Latest news with #Belski
CNBC
11 hours ago
- Business
- CNBC
BMO hikes S&P 500 target to 6,700 with benchmark on the cusp of a record high
The S & P 500 is close to its all-time high, and BMO thinks there are more gains to be made above that February level. Strategist Brian Belski hiked his S & P 500 year-end target to 6,700 — his original 2025 forecast — from 6,100. The new forecast signals upside of 10% from Tuesday's close. Belski highlighted two reasons for the target increase: "Markets are transitioning TO 'show me' FROM 'scare me'. We believe performance is broadening, reactions from daily rhetoric are calming, and actual corporate guidance will increase coming out of the 2Q earnings reporting period." "Facts over feelings WIN AGAIN. … The death of 'American Exceptionalism' was widely exaggerated and too vehemently applauded to hold any merit or duration … That is why the relative performance of other markets that so many investors have been chasing and applauding for emotional reasons [is] already beginning to wane." .SPX YTD mountain S & P 500 year to date The change came as stocks rallied Tuesday following a ceasefire between Iran and Israel, easing tensions in the Middle East. Week to date, the S & P 500 is up 2% and sits less than 1% below its record high set in February. Belski's target is now the highest among those included in the CNBC Market Strategist Survey . Technology is BMO's favorite sector going forward, with the firm recommending a 33% allocation to the space. Indeed, tech has been a leader in the market's rebound from the tariff scare. Since April 2, the day President Trump announced higher tariffs, the sector is up 18%. Already, the tech-heavy Nasdaq-100 index made a fresh all-time high on Tuesday. Others on the Street echo Belski's market enthusiasm. "In my view, we hit new highs sooner rather than later," Mark Gibbens, founder and CIO of Gibbens Capital Management, told me during a phone call. "All things considered, assuming the economy still grows at a 2% clip, the consumer remains healthy, … there's a lot to look forward to in the back half of the year." On Tuesday, JPMorgan's trading desk told clients that it's "time to get bulled up again."
Yahoo
a day ago
- Business
- Yahoo
Wall Street bull calls for another 10% rally in S&P 500 by end of 2025
The S&P 500 (^GSPC) is back within one percentage point of an all-time high. One of Wall Street's notorious bulls believes the benchmark index has plenty further to run this year. BMO Capital Markets chief investment strategist Brian Belski boosted his year-end target to 6,700 from a prior forecast of 6,100. Belski had previously reduced his forecast amid the tariff turmoil that tanked markets in April. But now, with the market's largest tariff fears believed by strategists to be behind investors, Belski detailed a more sanguine outlook in a note sent to clients on Tuesday entitled "same as it ever was." "The signposts we called out in April are largely in place – markets are transitioning TO 'show me' FROM 'scare me,"' Belski wrote. "We believe performance is broadening, reactions from daily rhetoric are calming, and actual corporate guidance will increase coming out of the 2Q earnings reporting period." Belski's call for a roughly 10% rally for the S&P 500 from current levels joins a growing list of such predictions from rejuvenated bulls as the market marches back toward record highs. No fewer than 11 Wall Street firms lowered their S&P 500 targets amid the market sell-off in April. At least eight of those have since raised their bets on where the index will end 2025. Read more: How to protect your money during turmoil, stock market volatility Belski points out that economic forecasts have once again begun reverting higher, along with projections for corporate earnings this year. In fact, he argues, earnings estimates for Communication Services (XLC), Consumer Discretionary (XLY), Technology (XLK), and "ESPECIALLY" Financials (XLF) likely haven't recovered enough. Belski admitted he cut his target on April 9, prior to Trumps' first large "reciprocal" tariff delay, explaining that maintaining a market target that at the time was 30% above the S&P 500's current level was "not thoughtful." But the narrative quickly shifted with President Trump's various tariff pauses pushing the effective US tariff rate from a peak above 25% to about 14%, per the Yale Budget Lab. With that shift has come the unwind of several popular trades of the early April period, including the so-called Sell America trade, which Belski believes was overdone. "The death of 'American Exceptionalism' was widely exaggerated and too vehemently applauded to hold any merit or duration in our view," Belski wrote. "After all, we continue to believe US stocks are the best global equity asset, offering the most consistent fundamentals, ingenuity, and diversification than any other market in the world." Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.
