logo
How to play the outperforming financials sector as the second half of 2025 kicks off

How to play the outperforming financials sector as the second half of 2025 kicks off

CNBC30-06-2025
(This is a wrap-up of the key money moving discussions on CNBC's "Worldwide Exchange" exclusive for PRO subscribers. Worldwide Exchange airs at 5 a.m. ET each day.) Investors heading into Monday's session were looking at financials as the sector outperforms. JPMorgan also breaks down its year-end outlook for stocks. David Zervos' outlook on financials David Zervos of Jefferies expects financials to be one of the best performing sectors in the second half of 2025. "I'm very optimistic on deal flow and a deregulatory story that starts to hit the energy sector and financial sector," said Zervos. " I think there is a story here with the SLR (Supplementary Leverage Ratio)." He added: "The administration is very keep on wrestling some regulator purview back into the administration … they want to see deals, they want activity and I think they are going to get it." SLR was established in 2014 as part of the Basel III reforms to monitor banks Tier 1 capital. Last week, big banks passed their most recent stress test, but those were reportedly less vigorous than previous years. Passing the stress test lest major banks to issue dividends to shareholders and announce stock buybacks. The dividend plans are expected to be announced this week. The financial sector is more than 26% higher year to date. JPMorgan 2025 year-end outlook; how to play defense sector Joyce Chang of JPMorgan has a S & P 500 forecast of 6,000 implying a 4% pullback from current levels. "I think we are in a range here, you have slower growth coming and we think higher inflation," said Chang. "You also have very steady retail demand and buybacks, we have been looking at $7 billion-$8 billion daily into equity markets. The technicals could squeeze this higher but we are on a stagflationary tilt here. I would careful calling for much higher market." She added on the headwind from tariffs and trade deals: "We are still looking an effective tariff rate that is 14% that is a $400 billion tax." On a sector level, Chang is bullish on defense and aerospace and said she sees more upside in the European players in the space. "What they are doing at NATO is historic (increasing defense spending), even though it is going to play out over a period of time." Since the June 13 Israel strike on Iran, The EUAD Select STOXX Europe Aerospace & Defense ETF and the ITA iShares US Aerospace & Defense ETF are trading very closely. Baidu releases 'Ernie' bot Chinese tech giant Baidu is scheduled to release it's "Ernie" open source large language model on Monday, seen by many as the biggest AI development out of China since the "Deep Seek" release in January. Dan Ives from Wedbush has high expectations, "We believe Baidu has built an impressive 'Ernie' that will send some potential shockwaves across the AI market and it speaks to China becoming more and more successful on the AI front. I don't expect a 'Deep Seek' moment but the early reads are positive." Kevin Carter of EMQQ Global said investors should also pay attention to Baidu's developments in the autonomous driving space with its "Apollo Go" robotaxi service. " AI and Ernie GPT are important to Baidu, but real-world physical AI is happening right now with robotaxis scaling at an incredible rate," said Carter. "Many analysts have reiterated bullish views on the autonomous mobility market where Waymo is the clear US leader. Baidu's 'Apollo Go' is neck and neck with Waymo in the self-driving car market and has given more rides so far than Waymo so far. Apollo Go also has significantly more room to grow as China has 145 cities with 1 million people versus only nine in the U.S ." U.S.-listed Baidu shares are 4% higher year to date.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Barclays Reduces PT on Jamf Holding Corp. (JAMF); Maintains ‘Equal Weight' Rating
Barclays Reduces PT on Jamf Holding Corp. (JAMF); Maintains ‘Equal Weight' Rating

Yahoo

time19 minutes ago

  • Yahoo

Barclays Reduces PT on Jamf Holding Corp. (JAMF); Maintains ‘Equal Weight' Rating

Jamf Holding Corp. (NASDAQ:JAMF), having a share price under $10, strong hedge fund interest, and a low price-to-earnings ratio, ranks among the . A close-up of a computer monitor showing a complex web of cloud-based technology. On July 21, 2025, Barclays decreased its price target on Jamf Holding Corp. (NASDAQ:JAMF) from $15 to $10, maintaining an 'Equal Weight' rating. However, the analyst expresses optimism about how software companies are positioned for the upcoming Q2 earnings. This optimism is driven by market feedback and sales data, which demonstrated improved performance in May and June following a weak April. As such, the analyst expects strong Q2 results for Jamf Holding Corp. (NASDAQ:JAMF), with potential for upward guidance revisions. Meanwhile, on July 17, 2025, JPMorgan also decreased its price target on Jamf Holding Corp. (NASDAQ:JAMF) from $15 to $12, maintaining an 'Overweight' rating. Justifying the bullish rating, the analyst spoke about strong cloud spending trends that are expected to drive upside in the second half of 2025. However, it cited concerns about increased exposure to macro-sensitive customer segments, justifying the downward revision of its price target. Thus, analysts see improving momentum, yet advise caution for investors amid market uncertainties that may impact customer base and future performance of Jamf Holding Corp. (NASDAQ:JAMF). Serving Apple devices, Jamf Holding Corp. (NASDAQ:JAMF) delivers cloud-based management and security solutions, automating the device lifecycle, identity and access management, and endpoint protection within the IT landscape. It offers a cloud-hosted Jamf Pro MDM server, enabling scalable, globally accessible management of Apple devices. It is included in our list of the best cloud stocks. While we acknowledge the potential of JAMF 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: 14 Cheap Transportation Stocks to Buy According to Analysts and 11 Best Mineral Stocks to Buy According to Hedge Funds. Disclosure: None. Sign in to access your portfolio

