Latest news with #AmericanManufacturing
Yahoo
09-07-2025
- Business
- Yahoo
3 Funds to Buy as Manufacturing Activity Shows Signs of Rebound
The U.S. manufacturing sector is showing signs of recovery after suffering for over a year. In May, there was a notable increase in new orders for American-made goods, and this positive momentum continued into June as inflationary pressures continued to ease. While concerns over tariffs persist, expectations that the Federal Reserve may soon start its rate cuts are raising hopes for a sustained revival in manufacturing activity, as cheaper borrowing could drive up demand. In light of this optimism, it would be wise to invest in funds like Fidelity Select Industrials Portfolio FCYIX, Fidelity Select Defense & Aerospace Portfolio FSDAX and Fidelity Select Retailing Portfolio FSRPX, which are likely to benefit in the near term. Manufacturing Activity Rebounds The Commerce Department reported last week that orders for U.S.-manufactured goods jumped 8.2% in May, bouncing back from a revised 3.9% decline in April. On a year-over-year basis, orders were up 3.2% in May. The rebound was driven largely by a massive 230.8% increase in commercial aircraft orders. Orders also rose in categories like computers and electronics (1.5%), motor vehicles and parts (0.8%), and capital goods excluding aircraft (1.7%), which reflects business investment. Shipments of core capital goods grew 0.4%, and non-defense capital goods orders soared 49.5%. Meanwhile, the ISM's June Manufacturing PMI edged up to 49 from 48.5 in May. Although it was below the threshold of 50, which denotes a contraction in the sector, the uptick suggests the sector is beginning to recover. Manufacturing contributes 10.2% to the overall economy. President Donald Trump's tariffs on imports have posed challenges for several businesses. However, the administration has been engaging in trade negotiations with multiple nations and has already reached trade deals with several major partners. In addition, growing expectations of a possible interest rate cut as early as July have lifted consumer confidence. Lower borrowing costs are expected to benefit both the manufacturing industry and the wider economy. We have, thus, selected three mutual funds with significant exposure to the manufacturing sector, each carrying a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), that are poised to gain from such factors. Moreover, these funds have encouraging three and five-year returns. Additionally, the minimum initial investment is within $5000. The question here is why should investors consider mutual funds? Reduced transaction costs and diversification of portfolios without the several commission charges that are associated with stock purchases are the primary reasons why one should be parking their money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money). Fidelity Select Industrials Portfolio fund seeks capital appreciation. FCYIX normally invests at least 80% of its assets in common stocks of companies principally engaged in the research, development, manufacture, distribution, supply, or sale of materials, equipment, products, or services related to cyclical industries. Fidelity Select Industrials Portfolio fund has a history of positive total returns for over 10 years. FCYIX has returned 21.5% and 18.1% over the past three and five years, respectively, and has a Zacks Mutual Fund Rank #2. Fidelity Select Industrials Portfolio fund and an annual expense ratio of 0.69%, which is lower than the category average of 0.85%. To see how this fund performed compared to its category, and other #1 and 2 Ranked Mutual Funds, please click here. Fidelity Select Defense & Aerospace Portfolio invests a huge portion of its assets in the securities of companies involved primarily in the research, manufacturing, and sale of products and services, per the defense or aerospace industries. FSDAX seeks capital growth by investing in both U.S. and non-U.S. companies. Fidelity Select Defense & Aerospace Portfolio fund has a history of positive total returns for over 10 years. FSDAX has returned 23.4% and 17.3% over the past three and five years, respectively, and has a Zacks Mutual Fund Rank #1. Fidelity Select Defense & Aerospace Portfolio fund and an annual expense ratio of 0.65%, which is lower than the category average of 0.85%. To see how this fund performed compared to its category, and other #1 and 2 Ranked Mutual Funds, please click here. Fidelity Select Retailing Portfolio invests most of its net assets in securities of companies that are engaged in finished goods, merchandise and services mostly for individual consumers. FSRPX invests in issues of both foreign and domestic companies. Fidelity Select Retailing Portfolio fund has a history of positive total returns for over 10 years. FSRPX has returned 13.2% and 11% over the past three and five years, respectively, and has a Zacks Mutual Fund Rank #1. Fidelity Select Retailing Portfolio fund has an annual expense ratio of 0.64%, which is lower than the category average of 1.04%. To see how this fund performed compared to its category, and other #1 and 2 Ranked Mutual Funds, please click here. Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (FSRPX): Fund Analysis Report Get Your Free (FCYIX): Fund Analysis Report Get Your Free (FSDAX): Fund Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
05-07-2025
- Business
- Yahoo
Jim Cramer Says 'Whirlpool's in the Driver's Seat'
