Latest news with #BMOCapitalMarkets
&w=3840&q=100)
Business Standard
3 days ago
- Business
- Business Standard
US consumer spending rises slightly in April amid tariff uncertainty
US consumer spending increased marginally in April, with households opting to boost savings amid mounting economic uncertainty because of a constantly changing tariff landscape. The report from the Commerce Department on Friday suggested the economy struggled to rebound early in the second quarter after contracting in the January-March quarter for the first time in three years. Gross domestic product could, however, get a lift from a sharp contraction in the goods trade deficit last month as the front-running of imports to beat tariffs faded. Inflation was muted in April, with a measure of underlying price pressures posting its smallest annual increase in four years. A US trade court on Wednesday blocked most of President Donald Trump's import duties from going into effect in a sweeping ruling that the president overstepped his authority. They were temporarily reinstated by a federal appeals court on Thursday, adding another layer of uncertainty over the economy's outlook. "Consumers appeared to be saving for a rainy day last month as the Liberation Day tariff shock shook consumer confidence," said Scott Anderson, chief US economist at BMO Capital Markets. Consumer spending, which accounts for more than two-thirds of economic activity, rose 0.2 per cent last month after an unrevised 0.7 per cent jump in March, the Commerce Department's Bureau of Economic Analysis said. That was in line with economists' expectations. Spending was supported by outlays on services, mostly housing and utilities, healthcare as well as restaurants, hotels and motel stays. But goods spending softened amid cutbacks on purchases of motor vehicles and parts, clothing and footwear as well as recreational goods and vehicles. Pre-emptive buying of goods ahead of Trump's sweeping import tariffs helped to push spending higher in the prior month. Most of the tariffs have been implemented though higher duties on goods have been delayed until July. Duties on Chinese imports have been slashed to 30 per cent from 145 per cent until mid-August. Economists have argued that Trump's aggressive trade policy will sharply slow economic growth this year and boost inflation, concerns echoed by Federal Reserve officials. Minutes of the US central bank's May 6-7 meeting published on Wednesday noted "participants judged that downside risks to employment and economic activity and upside risks to inflation had risen, primarily reflecting the potential effects of tariff increases." The US central bank has kept its benchmark overnight interest rate in the 4.25 per cent-4.50 per cent range since December. The economy contracted at a 0.2 per cent annualized rate in the first quarter after growing at a 2.4 per cent pace in the October-December quarter, largely depressed by a flood of imports. With most of the tariffs in place, imports are collapsing, helping to compress the goods trade deficit by 46.0 per cent to $87.6 billion in April, a separate report from the Commerce Department's Census Bureau showed. Goods imports decreased $68.4 billion to $276.1 billion. Exports of goods increased $6.3 billion to $188.5 billion. US stocks opened lower. The dollar rose against a basket of currencies. US Treasury yields edged higher. But given the on-again and off-again nature of the tariffs, the front-running of imports is probably not over and neither is the gloom over the economy likely to lift soon, evident in the deterioration in consumer sentiment. That is prompting consumers to build savings. The saving rate jumped to a one-year high of 4.9 per cent from 4.3 per cent in March. Inflation was benign in April, with retailers likely still selling inventory accumulated before the tariffs. The Personal Consumption Expenditures (PCE) Price Index rose 0.1 per cent last month after being unchanged in March, the BEA said. In the 12 months through April, PCE prices increased 2.1 per cent after advancing 2.3 per cent in March. Stripping out the volatile food and energy components, the PCE price index gained 0.1 per cent last month following an upwardly revised 0.1 per cent gain in March. The so-called core PCE inflation was previously reported to have been unchanged in March. In the 12 months through April, core inflation rose 2.5 per cent. That was the smallest advance since March 2021 and followed a 2.7 per cent increase in March. The Fed tracks the PCE price measures for its 2 per cent inflation target. Economists expect inflation to accelerate this year as tariffs raise goods prices. Consumers' one-year inflation expectations have soared. The Fed minutes on Wednesday showed some policymakers assessed that the surge in short-term inflation expectations "could make firms more willing to raise prices." They also saw a risk that longer-term inflation expectations "could drift upward, which could put additional upward pressure on inflation."