Yahoo
14-05-2025
- Business
- Yahoo
Stock market today: Nasdaq edges higher as Nvidia, AMD lead chip gains
US stocks searched for a footing on Wednesday after the S&P 500 (^GSPC) erased its losses for 2025 and Wall Street continued to debate the state of play on tariffs. The S&P 500 rose 0.1% while the Dow Jones Industrial Average (^DJI) was roughly flat. The tech-heavy Nasdaq Composite (^IXIC) led the gains, popping 0.5%. A tech-rally helped push the Nasdaq higher with shares of AMD rising 5%, Alphabet (GOOGL,GOOG) ticking 3% higher and a 17% soar in shares of Super Micro Computer (SMCI). Prospects for chipmaker Nvidia (NVDA) — and the AI trade more widely — got a boost from plans to overhaul curbs on chip exports and new AI deals led by Saudi Arabia. The President Trump-backed moves come as markets debate the staying power of a "Magnificent Seven" rally driven by the US-China trade truce. Nvidia rallied another 3% in premarket trading on Wednesday. Nvidia server maker Foxconn ( HNHPF) flagged strong AI demand as it posted a 91% surge in quarterly profit on Wednesday. But the Taiwanese partner to Apple (AAPL) also cut its full-year outlook, citing uncertainty around tariffs. Read more: The latest on Trump's tariffs Earnings season elsewhere continued to show strain from trade tensions. American Eagle (AEO) became the latest company to withdraw guidance due to "macro uncertainty" on Tuesday, and the clothing retailer's stock tumbled in premarket trading. In Japan, Sony (SONY) said it expects a $700 million impact from US tariffs and offered a disappointing forecast that wipes out its expected rise in profit. Stocks have roared back in recent weeks as the US tariff escalation has reversed. Some on Wall Street have taken the rally a step further by boosting their year-end targets for the S&P 500. BMO chief investment strategist Brian Belski isn't budging, though. At least not yet. Here are three things Belski is watching for to confirm things are continuing to get more bullish for stocks in what Belski now believes has shifted from a "scare me" market to a "show me" market. Nvidia (NVDA) stock jumped 1.9% early Wednesday, extending its gain from the prior day when shares rose nearly 6% and the AI chipmaker's market cap surpassed $3 trillion for the first time since February. The gains come as US chipmakers, including Nvidia, announced billions of dollars worth of deals with Saudi Arabia during an investment forum attended by President Trump on Tuesday. Nvidia said it will supply several hundreds of thousands of its AI chips to Saudi Arabia's AI venture Humain over the next five years. Humain is a new AI venture owned by Saudi Arabia's $925 billion Public Investment Fund. Bank of America (BAC) analysts estimated the total value of the deal is $7 billion and raised its price target on Nvidia stock to $160 from $150 in a note to investors Wednesday morning. The AI chipmaker's Saudi Arabia deal helped brighten Wall Street's outlook for its sales abroad just after Trump banned exports of its chips f China, but his administration looked to ease Biden-era restrictions on Nvidia's exports to the rest of the world (including the Middle East). The Department of Commerce on Tuesday announced that it had initiated the rescission of Biden's AI Diffusion rule. Read the full story here. Tesla (TSLA) stock chugged higher at the open on Wednesday after a Financial Times report that the EV maker's board is once again exploring how to compensate CEO Elon Musk. But while a new pay package may be in the works, it doesn't come without controversy surrounding the CEO and Tesla board of directors, as Yahoo Finance's Pras Subramanian reports: Read more here. US stocks searched for a footing on Wednesday after the S&P 500 (^GSPC) erased its losses for 2025 and Wall Street continued to debate the state of play on tariffs. The S&P 500 (^GSPC) rose 0.2%. The tech-heavy Nasdaq Composite (^IXIC) rose 0.4% while the Dow Jones Industrial Average (^DJI) popped 0.2%. Nvidia (NVDA) continued its recent rally, rising more than 3%. Shares of AI leaders and chipmakers moved higher on Wednesday morning as easing trade tensions and new chip deals with Saudi Arabia lifted hopes for the tech sector. Here's a look at some of the top tickers trending in premarket trading: Super Micro Computer (SMCI) stock soared more than 17% on Wednesday, adding on to Tuesday's 16% gain, after Raymond James initiated coverage with an Outperform rating and $41 price target on shares. Raymond James said the company has 'emerged as a market leader in AI-optimized infrastructure,' even as the stock has been highly volatile so far this year. Nvidia (NVDA) shares extended their rally on the back of thawing trade tensions and a new chip deal with Saudi Arabia. The chipmaker's stock added 3% premarket and is set to put Nvidia's market capitalization more firmly over the $3 trillion mark. Tesla (TSLA) stock rose nearly 