Dow Jumps 400 Points, Nasdaq Hits Record High on Soft Inflation Data
Traders now price a nearly 91% chance of a September rate cut after July's consumer price index comes in slightly below expectations.
Small caps lead the push, the Russell 2000 outperforms as investors eye lower short-term borrowing costs. Circle Internet Group (NYSE:CRCL) jumps after reporting a 53% year-over-year revenue gain in Q2.
List of 52-Week Lows
List of 3-Year Lows
List of 5-Year Lows
Metals and mining names also rally: Cleveland-Cliffs (CLF) and Alcoa (AA) climb as XME hits multi-year highs. Apparel movers headline M&A chatter, Hanesbrands (HBI) soars on reports Gildan (GIL) nears an acquisition deal. On the media front, Sinclair (SBGI) pops after announcing a strategic review.
The market also digests policy headlines, President Trump signals openness to scaled-back Nvidia (NASDAQ:NVDA) chips for China, and Intel (NASDAQ:INTC) draws attention after the president's recent comments about its CEO. With inflation cooling and the Fed meeting on deck, expect heightened volatility as traders reposition for rate relief.
This article first appeared on GuruFocus.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
19 minutes ago
- Yahoo
Bitcoin drops 3% after touching record highs as crypto rolls over
Bitcoin (BTC-USD) retreated more than 3% from its record highs on Thursday after hotter than expected inflation soured expectations of a large rate cut in September and after Treasury Secretary Scott Bessent signaled the US won't be purchasing or selling its bitcoin reserve. On Wednesday, bitcoin touched an all-time high past $123,500 per token in anticipation of looser monetary policy and corporate purchases. Crypto rolled over after July's producer price index came in much higher than expected. During an interview with Fox Business this morning, Bessent said US reserves of bitcoin amount to around $15 billion or $20 billion at today's prices. "We've also started to get into the 21st century — a bitcoin strategic reserve. We're not going to be buying that, but we are going to use confiscated assets and continue to build that up. We're going to stop selling that," he said. Expectations of Fed rate cuts, coupled with heavy purchases from corporate treasurys, have driven up the price of the asset this year. The cryptocurrency has gained 25% year to date and has rallied roughly 57% since the April lows. Inflows into spot exchange-traded funds, along with purchases from public companies copying the blueprint of software firm-turned-bitcoin juggernaut Strategy (MSTR) by adding bitcoin to their balance sheets, have been key drivers of this year's token rally. Strategists also point to the Trump administration's pro-crypto stance as a major catalyst. "The administration is pushing crypto. They are pushing bitcoin. Bitcoin is the lead dog in the crypto market," Tom Essaye, founder of Sevens Report Research, told Yahoo Finance earlier this week. "So is it short-term a little frothy? Sure," he added. "But longer term, there are some fundamental changes here that I think are bullish for it, and we'll send it much higher in the future." Last week, President Trump issued an executive order directing the Labor Department to explore allowing 401(k) plans to hold cryptocurrencies and other alternative assets, a move that could significantly expand retail access to crypto. The price surge also comes as US equities have notched all-time records on expectations the Federal Reserve will cut interest rates in September, and that Trump's next Fed chair pick will likely favor looser monetary policy. Meanwhile, ethereum (ETH-USD) prices also retreated more than 3% on Thursday after rising to near record levels as Wall Street grows increasingly bullish on the world's second-largest cryptocurrency by market cap. Companies have been adding ether to their balance sheets as a way to gain exposure to the tech infrastructure behind decentralized finance and digital assets, such as stablecoins. This week, Bitmine Immersion Technologies (BMNR), an ethereum treasury company, announced plans to sell up to another $20 billion worth of stock to boost its holdings of the cryptocurrency. "We have stated multiple times we believe Ethereum is the biggest macro trade over the next 10-15 years," Fundstrat head of research Tom Lee, who also serves as chairman of Bitmine, wrote in a note Wednesday. Lee noted the majority of Wall Street crypto projects and stablecoins, or digital tokens backed by assets like the US dollar, are being built on the ethereum infrastructure. Ether, the native token of ethereum, is up more than 50% since the GENIUS Act legislation, which creates guardrails for the stablecoin industry, was passed last month. Additionally, the Securities and Exchange Commission's recent "Project Crypto" announcement, an initiative to modernize the agency and establish clear regulations around the digital asset industry, has also fueled the rally in ethereum. Fundstrat sees ETH hitting prices moving as high as $15,000 by year-end. Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on X at @ines_ferre. Click here for in-depth analysis of the latest stock market news and events moving stock prices 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
19 minutes ago
- Yahoo
Telecom Argentina SA (TEO) Q2 2025 Earnings Call Highlights: Strong Revenue Growth Amidst Challenges
Release Date: August 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Telecom Argentina SA (NYSE:TEO) reported consolidated revenues of $2.8 billion, marking a 44% year-over-year increase in constant Argentine pesos. The company's EBITDA margin expanded by 30 basis points to 30% in the first half of 2025, with potential to reach 31.6% excluding severance charges. CapEx increased by 54% in real terms, prioritizing the expansion of fixed and mobile networks, including fiber to the home and 5G infrastructure. Telecom Argentina SA (NYSE:TEO) successfully issued and reopened a new international bond due in 2033, raising $1 billion to refinance acquisition loans. The company achieved a significant milestone in sustainability by having its decarbonization targets approved by the Science-Based Targets Initiative (SBTI). Negative Points Telecom Argentina SA (NYSE:TEO) recorded a consolidated net loss of almost 76 billion pesos in the first half of 2025, compared to a net income in the same period of 2024. The company faced exchange losses due to inflation being lower than peso devaluation, impacting financial results. The regulatory process regarding the acquisition of TMA is ongoing and may take 12 to 14 months to resolve. TMA's pay TV subscriber base decreased by 6% year over year, with a