logo
Markets Flat As Inflation Data Raises Tariff Concerns Ahead Of Jackson Hole

Markets Flat As Inflation Data Raises Tariff Concerns Ahead Of Jackson Hole

Forbes16 hours ago
Key Takeaways
Equities are experiencing their own dog days of summer. On Thursday, the S&P 500, Nasdaq Composite and Dow Jones Industrial Average closed flat on the day. The only movers were small cap stocks, which closed down on the day by 1.3%. The big news on the day was inflation data.
Thursday's Producer Price Index (PPI) came in significantly higher than expectations, and that followed a Consumer Price Index (CPI) report which had already raised at least one eyebrow for some. Year-over-year prices jumped 3.3% up from 2.4% and the monthly rate of increase, which had been flat, jumped 0.9%. What I find interesting here is the market's reaction and the expectations vis-a-vis interest rates. Initially, equity markets sold off on the news and bonds fell. However, according to the CME Fed Watch Tool, expectations for a quarter-point rate cut at the next Fed meeting still stand at over 92%.
Continuing with the macroeconomic picture, the most recent data on Retail Sales was released this morning. While the headline number came in as expected at 0.3%, a much less talked about number is grabbing a lot of attention. The Import Price Index, which measures price changes of imported goods, increased by 0.4%. That number had been forecast to be up 0.1%. The reason this number matters is because of how it relates to tariffs.
One of the hopes of those in support of the tariff policy was that countries would pay to access our markets. Those opposing tariffs have argued the cost of tariffs would be passed along in the form of higher prices paid by consumers. This particular data point could be a sign that countries are beginning to pass those costs to U.S. consumers. Albeit it's only one report and you cannot make any conclusions from one report; however, at the same time Chicago Fed president Austan Goolsbee noted that the combination of the higher-than-expected CPI, PPI and now Import Price Index has injected a "note of unease" into what was a "golden road" toward lowering interest rates.
Next week, global economic policy makers will gather in Jackson Hole, Wyoming. This year's theme centers around labor markets, however, the meeting will cover a range of topics and interest rate policy will certainly be among them. Because of the timing of the Jackson Hole conference, the Federal Reserve won't meet until mid September, which means that although current expectations are very high for a rate cut, the Fed will have a lot more data to work with prior to making any decisions.
There are some individual stocks making news in the premarket session. Shares of UnitedHealth Group are indicated higher by nearly 10% following the disclosure Warren Buffett's Berkshire Hathaway purchased more than five million shares in the company valued at $1.6 billion. Berkshire also sold twenty million shares of Apple during the quarter. According to the Wall Street Journal, that was the first time Berkshire reduced its position in Apple since last year. We also heard from Applied Materials after the close Thursday. The chipmaker reported earnings that beat expectations; however, the company lowered its guidance on an uncertain outlook, particularly with respect to China. Those shares are indicated lower by 15%.
For today, I'm watching a few things. First, I'm keeping an eye on shares of Intel after President Trump suggested the government may be looking to invest in the company. This is something we saw during the housing crisis when a multitude of companies were on the brink of failure, but the idea of an investment in Intel is a bit surprising. I'm also paying attention to the meeting taking place in Alaska between Presidents Trump and Putin over the war between Russia and Ukraine. Lastly, I'm watching bonds. With the data received this week, the inflation outlook is muddy. Bonds will have the ultimate say in where interest rates head, so I'm keeping close watch on how they close the week. As always, I would stick with your investing plans and long-term objectives.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Can Hudson Pacific Properties' (HPP) Revised Outlook Reveal Deeper Shifts in Its Core Business Strategy?
Can Hudson Pacific Properties' (HPP) Revised Outlook Reveal Deeper Shifts in Its Core Business Strategy?

Yahoo

time17 minutes ago

  • Yahoo

Can Hudson Pacific Properties' (HPP) Revised Outlook Reveal Deeper Shifts in Its Core Business Strategy?