3%, adding to the week's gains. The Financial Times reports that Tesla's board has formed a special committee to explore an alternative pay package for CEO Elon Musk as the company and Musk remain locked in a legal battle in Delaware over Musk's compensation. Advanced Micro Devices (AMD) stock jumped 4% after President Trump touted new Saudi investment deals with US chipmakers and chip designers. AMD reportedly struck a $10 billion deal with Humain, an AI startup backed by Saudi Arabia's sovereign wealth fund. Sony (SONY) reported a weaker-than-expected financial outlook for the year and cautioned that it expects a $700 million headwind from tariffs. The PlayStation maker also beat on earnings estimates, announced a share buyback plan, and shared more details about the partial spin-off of its financial unit. US-listed shares of Sony were up over 5%. American Eagle (AEO) warned its first quarter earnings may disappoint. Shares of the retailer tumbled more than 11% in premarket trading after the company pulled its 2025 financial outlook and said it would write down $75 million in excess spring and summer inventory. The company said Tuesday that it expects same-store sales to fall 3% to $1.1 billion in the first quarter. It also anticipates an adjusted operating loss of about $68 million as its strategies did not drive the results it expected. The Pittsburgh company withdrew its guidance for the year, citing macro uncertainty. Read more here. The dollar extended declines on Wednesday morning, following a significant move lower overnight, as inflation and trade tensions eased. The US dollar index ( which tracks the dollar against a basket of currencies, fell 0.41% to 100 as the Japanese yen and South Korean won strengthened. Reuters reports: Read more here. Economic data: MBA Mortgage applications (week of May 9) Earnings: Sony (SONY), Tencent (TCEHY), Cisco (CSCO), CoreWeave (CRWV), Jack in the Box (JACK) Here are some of the biggest stories you may have missed overnight and early this morning: China deal has Wall Street scaling back recession calls Nvidia partner Foxconn cuts outlook, citing tariffs Tariffs still 'huge nightmare' for small biz despite truce What to watch out for after the US-China deal Chinese sites offer discounts of up to $351 on Apple's latest iPhones Sony warns of profit wipeout on $700M tariff hit Social Security confusion: Yahoo Finance readers speak out Tesla board explores new pay deal for CEO Musk: FT Shares of Super Micro Computer (SMCI) jumped almost 10%, poised to extend sharp gains booked in Tuesday's big tech rally. The AI server maker was also basking in an Outperform rating from Raymond James analysts as they initiated coverage of the stock, calling Super Micro a "market leader". Reuters reports: Read more here. Yahoo Finance's Josh Schafer reports: Read more here. Reuters reports: eToro Group is planning to raise around $620 million in an upsized U.S. initial public offering (IPO) priced above market range, the company said on Tuesday. The stock and cryptocurrency trading platform has offered 11.92 million shares at $52 apiece, above its target range of $46 to $50. The stock is expected to begin trading on the Nasdaq Global Select Market under the symbol "ETOR" on Wednesday, May 14. Read more here. Stocks have roared back in recent weeks as the US tariff escalation has reversed. Some on Wall Street have taken the rally a step further by boosting their year-end targets for the S&P 500. BMO chief investment strategist Brian Belski isn't budging, though. At least not yet. Here are three things Belski is watching for to confirm things are continuing to get more bullish for stocks in what Belski now believes has shifted from a "scare me" market to a "show me" market. Nvidia (NVDA) stock jumped 1.9% early Wednesday, extending its gain from the prior day when shares rose nearly 6% and the AI chipmaker's market cap surpassed $3 trillion for the first time since February. The gains come as US chipmakers, including Nvidia, announced billions of dollars worth of deals with Saudi Arabia during an investment forum attended by President Trump on Tuesday. Nvidia said it will supply several hundreds of thousands of its AI chips to Saudi Arabia's AI venture Humain over the next five years. Humain is a new AI venture owned by Saudi Arabia's $925 billion Public Investment Fund. Bank of America (BAC) analysts estimated the total value of the deal is $7 billion and raised its price target on Nvidia stock to $160 from $150 in a note to investors Wednesday morning. The AI chipmaker's Saudi Arabia deal helped brighten Wall Street's outlook for its sales abroad just after Trump banned exports of its chips f China, but his administration looked to ease Biden-era restrictions on Nvidia's exports to the rest of the world (including the Middle East). The Department of Commerce on Tuesday announced that it had initiated the rescission of Biden's AI