seen a number of developments transpire and seen the macro environment move in a direction that we think both position COTY well for the next 12+ months and give us greater comfort in pushing this name than we did back in June," Analyst Korinne Wolfmeyer wrote in a Tuesday note.
— Sarah Min
Warren Buffett's Berkshire Hathaway finishes 2022 in the green, beating the market
Warren Buffett's Berkshire Hathaway significantly outperformed the market in 2022 with class A shares rallying 4%. The Omaha-based company is also starting the new year on a high note, rising less than 1% on Tuesday.
The conglomerate posted solid gains in operating profits despite rising recession fears, boosted by insurance-investment income and earnings from the company's utilities and energy. Meanwhile, Buffett kept buying back his stock at a modest pace through the volatile year ($5.25 billion through September).
The legendary investor also made a number of good bets even through the broader market was roiled by the Federal Reserve's aggressive tightening. Notably, Occidental Petroleum, now Berkshire's sixth biggest holding, was the best performing stock in the S&P 500 in 2022 with a whopping 117% gain. Buffett also placed a sizable bet on Taiwan Semiconductor in the third quarter, and the chipmaker rallied more than 8% in the following quarter.
Berkshire's stock has had a tendency to outperform during a down market. In fact, since 2000, Berkshire has beaten the S&P 500 (with dividends included) during each negative year for the equity benchmark, according to David Kass, a finance professor at the University of Maryland's Robert H. Smith School of Business.
— Yun Li
Notable gold rally has further to run, Strategas technical analyst Verrone says
The run up in the price of gold "continues to tell us something...[and] has grown in importance in our thinking over the last few months," Strategas technical analyst Chris Verrone wrote Tuesday, noting gold's "resurgence" and outperformance against stocks and bonds.
Bullion's recent strength, breaking above technical resistance at $1825 an ounce, means further gains are ahead, although Verrone declined to name his target, saying "it's laughably high… so you'll have to settle with `up and to the right' for now."
Three other straws in the wind favoring gold: "how benign sentiment remains, the survey data is still agnostic and flows are virtually nonexistent," Verrone wrote. "[W]e love good charts with an uninterested consensus."
Elsewhere, Verrone looks for continued leadership in "decent" or "solid" recent performers such as energy (CVX, SLB) and defense stocks (RTX, LMT). Cybersecurity stocks (PANW) are weak and consumer companies are mixed (COST's price chart is deteriorating), he said.
— Scott Schnipper, Michael Bloom
Barclays downgrades Ally Financial
Barclays downgraded shares of Ally Financial to equal weight from overweight, saying the outlook is more uncertain in 2023.
"While ALLY should still be able to achieve a core ROTCE in the mid-double digits range over time, results in the near-term will likely be pressured due to the impacts of higher rates partially offset by continued loan growth," Analyst Jason Goldberg wrote.
— Sarah Min
U.S. manufacturing PMI slips at fastest rate since May 2020
The U.S. manufacturing price managers' index, a measure of output, fell at the fastest rate in December since May 2020, according to S&P Global.
The index was 46.2 in December, down from 47.7 in November, according to data released Tuesday. Lower prices and contracting production levels weighed on the index. In addition, December saw a sharper than expected decline on new sales, with companies noting uncertainty due to the economic backdrop.
Stocks rise to kick off first trading day of 2023
Stocks rose at the start of trading Tuesday, the first session of the new year.
The Dow Jones Industrial Average climbed 75 points, or 0.23%. The S&P 500 rose 0.45% and the Nasdaq Composite gained 0.88%.
Expect difficult first half for stocks followed by recovery, Canaccord Genuity says
Analysts at Canaccord Genuity are expecting stocks to slip in the first half of 2023 as the U.S. economy falls into a recession, with a recovery in the second half of the year.
"If you want to make the market gods laugh – tell them your plan," wrote Tony Dwyer in a Tuesday note. "We enter the new year expecting a recession based on (1) the percentage of U.S. Treasury Yield Curves that are inverted and (2) the level of the Conference Board Leading Economic Indicators."
Any time these two macro indicators hit their current level, a recession developed, he said. That means it would be historically unique for the S&P 500 to have already made "the" low prior to when the economic downturn actually begins.
"We are clearly in the consensus of expecting a difficult first half followed by a year-end recovery," said Dwyer.
Of course, the opposite could happen, but the firm's four key tactical indicators suggest that any rally in the near-term would be temporary, as it wouldn't be coming from a pessimistic or oversold level.
"We continue to stick with our view that a recession is likely given, which means the market should make a new low at some point in the first half, and a more defensive posture is warranted – even if it is consensus and there is a bit of early year upside volatility," he said.
Baird upgrades Block to outperform
Block shares gained nearly 4% before the bell following an upgrade to outperform from Baird.
"The Street loves a comeback story, particularly one that's a premier large cap growth franchise," wrote analyst David Koning in a note to clients Tuesday.
CNBC Pro subscribers can read more on the upgrade from Baird here.
