General Motors Bracing for a $1.1B Tariff Hit
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
4 minutes ago
- Yahoo
Veteran fund manager points to glaring problem with stocks after rally
Veteran fund manager points to glaring problem with stocks after rally originally appeared on TheStreet. Stock market rally defies gravity, leaves many behind The S&P 500's seemingly unrelenting climb from early April into July 2025 has left many investors shaking their heads. This spring, the stock market lost nearly 20% of its value amid a flurry of newly announced tariffs. Worry that tariff-induced inflation would derail the economy, causing stagflation or recession, was rampant. That worry remains, given that tariffs remain much higher than one year ago and economic data show that the U.S. economy is slowing. Yet stocks have brushed aside concerns since April 9, when President Donald Trump paused many reciprocal tariffs, clearing the way for trade a result, many investors expecting a reckoning have been left stuck on the sidelines, wondering if it's too late to buy. Veteran hedge fund manager Doug Kass understands the feeling. Kass has been professionally managing money since the 1970s, and his long career includes a stint as the research director for Leon Cooperman's Omega Advisors, one of the most famous hedge funds ever. This week, Kass discussed the recent stock market rally and its causes and delivered a stern message on risks every investor should consider after the S&P 500's record-setting run. The stock market's gains have been driven by animal spirits, speculation, and computer algos It used to be that humans on major exchanges, like the New York Stock Exchange, executed trades for other humans. Quaint, right? Now, the stock market's inevitable pops and drops are at the whim of computer programmers who have designed programs to exploit every tick higher or lower, and products developed by money-hungry Wall Street firms, like short-term options, that are designed to capitalize best on greed and fear."In the steel cage match since the market's lows in April, the bulls have been virtually unbeatable — like Muhammad Ali and Hulk Hogan," wrote Doug Kass in a post on TheStreet Pro. "But, as we all know, all the WWF matches were fixed — a feeling that the bears have developed over the last three months as retail, zero days to expiration option traders, and volatility-controlled funds have aggressively bought every dip, contributing to the generation of animal spirits and fear of missing out." The combination has led to momentum fueling momentum for momentum's sake. Computers trading with computers and speculators looking for quick gains from the options market have created a self-fulfilling cycle of upside, creating massive fear of missing out, or FOMO, for those who sold during the downturn or held off on new investments, hoping for a better entry point. The gains have been particularly eye-popping for risky stocks, particularly within emerging industries like crypto, artificial intelligence, space, and quantum computing. Circle Internet () , a stablecoin cryptocurrency player, has gained 132% since its June IPO. CoreWeave () , an AI cloud computing company, is up 165% since April 8. Rocket Lab () , which sends light payloads into low orbit, has gained 188% since its early April lows. And Quantum Computing () is up 278% since its bottom in March. What's one thing those companies share in common? None has turned a profit yet. Problems with U.S. economy may not be ignored forever The S&P 500's 24% gain in 2024 was built on the back of surging spending on artificial intelligence, the promise of earnings growth associated with using AI to streamline business practices and procedures, and the prospect of lower interest rates, thanks to the Federal Reserve shifting from hawkish to dovish monetary policy. So far, the Fed has yet to cut rates in 2025, despite lowering rates by 1% into the end of 2024, creating a headwind. AI spending remains robust, given that Alphabet recently increased its capital expenditure outlook this year to $85 billion from $75 billion. Still, cracks have appeared in the economy that didn't exist last year: Layoffs totaled 247,256 in Q2, according to Challenger, Gray, & Christmas, the most since the Covid pandemic closed businesses in 2020. The unemployment rate is 4.1%, up from 3.4% in 2023. The World Bank estimates U.S. GDP growth will be just 1.4% in 2025, down from 2.8% last year. And let's not forget tariffs, which, while likely to be less than feared in April, still represent a massive tax hike. That economic backdrop is problematic for stocks, especially following their big move higher. "The level of delusion (that tariffs will have no inflationary impact) is now beyond the pale. It simply seems the administration is following the Roy Cohen strategy on inflation and tariffs — in that if you repeat 'The Big Lie' enough (that tariffs aren't raising prices), people will come to believe it," opined Kass. Stock market valuation could create a headwind for stocks So far, markets have ignored the inflationary threat, assuming trade deals will soften the blow and corporations can make up any margin hit either by benefiting from a weaker US Dollar on currency conversion or by cutting costs. Indeed, those betting the U.S. economy will sidestep the worst-case scenario — slow growth with inflation or even recession — have profited valuations on many stocks have surged, and as a result, the S&P 500's forward one-year price to earnings ratio is 22.4, according to FactSet. A P/E ratio that high has historically depressed forward stock market returns. Absent a significant uptick in earnings estimates, now largely expected, stocks could take a breather. "My recent complete sales of numerous longs (in housing, financials, private equity and selected technology) have resulted in an expanded cash war chest, which I want in the time ahead," noted Kass on July 23. "I see about 5x more risk than reward, and I see no "margin of safety." Of course, stocks can go higher and lower than many believe possible, which is why, as John Maynard Keynes said, "The market can remain irrational longer than you can remain solvent." Sitting in cash hasn't been a winning strategy lately, something Kass concedes. "I am often wrong and always in doubt," wrote Kass. Nevertheless, he says, "The fact is, though many in the business media say the opposite, earnings estimates are dropping and not increasing — as equities climb." If so, having some cash to take advantage of any weakness may pan out fund manager points to glaring problem with stocks after rally first appeared on TheStreet on Jul 26, 2025 This story was originally reported by TheStreet on Jul 26, 2025, where it first appeared.
