Wall Street Warns of a Stock Market Correction
How big? Maybe 15%. Morgan Stanley, Deutsche Bank and Evercore all cautioned that the S&P 500 Index is due for a near-term drop thanks to the darkening economic picture. Driving concern is the expanding fallout from President Donald Trump's trade war, including slowing consumer spending, diminished economic growth, rising unemployment and potentially reignited inflation.
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- Yahoo
Under Armour Results Fall Short, Stock Takes a Hit
Under Armour fell short of analyst expectations on nearly every segment in the fourth quarter, and while founder and chief executive officer Kevin Plank sought to put a positive spin on the numbers, citing quarterly results that 'met or exceeded our expectations as we drive a bold transformation,' the results proved the sports brand still has a way to go to return to its former glory. Wall Street wasn't swayed by Plank's statement, and shares fell more than 13 percent in pre-market trading. More from WWD Allbirds Stock Sinks as Company Lowers Yearly Guidance Under Armour Unveils New UA Halo Collection, Signaling a New Era for the Brand's Footwear E.l.f. Beauty Expands Global Footprint With Sephora On Friday morning before the stock market opened, the Baltimore-based company reported adjusted earnings per share of 2 cents, slightly below the analyst estimate of 3 cents, with a revenue drop of 4 percent to $1.1 billion. The net loss was $3 million and adjusted net income was $9 million. North American sales, a sore spot for the company for a while now, also fell more than expected, with revenue down 5 percent to $670 million, more than the 4.4 percent analysts had projected. International sales dropped 1 percent to $467 million with Asia-Pacific declining 10 percent, Latin America falling 15 percent while the EMEA actually posted a 10 percent increase. By category, apparel sales fell 1 percent to $747 million while footwear sales were particularly weak, dropping 14 percent to $266 million. The one highlight was accessories, which posted an 8 percent increase in sales to $100 million. The poor showing was exacerbated by a weak second-quarter outlook with earnings per share now projected to be between 1 cent and 2 cents, significantly below analyst projection of 26 cents. Revenue is expected to decline 6 to 7 percent, with a low-double-digit percentage decrease in North America and a low-teens percent decline in the Asia-Pacific region, partially offset by high-single-digit growth in EMEA. 'We are pleased our quarterly results met or exceeded our expectations as we drive a bold transformation – sharpening Under Armour into a brand where sports credibility, innovation and style meet operational discipline,' said Plank. 'Despite ongoing uncertainty, our brand is gaining strength and we're executing our strategic plan with clarity and confidence.' He continued, 'Moving ahead, we're focused on strengthening our brand positioning with premium products and increasing our average selling prices through innovative offerings, optimizing our top-volume programs, and creating a more compelling full, price-to-value proposition. Regardless of the backdrop, this is about building a fearless, thoughtful, and stronger Under Armour.' Last May, Under Armour revealed a restructuring plan to improve its financial and operating efficiencies that was expected to cost from $140 million to $160 million. So far, $71 million in charges have been reported. Best of WWD Harvey Nichols Sees Sales Dip, Losses Widen in Year Marred by Closures Nike Logs $1.3 Billion Profit, But Supply Chain Issues Persist Zegna Shares Start Trading on New York Stock Exchange 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
13 minutes ago
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Why VC investments into crypto are seen to hit $25bn in 2025
Venture capital investors will back crypto startups to the tune of $25 billion in 2025. That's according to Michael Martin, director at Ava Labs' incubator Codebase, who said a perfect storm of bullish signals will incentivise investors to back crypto companies. He told DL News that factors like Circle's successful public float, booming crypto market, Stripe's acquisition of Privy, Wall Street pouring into blockchain projects, and new rules of the road for digital assets will drive even more investment in the last half of the year. 'People have the proof points to invest with a level of confidence in earlier stage, real-world blockchain companies that they may not have had in the past,' Martin told DL News. The prediction comes during a week that saw 12 crypto projects raise $121 million, pushing the total amount bagged by industry players this year to $13.2 billion, according to DefiLlama. That investment is already 40% higher in August this year than all investment into crypto last year. That also puts it on the path to break the $18 billion expected by PitchBook analysts earlier this year. Martin's prognosis echoes that of Galaxy Venture's Mike Giampapa, who told DL News earlier this summer that he expected crypto startups to secure $25 billion in 2025. Critical juncture Investor' optimism comes at a critical juncture for the industry. The Trump administration's pro-industry tilt has emboldened not just sector players, but also larger financial institutions and banks to increasingly tap into digital assets. With Trump having rubberstamped the Genius Act in July and more crypto bills coming up for votes on Capitol Hill, the industry is getting the clarity it's clamoured for for years. That clarity is expected to further fuel the adoption of blockchain technology by traditional financial institutions. Wall Street companies and fintech firms may also see this as an opportunity to follow in Stripe's footsteps and acquire crypto companies to embed their solutions in their services 'You're going to see more of that,' Martin said. Macroeconomy risks To be sure, there are clouds on the horizon that risk derailing the investment boom. Even so, macroeconomic uncertainties — particularly those surrounding US President Donald Trump's tariffs — jeopardise the rally, Martin said. Other concerns include whether or not public crypto companies like Circle and Coinbase will perform as well as expected. Martin said that if public crypto companies and leading cryptocurrencies like Bitcoin were to underperform analysts' expectations, that could rattle investors and scare them into tightening their grips around their cheque books. Apart from the risk of public crypto companies underperforming, there is also a chance that macroeconomic conditions will give investors reason to halt their investment strategies. For instance, Trump's tariffs against some of the US' closest trading partners combined with jobs growth having stalled this summer have rattled investors. No one knows what will happen next. 'VCs have capital they need to deploy,' Martin said. 'But how are you going to deploy it if you don't know if X, Y and Z is going to happen?' You're reading the latest installment of The Weekly Raise, our column covering fundraising deals across the crypto and DeFi spaces, powered by DefiLlama. Eric Johansson is DL News' interim managing editor. Got a tip? Email at eric@ Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Yahoo
13 minutes ago
- Yahoo
US equity funds see sharp outflows on tariff caution, economic concerns
(Reuters) -U.S. investors divested riskier equity funds and significantly invested in the safety of money market funds in the week through August 6, spooked by President Donald Trump's new trade tariffs and discouraging economic readings. They pulled out a net $13.7 billion from U.S. equity funds in their largest weekly sales since June 25 while channeling a net $78.85 billion - the largest amount since December 4 - into money market funds, LSEG Lipper data showed. "Our base case remains that the U.S. effective tariff rate will settle at around 15% - enough to weigh on growth and lift inflation, but not enough to derail the U.S. economy or the equity rally," said Mark Haefele, Chief Investment Officer at UBS Global Wealth Management. "We expect near-term volatility to continue, but think investors should stick to their longer-term financial plan." The small-cap equity funds segment suffered the biggest weekly net sales since December 18, to the tune of approximately $5.2 billion. Large-cap and mid-cap funds meanwhile had a net $7 billion and $1.71 billion in weekly disposals. Sectoral funds were, however, net recipient of $806 million worth of weekly inflows with communication services and industrials leading the way, securing a net $1.17 billion and $586 million, respectively in inflows. Weekly net investments in bond funds, meanwhile, jumped to a 11-week high of $7.39 billion during the week. The short-to-intermediate investment-grade funds, short-to-intermediate government and treasury funds, and municipal debt funds attracted a massive $3.22 billion, $2.43 billion and $1.66 billion, respectively in net investments.