Whirlpool Corporation (NYSE:WHR) is one of the 22 stocks Jim Cramer recently talked about. Cramer highlighted that the company is 'in the driver's seat' and said: 'What else? Alright, those who own Whirlpool have been long-time sufferers. One of the stocks I first bought in 1983, it's pretty much the same price. It's hurt because it's the only real American manufacturer in the industry, and all these other countries dumped their appliances on our country. LG and Samsung, by the way, are from Korea, and Haier's from China, they bought the GE Appliance business. But now they're facing some big steel tariffs. Suddenly, Whirlpool's in the driver's seat. They could be beneficiary of these foreign companies. Wow, it just ran 35 points, though, but it's still a good story.' A close-up of a modern refrigerator with the company logo in the background. Whirlpool (NYSE:WHR) designs, manufactures, and sells home appliances such as refrigerators, laundry equipment, cooking products, dishwashers, and small household devices. The company also offers related accessories. While we acknowledge the potential of WHR 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: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Yahoo
03-07-2025
- Business
- Yahoo
Bipartisan BOOTs Act, Introduced in Senate, Aims to Boost US Footwear Production
A bipartisan coalition of Congressional leaders has brought forth legislation aimed at boosting onshore footwear production for the armed services. On Wednesday, Representatives Nikki Budzinski (D-Ill.), Mike Bost (R-Ill.) and Jarden Golden (D-Me.), along with Senators Tammy Duckworth (D-Ill.), Angus King (I-Me.) and Susan Collins (R-Me.) reintroduced the Better Outfitting Our Troops (BOOTs) Act, which proposes that all shoes worn by military personnel should be made in the United States. More from Sourcing Journal Trump Administration Unveils Trucking Reforms Targeting Parking, Red Tape and Cargo Theft EU's Supply Chain Rules Receive 'Another Blow' as Member States Propose Deeper Cuts DHL Express Canada Seeks 'Anti-Scab' Law Exemption, Citing 'Essential' Services According to the lawmakers, a better known piece of legislation—the Berry Amendment—requires the military to prioritize the procurement of American-made goods, but the market for Army footwear has nonetheless been usurped by foreign products that they say skirt standards for safety and quality. The BOOTs Act would address those concerns, mandating that all optional combat boots worn by servicemembers are compliant with the Berry Amendment and made completely in the U.S. from domestically sourced inputs. The legislators believe there are multiple benefits from tightening up the loopholes inherent in the Berry Amendment with this new bill, from bolstering U.S. production and supporting American manufacturers to ensuring the safety and reliability of the gear soldiers wear every day. 'We shouldn't be outsourcing the production of critical military equipment to countries like China—we should be making things here in the United States,' Rep. Budzinski said in a statement. 'Today, I'm introducing the BOOTs Act to ensure that our men and women in uniform have high-quality, American-made footwear that supports the demands of training and deployment.' Budzinski pointed to a business in her own district, the Belleville Shoe Manufacturing Company, as a potential provider of required military footwear and a benefactor of potential new business. The bill would both 'ensure the safety of our military personnel and support good-paying manufacturing jobs here at home,' she added. In an open letter to the bill's authors, U.S. Footwear Manufacturing Association (USFMA) executive director Bill McCann wrote that the BOOTs Act is 'a vital step toward strengthening our national security, safeguarding the health and safety of our warfighters, and preserving American jobs and manufacturing capacity that form the backbone of our defense industrial base.' 'This commonsense change will improve uniform consistency, reduce confusion forservicemembers, and send a strong demand signal' to domestic footwear producers and their onshore suppliers, which manufacture the components that make up performance and combat footwear. 'At a time when many manufacturers are reinvesting and rebuilding domestic capacity, this legislation ensures that the federal government is a reliable and supportive partner,' he added. USFMA is one of more than a dozen members of the American Combat Boot Alliance (ACBA), which lent its support to the bill in a letter signed by the American Apparel and Footwear Association (AAFA), the National Council of Textile Organizations (NCTO), Unifi, Rubberlite, Signet Mills, Meramec, New Balance, YKK, Milliken and more. The collective wrote that it represents 'some of the last remaining companies in the United States that can produce the components and combat footwear required by the armed forces'—a goal they remain committed to, as they believe the country is 'dangerously close to losing the most basic capability needed by those who train and fight—the ability to build domestic combat boots that withstand the rigors of austere environments.' According to the ACBA, current uniform regulations for the Army and Air Force don't preclude personnel from purchasing non-compliant products from overseas that only meet appearance standards. Not only are these shoes deficient from a quality and performance perspective, the loss of business from the armed forces has eroded the domestic footwear supply chain, the collective wrote. In fact, 750,000 pairs of foreign-made combat boots are bought by the military each year, representing what ACBA believes is a direct loss for U.S. businesses. These products are also subject to the Trump administration's new tariff regime, which may make them more expensive for servicemembers than American-made products. What's more, personnel pay for these products using an annual Congressionally appropriated funding. 'The BOOTs Act will ensure that servicemembers can effectively use their taxpayer-funded uniform allowance to purchase American-made combat footwear,' ACBA wrote. 'At a time while Congress is focused on both domestic manufacturing and acquisition reform provisions, the BOOTs Act is a strong step forward.' The BOOTs Act was introduced in the Senate on Thursday and was referred to the Senate Committee on Armed Services, where it will be reviewed and considered before it has a chance to move to the Senate floor for a vote.
