Why shares of Applied Materials are trading lower post earnings
William Kerwin, Morningstar analyst, joins 'Closing Bell: Overtime' to discuss Applied Materials Q2 earnings and more.
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Business Insider
4 hours ago
- Business Insider
Elon Musk's feud with Trump likely won't blow up Tesla's robotaxi push, analysts say
Elon Musk 's public sparring with President Donald Trump last week may have briefly put a dent in Tesla's value, but analysts say they can't see any reason the feud would have a long-term impact on the company's business, including its robotaxi ambitions. The feud between Musk and Trump began with the Tesla CEO's criticism of the GOP's spending bill, which slashes EV tax credits and is estimated to add more than $2.4 trillion to the national deficit. The clash then escalated with threats coming from both sides: Trump threatened to cancel government contracts with Musk's companies, and the CEO fired back by saying he'd shut down SpaceX's Dragon spacecraft before reneging. During Musk's fight with Trump on Thursday, Tesla's stock dipped 14%, wiping out $138 billion from the company's market cap. The company recovered some of the losses the following day. Yet the CEO saw one of his biggest single-day hits to his net worth with an estimated $34 billion loss. Still, some analysts say this storm will pass. "Musk's and Trump's relationship has an impact on the stock and maybe investor sentiment, but as far as the actual business impact for Tesla, I never thought Trump getting elected was positive or that negative for Tesla," Seth Goldstein, Morningstar analyst, told Business Insider. "So with the feud that started between Trump and Musk, I never really viewed that as that positive or negative for Tesla either." While it may not be helpful to no longer be in Trump's good graces, Goldstein said the president has already made clear that he would cut EV subsidies, which the analyst viewed as having the most negative impact not just on Tesla but on all EV makers. Gene Munster, Tesla investor and managing partner at Deepwater Asset Management, estimated in a Friday report that the elimination of the tax credits could reduce 2025 deliveries by 15%. Trump wishes Tesla well As far as Tesla's June robotaxi launch in Austin goes, which Musk says will unlock trillions of dollars of market value for his company, analysts say there's little reason to believe the administration would want to hinder progress there. "In my view, the White House has little to gain in standing in front of autonomy, given autonomy is central to physical AI, and for the US to be a leader globally in AI, it also needs to be a leader in physical AI," Munster said in his Friday report. "The bottom line, I expect cooler heads to prevail and the Federal Government will continue to support the growth of these services." Goldstein told BI that he doesn't see many avenues the administration could take to hinder Tesla's robotaxi progress. He said the Department of Transportation is reviewing federal standards for autonomous vehicle safety. "In theory, if Trump wanted to see Musk face retaliation and target Tesla, they could, say, require autonomous vehicles to have lidar in order to be approved by the federal government for operation, but I don't think they're going to get that detailed," Goldstein said. "I think that Trump could more easily just target SpaceX by just cutting their contracts if he really wanted to hurt Elon, versus making some really weird, nuanced policy." Spokespeople for the DOT and the White House did not respond to a request for comment. In a note on Friday, Morgan Stanley analyst Adam Jonas wrote that Musk's feud with Trump doesn't impact the "longer-term vectors that drive the stock's value." "AI leadership, autonomy/robotics, manufacturing, supply chain re-architecture, renewable power, critical infrastructure... Tesla still holds so many valuable cards that are largely apolitical, in our opinion," Jonas wrote. By late Friday afternoon, the online jabs had slowed down, but the Trump-Musk alliance remained on ice. The president told NBC News on Saturday that he doesn't expect to mend his relationship with Musk and warned the CEO against supporting Democratic candidates. Still, during a press gaggle on Air Force One on Friday, Trump said he hadn't thought about Musk but wished him and his company well. "I mean, I hope he does well with Tesla," Trump said.