Earlier this month, Hudson Pacific Properties reported second quarter and half-year results showing declines in sales and revenue alongside increased net losses, and provided updated earnings guidance for 2025 with GAAP non-cash revenue projected between US$5.5 million and US$10.5 million. The combination of disappointing financial performance and revised outlook reflects ongoing challenges facing the company's core office and studio segments in the current market. Let's assess how the weaker quarterly results and revised guidance could affect Hudson Pacific Properties' longer-term investment narrative. These 14 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch. Hudson Pacific Properties Investment Narrative Recap To be a shareholder in Hudson Pacific Properties, you need to believe that its portfolio of office and studio assets can eventually overcome weak occupancy trends and sustain a turnaround, primarily through a recovery in West Coast tech and media leasing and studio show count. The latest quarterly results show further declines in revenue and deepening losses, putting near-term pressure on the company's largest catalyst: improved leasing velocity. However, the risk from elevated leverage and constrained cash flow remains front and center, as the results reflect limited margin for error in the current environment. The company's recent follow-on equity offering, raising US$599.28 million, stands out as a significant move closely tied to the need for financial flexibility highlighted in its Q2 report. While this strengthens immediate liquidity, it also points to increased dilution, which could temper any positive impact from operational improvements in the short term. But with leverage still high, investors should be monitoring how these capital moves play into... Read the full narrative on Hudson Pacific Properties (it's free!) Hudson Pacific Properties is projected to reach $910.8 million in revenue and $70.9 million in earnings by 2028. This outlook is based on an expected annual revenue growth rate of 4.7% and a $493.7 million increase in earnings from the current level of -$422.8 million. Uncover how Hudson Pacific Properties' forecasts yield a $3.24 fair value, a 20% upside to its current price. Exploring Other Perspectives Fair value estimates from the Simply Wall St Community range from US$3.24 to US$28.64, across 3 distinct perspectives. With recent losses and slower leasing activity, the risk of continued revenue shortfalls is something readers should keep on their radar as opinions differ widely on future potential. Explore 3 other fair value estimates on Hudson Pacific Properties - why the stock might be worth just $3.24! Build Your Own Hudson Pacific Properties Narrative Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd. A great starting point for your Hudson Pacific Properties research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision. Our free Hudson Pacific Properties research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Hudson Pacific Properties' overall financial health at a glance. Ready For A Different Approach? Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped: Uncover the next big thing with financially sound penny stocks that balance risk and reward. This technology could replace computers: discover 24 stocks that are working to make quantum computing a reality. Rare earth metals are the new gold rush. Find out which 27 stocks are leading the charge. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include HPP. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ 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

Why Astronics (ATRO) Raised Its Revenue Guidance and What It Means for Aerospace Growth
Why Astronics (ATRO) Raised Its Revenue Guidance and What It Means for Aerospace Growth

Yahoo

time17 minutes ago

  • Yahoo

Why Astronics (ATRO) Raised Its Revenue Guidance and What It Means for Aerospace Growth

Astronics Corporation recently reported its second quarter 2025 earnings, noting sales of US$204.68 million and net income of US$1.31 million, with the company raising its full-year revenue guidance to a range of US$840 million to US$860 million. This guidance increase reflects strong performance in the Aerospace segment and management confidence amid restructuring and ongoing tariff challenges. Given Astronics' upgraded revenue guidance, we will explore how this development may influence its investment narrative and outlook for aerospace-driven growth. AI is about to change healthcare. These 27 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. Astronics Investment Narrative Recap To be a shareholder in Astronics, you need to believe in the ongoing recovery and future growth of global commercial aerospace, the company's ability to capitalize on increased aircraft production rates, and its progress in streamlining operations to drive margin improvement. The latest results, including raised revenue guidance and continued strength in Aerospace, bolster management's near-term confidence, but do not materially diminish the most pressing risk: unpredictable tariff costs that threaten profit margins and execution in the Test segment. Among recent announcements, the upward revision of full-year revenue guidance directly aligns with increased aircraft demand and robust sales in the Aerospace segment, reinforcing the key catalyst of production rate increases at major OEMs. While this supports optimism about revenue growth, execution risk in the Test segment and cost management amid persistent tariff headwinds are still critical factors for shareholders to monitor. But just as revenue potential rises, investors should be aware of ongoing exposure to tariff unpredictability and potential cost pressures in... Read the full narrative on Astronics (it's free!) Astronics' outlook anticipates $956.5 million in revenue and $86.1 million in earnings by 2028. This projection relies on a 5.1% annual revenue growth rate and an increase in earnings of $89.8 million from the current -$3.7 million. Uncover how Astronics' forecasts yield a $38.58 fair value, a 15% upside to its current price. Exploring Other Perspectives Three Simply Wall St Community fair value estimates for Astronics range from US$15 to US$207.24, showing a wide range of views. With tariffs posing a real cost concern, it's worth exploring how each perspective frames the company's risk and reward. Explore 3 other fair value estimates on Astronics - why the stock might be worth over 6x more than the current price! Build Your Own Astronics Narrative Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd. A great starting point for your Astronics research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision. Our free Astronics research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Astronics' overall financial health at a glance. No Opportunity In Astronics? Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters: Outshine the giants: these 19 early-stage AI stocks could fund your retirement. These 14 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch. This technology could replace computers: discover 24 stocks that are working to make quantum computing a reality. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ATRO. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ 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

