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Yahoo
26 minutes ago
- Yahoo
Why would Trump and Intel want to work together: Opening Bid top takeaway
Investors are in wait-and-see mode. Fed watchers have had quite a week, getting a hot Producer Price Index, a tame Consumer Price Index, and solid retail sales data out today. As it stands, markets are still betting on that September rate cut from the Jerome Powell-led Federal Reserve. There have been a few earnings stumbles in CoreWeave (CRWV), Applied Materials (AMAT), and Cava (CAVA), but a few bright spots from the likes of Cisco (CSCO). The Bullish (BLSH) IPO saw an enthusiastic response. And now markets cast their gaze to the highly anticipated meeting today between President Trump and his Russian counterpart, Vladimir Putin. The outcome of this meeting could have a host of surprises that bullish investors haven't even thought about! Stock analysis: Intel The Trump administration is reportedly in talks to have the US government take a stake in Intel (INTC). An Intel spokesperson didn't comment directly on this to me, but offered this: "Intel is deeply committed to supporting President Trump's efforts to strengthen U.S. technology and manufacturing leadership. We look forward to continuing our work with the Trump Administration to advance these shared priorities, but we are not going to comment on rumors or speculation.' The questions here are numerous. Why would the administration even want a stake in an Intel that is far behind chief rivals Nvidia (NVDA) and Advanced Micro Devices (AMD)? I encourage Trump to compare Nvidia's earnings report on Aug. 27 to the last disaster from Intel a few weeks ago. The president isn't known to hitch his ride to losers. Intel has been a loser and may stay that way in the chip game for some time. Then again, why would Intel want to get in bed with the government when embattled CEO Lip-Bu Tan and the board must act quickly to reorganize the company? I find it hard to believe the government will be a quiet minority shareholder! Intel has billions in cash and doesn't need the money that comes with terms from any government deal. There is a lot at stake here, as Intel should be a beacon of US chip-making, not the punching bag in tech circles. The company's financials have taken a major hit, with sales down for more than three straight years and earnings evaporating in the process. "[A stake would] be a big step for Intel, but right now Intel is on a horse and buggy compared to the Godfather of AI Jensen [Huang] and Nvidia," Wedbush tech analyst Dan Ives told me. Roundtable analysis: More tech When a Wall Street analyst who has been a bear on a stock for a while suddenly issues an upgrade, it always catches my attention. Today, we have that situation on Salesforce (CRM). DA Davidson analyst Gil Luria lifted his rating on Salesforce to Neutral from Underperform. Luria said investor sentiment has declined sharply on Salesforce in recent months as questions mount around the company's acquisition strategy and near-term margins. But what may not be factored into the stock is new activist investor activity, Luria said. Luria pointed out that noted activist investor Starboard Value — led by Jeff Smith — increased its stake in Salesforce by 47% this quarter, according to new 13F filings. Starboard pushed for big changes at Salesforce three years ago, which ultimately led to a new focus on margin expansion by CEO and co-founder Marc Benioff. Luria said, "We believe this is a signal there will be another round of investor activism and increased pressure on management to refocus on growth of the core business, additional margin expansion and hold off on dilutive M&A." Meanwhile, Warren Buffett's Berkshire Hathaway sold 20 million shares of Apple (AAPL) during the period, according to a new 13F filing. Berkshire's Apple holdings remain its largest equity stake by market value, despite dropping by about $9.2 billion in the second quarter. Is Buffett signaling he is concerned about Apple's tariff exposure? Perhaps. After all, Apple did warn tariffs would hit its profits by $1.1 billion in the current quarter. Brian Sozzi is Yahoo Finance's Executive Editor and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26 minutes ago
- Yahoo
US manufacturing production stalls in July
WASHINGTON (Reuters) -U.S. factory production was unchanged in July suggesting manufacturing activity was stalling as businesses navigate higher costs from import tariffs. The unchanged reading in manufacturing output reported by the Federal Reserve on Friday followed an upwardly revised 0.3% increase in June. Economists polled by Reuters had forecast production for the sector, which accounts for 10.2% of the economy, dipping 0.1% after a previously reported 0.1% gain in June. Production at factories increased 1.4% on a year-over-year basis in July. Motor vehicle and parts output slipped 0.3% last month after falling 2.5% in June. Automobile manufacturers typically shut down production lines in July for the summer break as well as maintenance and retooling for new models. Excluding motor vehicles, factory output fell 0.1% after rising 0.5% in June. "Tariffs on various inputs to production, in particular steel and aluminum inputs, could mean longer or