Diffusion rule. Read the full story here. Tesla (TSLA) stock chugged higher at the open on Wednesday after a Financial Times report that the EV maker's board is once again exploring how to compensate CEO Elon Musk. But while a new pay package may be in the works, it doesn't come without controversy surrounding the CEO and Tesla board of directors, as Yahoo Finance's Pras Subramanian reports: Read more here. US stocks searched for a footing on Wednesday after the S&P 500 (^GSPC) erased its losses for 2025 and Wall Street continued to debate the state of play on tariffs. The S&P 500 (^GSPC) rose 0.2%. The tech-heavy Nasdaq Composite (^IXIC) rose 0.4% while the Dow Jones Industrial Average (^DJI) popped 0.2%. Nvidia (NVDA) continued its recent rally, rising more than 3%. Shares of AI leaders and chipmakers moved higher on Wednesday morning as easing trade tensions and new chip deals with Saudi Arabia lifted hopes for the tech sector. Here's a look at some of the top tickers trending in premarket trading: Super Micro Computer (SMCI) stock soared more than 17% on Wednesday, adding on to Tuesday's 16% gain, after Raymond James initiated coverage with an Outperform rating and $41 price target on shares. Raymond James said the company has 'emerged as a market leader in AI-optimized infrastructure,' even as the stock has been highly volatile so far this year. Nvidia (NVDA) shares extended their rally on the back of thawing trade tensions and a new chip deal with Saudi Arabia. The chipmaker's stock added 3% premarket and is set to put Nvidia's market capitalization more firmly over the $3 trillion mark. Tesla (TSLA) stock rose nearly 3%, adding to the week's gains. The Financial Times reports that Tesla's board has formed a special committee to explore an alternative pay package for CEO Elon Musk as the company and Musk remain locked in a legal battle in Delaware over Musk's compensation. Advanced Micro Devices (AMD) stock jumped 4% after President Trump touted new Saudi investment deals with US chipmakers and chip designers. AMD reportedly struck a $10 billion deal with Humain, an AI startup backed by Saudi Arabia's sovereign wealth fund. Sony (SONY) reported a weaker-than-expected financial outlook for the year and cautioned that it expects a $700 million headwind from tariffs. The PlayStation maker also beat on earnings estimates, announced a share buyback plan, and shared more details about the partial spin-off of its financial unit. US-listed shares of Sony were up over 5%. American Eagle (AEO) warned its first quarter earnings may disappoint. Shares of the retailer tumbled more than 11% in premarket trading after the company pulled its 2025 financial outlook and said it would write down $75 million in excess spring and summer inventory. The company said Tuesday that it expects same-store sales to fall 3% to $1.1 billion in the first quarter. It also anticipates an adjusted operating loss of about $68 million as its strategies did not drive the results it expected. The Pittsburgh company withdrew its guidance for the year, citing macro uncertainty. Read more here. The dollar extended declines on Wednesday morning, following a significant move lower overnight, as inflation and trade tensions eased. The US dollar index ( which tracks the dollar against a basket of currencies, fell 0.41% to 100 as the Japanese yen and South Korean won strengthened. Reuters reports: Read more here. Economic data: MBA Mortgage applications (week of May 9) Earnings: Sony (SONY), Tencent (TCEHY), Cisco (CSCO), CoreWeave (CRWV), Jack in the Box (JACK) Here are some of the biggest stories you may have missed overnight and early this morning: China deal has Wall Street scaling back recession calls Nvidia partner Foxconn cuts outlook, citing tariffs Tariffs still 'huge nightmare' for small biz despite truce What to watch out for after the US-China deal Chinese sites offer discounts of up to $351 on Apple's latest iPhones Sony warns of profit wipeout on $700M tariff hit Social Security confusion: Yahoo Finance readers speak out Tesla board explores new pay deal for CEO Musk: FT Shares of Super Micro Computer (SMCI) jumped almost 10%, poised to extend sharp gains booked in Tuesday's big tech rally. The AI server maker was also basking in an Outperform rating from Raymond James analysts as they initiated coverage of the stock, calling Super Micro a "market leader". Reuters reports: Read more here. Yahoo Finance's Josh Schafer reports: Read more here. Reuters reports: eToro Group is planning to raise around $620 million in an upsized U.S. initial public offering (IPO) priced above market range, the company said on Tuesday. The stock and cryptocurrency trading platform has offered 11.92 million shares at $52 apiece, above its target range of $46 to $50. The stock is expected to begin trading on the Nasdaq Global Select Market under the symbol "ETOR" on Wednesday, May 14. Read more here.
