Magnificent Seven earnings kick off next week with stocks near all-time highs
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Next hikes outlook after sales boosted by weather and M&S woes
Next has upped its annual sales and profit outlook once again after better-than-expected trading thanks to hot weather and disruption at cyber attack struck rival Marks & Spencer. The womenswear and homewares chain posted a 10.5% rise in full-price sales for the second quarter to July 26, with growth of 10.9% for the half-year as a whole. In the UK, sales jumped by 7.8% in the second quarter as the group said it was boosted by 'better than expected weather and trading disruption at a major competitor'. M&S had to suspend online trading for nearly two months from mid-April after it was hit by a major hack. Next said the recent performance and forecasts for better-than-forecast second half trading means it now expects full-year sales to rise by 7.5% and for profits to increase by 9.3% to £1.11 billion. It had previously pencilled in sales growth of 6% and for profits to lift by 6.8%. The upgrade marks the group's third in just five months. But Next said it 'remains cautious for the second half', stressing that the improved outlook is for its international arm over the next six months. It said: 'In the UK, we believe we exceeded expectations in the second quarter as a result of better summer weather and trading disruption at a major competitor. 'We do not expect either of these factors to have a material effect in the second half, and so we are not increasing our guidance for UK sales in the second half.' It believes sales growth in the UK will slow sharply to 1.9% as the jobs market starts to falter following the Government's move to hike National Insurance contributions for employers, at the same time as rising the minimum wage. Next said: 'We expect UK employment opportunities to continue to diminish as we enter the second half, with the effects of April's National Insurance changes continuing to filter through into the economy as the year progresses. 'We believe that this will increasingly dampen consumer spending as the year progresses.' But an online marketing push for its international arm is bearing fruit, helping drive sales 28.1% higher in the first half and with growth of 19.4% now expected in the final six months. The results come after Next announced late on Wednesday that it had bought Seraphine – the maternity fashion firm, whose clothes were worn by the Princess of Wales during her pregnancies – after it recently collapsed into administration. Next paid £600,000 for the brand and announced it was bringing back Seraphine's founder Cecile Reinaud as an adviser to help relaunch the fashion label.
Yahoo
an hour ago
- Yahoo
Home Values Are Now Falling Annually in These 4 Major Cities
Home values are now falling in four major metro areas in the South and the West, highlighting regional weakness in those housing markets in comparison with the Midwest and North. Dallas, Denver, San Francisco, and Tampa all registered annual declines in sales prices for single-family homes in May, according to data from the S&P CoreLogic Case-Shiller Index released on Tuesday. Nationally, home values rose 2.3% in May compared with a year ago, the slowest annual growth pace since July 2023. New York again reported the highest annual gain among the 20 cities tracked by the index, with a 7.4% increase in May. Chicago and Detroit followed with annual increases of 6.1% and 4.9%, respectively. 'With affordability still stretched and inventory constrained, national home prices are holding steady, but barely,' says Nicholas Godec, head of fixed income tradables and commodities at S&P Dow Jones Indices. 'Seasonal momentum is proving weaker than usual, and the slowdown is now more than just a story of higher mortgage rates.' Home prices reflect growing regional divergence The latest Case-Shiller home price data reflects a growing regional divergence in the U.S. housing market, with the Midwest and Northeast still booming, and the South and West increasingly soft. Los Angeles barely registered an annual price gain at 1.1%, while former COVID-19 boomtowns of Phoenix, Miami, and San Diego all registered growth of less than 1%. Denver and San Francisco both registered their first annual declines in home values in nearly two years, while Dallas deepened its losses after turning negative in April. Tampa again recorded the biggest annual price decline among the 20 cities tracked, falling 2.4% and marking the city's seventh straight month of negative year-over-year growth. Meanwhile, the top five metro areas for price growth in May were all located in the Northeast and Midwest, where the supply of homes for sale remains below pre-pandemic levels. 'National inventory levels are increasing, with the latest figure showing a 28.9% year-over-year increase,' says senior economist Anthony Smith. 'At the same time, regional housing dynamics are diverging: Inventory remains tight in the Northeast and Midwest, helping to support prices, while markets across the South and West are seeing more listings, slower sales, and softer pricing conditions.' The May price data reflects another historically weak spring housing season, which put the country on track for a 30-year low in home transaction volume, according to estimates from the economic research team. 'The spring market lifted prices modestly, but not enough to suggest sustained acceleration,' says Godec. 'May's data continued the year's slow unwind of price momentum, with annual gains narrowing for a fourth consecutive month.' He adds that the national slowdown in price growth 'reflects a market recalibrating around tighter financial conditions, subdued transaction volumes, and increasingly local dynamics.' The Case-Shiller index reports on a two-month delay and reflects a three-month moving average. Homes usually go under contract a month or two before they close, so the May data reflects purchase decisions made earlier in the year. Although the index's price data is delayed by several months, it is considered one of the best available measures of changing home values, because it is based on repeat transactions on the same properties. Related Articles Olivia Dunne Begins NYC Apartment Hunt Again—After Her $1.6 Million All-Cash Offer on Babe Ruth's Apartment Was Rejected Shaquille O'Neal Says Retiring in The Villages Is a 'Dream Scenario'—and He Wants To Find Out if the Wild Rumors Are True Bethenny Frankel Ditches the Hamptons as She Reveals She Has Fully Moved Into Her 'Exquisite' Florida Home Solve the daily Crossword
CNBC
2 hours ago
- CNBC
CNBC Daily Open: Is India is the first to face Trump's 'secondary' tariff on Russia?
