Latest news with #ACWX
Yahoo
4 days ago
- Business
- Yahoo
Market Minute 6-4-25- Swticheroo in Play as Global Stocks Hit Highs, US Lags
Markets are relatively quiet so far, with stocks, gold, and crude oil all mostly flat. Treasuries are rallying modestly, though, while the dollar is dipping. We have a switcheroo in major markets. Led by strong performance in non-US equities, the MSCI All-Country World Index just tagged 888.24 – topping its previous February peak of 887.72. The Stoxx Europe 600 Index is beating the S&P 500 by the widest margin on record. In the Americas, all major indices are outperforming the S&P 500 handily, with benchmark indices in Canada up 6.8%, Brazil up 14.3%, and Mexico up 16.4%. To get a FREE copy of the complete MoneyShow 2025 Top Picks Report, click HERE.) This chart shows the performance of the iShares MSCI ACWI ex US ETF (ACWX) compared to the SPDR S&P 500 ETF Trust (SPY). The former holds more than 1,700 non-US stocks, with the highest weighting in names like Taiwan Semiconductor Manufacturing (TSM), Tencent Holdings Ltd. (TCEHY), and SAP SE (SAP). As you can see, ACWX has gained just under 15% so far in 2025, compared with only 1.7% for the SPY. This is a big week for job market data – and today's ADP number didn't exactly excite Wall Street. The private payroll company said the US economy added just 37,000 jobs in May. That was down from 60,000 a month prior and FAR below the average forecast of 115,000. Official Labor Department numbers are due out Friday morning. See also: CTRI: A Utility Play That Just Landed Large, New Contracts In other news, US-China trade disagreements keep festering. President Trump called Chinese President Xi Jinping 'extremely hard to make a deal with' in a social media post overnight. Hoped-for talks between the two leaders still haven't happened. Meanwhile, China's crackdown on exports of rare-earth metals is threatening manufacturers here in the US. Auto companies are particularly vulnerable, especially those who are titling more toward Electric Vehicle (EV) production. Those vehicles need rare-earth magnets to function and sourcing them from China has become much more difficult. More From SPX: Yes, We Could Finish 2025 at 6,600 Given Earnings, AI Growth Earnings, Jobs Data to Drive Next Market Moves Market Minute 6/3/25: Wet-Blanket Forecasts Weigh on Markets
CNBC
28-05-2025
- Business
- CNBC
Jefferies sees upside ahead for these stocks — and they pay solid dividends
With earnings season mostly in the rearview mirror, certain names stand out as winners moving forward, according to Jefferies. The firm recently highlighted several buy-rated stocks of companies that beat on earnings and issued solid guidance. It also favors domestic names over foreign, although international stocks are currently outperforming those in the United States. The iShares MSCI All Country World Index ex U.S. ETF (ACWX) has gained about 14% in 2025, while the S & P 500 is fractionally higher so far this year. However, domestically-oriented names are cheap on an absolute basis, as well as relative to names with foreign exposure, U.S. small-mid cap strategist Steven DeSanctis said in a note Tuesday. "Looking across several macro variables and relative performance of Domestic vs. Foreign, performance favors being domestically oriented," he wrote. The strategist added that if oil prices continue to fall and the dollar remains weak, those factors are favorable for domestic names. While the dollar strengthened for the second day on Wednesday, Jefferies thinks the greenback could be in for an extended period of weakness. These names are among those that made the cut; they are mostly mid-cap companies. They also pay dividends, so investors are paid to wait for the stocks to rise. Lamb Weston has 41% upside to Jefferies' $75 price target, as of Tuesday's close, and it has a 2.78% dividend yield. The company, which makes frozen potato products, posted a beat on both the top and bottom lines when it reported fiscal third-quarter results in April. Adjusted earnings were $1.10 per share, versus the 86 cents per share expected from analysts polled by FactSet. Revenue came in at $1.52 billion versus the $1.49 billion consensus estimate. Lamb Weston also reiterated its guidance for the full year. That was "much needed in our view to stem the negative sentiment," said DeSanctis, who acknowledged the company still faces some headwinds. "LW is now engaged with a strategic advisor to explore value creation and operational/cost saving opportunities after an activist got involved in fall '24, with the value of its integrated assets (notably in the US) possibly attractive to potential suitors," he noted. Shares are down 20% year to date. Virtu Financial , on the other hand, is up more than 15% so far this