CNBC Markets Now: June 5, 2025
CNBC Markets Now provides a look at the day's market moves with commentary and analysis from Michael Santoli, CNBC Senior Markets Commentator.
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Miami Herald
2 hours ago
- Miami Herald
Jim Cramer says these hot new stocks are ones to watch
The first half of 2025 has been an intense year for investors, to put it mildly. With the introduction of President Donald Trump's tariffs on April 2, the stock market plummeted as businesses and investors alike considered the potential effect the levies would have - and that many businesses could be devastated by them. Don't miss the move: Subscribe to TheStreet's free daily newsletter Specific tariffs, such as Trump's original 145% levy on China, would have an enormous negative impact on countless companies across a variety of sectors, including tech, retail, automotive, and more. Trump's announcement on April 9 of a 90-day pause on reciprocal tariffs was the first of many signals that perhaps the potential economic disaster might be avoided. Since then, the president has flip-flopped on many of his original promises, leading investors to hope that perhaps things would turn out okay after all. Related: Analysts unveil bold forecast for Alphabet stock despite ChatGPT threat And that trend continues in May, as the U.S. stock market has returned more than 6%. Despite gaining momentum, however, the climate is still uncertain, leaving many investors unsure if they should keep their holdings or make moves. CNBC's Jim Cramer weighed in on that very topic this past week with some good advice for those who are skeptical about how to proceed in the light of the trade war. On a recent episode of "Mad Money," Cramer shared an essential tip for those who are worried about their portfolios. "You can learn a lot about a market from looking at the stocks that make it to the 52-week high list," he said. "It's a rarefied group by nature, and it speaks loudly about what works and, of course, what doesn't," he said. Cramer is referring to a list of stocks that have hit 52-week highs, indicating their ability to persevere even through severe headwinds. Related: Veteran analyst says stock market rally not 'real' until this happens A few of the current companies on the list include semiconductor maker Broadcom, hard drive maker Seagate, cooling systems company Johnson Controls, media streaming services Netflix and Spotify, and uniform maker Cintas. A few more of the companies on the list that may be worth checking out are DoorDash, eBay, Roblox, GE Aerospace and Mosaic. "At the end of the day, this new high list is an eclectic group of stocks, mostly geared to U.S. venues. That makes sense, given the trade war," Cramer said. "I'd be a buyer of any of these names down 5 to 8% from these levels. That is my favorite percentage to start a position on a red hot stock, and not before then." While the list is a handy way to keep an eye on stocks performing over the long term, Cramer doesn't translate that to an instant buy just because something stays on the list. "The best way to target stocks on the list is to be patient and find a high-quality stock that is seeing a temporary pullback," Cramer said. However, he did stress that the list is an incredible tool to monitor the market. "Poring over the 'new high' list is a fabulous way to identify potential, and I stress that word, potential stocks to buy," Cramer said. "You only buy stocks that have pulled back from the 'new high' list if you're confident they'll make a comeback for substantive reasons unrelated to the broader market." Related: Jim Cramer sends a blunt message on Microsoft layoffs The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
CNBC
3 hours ago
- CNBC
Trump aims to slash Pell Grants, which may limit low-income students' college access
For many students and their families, federal student aid is key for college access. And yet, the Trump administration's budget proposal for fiscal year 2026 calls for significant cuts to higher education funding, including reducing the maximum federal Pell Grant award to $5,710 a year from $7,395, as well as scaling back the federal work-study program. The proposed cuts would help pay for the landmark tax and spending bill Republicans in the U.S. Congress hope to enact. Roughly 40% of undergraduate students rely on Pell Grants, a type of federal aid available to low-income families who demonstrate financial need on the Free Application for Federal Student Aid. Work study funds, which are earned through part-time jobs, often help cover additional education expenses. More from Personal Finance:Social Security gets break from student loan collectionsIs college still worth it? It is for most, but not allWhat to know before you tap your 529 plan President Donald Trump's "skinny" budget request said changes to the Pell Grant program were necessary due to a looming shortfall, but top-ranking Democrats and college advocates say cuts could have been made elsewhere and students will pay the price. "The money we invest in post-high school education isn't charity — it helps Americans get good jobs, start businesses, and contribute to our economy," Sen. Elizabeth Warren, D-Mass., told CNBC. "No kid's education should be defunded to pay for giant tax giveaways for billionaires." Nearly 75% of all undergraduates receive some type of financial aid, according to the National Center for Education Statistics. "Historically the Pell Grant was viewed as the foundation for financial support for low-income students," said Lesley Turner, an associate professor at the University of Chicago Harris School of Public Policy and a research fellow of the National Bureau of Economic Research. "It's the first dollar, regardless of other types of aid you have access to." Under Trump's proposal, the maximum Pell Grant for the 2026-2027 academic year would be at its lowest level in more than a decade. "The Pell reduction would impact the lowest-income families," said Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit. More than 92% of Pell Grant recipients in 2019-2020 came from families with household incomes below $60,000, according to higher education expert Mark Kantrowitz. If the president's cuts were enacted and then persisted for four years, the average student debt at graduation will be about $6,500 higher among those with a bachelor's degree who received Pell Grants, according to Kantrowitz's own calculations. "If adopted, [the proposed cuts] would require millions of enrolled students to drop out or take on more debt to complete their degrees — likely denying countless prospective low- and moderate-income students the opportunity to go to college altogether," Sameer Gadkaree, president and CEO of The Institute for College Access & Success, said in a statement. Already, those grants have not kept up with the rising cost of a four-year degree. Tuition and fees plus room and board for a four-year private college averaged $58,600 in the 2024-25 school year, up from $56,390 a year earlier. At four-year, in-state public colleges, the average was $24,920, up from $24,080, according to the College Board. The Pell program functions like other entitlement programs, such as Social Security or Medicare, where every eligible student is entitled to receive a Pell award. However, unlike those other programs, the Pell program does not rely solely on mandatory funding that is set in the federal budget. Rather, it is also dependent on some discretionary funding, which is appropriated by Congress. The Congressional Budget Office projected a shortfall this year in part because more students now qualify for a Pell Grant due to changes to the financial aid application, and, as a result, more students are enrolling in college. Although there have been other times when the Pell program operated with a deficit, slashing the award amount is an "extreme" measure, according to Kantrowitz. "Every past shortfall has been followed by Congress providing additional funding," he said. "Even the current House budget reconciliation bill proposes additional funding to eliminate the shortfall." However, the bill also reduces eligibility for the grants by raising the number of credits students need to take per semester to qualify for the aid. There's a concern those more stringent requirements will harm students who need to work while they're in school and those who are parents balancing classes and child care. "These are students that could use it the most," said the University of Chicago's Turner. "Single parents, for example, that have to work to cover the bills won't be able to take on additional credits," Mayotte said. "If their Pell is also reduced, they may have to withdraw from school rather than complete their degree," Mayotte said.