Yahoo
14-05-2025
- Business
- Yahoo
Stock market today: Dow, S&P 500 muted, Nasdaq leads after S&P 500 recovers all 2025 losses
US stocks searched for a footing on Wednesday after the S&P 500 (^GSPC) erased its losses for 2025 and Wall Street continued to debate the state of play on tariffs. The S&P 500 rose 0.1% while the Dow Jones Industrial Average (^DJI) was roughly flat. The tech-heavy Nasdaq Composite (^IXIC) led the gains, popping 0.5%. A tech-rally helped push the Nasdaq higher with shares of AMD rising 5%, Alphabet (GOOGL,GOOG) ticking 3% higher and a 17% soar in shares of Super Micro Computer (SMCI). Prospects for chipmaker Nvidia (NVDA) — and the AI trade more widely — got a boost from plans to overhaul curbs on chip exports and new AI deals led by Saudi Arabia. The President Trump-backed moves come as markets debate the staying power of a "Magnificent Seven" rally driven by the US-China trade truce. Nvidia rallied another 3% in premarket trading on Wednesday. Nvidia server maker Foxconn ( HNHPF) flagged strong AI demand as it posted a 91% surge in quarterly profit on Wednesday. But the Taiwanese partner to Apple (AAPL) also cut its full-year outlook, citing uncertainty around tariffs. Read more: The latest on Trump's tariffs Earnings season elsewhere continued to show strain from trade tensions. American Eagle (AEO) became the latest company to withdraw guidance due to "macro uncertainty" on Tuesday, and the clothing retailer's stock tumbled in premarket trading. In Japan, Sony (SONY) said it expects a $700 million impact from US tariffs and offered a disappointing forecast that wipes out its expected rise in profit. Stocks have roared back in recent weeks as the US tariff escalation has reversed. Some on Wall Street have taken the rally a step further by boosting their year-end targets for the S&P 500. BMO chief investment strategist Brian Belski isn't budging, though. At least not yet. Here are three things Belski is watching for to confirm things are continuing to get more bullish for stocks in what Belski now believes has shifted from a "scare me" market to a "show me" market. 1) "Earnings stabilize alongside a return of company guidance;" 2) "Less reactive price activity following perceived good or bad news out of Washington DC – including, but not limited to tariffs and other political strife;" 3) "Broadly distributed equity performance persists and maybe even strengthens." Nvidia (NVDA) stock jumped 1.9% early Wednesday, extending its gain from the prior day when shares rose nearly 6% and the AI chipmaker's market cap surpassed $3 trillion for the first time since February. The gains come as US chipmakers, including Nvidia, announced billions of dollars worth of deals with Saudi Arabia during an investment forum attended by President Trump on Tuesday. Nvidia said it will supply several hundreds of thousands of its AI chips to Saudi Arabia's AI venture Humain over the next five years. Humain is a new AI venture owned by Saudi Arabia's $925 billion Public Investment Fund. Bank of America (BAC) analysts estimated the total value of the deal is $7 billion and raised its price target on Nvidia stock to $160 from $150 in a note to investors Wednesday morning. The AI chipmaker's Saudi Arabia deal helped brighten Wall Street's outlook for its sales abroad just after Trump banned exports of its chips f China, but his administration looked to ease Biden-era restrictions on Nvidia's exports to the rest of the world (including the Middle East). The Department of Commerce on Tuesday announced that it had initiated the rescission of Biden's AI Diffusion rule. Read the full story here. Tesla (TSLA) stock chugged higher at the open on Wednesday after a Financial Times report that the EV maker's board is once again exploring how to compensate CEO Elon Musk. But while a new pay package may be in the works, it doesn't come without controversy surrounding the CEO and Tesla board of directors, as Yahoo Finance's Pras Subramanian reports: Read more here. US stocks searched for a footing on Wednesday after the S&P 500 (^GSPC) erased its losses for 2025 and Wall Street continued to debate the state of play on tariffs. The S&P 500 (^GSPC) rose 0.2%. The tech-heavy Nasdaq Composite (^IXIC) rose 0.4% while the Dow Jones Industrial Average (^DJI) popped 0.2%. Nvidia (NVDA) continued its recent rally, rising more than 3%. Shares of AI leaders and chipmakers moved higher on Wednesday morning as easing trade tensions and new chip deals with Saudi Arabia lifted hopes for the tech sector. Here's a look at some of the top tickers trending in premarket