ABC News
17-06-2025
- Business
- ABC News
The Trump family's next venture, a gold smartphone and mobile phone service
Donald Trump's family business is launching a new Trump-branded phone service in its latest plan to monetise the US president's name, though even his son admits manufacturing phones in America will be a challenge. The Trump Organization, which is run by Mr Trump's sons Donald Jr and Eric Trump, said it planned to license a third party to sell a gold smartphone with Mr Trump's name that will be "proudly" built in the United States. It joins Trump-branded watches, sneakers, fragrances and Bibles as products capitalising on his political brand, the licensing of which has made millions for his family. But industry experts say the pitch to manufacture the phones in the US at a cheaper price point isn't possible, at least in the near future. In announcing its plans, the executive vice-president of the Trump Organization, Eric Trump, said consumers deserve a phone that aligns with their values. A website for the project advertises a $US47.45 monthly plan, an apparent nod to Mr Trump's two terms as the 47th and 45th president of the United States. The mobile phone service also pitched a policy of "discounted" international calls for families with members serving in the military outside the US. It's not the first time Mr Trump has ventured into the telecommunication industry. He once gave speeches and promoted a multi-level marketing company called ACN. It was eventually sued for fraud and misleading customers. The Trump Organization has also had a string of business failures tied to licensing, including Trump Vodka, Trump Steaks and Trump Mattresses. According to the announcement, the $US499 ($765) T1 "sleek, gold smartphone" will be "proudly designed and built in the United States". For comparison, Apple's iPhone 16 Pro Max — which is mainly made in China — costs $US1,199. A mock-up of the planned phone on the company's website shows Mr Trump's slogan Make America Great Again on the front and an etched American flag on the back. Tingling Dai, a Johns Hopkins University business professor, told the Wall Street Journal "there's absolutely no way you could make the screen, get the same memory, camera and battery" in the US. He estimated it would take "at least five years" to build the infrastructure needed for domestic smartphone production. High labour costs, supply chain complexity and reliance on overseas component sourcing are also key pain points. In fact, the US only has one company that makes smartphones domestically, California-based Purism which makes Liberty phones that retail for $US1,999. The Trump family hasn't disclosed which company would manufacture the phone, or which suppliers will provide the components. Even the president's son, Eric Trump, suggested that the first delivery of phones in August might not be made in the US. "Eventually, all the phones can be built in America," he claimed on the Benny Show podcast. "If the Trump Phone is promising a $US499 price tag with domestic manufacturing, this announcement looks to be classic vapourware," said Todd Weaver, CEO of Purism, referring to the unlikelihood of a US-manufactured phone being available at that price. Vapourware refers to software or hardware that has been advertised to the public but has not and may never become available. Currently, only Chinese makers like Xiaomi and Oppo have hardware to match at the $US499 price point. Speaking to Fox Business, Eric Trump said call centres supporting the phone service would also be based in the US. "You're not calling up call centres in Bangladesh. "You're doing it right out of St Louis, Missouri." In April, Mr Trump told reporters on Air Force One he would be announcing tariff rates for imported semiconductors. One of the main aims of these tariffs was to encourage firms to manufacture more products in the US. "We want to make our chips and semiconductors and other things in our country," Mr Trump said. According to the Semiconductor Industry Association (SIA), the US is projected to more than triple its semiconductor manufacturing capacity in the decade following the CHIPS and Science Act. But a shortage of skilled workers may present a challenge to reinforcing chip supply chains on US shores. The SIA says there would be a shortfall of 67,000 technicians, computer scientists, and engineers in the semiconductor industry by 2030, and a gap of 1.4 million such workers throughout the broader US economy. When Mr Trump announced the tariffs, experts also investigated what it would take to make an iPhone in the US. Dan Ives, an analyst at US financial firm Wedbush Securities, said the US would need years and $US30 billion to establish factories needed to match China's output. At the time, Mr Ives said the concept of making iPhones in the US is a "non-starter" if Apple were to begin assembling iPhones in the US, a Chinese or Indian-made device that previously sold for $US1,000 would cost more than $US3,000. Currently, the US, UK, Europe and China rely heavily on Taiwan for semiconductors. The country's Taiwan Semiconductor Manufacturing Company provides over half the world's supply. The