Miami Herald
6 hours ago
- Miami Herald
Carlos Tavares Has One Regret During His Time as Dodge, Jeep, RAM CEO
About a week ago, the multinational automotive collective Stellantis closed a chapter in its tumultuous history as it named Antonio Filosa as its new CEO following an extensive search. The search, which considered candidates within and outside Stellantis, was initiated shortly after Carlos Tavares suddenly departed the company in December 2024, despite his promise not to renew his CEO contract after it was slated to end in early 2026. In a new interview with Bloomberg at his home near Lisbon, in his native Portugal, Tavares revealed that his departure from Stellantis was a personal choice rather than a result of conflict within the company. He said the decision stemmed from a thoughtful reflection sparked by a "very mature" conversation with chairman John Elkann, which greatly influenced his path. "I have nothing against anybody," Tavares told the financial publication. "Even those who made my life more difficult when I was the CEO of Stellantis. At one point in time, there is a crossroads, and somebody decides that it's time to part ways. That's fine." During his time as the former helm of Stellantis, Tavares oversaw some very controversial decisions that not everyone at the company was on board with, which included swapping metal parts for plastic ones on some of its more off-road-oriented vehicles. In a December 2024 CNBC report, several former and current Stellantis executives and other U.S.-based employees described Tavares as a selfish leader who would sacrifice the business to squeeze out every last cent. In his past tenure at Renault under the notorious Carlos Ghosn, he gained a reputation as a brash businessperson who was unafraid to shake up C-suites, but one Stellantis-affiliated individual characterized Tavares as jaded and said that the pressure to cut costs felt like having a pistol "to your head." In the same report, another Stellantis figurehead said that he was chiefly behind the decision to kill off the Hemi V8, noting that others in the company "wanted to keep [Hemi]," but were shot down due to Tavares' ambitious climate targets. Tavares admitted to Bloomberg he could have done "tons of things" differently. However, one regret that he brought up was failing to bring US dealers on board with his agenda, which focused heavily on cost-cutting and dropping key models. Despite calling it a regret, he still sees some silver lining in retrospect. "The dealers in the U.S. did not want to support what we were trying to do, which is my responsibility," he said. "Many things could have been done differently, but that doesn't matter. The company is profitable." In his interview with Bloomberg, Tavares called his replacement, Antonio Filosa, "a logical, credible choice," considering his experience in the Americas. However, he desperately has to repair the tattered relationship with its dealers that faltered under his tenure. In a January 2025 dealership sentiment survey from Kerrigan Advisors, 72% of dealers surveyed said that they had no trust in the Chrysler-Dodge-Jeep-Ram brands, which Stellantis owns. According to the survey, just 2% of dealers said they had high trust in Stellantis, and 26% said they had moderate trust. The level of distrust increased dramatically from the results recorded just one year prior. In 2023, just 39% of dealers said they had no trust in Stellantis, which reflects a 33% jump in distrust year over year. The survey was conducted around the same time the U.S. Stellantis National Dealer Council blamed then-CEO Carlos Tavares front and center for what it called the "rapid degradation" of brands like Dodge, Ram, and Jeep, in a letter dated September 10. "The market share of your brands has been slashed nearly in half, Stellantis' stock price is tumbling, plants are closing, layoffs are rampant, and key executives are fleeing the company," the dealers wrote. "Investor lawsuits, supplier lawsuits, strikes–the fallout is mounting. Your own distribution network, your dealer body, has been left in an anemic and diminished state." Following a prior back-and-forth between the dealer council and Stellantis, Stellantis US Dealer Council chairman Kevin Farrish noted in a December statement to AutoNews that Stellantis has been rebuilding trust. He said Stellantis Chairman John Elkann held a video call with Dealer Council leaders under Elkann's leadership the day after Tavares exited the company. This won't be the last time we hear from Carlos Tavares regarding Stellantis. To this day, Carlos Ghosn still adds his input on issues regarding Nissan. It is still difficult to tell which direction Stellantis will take regarding its products and company direction. However, we can hope that things will only improve from here. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
