Why consumers are 'still spending' despite economic uncertainty
Consumers appeared to rush major purchases in March and April, possibly buying ahead to brace for tariff impacts, according to data from Bank of America.
Bank of America Institute senior economist David Tinsley joins Asking for a Trend to break down the data, highlighting how shoppers may be pulling forward purchases amid tariff uncertainty.
To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
11 hours ago
- Yahoo
Why Netflix Should Replace Tesla in the "Magnificent Seven"
Tesla has been a huge winner for investors over the long haul, but the business is dealing with notable issues these days. Netflix continues to report double-digit percentage revenue growth and impressive profitability as it leads the streaming industry. The "Magnificent Seven" isn't an official index, but Netflix deserves to be included over the EV maker. 10 stocks we like better than Netflix › Looking back over the past decade and beyond, I don't think there are many folks out there who would deny just how impressive Tesla's success has been. This innovative business, led by polarizing CEO Elon Musk, disrupted the global auto industry with its electric vehicles (EVs). While the EV stock trades 32% below its peak (as of June 10), that's still a gain of 1,810% in the past 10 years. That long-term performance made it one of the world's largest tech companies, which is why Bank of America analyst Michael Hartnett gave it a spot in the "Magnificent Seven" when he introduced the idea of the group in 2023. However, I think it's time to swap the EV maker out of this unofficial grouping and replace it with the more-deserving Netflix (NASDAQ: NFLX). Over the years, Tesla shareholders grew used to seeing the company register jaw-dropping sales growth. The picture isn't so rosy anymore, though. Its automotive revenue declined 20% year over year in Q1. In 2024, it reported its first-ever year-over-year drop in deliveries. And the company's profitability has continued to slide as higher interest rates and a more competitive environment have put downward pressure on demand for its vehicles. Musk's push in the political arena might at first have been viewed positively by some investors, as he was positioning himself to have more influence in Washington, D.C., which could have benefited Tesla from a regulatory perspective. But both his time in President Donald Trump's inner circle and his more recent exit from politics, as well as his highly public spat with Trump, have been huge distractions that have certainly damaged Tesla's brand instead. It's safe to say that a company that was once in the fast lane is now stuck in traffic. Tesla will have a lot of work to do in order to get back to its prior glory. While Tesla faces a battle to get itself back on track, Netflix continues to flourish. The streaming stock is up 1,200% in the last decade. The company added 41 million net new customers in 2024, bringing its total to nearly 302 million at year's end. While Netflix chose to stop publicly reporting the number of subscribers it has starting this year, it did increase revenue by 12.5% year over year in the first quarter. It might seem like this streaming platform has saturated its market. However, co-CEO Greg Peters believes there are still "hundreds of millions of folks to sign up." By continuing to focus on creating compelling content offerings all over the world, Netflix is in a position to keep its expansion going. Wall Street's consensus analyst estimates are for its revenue to rise at a compound annual rate of 12.3% between 2024 and 2027. The streaming industry, like the automotive market, is extremely competitive. Netflix co-founder and former CEO Reed Hastings previously said that he counts sleep among the company's key competitors. I don't believe this was a stretch. Netflix goes up against all the other activities consumers can do when it's time to wind down and relax. But to be more specific, people have an almost unlimited number of viewing options at their fingertips today. Netflix is in the lead, though. Data from Nielsen shows that Netflix commanded 7.5% of video viewing time in the U.S. in April, only behind YouTube, which isn't necessarily an apples-to-apples comparison due to the latter largely featuring user-generated content. With its massive subscriber base, and trailing 12-month revenue of $40 billion, Netflix has the financial strength to spend a lot on content and marketing. And it's still able to bring in billions in free cash flow each year. It's important to highlight that the "Magnificent Seven" is not an official index like the S&P 500 is. However, with each passing quarter, Netflix continues to make the case that it deserves to be mentioned with the tech giants in that group. Given the streaming pioneer's ongoing success, it belongs in that exclusive club instead of Tesla. Before you buy stock in Netflix, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Netflix 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 $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — 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 9, 2025 Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix and Tesla. The Motley Fool has a disclosure policy. Why Netflix Should Replace Tesla in the "Magnificent Seven" was originally published by The Motley Fool 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
16 hours ago
- Yahoo
Bank of America Securities Keeps a Buy Rating on Albemarle Corporation (ALB)
Albemarle Corporation (NYSE:ALB) is one of the 8 Biggest EV Stocks to Watch in 2025. Rock Hoffman of Bank of America Securities stated in a published research report that he still had a buy recommendation on Albemarle Corporation (NYSE:ALB), with a price target of $93.00. The closing price of the company's shares yesterday was $62.30. A team of scientists in a laboratory observing the sophisticated engineering of specialty chemicals. According to Albemarle Corporation (NYSE:ALB)'s most recent financial report, the company made $1.08 billion in revenue and $41.35 million in net profit for the quarter that ended on March 31. In contrast, the business made $1.36 billion in revenue and $2.45 million in net profit the previous year. Albemarle Corporation (NYSE:ALB) is among the biggest producers of lithium worldwide. The primary source of demand for lithium in the lithium business is batteries, which employ lithium as an energy storage material, especially in electric vehicles. The firm is a complete manufacturer of lithium. While we acknowledge the potential of ALB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 High-Growth EV Stocks to Invest In and 13 Best Car Stocks to Buy in 2025. Disclosure. None. Sign in to access your portfolio
Yahoo
16 hours ago
- Yahoo
Bank of America (BAC) Anticipates Continued Growth in Markets Revenue for 13th Consecutive Quarter
Bank of America Corporation (NYSE:BAC) is one of the best Goldman Sachs bank stocks. BAC expects its trading revenue to grow by a mid-single digit percentage this quarter, its 13th consecutive increase, according to CEO Brian Moynihan. In contrast, investment banking fees are forecasted to fall to nearly $1.2 billion from $1.6 billion a year ago, though Moynihan remains optimistic about long-term prospects and ongoing client engagement. Despite a slowdown in dealmaking due to geopolitical tensions and market uncertainty, trading activity continues to benefit from volatility. BAC CEO reaffirmed guidance for net interest income to grow to $15.5-$15.7 billion by Q4 2025, up from $14.6 billion in Q1, driven by higher interest payments and solid consumer spending. Q2 earnings per share are expected to rise to $0.90, up from $0.83 a year ago. Pixabay/Public Domain Moynihan noted that credit quality remains strong as consumers continue to meet obligations, although small businesses are more exposed to tariff-related uncertainty. Separately, the Bank of America is preparing for potential developments in digital assets, including stablecoins, and is evaluating the long-term viability of these products in light of emerging regulatory frameworks. Bank of America Corporation (NYSE:BAC) is a financial institution offering banking, lending, investing, and wealth management services, catering to individuals, businesses, and governments with solutions ranging from checking accounts to investment banking and global markets support. While we acknowledge the potential of BAC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure. None. Sign in to access your portfolio