Globe and Mail
3 days ago
- Business
- Globe and Mail
U.S. consumer spending slows in April, inflation rises moderately
U.S. consumer spending increased marginally in April, with households opting to boost savings amid mounting economic uncertainty because of a constantly changing tariff landscape. The report from the Commerce Department on Friday suggested the economy struggled to rebound early in the second quarter after contracting in the January-March quarter for the first time in three years. Gross domestic product could, however, get a lift from a sharp contraction in the goods trade deficit last month as the front-running of imports to beat tariffs faded. Inflation was muted in April, with a measure of underlying price pressures posting its smallest annual increase in four years. A U.S. trade court on Wednesday blocked most of President Donald Trump's import duties from going into effect in a sweeping ruling that the president overstepped his authority. They were temporarily reinstated by a federal appeals court on Thursday, adding another layer of uncertainty over the economy's outlook. 'Consumers appeared to be saving for a rainy day last month as the Liberation Day tariff shock shook consumer confidence,' said Scott Anderson, chief U.S. economist at BMO Capital Markets. Consumer spending, which accounts for more than two-thirds of economic activity, rose 0.2 per cent last month after an unrevised 0.7 per cent jump in March, the Commerce Department's Bureau of Economic Analysis said. That was in line with economists' expectations. Spending was supported by outlays on services, mostly housing and utilities, health care as well as restaurants, hotels and motel stays. But goods spending softened amid cutbacks on purchases of motor vehicles and parts, clothing and footwear as well as recreational goods and vehicles. Pre-emptive buying of goods ahead of Trump's sweeping import tariffs helped to push spending higher in the prior month. Most of the tariffs have been implemented though higher duties on goods have been delayed until July. Duties on Chinese imports have been slashed to 30 per cent from 145 per cent until mid-August. Economists have argued that Trump's aggressive trade policy will sharply slow economic growth this year and boost inflation, concerns echoed by Federal Reserve officials. Minutes of the U.S. central bank's May 6-7 meeting published on Wednesday noted 'participants judged that downside risks to employment and economic activity and upside risks to inflation had risen, primarily reflecting the potential effects of tariff increases.' The U.S. central bank has kept its benchmark overnight interest rate in the 4.25 per cent to 4.50 per cent range since December. The economy contracted at a 0.2 per cent annualized rate in the first quarter after growing at a 2.4 per cent pace in the October-December quarter, largely depressed by a flood of imports. With most of the tariffs in place, imports are collapsing, helping to compress the goods trade deficit by 46 per cent to $87.6 billion in April, a separate report from the Commerce Department's Census Bureau showed. Goods imports decreased $68.4 billion to $276.1 billion. Exports of goods increased $6.3 billion to $188.5 billion. U.S. stocks opened lower. The dollar rose against a basket of currencies. U.S. Treasury yields edged higher. But given the on-again and off-again nature of the tariffs, the front-running of imports is probably not over, and neither is the gloom over the economy likely to lift soon, evident in the deterioration in consumer sentiment. That is prompting consumers to build savings. The saving rate jumped to a one-year high of 4.9 per cent from 4.3 per cent in March. Inflation was benign in April, with retailers likely still selling inventory accumulated before the tariffs. The Personal Consumption Expenditures (PCE) Price Index rose 0.1 per cent last month after being unchanged in March, the BEA said. In the 12 months through April, PCE prices increased 2.1 per cent after advancing 2.3 per cent in March. Stripping out the volatile food and energy components, the PCE price index gained 0.1 per cent last month following an upwardly revised 0.1 per cent gain in March. The so-called core PCE inflation was previously reported to have been unchanged in March. In the 12 months through April, core inflation rose 2.5 per cent. That was the smallest advance since March 2021 and followed a 2.7 per cent increase in March. The Fed tracks the PCE price measures for its 2 per cent inflation target. Economists expect inflation to accelerate this year as tariffs raise goods prices. Consumers' one-year inflation expectations have soared. The Fed minutes on Wednesday showed some policymakers assessed that the surge in short-term inflation expectations 'could make firms more willing to raise prices.' They also saw a risk that longer-term inflation expectations 'could drift upward, which could put additional upward pressure on inflation.'