How nonprofits should (and shouldn't) be using tech
How nonprofits should (and shouldn't) be using tech

Fast Company

time18 minutes ago

  • Fast Company

How nonprofits should (and shouldn't) be using tech

Businesses have long leaned on cutting-edge technology to maximize profits, while the nonprofit sector has traditionally been slower to incorporate innovations such as AI. But if we want to tackle the world's most pressing social problems, that must change, says philanthropist and MacArthur Genius grant recipient Jim Fruchterman in a new book. In Technology for Good: How Nonprofit Leaders Are Using Software and Data to Solve Our Most Pressing Social Problems, out September 2nd, Fruchterman highlights social good organizations that are using technology to solve real-world problems—homelessness, mental illness, climate change, child abuse, and more. Fruchterman is a tech-for-good leader and the founder of the nonprofit Benetech, which created Bookshare, an online library for people who are blind or visually impaired. He spoke with Fast Company about some of the ways technology is being used to make the world a better place and what he hopes readers glean from his book. It's refreshing to talk to a business leader about how to use technology for social good instead of how to use it to drive profits. [Laughs.] I call it moving from money to meaning. What are the challenges that nonprofits and social-good organizations face when it comes to technology? One is a lack of money. Funding is tight. And while tech is often cost-effective, if you have a hard time coming up with the money to buy the tech, it's hard to use. There are also often low levels of tech capacity among the staff. People are used to using the telephone as opposed to going on a Zoom call. The social sector also prioritizes different things than the for-profit sector. It's not just about efficiency. People are still pretty important in the social change sector. Saying, 'Hey, you can get rid of a bunch of people' (by implementing a new technology) may not be the best sales pitch for a charity that is trying to help people. What are some social problems that technology could help solve? I spotlight in my book TalkingPoints, which helps teachers communicate with kids' parents who don't speak English. If you can get the parents more engaged, kids are a lot more successful in school. That's a great example of a technology that fills a need for immigrant parents. Community Solutions' Built for Zero initiative is trying to end homelessness. For years, we treated the symptoms: Let's build temporary housing, get people food and clothing. They're asking, 'Can we say that everyone who was homeless three months ago is now housed?' The key tech innovation is a by-name list keeping track of everyone across community places that these people go into. When shelters say, 'Our beds have been 80% used this month,' that measures output, but it doesn't say anything about whether we're solving the homelessness problem. So much of what the social sector does is move information around—well, that's what information technology is for. What would you say to a nonprofit leader who feels overwhelmed by or unqualified to make decisions around technology? Find people in your field who are ahead of you on the technology journey and learn from them. Talk to your peers. If they're saying, 'We're writing a third more grants with the same amount of staff' using ChatGPT or Claude, then that's worth paying attention to, because it's not their business to sell you things. In your book, you highlight some bad ideas in tech-for-good efforts. Which do you see repeated the most? The cult of the custom. It's the idea that 'my nonprofit is such a unique snowflake that I need custom software built to solve my organization's problem.' And businesses stopped writing custom software 20 years ago because no golf course, no restaurant, no dentist needs to be writing software to run their company. When you write your own software, you're the only customer. It means that every bug that needs to be fixed, you're the only one paying for it. You should look for a product that can be adapted to your needs. Also: I see lots of people building an app that no one will download. Or people following whatever the latest fad is—five or eight years ago, that was blockchain. That didn't work out. Three to five years ago, it was the metaverse. That didn't work out. Right now, it's generative AI. I'm glad you brought up AI. What's your take on where AI should and shouldn't be used in social impact work? I think you shouldn't replace human empathy and understanding with AI that doesn't understand what it's saying and have any empathy whatsoever. People in the nonprofit sector turn to human beings to help them. The best applications of AI in social good are around making the people on the frontlines of social change more effective. Let's say I'm trying to automate a mental health counselor. Do I want to replace the counselor with a chatbot? Right now, it's not a great idea. But if we can instead cut their amount of data entry time or paperwork time in half, then that's time they can spend with another person who needs their help.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store