Yahoo
a day ago
- Yahoo
1 Brilliant Vanguard ETF to Invest $1,000 Into This June
Dividend growth stocks have historically produced the highest total returns with the lowest volatility. The Vanguard Dividend Appreciation ETF tracks an index that screens for the top dividend growth stocks. The fund has produced strong returns for investors, which could continue in the future. 10 stocks we like better than Vanguard Dividend Appreciation ETF › Vanguard has made it easy for anyone to be a passive investor. It has several passively managed exchange-traded funds (ETFs) designed to track a specific stock market index. That enables investors to buy funds with strategies that align with their objectives. Investing in dividend growth stocks is one of the smartest strategies because they've historically produced the highest total returns with the lowest volatility. That makes the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG), which tracks the performance of the S&P U.S. Dividend Growers Index, a brilliant ETF to buy. It could significantly grow the value of a $1,000 investment made this June. Most investors don't fully appreciate the power of dividend payments. Since 1940, dividend income has contributed 34% of the S&P 500's total return on average, according to data by Morningstar and Hartford Funds. Further, Hartford Funds and Ned Davis Research have found that since 1973, the average dividend payer in the S&P 500 has delivered a 9.2% average annual total return, more than double the return of non-dividend payers (4.3%). Dividend payers also had much lower volatility than non-dividend payers. In digging deeper into the data on dividends, Hartford Funds and Ned Davis Research uncovered that the best returns and lowest volatility came from dividend growers and initiators. They delivered an average total return of 10.2% compared to 6.8% for companies with no change in their dividend policy and a negative 0.9% average return for dividend cutters and eliminators. Given that data, investing in dividend growth stocks is a brilliant strategy. However, that's easier said than done for the average investor who doesn't have the time to actively manage a portfolio of dividend stocks. That's where Vanguard can help. The Vanguard Dividend Appreciation ETF tracks an index that screens companies for those with a consistent record of increasing their dividends for at least the past decade. It excludes the top 25% highest-yielding dividend stocks from the list because these companies tend to be at higher risk of being unable to grow their dividends (or worse, cut or eliminate their payouts), which has historically yielded lower investment returns. There are currently 338 stocks on the list. The Vanguard Dividend Appreciation ETF isn't a typical dividend ETF. Many of those funds focus on holding higher-yielding dividend stocks and cater more to income-focused investors. This fund aims to benefit from the value growth that dividend growth stocks have historically delivered. That's why its dividend yield (recently around 1.7%) is lower than many other top dividend ETFs. However, what this ETF lacks in yield, it more than makes up for in total return. Over the past 10 years, the fund has delivered an 11.5% average annual return. At that rate, it would have grown a $1,000 investment made a decade ago into nearly $3,000. That's a great return for a lower-risk investment strategy. While the fund's past performance doesn't guarantee it will produce similar returns in the future, its focus on dividend growers puts it in a strong position to meaningfully increase the value of an investment over the long term. For example, if it can deliver a 10% annual return, it could grow a $1,000 investment into nearly $17,500 in 30 years. Meanwhile, if it maintained its rate of return over the past decade (11.5%), it could grow $1,000 into over $26,000 in 30 years. The more you invest in the fund, the more money you can potentially make in the future. Adding $1,000 to your investment in this ETF each year could grow the total value to nearly a quarter of a million dollars in 30 years at an 11.5% annual rate of return. Dividend growth stocks have historically been powerful investments for those seeking to grow their wealth over time. They produce strong returns with less volatility than non-dividend payers and other dividend stocks. Because of that, the Vanguard Dividend Appreciation ETF looks like a brilliant ETF to invest $1,000 into this June. It could grow that money into a much larger future windfall. Before you buy stock in Vanguard Dividend Appreciation ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard Dividend Appreciation ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor's total average return is 997% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Matt DiLallo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard Dividend Appreciation ETF. The Motley Fool has a disclosure policy. 1 Brilliant Vanguard ETF to Invest $1,000 Into This June was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
2 days ago
- Yahoo
BlackRock® Canada Announces Changes to the iShares Jantzi Social Index ETF
TORONTO, June 06, 2025 (GLOBE NEWSWIRE) -- BlackRock Asset Management Canada Limited ('BlackRock Canada'), an indirect, wholly-owned subsidiary of BlackRock, Inc. ('BlackRock') (NYSE: BLK), is announcing that iShares Jantzi Social Index ETF (the 'iShares ETF') is expected to experience higher than normal portfolio turnover as a result of upcoming changes to the evaluation process used to determine the composition of the Morningstar Jantzi Social Index (the 'Index'). The iShares ETF seeks to replicate the performance of the Index, net of expenses. The composition of the Index will change as part of its regularly scheduled rebalance on June 20, 2025 (the 'Rebalance'). As a result of the Rebalance, the iShares ETF may experience higher than normal transaction costs and is also expected to realize net capital gains. However, the iShares ETF's total net capital gains income for the year will not be known until its tax year ends on December 15, 2025. The iShares ETF will follow its normal process for determining and distributing capital gains in December 2025. Morningstar, Inc. ('Morningstar'), the index provider of the Index, announced that effective June 20, 2025: (1) the name of the Index will change to Morningstar Jantzi Social Index; (2) the Index will be reviewed semi-annually in June and December instead of annually in March; (3) the new parent benchmark for the Index will be the Morningstar Canada Large-Mid Index; and (4) certain other changes will be made by Morningstar to the ESG exclusions and constituent selection criteria for the Index. For more information about the iShares ETF, please visit About BlackRock BlackRock's purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit About iShares iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than twenty years of experience, a global line-up of 1500+ exchange traded funds (ETFs) and US$4.3 trillion in assets under management as of March 31, 2025, iShares continues to drive progress for the financial industry. iShares funds are powered by the expert portfolio and risk management of BlackRock. iShares® ETFs are managed by BlackRock Asset Management Canada Limited. Commissions, trailing commissions, management fees and expenses all may be associated with investing in iShares ETFs. Please read the relevant prospectus before investing. The funds are not guaranteed, their values change frequently and past performance may not be repeated. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. The ETF is not in any way sponsored, endorsed, sold or promoted by Morningstar. Morningstar does not accept any liability whatsoever to any person arising out of the use of the ETF or the underlying data. 'Morningstar' is a trademark and is used under license. Contact for Media: Sydney PunchardEmail: in to access your portfolio