Winklevoss Claims JPMorgan Halted Gemini Onboarding After Data Access Fees Criticism
Winklevoss Claims JPMorgan Halted Gemini Onboarding After Data Access Fees Criticism

Yahoo

time3 hours ago

  • Yahoo

Winklevoss Claims JPMorgan Halted Gemini Onboarding After Data Access Fees Criticism

Tyler Winklevoss, co-founder of the crypto exchange Gemini, claimed that JPMorgan Chase halted its onboarding process for Gemini after he criticized the bank's new fee structure for fintech companies. Last week, Winklevoss publicly criticized JPMorgan CEO Jamie Dimon after Bloomberg reported the bank would start charging fintech platforms for access to customer banking data. Many of these platforms serve as bridges between traditional banks and crypto services. 'This will bankrupt fintechs that help you link your bank accounts to crypto companies,' Winklevoss posted on X. ' This is the kind of egregious regulatory capture that kills innovation, hurts the American consumer, and is bad for America.' JPMorgan didn't address Gemini directly but defended its decision, telling Forbes that nearly 2 billion monthly requests for user data come from third parties, most of them not tied to actual customer activity. By charging fees, the bank says it aims to curb misuse and protect consumers. In a follow-up tweet, Winklevoss said the bank told Gemini it was pausing re-onboarding the exchange. JPMorgan had previously offboarded Gemini, as CoinDesk reported, during so-called Operation Choke Point 2.0, a period during which many crypto firms lost banking access under regulatory scrutiny. 'We will continue to call out this anti-competitive, rent-seeking behavior and immoral attempt to bankrupt fintech and crypto companies,' Winklevoss wrote. Gemini, which filed confidentially for an IPO earlier this month, has been offering an increasing number of services that recently started including tokenized stocks. Sign in to access your portfolio

Media trailblazer Tom Rogers changes ‘raging bull' stance on Netflix, sees worrisome signs
Media trailblazer Tom Rogers changes ‘raging bull' stance on Netflix, sees worrisome signs

CNBC

time6 hours ago

  • CNBC

Media trailblazer Tom Rogers changes ‘raging bull' stance on Netflix, sees worrisome signs

Former NBC Cable President Tom Rogers is dialing back his bullishness on Netflix. The media trailblazer, who was a self-proclaimed "raging bull" on Netflix, told CNBC's "Fast Money" this week he's starting to worry — and listed competition with free content on YouTube as a headwind. "[Netflix] still [has] more hit shows than all the other streaming services combined, but when you look at the growth of their sub[scriber] base and look at the amount of total engagement time from all viewers they get, the amount of viewing per viewer has gone down some," said Rogers, who's now executive chairman of AI company Claigrid. Netflix saw the largest monthly viewership increase versus its peers in June, according to Nielsen. However, YouTube had 13% of total monthly TV viewership while Netflix had 8%. Rogers' latest take comes after Netflix delivered a positive quarterly report on July 17. "There was nothing wrong with its earnings at all," said Rogers, who is also a CNBC contributor. "But engagement is what drives everything here. The amount of viewing it gets, it drives price increases, which drive programming budget, which drives more great programming." Netflix beat second quarter top and bottom line estimates and raised its full-year guidance. But since its earnings report, the streamer's stock is down about 6% and is now off almost 11% since hitting a record high on June 30. Rogers also predicts artificial intelligence will be a "double-edged sword" for Netflix in the near-term. On the one hand, he said it will aid the streamer's targeted advertising and help cut programming costs. But it also allows independent content creators a leg up — which benefits YouTube. "The line between professional and amateur content is going to get more and more blurry as AI tools in the hands of amateurs allow them to produce things that look incredibly professional," he said. "I think AI in the hands of the creative community of YouTube could create a level of professional programming for YouTube which drives its viewership even further." YouTube's parent company, Alphabet, is up 2% so far this year. Yet, Rogers still considers Netflix maintaining his status as the most valuable media company in the world. However, he said a lag is "something to watch for sure." Netflix spokesperson Emily Goldstein deferred comment to the company's second-quarter earnings call.

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