trading: Super Micro Computer (SMCI) stock soared more than 17% on Wednesday, adding on to Tuesday's 16% gain, after Raymond James initiated coverage with an Outperform rating and $41 price target on shares. Raymond James said the company has 'emerged as a market leader in AI-optimized infrastructure,' even as the stock has been highly volatile so far this year. Nvidia (NVDA) shares extended their rally on the back of thawing trade tensions and a new chip deal with Saudi Arabia. The chipmaker's stock added 3% premarket and is set to put Nvidia's market capitalization more firmly over the $3 trillion mark. Tesla (TSLA) stock rose nearly 3%, adding to the week's gains. The Financial Times reports that Tesla's board has formed a special committee to explore an alternative pay package for CEO Elon Musk as the company and Musk remain locked in a legal battle in Delaware over Musk's compensation. Advanced Micro Devices (AMD) stock jumped 4% after President Trump touted new Saudi investment deals with US chipmakers and chip designers. AMD reportedly struck a $10 billion deal with Humain, an AI startup backed by Saudi Arabia's sovereign wealth fund. Sony (SONY) reported a weaker-than-expected financial outlook for the year and cautioned that it expects a $700 million headwind from tariffs. The PlayStation maker also beat on earnings estimates, announced a share buyback plan, and shared more details about the partial spin-off of its financial unit. US-listed shares of Sony were up over 5%. American Eagle (AEO) warned its first quarter earnings may disappoint. Shares of the retailer tumbled more than 11% in premarket trading after the company pulled its 2025 financial outlook and said it would write down $75 million in excess spring and summer inventory. The company said Tuesday that it expects same-store sales to fall 3% to $1.1 billion in the first quarter. It also anticipates an adjusted operating loss of about $68 million as its strategies did not drive the results it expected. The Pittsburgh company withdrew its guidance for the year, citing macro uncertainty. Read more here. The dollar extended declines on Wednesday morning, following a significant move lower overnight, as inflation and trade tensions eased. The US dollar index ( which tracks the dollar against a basket of currencies, fell 0.41% to 100 as the Japanese yen and South Korean won strengthened. Reuters reports: Read more here. Economic data: MBA Mortgage applications (week of May 9) Earnings: Sony (SONY), Tencent (TCEHY), Cisco (CSCO), CoreWeave (CRWV), Jack in the Box (JACK) Here are some of the biggest stories you may have missed overnight and early this morning: China deal has Wall Street scaling back recession calls Nvidia partner Foxconn cuts outlook, citing tariffs Tariffs still 'huge nightmare' for small biz despite truce What to watch out for after the US-China deal Chinese sites offer discounts of up to $351 on Apple's latest iPhones Sony warns of profit wipeout on $700M tariff hit Social Security confusion: Yahoo Finance readers speak out Tesla board explores new pay deal for CEO Musk: FT Shares of Super Micro Computer (SMCI) jumped almost 10%, poised to extend sharp gains booked in Tuesday's big tech rally. The AI server maker was also basking in an Outperform rating from Raymond James analysts as they initiated coverage of the stock, calling Super Micro a "market leader". Reuters reports: Read more here. Yahoo Finance's Josh Schafer reports: Read more here. Reuters reports: eToro Group is planning to raise around $620 million in an upsized U.S. initial public offering (IPO) priced above market range, the company said on Tuesday. The stock and cryptocurrency trading platform has offered 11.92 million shares at $52 apiece, above its target range of $46 to $50. The stock is expected to begin trading on the Nasdaq Global Select Market under the symbol "ETOR" on Wednesday, May 14. Read more here. Stocks have roared back in recent weeks as the US tariff escalation has reversed. Some on Wall Street have taken the rally a step further by boosting their year-end targets for the S&P 500. BMO chief investment strategist Brian Belski isn't budging, though. At least not yet. Here are three things Belski is watching for to confirm things are continuing to get more bullish for stocks in what Belski now believes has shifted from a "scare me" market to a "show me" market. 