net loss of approximately 27,000 customers. Telecom Argentina SA (NYSE:TEO) reported a decline in its prepaid mobile subscriber base by 2.8% due to updated disconnection criteria. Q & A Highlights Warning! GuruFocus has detected 6 Warning Signs with TEO. Q: Can you provide more details on the financial impact of the TMA acquisition on Telecom Argentina's results? A: Gabriel, CFO: The acquisition of TMA has significantly contributed to our consolidated revenues, which totaled $2.8 billion for the first half of 2025. This represents a 44% year-over-year increase in constant Argentine pesos. The EBITDA margin expanded by 30 basis points to 30%, and would have been 31.6% excluding severance charges at TMA. The acquisition has also helped us maintain a strong credit profile with a net debt to EBITDA leverage ratio of 1.9 times. Q: How is Telecom Argentina managing its debt following the acquisition of TMA? A: Gabriel, CFO: We have successfully issued and reopened a new international bond due in 2033 for $1 billion, which was used to refinance the acquisition loans almost in full. Our net debt stands at $3.3 billion, and we maintain a net debt to estimated pro forma EBITDA leverage ratio of 1.9 times. We continue to focus on liability management to extend the average life of our debt while maintaining cost efficiency. Q: What are the key efficiency initiatives being implemented at TMA? A: Gabriel, CFO: TMA is progressing with several efficiency initiatives, including the elimination of management and brand fees, optimization of procurement processes, and reduction of video platform operating costs. The goal is to align TMA's EBITDA margin with Telecom's, which has already shown improvements with TMA's margin reaching above 26% in the first half of 2025. Q: Can you elaborate on the regulatory process concerning the TMA acquisition? A: Luis, Head of Investor Relations: The regulatory process is ongoing, with a formal objection report issued by the CNDC. We have responded to this report and expressed willingness to assume commitments to address concerns. The review process may take 12 to 14 months, and both companies will continue to operate separately until a resolution is reached. Q: How is Telecom Argentina advancing its sustainability strategy? A: Luis, Head of Investor Relations: Telecom Argentina has achieved approval of its near-term decarbonization targets by the Science-Based Targets Initiative (SBTI). This positions us as one of the few companies in Argentina with validated targets, enhancing our ESG strategy and access to sustainable financing. Our goals include achieving carbon neutrality by 2050 and increasing renewable energy consumption to 50% by 2030. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. 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
19 minutes ago
- Yahoo
PagSeguro Digital Ltd (PAGS) Q2 2025 Earnings Call Highlights: Navigating Growth Amid Economic ...
Release Date: August 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points PagSeguro Digital Ltd (NYSE:PAGS) reported a 4% year-over-year growth in Total Payment Volume (TPV), reaching 130 billion reais. The company's net revenues increased by 11% year over year, reaching BRL5.1 billion, with an impressive 18% growth when excluding interchange fees. Non-GAAP net income grew by 4% compared to Q2 2024, with a diluted EPS on a GAAP basis increasing by 14% year over year. PagSeguro Digital Ltd (NYSE:PAGS) returned 1.1 billion in excess capital to shareholders year-to-date, including 700 million reais in share repurchases and over 400 million as dividends. The banking segment showed exceptional performance, with gross profit growing 97% year over year, now accounting for over 26% of total gross profit. Negative Points The company faced a challenging macroeconomic environment with signs of broad-based economic cooling in Brazil, affecting consumer confidence and discretionary spending. There was a contraction in credit origination in the market due to increased risk aversion and more selective lending standards. Despite the growth, the TPV was flattish quarter-on-quarter, indicating potential market share losses. The MSMB segment experienced a 2% drop in TPV quarter-on-quarter, attributed to macroeconomic challenges and repricing effects. Financial costs rose by 48% primarily due to higher interest rates, impacting the company's profitability. Q & A Highlights Warning! GuruFocus has detected 4 Warning Signs with PAGS. Q: Can you elaborate on the TPV performance, particularly the drop in MSMB TPV, and what can we expect going forward? A: The TPV was affected by several factors, including a challenging macroeconomic environment and a hard comparison with the previous year. We are focusing on profitability rather than TPV growth. Our strategy includes repricing and focusing on client-oriented approaches. We expect to see improvements as we continue to focus on gross profit and EPS rather than TPV alone. - Unidentified_3 Q: How do you plan to manage capital distribution given the solid capital position? A: We are considering share buybacks and dividends as part of our capital distribution strategy. We have returned BRL1.9 billion to shareholders in the last 12 months and are looking to improve our capital structure. We expect to distribute more capital soon, balancing growth and profitability. - Unidentified_3 Q: Can you provide more details on the growth and strategy of your banking business? A: Our banking business is becoming a significant pillar, contributing 26% of total gross profit. We see opportunities in expanding our credit portfolio, particularly in working capital loans for merchants. The banking segment is expected to continue growing and gaining a larger share of our total revenue and gross profit. - Unidentified_3 Q: How do you view the competitive landscape, and are there any concerns about market share? A: We focus on profitability rather than market share. The competitive landscape is rational, with most players focusing on profitability due to high interest rates. We are not seeing any irrational behavior in the market, and our strategy remains centered on client engagement and profitability. - Unidentified_3 Q: What is your approach to managing funding costs, and how do you see this evolving? A: We are focused on managing our funding costs by diversifying our funding sources and optimizing our funding structure. Our APY has decreased, and we aim to maintain competitive costs across different funding products. We do not anticipate significant changes in our funding strategy that would negatively impact our financials. - Unidentified_5 For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
