US Stocks Drift From Records as Trump Ramps Up Tariff Threats
The S&P 500 Index slipped 0.3% as of 9:45 a.m. in New York, after snapping a two week winning streak. That left the equities benchmark less than 0.5% from its July 10 record after climbing above the psychologically important 6,200 level. The Nasdaq 100 Index fell less than 0.4%. A basket tracking so-called Magnificent Seven stocks including Apple Inc., Alphabet Inc. and Meta Platforms Inc. is down 0.3%.
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Bloomberg
16 minutes ago
- Bloomberg
Halfway through the crosscurrents: themes and trends from H1 2025
Sector and style indices Though tech (B500TE) was the largest contributor to US returns through June, the communications sector (B500C) is this year's best performer so far, totaling 13% through the first six months. Names like Meta (+25%) and Netflix (+50%) have been the primary contributors to the sector's hot start to 2025. Of the 11 BICS sectors, only Health Care (B500H) and Consumer Discretionary (B500CD) are in negative territory. Based on the sector observations just mentioned, it should come as no surprise that Growth indices have outpaced their Value equivalents thus far across the cap spectrum. This fact may be hard to believe for some, as the Bloomberg 1000 Value index had a 10% lead on its Growth counterpart at the time of the April lows, when investors sought the relative safety of lower-risk sectors like consumer staples and utilities. That lead proved short lived, as market participants became more optimistic about trade and earnings, with the Bloomberg 1000 Growth Index eking out a return of 6.3% vs 5.9% for its value counterpart. International equity indices Outside of the United States, equity returns have outpaced US markets meaningfully, especially in USD terms. The Developed Markets ex- US Index (DMEU) is up nearly 20% thus far in 2025. In looking closely at these returns, however, nearly half is attributable to dollar weakness, as the Bloomberg Dollar Spot Index (BBDXY Index), which tracks the performance of the dollar verse 10 leading global currencies, is down 9%. Emerging Market equities (EM Index) have also performed well despite the negative trade headlines, outpacing US equites with a 13.4% first half return. Even China (CN Index) has rebounded off the trade-headline lows to return 12.6% thus far. Thematics One common thread among the best and worst performing thematic indices is their current relevance in the political or geopolitical arena. Defense oriented indices have done particularly well this year, especially those with specific regional exposure. The Bloomberg Europe Defense Select Index (BSHIELD), for example, closed out the first half of the year up 77% as Europe aims to not just increase defense spending but also increase in-continent defense reliance in light of the war in Ukraine and historical reliance on the US. Nuclear energy, long shunned by governments the world over, has found a renewed interest as a possible solution for the energy demands of artificial intelligence. Here in the US, reforms have been discussed and implemented to expedite nuclear energy development. Even some European nations are considering reversing nuclear phase-out policies. While names that operate nuclear plants have rallied, so too have other elements of the value chain, such as uranium miners and refiners. The Bloomberg Nuclear Aggregate Index (BNUAP), which seeks to capture those companies exposed to the theme across the value chain, closed out the first half with a 27% return. Geopolitical tensions are rising, supply chains are being reimagined, and the need for resource security is taking center stage. The Bloomberg FAANG 2.0 Select Index (BFAANGST) is a strategically constructed benchmark that captures the essential pillars of modern society: Fuel (F), Aerospace & Defense (A), Agriculture (A), Nuclear (N), and Gold & other Base and Precious Metals (G). Although past performance is not indicative of future results, that index has also outperformed the global equities (WORLD), tallying a 24.8% return year-to-date. Enhanced factors With market volatility, many equity investors have sought ways to de-risk their portfolios. While some have headed for the sidelines, others have instead maintained their equity allocation while employing more defensive positioning. ETF strategies that target low–volatility, quality, and dividend stocks have been gathering assets this year. Nonetheless, many such strategies have struggled this year. Rather than targeting these factors individually, indices that tilt to multiple factors have provided different outcomes in 2025. The Bloomberg Shareholder Yield Index (BSHARP) examines the total return of capital, which includes dividends paid, net buybacks, as well as debt repayment. Using the TLTS function on the Terminal highlights exposure to quality and lower volatility companies relative to the market cap weighted Bloomberg 1000 Index. The Bloomberg Shareholder Yield Index returned 7.8% through the first half of the year, outpacing the Bloomberg 1000 index by 1.61%. Traditional factor-based indices that rely on metrics like profitability, valuation or cash flow to determine security selection may miss potential winners. The Bloomberg Core Earnings Leaders Index (BCORE Index) (developed in partnership with independent research technology firm New Constructs) leverages a pioneering AI-based parsing process and machine learning technology to target a company's Core Earnings by going beyond as-reported fundamentals and into the footnotes, which the market may be missing. That index has returned a robust 12.1% through June, outpacing the Bloomberg 1000 by nearly 6%! Conclusion The rebound in equity markets, particularly here in the U.S., highlights the resilience of investor sentiment in the face of geopolitical headwinds, inflationary concerns, and evolving government policy. The broader macroeconomic and regulatory environment continues to evolve rapidly, and with central banks, governments, and corporations adjusting strategies accordingly, adaptability remains critical. Bloomberg's Equity Indices can help investors dissect markets with clarity and granularity, allowing for timely observations that can help plot a course in real-time.