TechCrunch
6 minutes ago
- TechCrunch
Astronomer winks at viral notoriety with ‘temporary spokesperson' Gwyneth Paltrow
After spending the past week-plus in the headlines due to a seemingly inescapable social media scandal, data operations startup Astronomer is trying to shift the narrative with a tongue-in-cheek video starring actress and entrepreneur Gwyneth Paltrow. Paltrow was, of course, previously married to Coldplay singer Chris Martin. And it was at a Coldplay concert in Massachusetts that the company's CEO Andy Byron and Chief People Officer Kristin Cabot were apparently caught dancing together on the 'kiss cam.' When Byron and Cabot (who are reportedly married to other people) awkwardly tried to hide from the camera, Martin joked, 'Either they're having an affair or they're just very shy.' Footage of the exchange exploded in popularity, ultimately leading both executives to resign from Astronomer. In announcing Byron's resignation, the company said, 'Our leaders are expected to set the standard in both conduct and accountability, and recently, that standard was not met.' Astronomer's statement also nodded at the fact that the company had suddenly become famous for reasons having nothing to do with its product: 'While awareness of our company may have changed overnight, our product and our work for our customers have not.' Its new marketing video has a similar message, attempting to refocus the conversation on Astronomer's technology, while winkingly acknowledging why that might be a challenge. Paltrow kicks things off by introducing herself as someone who's been 'hired on a very temporary basis to speak on behalf of the 300-plus employers at Astronomer.' She then promises to answer the 'most common' questions asked about the company — but when the briefly glimpsed, half-typed questions are all about you-know-what, Paltrow remains cheerfully, and resolutely, on-message. Techcrunch event Tech and VC heavyweights join the Disrupt 2025 agenda Netflix, ElevenLabs, Wayve, Sequoia Capital — just a few of the heavy hitters joining the Disrupt 2025 agenda. They're here to deliver the insights that fuel startup growth and sharpen your edge. Don't miss the 20th anniversary of TechCrunch Disrupt, and a chance to learn from the top voices in tech — grab your ticket now and save up to $675 before prices rise. Tech and VC heavyweights join the Disrupt 2025 agenda Netflix, ElevenLabs, Wayve, Sequoia Capital — just a few of the heavy hitters joining the Disrupt 2025 agenda. They're here to deliver the insights that fuel startup growth and sharpen your edge. Don't miss the 20th anniversary of TechCrunch Disrupt, and a chance to learn from the top voices in tech — grab your ticket now and save up to $675 before prices rise. San Francisco | REGISTER NOW 'We've been thrilled so many people have a newfound interest in data workflow automation,' she says. Paltrow even finds time to plug the company's upcoming conference before concluding, 'We will now be returning to what we do best — delivering game-changing results for our customers.'
Gizmodo
6 minutes ago
- Gizmodo
Twice as Expensive on Apple's Official Site, This MagSafe Charger Reaches New Low on Amazon
Few brands are among Apple's officially approved add-ons, yet Anker is one such brand. If you're looking for a great charger for your iPhone and would rather not mess with tangled cables, MagSafe-compatible products offer a stylish way of magnetically attaching the charger to the back of your phone for simple juice-ups, and Anker's 621 magnetic charger accomplishes this exactly. With a current price at an all-time low of $27, it costs half of buying it from Apple directly. See at Amazon With a 5,000mAh capacity, this charger is ideal for providing your iPhone with a few charges while on the go. The charger boasts Anker's MiniCell technology which brings the efficiency of charging power in a much smaller size and weight than previous models. The small size allows it to fit closely around your iPhone and safely secure in your pocket without bulky additional weight. Super-strong magnets keep the charger securely in position on the back of supported iPhone models from the iPhone 12 to 16 series. This way, you can take selfies, answer or make calls or surf your phone as a one-handed activity without worrying about disconnections that usually happen with conventional wireless chargers due to orientation issues. To charge it, you just put the charger and iPhone in position and it clicks on immediately, transmitting power safely and continuously. The charger runs at 98-118°F under normal usage but no need to worry, it is entirely within international safety standards for safe operation. It has a 23.6-inch USB-C to USB-C cable included for necessary wiring and a 24-month warranty. Don't pass up this limited-time record low price on Amazon and charge hassle-free wherever you go. See at Amazon