Trump Organization's latest venture has raised ethical concerns and conflicts of interest for mobile carriers who would be contracted to the president. The mobile service is partnering with existing cellular carriers with access to a 5G network, raising questions about how they will be treated by federal regulators now that they have partnered with his company. The Trump Organization said those companies are America's three biggest mobile network providers, an apparent reference to Verizon, AT&T and T-Mobile, the latter with a trademarked name that is very similar to Trump's T1 Mobile. The Federal Communications Commission, the primary regulatory body overseeing mobile phone companies, has already launched investigations of media outlets Mr Trump dislikes and, in some cases, is personally suing. The phone deal comes as a mandatory financial disclosure report provided a glimpse into the vast business holdings of the billionaire president. Mr Trump reported making more than $US600 million last year, including millions from items such as Trump-branded bibles, watches, sneakers and fragrances. Forbes estimated in March that his net worth was $US5.1 billion, more than double that a year earlier. It said the surge was due in part to the president's social media company, which runs the Truth Social platform.
CBS News
16-06-2025
- Business
- CBS News
The Trump Organization is debuting a cellular phone service called T1 Phone at $47.45 a month
What U.S. protests, Trump's parade and Mideast strikes say about global instability The Trump Organization announced it is starting a cellular phone service called T1 Phone by Trump Mobile that will charge $47.45 a month and include unlimited calls, text and data. It also plans to roll out a new $499 phone that will be built in the U.S. The new service was designed to coincide with the 10-year anniversary of President Trump's announcement of his first presidential run, the Trump Organization said in a Monday statement. The company said its mobile phone plan, which it dubbed the 47 Plan in a nod to Mr. Trump's current rank as the 47th U.S. president, won't require a contract or a credit check. In an interview on Fox News Business, Eric Trump — Mr. Trump's son and the executive vice president of the Trump Organization — said the new phone and service will align with his father's policy plans to boost American manufacturing and employment. "We want to have customer service by Americans for Americans," Eric Trump said in the Monday interview. "We want to have phones built by Americans, for Americans, and, you know, and we want to do it better than anybody. We're going to disrupt the space." The new mobile phone and service takes direct aim at phone manufacturers such as Apple, which has faced pressure from Mr. Trump to shift its manufacturing from China and India to the U.S. Last month, the president threatened to impose a 25% tariff on Apple products if the computer giant didn't reshore some of its manufacturing. If Apple were to build its iPhones in the U.S., they would cost about $3,500 each, more than triple their current retail price of about $1,000, because of the higher cost of manufacturing in the U.S., Wedbush analyst Dan Ives has said. The Trump Organization says the T1 Phone, pictured above, will cost $499. Ethics issues raised The new Trump phone and cellular service raise a host of ethics issues, said Robert Weissman, the co-president of Public Citizen, a consumer rights advocacy group. Rival phone companies and manufacturers could face a dilemma if they have a cheaper phone or service, he noted. "Will they be intimidated to advertise that?" he pointed out. And if the phone is made with foreign-made parts, it raises issues about whether the company could get a break on the Trump administration's tariffs. "It threatens to be a real distortion of the economy around the Trump brand," he said. "My message to hard-working Americans is to slam down the phone in the face of this marketing ploy." What does Trump Mobile phone plan include? The Trump Mobile plan will "revolutionize cell phones, mobile calling," Eric Trump told Fox Business. "It's going to be cheaper, 47 bucks a month. You're going to have more internet. More international dialing for free, hundreds of countries. International dialing for free. It is the biggest bang for the buck," he added. The plan will include free calls to more than 100 countries, including those with U.S. military bases. People with the plan will also have access to 24/7 roadside assistance through Drive America, as well as telehealth services, the company said. The Trump Organization added that it will debut a T1 Phone in August that will cost $499. An image of the phone depicts a gold-colored device emblazoned with the phrase, "Make America Great Again." The device, which will have a fingerprint sensor and the ability to unlock using face recognition, will include 256 gigabytes of internal storage and 12gb of RAM. "I think we're going to really shake up the space in a very big way, both in terms of the actual hardware of the films and then obviously e-sim cards, and then just what you get for a plan per month," Eric Trump added.