more broad-based shutdowns this summer," said Veronica Clark, an economist at Citigroup. President Donald Trump has imposed a 50% duty on steel and aluminum as well as a 25% tax on motor vehicles and parts. Trump has defended the duties as necessary to revive a long-declining U.S. industrial base, though economists argue that cannot be accomplished in a short period of time, citing high production and labor costs as among the challenges. There were solid increases in the production of electrical equipment, appliances and components, aerospace and miscellaneous transportation equipment as well as furniture and related products. But production of primary metals and machinery declined. Durable goods manufacturing production rose 0.3%. Nondurable manufacturing output decreased 0.4%, with production falling across all categories. Mining output fell 0.4% after easing 0.3% in the prior month. Utilities production slid 0.2%. That followed a 1.8% surge in June. Overall industrial production fell 0.1% after rising 0.4% in June. Industrial output advanced 1.4% on a year-over-year basis. Capacity utilization for the industrial sector, a measure of how fully firms are using their resources, declined to 77.5% from 77.7% in June. It is 2.1 percentage points below its 1972–2024 average. The operating rate for the manufacturing sector slipped to 76.8% from 76.9% in June. It is 1.4% percentage points below its long-run average.
CBS News
29 minutes ago
- CBS News
Have a CD account maturing right before interest rates are cut? Do this now.
Interest rate cuts, on hold for all of 2025, could soon become a reality again. After the Federal Reserve issued three reductions in the final months of 2024, the central bank elected to pause rates for the first eight months of the year, citing concerns over inflation and economic instability. But that could change in September, with the CME Group's Fedwatch tool currently listing a rate cut for the central bank's September 17 meeting at a 92% likelihood, approximately. And while that trajectory could change, it's increasingly looking likely that borrowers saddled with high rates may soon get some small but significant relief. But what about savers? Particularly those who locked in a high rate on a certificate of deposit (CD) account in recent years? A rate cut won't be nearly as helpful for this group, even if it's expected to be by just 25 basis points to start. Banks don't even need to wait for that cut to become official to start reducing the rates they offer to savers. And, if you have a CD account set to mature in this climate, you may be unsure of your next steps. But there are still constructive moves to make, before rate cuts are made official again. Below, we'll detail three moves worth making now. Start by seeing how high today's current CD interest rates are here now. While every saver's needs and approach may be different, many of those with a CD account set to mature now, right before rate cuts are issued again, could benefit from making the three moves below. Sure, CD interest rates are not as high as they were six months ago or at this point in 2024 but they're still relatively strong, with some of the better ones around 4.50% now. But don't just take the word of your current bank. Instead, shop around and check out the competition to see what's available elsewhere. You may be able to take advantage of online banks, for example, by taking out your maturing CD funds and transferring them there, instead. That said, a proactive approach is key here as you'll have a limited grace period before your account is automatically rolled over, which is something you'll want to avoid happening in what's expected to be a cooler rate climate. Shop for high-rate CD accounts online here. Can you even afford to lock your money away in a new CD account now? And, if you can, can you do so with the same amount of money? With rate cuts all but assured now, it may be advantageous to open a new account with a larger amount to maximize your interest earnings. Or you can keep the same amount but deposited into a new, long-term CD to earn even more over an extended period. If your budget has changed since you first opened your account, it's important to complete this re-evaluation now. Ideally, you can exploit today's still elevated rate climate while not overextending yourself. As mentioned, you'll have about a week to 10 days worth of a grace period to move your funds or risk having them automatically rollover into a new account. Once you've checked out the competition and closely examined your budget, then, you should let the bank know of your plans. It's possible that they'll want to keep your business and be willing to find a lucrative new home for your funds. Or they may not be. But communicating here is key, especially with the window of opportunity to lock in new, high-rate alternatives seemingly closing by the day. September rate cuts don't need to be the end of the interest-earning journey for CD account holders, even if their account is close to its maturity date. By taking the above, strategic steps now, before that deadline arrives, these savers can better ensure continued, long-term interest earning success, regardless of what ultimately happens in the interest rate climate.