The Market Online
5 days ago
- Business
- The Market Online
Eric Sprott takes controlling stake in New Found Gold
New Found Gold (TSXV:NFG) will undertake a C$49 million bought-deal offering and a C$20 million non-brokered private placement Prominent mining investor Eric Sprott will participate in both financings, increasing his investment into a controlling over 20-per-cent stake New Found Gold is a top gold explorer and project developer in Newfoundland and Labrador, a tier-one mining jurisdiction New Found Gold stock has given back 59.2 per cent year-over-year but remains up by 32.47 per cent since 2020 New Found Gold (TSXV:NFG) will undertake a C$49 million bought-deal offering and a C$20 million non-brokered private placement, including lead orders by prominent mining investor Eric Sprott. The bought-deal offering, with BMO Capital Markets, SCP Resource Finance and a syndicate of undewriters, involves 21.4 million charity flow-through shares priced at C$2.29. Closing is expected in tranches on June 3 and June 12, 2025. Proceeds will go towards flow-through mining expenditures by December 31, 2026, on the company's Queensway gold project in Newfoundland and Labrador. Queensway offers exposure to an initial resource estimate of 2 million ounces indicated plus inferred, robust expansion potential across the 1,756-square-kilometre land package and a preliminary economic assessment expected by the end of Q2 2025. The private placement will see New Found Gold issue 12,269,939 non-flow-through shares priced at C$1.63, with proceeds going towards Queensway, as well as general corporate and working capital purposes, and closing contingent on disinterested shareholder approval. Sprott will invest in the offering to maintain his approximately 19-per-cent position in New Found, and in the private placement for enough shares to increase his investment beyond the 20-per-cent mark, which would make him a Control Person in the company. Leadership insights 'With a significant lead order by Eric Sprott on both the offering and the private placement, the proceeds from the financing will allow us to advance the Queensway gold project to the development stage,' Keith Boyle, New Found Gold's chief executive officer, said in a statement. 'Mr. Sprott has been a highly supportive shareholder in the company since its early days and we thank him for his continued support as we embark on this next chapter for the company.' About New Found Gold New Found Gold is a top gold explorer and project developer in Newfoundland and Labrador, a tier-one mining jurisdiction. New Found Gold stock (TSXV:NFG) is up by 13.97 per cent on the news trading at C$2.04 per share as of 9:57 am ET. The stock has given back 59.2 per cent year-over-year but remains up by 32.47 per cent since 2020. Join the discussion: Find out what everybody's saying about this Canadian gold stock on the New Found Gold Corp. Bullboard and check out the rest of Stockhouse's stock forums and message boards. The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
Yahoo
25-05-2025
- Business
- Yahoo
Merus (MRUS) Price Target Raised at BMO After Positive Phase 2 Data
BMO Capital Markets maintained its Outperform rating on Merus N.V. (NASDAQ:MRUS) shares on May 24 while raising its price target from $96 to $110. The revision comes after encouraging Phase 2 data for Merus' drug candidates petosemtamab and pembrolizumab (pembro) were released. The drugs are intended to treat recurrent or metastatic Head and neck squamous cell carcinoma (HNSCC). Presented at the American Society of Clinical Oncology (ASCO), Merus' updated data included findings from an analysis of 43 evaluable patients conducted on February 27, 2025. With a confirmed Objective Response Rate (ORR) of 63%, the study demonstrated robust and long-lasting responses. Notably, a 79% survival rate was shown by the 12-month Overall Survival data. The standard of care for pembrolizumab, which carries a reported survival rate of roughly 50–59%, compares favorably to this. The market's response to the ASCO presentation indicates that petosemtamab's clinical potential to take the HNSCC treatment landscape to new heights is well-supported. The price target increase and revised estimates also demonstrate growing investor confidence in the drug's prospects. Evan David Seigerman of BMO Capital backed this assessment after the approval probability rose from 85% to 90%, pointing to favorable safety data. While we acknowledge the potential of MRUS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MRUS and that has 100x upside potential, check out our report about the cheapest AI stock. Read More: and . Disclosure: None. 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
Yahoo
25-05-2025
- Business
- Yahoo
Merus (MRUS) Price Target Raised at BMO After Positive Phase 2 Data
BMO Capital Markets maintained its Outperform rating on Merus N.V. (NASDAQ:MRUS) shares on May 24 while raising its price target from $96 to $110. The revision comes after encouraging Phase 2 data for Merus' drug candidates petosemtamab and pembrolizumab (pembro) were released. The drugs are intended to treat recurrent or metastatic Head and neck squamous cell carcinoma (HNSCC). Presented at the American Society of Clinical Oncology (ASCO), Merus' updated data included findings from an analysis of 43 evaluable patients conducted on February 27, 2025. With a confirmed Objective Response Rate (ORR) of 63%, the study demonstrated robust and long-lasting responses. Notably, a 79% survival rate was shown by the 12-month Overall Survival data. The standard of care for pembrolizumab, which carries a reported survival rate of roughly 50–59%, compares favorably to this. The market's response to the ASCO presentation indicates that petosemtamab's clinical potential to take the HNSCC treatment landscape to new heights is well-supported. The price target increase and revised estimates also demonstrate growing investor confidence in the drug's prospects. Evan David Seigerman of BMO Capital backed this assessment after the approval probability rose from 85% to 90%, pointing to favorable safety data. While we acknowledge the potential of MRUS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MRUS and that has 100x upside potential, check out our report about the cheapest AI stock. Read More: and . Disclosure: None.