In the frenzied run-up to Friday, Aug. 1 — the day when U.S. President Donald Trump's new tariffs come into effect (no more delays!) — America's major trading partners such as Japan, the European Union and now, South Korea, have come to an agreement with the country. All of them will be subject to 15% tariffs on U.S. imports of their goods. But India? Not only has there not been a deal yet, Trump unilaterally imposed a 25% tariff on the South Asian country — a higher-than-expected number, as analysts had widely expected India to secure a favorable deal with America. Worse, the tariff will exist alongside an additional "penalty," which Trump said is the price India has to pay for its military and energy transactions with Russia. That essentially sounds like the "secondary tariff" Trump had previously threatened to slap on Moscow. In doing so, Trump's actions seem to be suggesting that the White House's trade policies is not based simply on the balance of trade, as Trump is fond of bringing up, or even how much he likes you — see his admiration of the U.K.'s King Charles and the country's 10% tariff rate. It's also about who your friends are. Essentially, Trump appears to be implying that, even if you are an up-and-coming influential figure, if you hang out with the uncool kids (who buy Russian arms), you can't sit with us. Perhaps Trump can afford to alienate allies because the U.S. economy is still unexpectedly strong. It expanded 3% in the second quarter, much higher than the 2.3% Dow Jones estimate, and Magnificent Seven earnings are handily topping estimates. Much has been discussed about the decline of American exceptionalism, but, for now, the U.S. is still the queen bee. The Federal Reserve holds interest rates. The Federal Open Market Committee voted 9-2 on the decision — the first time since late 1993 that multiple governors cast "no" votes. Chair Jerome Powell said the Fed still needs to see the effects of tariffs on inflation. India to pay 25% tariffs on exports to the U.S. On top of that, Trump said Wednesday that the South Asian country will also face a "penalty" for dealing with Russia. Separately, South Korea has reached a deal with the U.S. that will see it subject to a 15% tariff rate, Trump announced. Meta Platforms and Microsoft beat earnings expectations. Year on year, Meta's revenue grew 22%, while that of Microsoft increased 18%. During extended trading, Microsoft shares jumped more than 8% to put the company's market cap above $4 trillion. U.S. stocks are weighed by Fed conference. The S&P 500 fell Wednesday. Asia-Pacific markets mostly declined Thursday. Shares of Samsung Electronics retreated after the firm reported a 93.8% year-over-year plunge in profit. Chinese markets fell on disappointing data on the country's manufacturing activity in July. [PRO] Investors are aggressively borrowing money to buy stocks. It's a sign of market exuberance, according to Jim Reid, head of macro and thematic research at Deutsche Bank, who added that this pace was last seen during market bubbles. Trump's tariff deadline is near. Here's a look at countries that have a deal — and those that don't Come Friday, the world will have to contend with higher tariff rates from the Trump administration, raising the specter of even more economic uncertainty. For most countries, that can of worms has been kicked twice down the road, from "Liberation Day" on April 2, to July 9, and now to Aug. 1. Here are where things stand in global trade. —