year. Jefferies' $47 price target implies about 14% upside from Tuesday's close. The high-frequency trading company's first-quarter normalized adjusted earnings were $1.30 per share, topping the $1.20 a share consensus estimate, according to FactSet. The results led Jefferies to increase its estimates for 2025 and 2026 earnings to $4.10 and $4.05 per share, respectively, from $3.74 and $3.78 per share. Elevated volatility and increased retail participation have been key drivers of Virtu Financial's recent earnings strength, as well as the company's growth initiatives, Jefferies analyst Daniel Fannon said in an April note after the company's earnings report. "While the sustainability of activity is always an unknown, the diversity of asset class/product contribution to the performance is notable (this quarter, metals were highlighted for the first time in recent history)," he wrote. "The growth and investor participation within Virtu's underlying markets, such as options, ETFs, crypto, and equity ownership more broadly continue to represent longer-term tailwinds to Virtu's growth outlook." The stock pays a 2.33% dividend yield. Lastly, STAG Industrial has a 4.21% dividend yield and is up nearly 5% so far this year. The real estate investment trust, which focuses on industrial properties in the U.S., has 29% upside to Jefferies' $45 price target, as of Tuesday's close. The company's first-quarter core funds from operations came in at 61 cents per share, 1 cent above the FactSet consensus estimate. Its revenue was $205.6 million, above the $201.1 million expected by analysts. Cash-leashing spreads — which is the difference between money collected on new and renewal leases compared to expiring lease — jumped 27.3%, analyst Jonathan Petersen pointed out in an April 29 note, after the company reported earnings. "We expect leasing spreads will continue to trend positively vs coastal peers over the next few years driven by demand related to onshoring of manufacturing and supply chain reconfiguration," he wrote.
CNBC
28-05-2025
- Business
- CNBC
The rest of the world is trouncing the U.S. stock market. Why that could continue
It's been a banner year for international stocks compared to the U.S. The iShares MSCI All Country World Index ex U.S. ETF (ACWX) has rallied more than 14% in 2025, while the S & P 500 is marginally higher year to date. ACWX also hit a closing record high on Tuesday, while the U.S. large-cap benchmark is still 3.8% below its all-time high set in February. This outperformance by the rest of the world is uncommon to say the least. DataTrek Research co-founder Nicholas Colas noted that international stocks are outpacing the S & P 500 by more than three deviations over the past 100 days. That's only the third time that's happened since 2010, he said. These periods have historically been followed by a swift comeback in the S & P 500 relative to the All Country World Index. But Colas thinks this time could be different. ACWX .SPX YTD mountain ACWX vs SPX year to date "We must consider the possibility that there is a regime shift underway in currency and/or equity markets," Colas wrote. "Perhaps capital will keep flowing out of the dollar and U.S. stocks for both diversification and fundamental reasons." The dollar index, which measures the greenback's performance against six leading currencies, has tumbled 8% in 2025. That loss is driven in part by concerns around evolving U.S. trade policies. President Donald Trump in April unveiled a raft of steep tariffs on imported goods. Since then, many of those levies have been temporarily paused or reduced. A lower dollar tends to benefit international markets outside the U.S., making it cheaper for consumers and companies in overseas markets to buy dollar-denominated goods and assets, be they energy or gold or anything else. Stronger oveseas currencies also translate into more dollars when non-U.S. returns are measured here. That tailwind has powered 2025 thus far: iShares MSCI Emerging Markets ETF (EEM): up 10% year to date iShares MSCI Japan ETF (EWJ): up 11.7% in 2025 iShares MSCI China ETF (MCHI): up 15.3% this year "The safest path is to continue to index weight rest of world stocks (roughly a 36% allocation)," Colas added. "While we are still long-term bullish on U.S. equities, investors who benchmark against global equities or those worried about missing out on non-U.S. gains might be well served by owning rest of world stocks for the next few months." Bank of America also pointed out that the technical backdrop for international looks promising. Strategist Paul Ciana noted that ACWX's 50-day moving average is rising and that its 14-week RSI is above 65. "For those reasons, this is a technically constructive picture. Fibonacci measures suggest the breakout can trend higher," he said.