1) "Earnings stabilize alongside a return of company guidance;" 2) "Less reactive price activity following perceived good or bad news out of Washington DC – including, but not limited to tariffs and other political strife;" 3) "Broadly distributed equity performance persists and maybe even strengthens." Nvidia (NVDA) stock jumped 1.9% early Wednesday, extending its gain from the prior day when shares rose nearly 6% and the AI chipmaker's market cap surpassed $3 trillion for the first time since February. The gains come as US chipmakers, including Nvidia, announced billions of dollars worth of deals with Saudi Arabia during an investment forum attended by President Trump on Tuesday. Nvidia said it will supply several hundreds of thousands of its AI chips to Saudi Arabia's AI venture Humain over the next five years. Humain is a new AI venture owned by Saudi Arabia's $925 billion Public Investment Fund. Bank of America (BAC) analysts estimated the total value of the deal is $7 billion and raised its price target on Nvidia stock to $160 from $150 in a note to investors Wednesday morning. The AI chipmaker's Saudi Arabia deal helped brighten Wall Street's outlook for its sales abroad just after Trump banned exports of its chips f China, but his administration looked to ease Biden-era restrictions on Nvidia's exports to the rest of the world (including the Middle East). The Department of Commerce on Tuesday announced that it had initiated the rescission of Biden's AI Diffusion rule. Read the full story here. Tesla (TSLA) stock chugged higher at the open on Wednesday after a Financial Times report that the EV maker's board is once again exploring how to compensate CEO Elon Musk. But while a new pay package may be in the works, it doesn't come without controversy surrounding the CEO and Tesla board of directors, as Yahoo Finance's Pras Subramanian reports: Read more here. US stocks searched for a footing on Wednesday after the S&P 500 (^GSPC) erased its losses for 2025 and Wall Street continued to debate the state of play on tariffs. The S&P 500 (^GSPC) rose 0.2%. The tech-heavy Nasdaq Composite (^IXIC) rose 0.4% while the Dow Jones Industrial Average (^DJI) popped 0.2%. Nvidia (NVDA) continued its recent rally, rising more than 3%. Shares of AI leaders and chipmakers moved higher on Wednesday morning as easing trade tensions and new chip deals with Saudi Arabia lifted hopes for the tech sector. Here's a look at some of the top tickers trending in premarket trading: Super Micro Computer (SMCI) stock soared more than 17% on Wednesday, adding on to Tuesday's 16% gain, after Raymond James initiated coverage with an Outperform rating and $41 price target on shares. Raymond James said the company has 'emerged as a market leader in AI-optimized infrastructure,' even as the stock has been highly volatile so far this year. Nvidia (NVDA) shares extended their rally on the back of thawing trade tensions and a new chip deal with Saudi Arabia. The chipmaker's stock added 3% premarket and is set to put Nvidia's market capitalization more firmly over the $3 trillion mark. Tesla (TSLA) stock rose nearly 3%, adding to the week's gains. The Financial Times reports that Tesla's board has formed a special committee to explore an alternative pay package for CEO Elon Musk as the company and Musk remain locked in a legal battle in Delaware over Musk's compensation. Advanced Micro Devices (AMD) stock jumped 4% after President Trump touted new Saudi investment deals with US chipmakers and chip designers. AMD reportedly struck a $10 billion deal with Humain, an AI startup backed by Saudi Arabia's sovereign wealth fund. Sony (SONY) reported a weaker-than-expected financial outlook for the year and cautioned that it expects a $700 million headwind from tariffs. The PlayStation maker also beat on earnings estimates, announced a share buyback plan, and shared more details about the partial spin-off of its financial unit. US-listed shares of Sony were up over 5%. American Eagle (AEO) warned its first quarter earnings may disappoint. Shares of the retailer tumbled more than 11% in premarket trading after the company pulled its 2025 financial outlook and said it would write down $75 million in excess spring and summer inventory. The company said Tuesday that it expects same-store sales to fall 3% to $1.1 billion in the first quarter. It also anticipates an adjusted operating loss of about $68 million as its strategies did not drive the results it expected. The Pittsburgh company withdrew its guidance for the year, citing macro uncertainty. Read more here. The dollar extended declines on Wednesday morning, following a significant move lower overnight, as inflation and trade tensions eased. The US dollar index ( which tracks the dollar against a basket of currencies, fell 0.41% to 