Wells Fargo CEO: Overall health of consumer is strong
Wells Fargo CEO Charles Scharf sits down with David Faber at the 2025 Milken Institute Global Conference to discuss outlooks on trade, what he's seeing from clients, and more.
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Yahoo
42 minutes ago
- Yahoo
Is the stage finally set for transcontinental rail mergers?
-- The prospect of transcontinental rail mergers in the U.S. has re-entered discussions among industry participants, with Wells Fargo analysts stating that while the probability remains "low," it has "increased substantially from near-zero." The key factor, according to Wells Fargo, lies in securing "the Trump administration's buy-in," which they believe would make the STB "unlikely to stand in the way." This political alignment has elevated the odds to approximately 20% in their view, with an accelerated timeline aiming for completion by the end of Trump's term in 2025. Wells Fargo suspects that any potential combinations would occur "between the large Western U.S. rails and the Eastern rails," as administration support for Canadian rail participation is deemed unlikely. They also anticipate that if one East/West deal is proposed, another would likely follow due to the competitive advantages of a transcontinental network. The primary appeal of such mergers, according to Wells Fargo, would be "better service as un-natural interchanges, and the friction they create, are eliminated, resulting in market share increases." Beyond potential cost synergies, they highlight the public good generated by "privately funded, greener infrastructure" that can reduce trucks and congestion on highways, driving "revenue/margin/EPS growth story for the rails." Wells Fargo estimates potential deals could generate "25-60%+ EPS growth over 3-5 years," assuming 30% premiums and synergies. Wells Fargo maintains a positive outlook on railroads, with or without M&A, due to "improving pricing power, potential for technological operational improvements, strong cash generation, and volume support from less economically sensitive goods." If mergers proceed, they see "the most upside for CSX (NASDAQ:CSX) and NS," considering them likely targets, though all rail stocks are expected to benefit. Related articles Is the stage finally set for transcontinental rail mergers? What are next big copper projects? UBS tells when equipment makers could benefit What's next for Fannie and Freddie under Trump administration? Effettua l'accesso per consultare il tuo portafoglio
Yahoo
12 hours ago
- Yahoo
Why Shopify Stock Popped Today
A Wells Fargo analyst raised their price target on Shopify's stock today. They called the company their "signature pick" and believe it could be a lesser-known beneficiary of the AI revolution. Home to its Shopify Magic and Sidekick solutions, Shopify looks more poised to thrive amid AI's rise, rather than be disrupted by it. 10 stocks we like better than Shopify › Shares of North America's leading commerce enabler, Shopify (NASDAQ: SHOP), were 6% higher as of 3:30 p.m. ET Friday, according to data provided by S&P Global Market Intelligence. This rise stems from an analyst at Wells Fargo raising their price target on the stock from $107 to $125, naming Shopify a "signature pick." Although Nvidia, Palantir, OpenAI, and others capture most of the artificial intelligence (AI) fanfare, the analyst believes Shopify could prove to be a thematic AI story -- and I'd agree. In April this year, a leaked memo from Chief Executive Officer Tobi Lütke went viral. In it, he stated, "Before asking for more headcount and resources, teams must demonstrate why they cannot get what they want done using AI." Although this focuses on incorporating AI into Shopify's operations, the quote highlights that AI will be at the heart of what the company does going forward, whether internally or through its products. In 2023, the company launched Shopify Magic, a toolbox of AI-powered solutions (think AI-generated product descriptions or email campaigns, automated chat help, or image editing). Then, it launched Sidekick -- an AI-driven commerce assistant -- in 2024 to help with areas such as inventory optimization, pricing strategies, and gathering business insights. Just last quarter, Shopify launched This tool enables merchants to source products more effectively, allowing them to navigate the complex tariff environment in real time. Adding over 600 new product features for its merchants in the last two years alone, Shopify appears likely to remain an AI innovator rather than a disruptee, in my opinion. Though Shopify stock isn't cheap at 83 times cash from operations, its growth potential remains massive, holding only a 2% market share in its core geographies. Before you buy stock in Shopify, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Shopify 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 Wells Fargo is an advertising partner of Motley Fool Money. Josh Kohn-Lindquist has positions in Nvidia and Shopify. The Motley Fool has positions in and recommends Nvidia, Palantir Technologies, and Shopify. The Motley Fool has a disclosure policy. Why Shopify Stock Popped Today 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
Wall Street Journal
13 hours ago
- Wall Street Journal
Treasury Yields Rise on Stable Employment Ahead of CPI
1600 ET – U.S. job creation slows less than expected, reducing odds of a dovish Fed. Bond markets react with a selloff that boosts yields. May's job creation slows less than forecast and unemployment remains at 4.2%. CME data show diminishing odds of a rate cut before September. Two or more cuts this year still represent the highest odds, but bets on only one or no cut rise. Wells Fargo foresees May's 12-month core CPI, due Wednesday, accelerating to 3.3% from April's 2.8%. The 10-year gains 0.089 percentage point this week, including 0.155 p.p. today, to 4.507%. The two-year rises 0.125 p.p. in the week and 0.115 p.p. today, to 4.039%. ( @ptrevisani) 0846 ET – U.S. job creation didn't slow as much as expected in May, spurring a bonds selloff that takes Treasury yields higher. May payrolls slowed to 139,000 from a downwardly revised 147,000. Economists surveyed by WSJ forecast 125,000. Unemployment was unchanged at 4.2%, as expected. The data likely supports expectations of a Fed hold. Yields were already rising ahead of payrolls, as markets watched the Trump-Musk break up. They rose faster after the data, particularly in longer maturities. The 10-year trades at 4.452%% and the two-year at 3.985%. ( @ptrevisani)