— Samantha Subin
Wynn stock rallies following Wells Fargo upgrade
Wynn Resorts gained nearly 4% in premarket trading Tuesday after Wells Fargo upgraded the stock, citing tailwinds from China's reopening.
Analyst Daniel Politzer upgraded the stock to overweight from equal weight. He also raised his price target by $27 to $101, which implies an upside of more than 22% from Friday's close.
"We have long held the view that Macau's recovery remains the key driver of WYNN's stock," Politzer said in a note to clients Monday. "For the first time in several years, we see better days ahead as China is pivoting from its COVID-zero strategy and easing travel restrictions."
CNBC Pro subscribers can read the full note here.
— Alex Harring
These stocks are making moves in the premarket
Here are some of the stocks making the biggest moves in the premarket:
Coty — Coty's stock rose 2.69% after being upgraded to overweight from neutral by Piper Sandler. Coty is increasing exposure to China and travel retail, which should allow for recovery tailwinds, the firm said.
PayPal — Shares gained nearly 3% premarket following an upgrade to a buy from hold by Truist, which also raised its price target on the digital payments stock.
Linde — The stock dropped nearly 3% after Reuters reported that Russia froze almost $500 million of assets of the German industrial gas company.
For more premarket movers, click here.
— Michelle Fox
Stocks face downside pressure at start of new year, Krinsky of BTIG says
After a disappointing 2022 performance, stocks look poised to fall even further at the start of 2023, according to a Dec. 30 note by Jonathan Krinsky of BTIG.
"S&P e-minis are working on a 135-point descending triangle over the last ten days," he said. "While patterns are far from guaranteed, more often than not the pattern resolves in the direction of the underlying trend. In this case, that's of course lower."
The range applied to a break below 3,800, and signals a measured move towards 3,665 on the S&P 500.
He also noted that healthcare was the worst performing sector on the last trading day of the year.
"Healthcare is the worst sector today down over 1% while it was the fourth best sector YTD behind energy, utilities, and staples," he said. "The XLV ETF looks to be working on a bear-flag and with many of the defensive names in the group quite extended on a long-term basis, this could be an area of weakness as we begin the new year."
Tesla slips in premarket trading after deliveries miss
Shares of Tesla fell more than 4% in premarket trading Tuesday after its fourth-quarter delivery numbers came in below analysts expectations.
The electric vehicle maker delivered 405,278 cars in the fourth quarter. Analysts expected that Tesla would report report deliveries around 427,000 for the final quarter of the year. Estimates updated in December, and included in the FactSet consensus, ranged from 409,000 to 433,000.
—Carmen Reinicke, Lora Kolodny
Barclays downgrades Ally Financial
Barclays analyst Jason Goldberg downgraded Ally Financial to equal weight from overweight, citing a tougher macro environment.
"We are becoming less constructive on those with outsized asset sensitivity and areas we believe loan losses will adjust the fastest – namely, lower-end consumer (most impacted by much reduced stimulus, elevated inflation, and higher interest rates) and commercial real estate (uncertainties in office, retail, health care segments)," Goldberg said.
— Sarah Min
IMF chief warns of tough year for global economy
International Monetary Fund managing director Kristalina Georgieva warned that 2023 will be a tough year for the world economy as the U.S., China and Europe all deal with weakening economic output.
"For the first time in 40 years, China's growth in 2022 is likely to be at or below global growth," Georgieva said on CBs' "Face the Nation" on Sunday. "I was in China last week, in a bubble in a city where there is zero-Covid," she said. "But that is not going to last once people start traveling."
"For the next couple of months, it would be tough for China, and the impact on Chinese growth would be negative, the impact on the region will be negative, the impact on global growth will be negative," she said.
She noted that the U.S. remains resilient, but added that this could lead the Federal Reserve to keep rates higher for longer, if the labor market stays strong.
— Fred Imbert
European shares rise as investors await key inflation data, assess China reopening
European markets were higher in early trade, as investors assessed China's reopening while waiting for minutes from the latest U.S. Federal Reserve policy meeting and key European inflation figures.
The U.K.'s FTSE 100 rose 2%, while Germany's DAX index was up 1.1% and France's CAC 40 was up 1%.
Overall, the pan-European Stoxx 600 gained 1.5%, led by travel stocks, up 2.8%.
German preliminary inflation figures for December are due Tuesday afternoon, followed by France's on Wednesday and Italy's on Thursday.
The first quarter could determine how good or bad the new year will be
Some of the biggest questions for market performance in 2023 may find answers in the first quarter of the year.
Heading into the new year, there's an unusually high level of consensus among Wall Street strategists in their stock market outlooks. The common view is that the stock market will perform poorly in the first quarter and probably the second, carving out a new low before improving into the end of the year.
For more on the year ahead, read the full story on CNBC Pro.
— Patti Domm, Tanaya Macheel
Stock futures open higher
Stock futures jumped at the start of trading Monday evening.
Dow Jones Industrial Average futures climbed 229 points, or 0.69%. S&P 500 futures added 0.85% and Nasdaq 100 futures rose 0.96%.
— Tanaya Macheel