100 as the Japanese yen and South Korean won strengthened. Reuters reports: Read more here. Economic data: MBA Mortgage applications (week of May 9) Earnings: Sony (SONY), Tencent (TCEHY), Cisco (CSCO), CoreWeave (CRWV), Jack in the Box (JACK) Here are some of the biggest stories you may have missed overnight and early this morning: China deal has Wall Street scaling back recession calls Nvidia partner Foxconn cuts outlook, citing tariffs Tariffs still 'huge nightmare' for small biz despite truce What to watch out for after the US-China deal Chinese sites offer discounts of up to $351 on Apple's latest iPhones Sony warns of profit wipeout on $700M tariff hit Social Security confusion: Yahoo Finance readers speak out Tesla board explores new pay deal for CEO Musk: FT Shares of Super Micro Computer (SMCI) jumped almost 10%, poised to extend sharp gains booked in Tuesday's big tech rally. The AI server maker was also basking in an Outperform rating from Raymond James analysts as they initiated coverage of the stock, calling Super Micro a "market leader". Reuters reports: Read more here. Yahoo Finance's Josh Schafer reports: Read more here. Reuters reports: eToro Group is planning to raise around $620 million in an upsized U.S. initial public offering (IPO) priced above market range, the company said on Tuesday. The stock and cryptocurrency trading platform has offered 11.92 million shares at $52 apiece, above its target range of $46 to $50. The stock is expected to begin trading on the Nasdaq Global Select Market under the symbol "ETOR" on Wednesday, May 14. Read more here. Sign in to access your portfolio
Yahoo
14-05-2025
- Business
- Yahoo
BMO strategist ignores weak guidance from Canadian firms 'bullied' by Trump, suggests some stock picks
BMO chief investment strategist Brian Belski says it's time to put on rose-coloured glasses and ignore the negative guidance from Canadian companies linked to the unknown impacts of U.S. tariffs and trade policy. Belski, known for his upbeat outlook on TSX-listed stocks, lowered his 2025 year-end target for the S&P/TSX Composite index (^GSPTSE) by seven per cent in early April, days after U.S. President Donald Trump's 'Liberation Day," which saw the unveiling of tariffs on global trade partners. The strategist says this amounts to a 'minor 'tweak' when considering all the emotion, rhetoric, and frankly, unsubstantiated 'noise' that have bullied many analysts, companies, and macro-observers to 'react' in a much more decidedly negative tone.' 'TSX earnings estimates will likely remain under pressure over the near term,' he wrote in a recent note to clients, prior to the U.S. and China announcing a 90-day tariff truce. 'In fact, forward earnings revision trends, which had been stagnant throughout the year as analysts assessed the trade risks, have started to decidedly swing negative since the end of March.' So far this earnings season, Air Canada ( Rogers Communications ( A&W Food Services of Canada ( have been among the companies issuing weaker guidance for 2025. Earlier this month, Toronto-based toy maker Spin Master ( withdrew its 2025 guidance, citing "uncertainty related to the implementation of global tariffs." 'We believe investors should not be reactionary to negative guidance and instead use the downward revision cycle for what it truly represents – a historically tested and proven contrarian indicator,' Belski wrote. The S&P/TSX Composite index added 174.44 points on Monday, following news of the world's two largest economies agreeing to remove most tariffs for 90 days. Canada's main stock index held onto those gains in a mostly flat trading session on Tuesday. Canada's big banks will begin reporting their latest financial results next week, beginning with TD Bank ( 'We believe there is risk to 2025 guidance and cautionary language for (risk to) medium-term objectives and/or 2026 estimates,' RBC Capital Markets analyst Darko Mihelic wrote in a May 6 note to clients. 'Investors should remain focused on high-quality Canadian companies, while also overlaying a contrarian revision tilt,' Belski said. 'As such, we have included a screen of high-quality Canadian companies that have exhibited decelerating breadth of positive revisions over the past several months." Companies in Canada's financial sector make up nine of the 27 stocks on Belski's list, the largest category by far. Here's the full list from BMO Capital Markets: Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist. Download the Yahoo Finance app, available for Apple and Android. 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