CNBC
18 minutes ago
- CNBC
Jim Cramer makes the case for why Apple and investors should stick with CEO Tim Cook
Jim Cramer says he's still backing Apple 's Tim Cook despite calls for the CEO to resign. "I really believe in Tim," Jim said at Friday's annual meeting of the CNBC Investing Club from the New York Stock Exchange. "He's made us a lot of money. He gets the benefit of the doubt." Responding to a question from a member who asked whether the Club would consider trimming the stock if Apple cannot turn things around, Jim also addressed the Street's list of concerns about the tech giant, including last Tuesday's announcement that COO Jeff Williams, 62, will retire later this year. Williams was the No. 2 executive at Apple. A day later, LightShed Partners analyst Walter Piecyk called for Apple to replace Cook. Piecyk did credit the 64-year-old CEO for an amazing job navigating the iPhone era, but said Apple now needs a product-focused CEO. Piecyk told CNBC's "Fast Money" last Wednesday evening that the idea of Apple needing new leadership is not new among institutional investors. "It cannot miss out on AI," LightShed wrote in its note to clients. Jim recently advocated for Apple to buy AI start-up Perplexity as a solution to getting back in the game. "They screwed up the AI. Jeff Williams is retiring. Luca Maestri, the great CFO, is gone. The new CFO [Sabih Khan] is young. They're right now lacking innovation. A lot of people feel that Vision Pro [headset] is a bust," Jim said. "There isn't anything that they are doing right, right now, according to people," he acknowledged. But in a show of faith, Jim kept Apple stock as one of the Club portfolio's 12 core holdings , alongside artificial intelligence winners Amazon , Meta Platforms , and newly crowned $4 trillion market cap stock Nvidia . Apple's shares have been feeling the weight of shaky investor confidence, with the stock down nearly 16.5% year to date. Unlike other tech companies following the tariff-driven April lows, Apple has been slower to recover. Currently trading around $209, the stock would have to see an upside move of roughly 19% to get back to its record-high close of $259 on Dec. 26, 2024. AAPL YTD mountain Apple YTD It's undeniable that Apple is up to its eyeballs in problems, with AI being one of those at the forefront of investors' minds. Earlier this year, the company delayed its rollout of an AI-powered conversational Siri, helping fuel naysayers who are upset with its failure to catch up in the AI revolution. To add more flames to the fire, Apple lost a top AI executive , Ruoming Pang, to Meta last week. Furthermore, the company has been a direct target of the Trump administration, which has publicly criticized Cook for a lack of urgency in moving iPhone production back to the U.S. Despite having shifted some production to India, most of Apple's phones are still made in China. But either way, President Donald Trump wants iPhones made in America, which could more than double the price tag of the device. "It is painful to hear people going for [Cook's] head or that it's time for him to change," Jim said, as he questioned whether investors have forgotten the "thousands and thousands of percentages" in profits that the company and Cook have made them. "As long as this [iPhone] is remarkable. As long as this [iPhone] is indispensable, we're going to own the stock," Jim said. (Jim Cramer's Charitable Trust is long AAPL. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Bloomberg
37 minutes ago
- Bloomberg
AI Dating Features Face Rejection From Gen Z
A new Bloomberg Intelligence survey shows younger people are less interested in generative artificial intelligence features on dating apps, which could be a problem for companies investing heavily in such features in an effort to attract new users. Bloomberg's Natalie Lung discusses with Jackie Davalos on 'Bloomberg Tech.' (Source: Bloomberg)
