Latest news with #BlueChipDailyTrendReport
CNBC
3 days ago
- Business
- CNBC
CNBC Daily Open: Certainty of 'reciprocal' tariffs better than confusing legal tussle
A U.S. federal trade court striking down President Donald Trump's "reciprocal" tariffs on a broad swathe of countries seems, on the surface, a positive development all around. A lack of tariffs leads to cheaper goods, likely more consumer spending and higher corporate revenue, which tends to flow back to stock prices. This ideal scenario, however, rests on the assumption that the court's decision is final and the Trump administration does not have other ways of reinstating its muscular trade policies. Events on Thursday have already shown us that is not the case. An appeals court temporarily paused the tariff ruling to allow the Trump administration to respond to the case. "Even if we lose, we will do it another way," Trump trade advisor Peter Navarro told reporters at the White House Thursday afternoon. This uncertainty could roil markets and trade negotiations with countries further. If tariffs could pop in and out of existence based on policy and judicial decisions, how do nations discuss trade deals, and how do investors allocate their capital efficiently? Indeed, the S&P 500 was up nearly 0.9% when trading began, but fell sharply after the Trump administration said it may ask the Supreme Court to halt the federal trade court's ruling. "In general, markets don't like uncertainty, because it makes forecasting more difficult," said Larry Tentarelli, founder of the Blue Chip Daily Trend Report. "We expect the tariff news cycle to be an extended process, which can lead to higher short-term volatility." A concrete tariff of 10% would still be a tax — but the surety of it could be better for markets and economies globally in the long run. Trump 'reciprocal' tariffs reinstated for nowA U.S. federal appeals court on Thursday granted the Trump administration's request to temporarily pause a lower-court ruling that struck down most of Trump's tariffs. Trump officials maintain that they have other options for imposing tariffs, even if they do not prevail in the case. Earlier in the day, the White House said it would seek "emergency relief" from the Supreme Court if the ruling was not paused. Rocky U.S.-China negotiationsU.S.-China trade talks "are a bit stalled," Treasury Secretary Scott Bessent told Fox News in an interview Thursday local time, adding that there may be a call between Trump and Chinese President Xi Jinping "at some point." Even though Washington and Beijing have agreed to roll back tariffs for 90 days, the U.S. has pushed ahead with tech restrictions on China, while the latter has yet to significantly ease restrictions on exports of rare earths. U.S. market gains capped by tariff confusionU.S. stocks rose Thursday. They were buoyed by Nvidia — which climbed 3.3% on its positive earnings — but were held back from bigger gains by uncertainty around tariffs. The S&P 500 added 0.4%, the Dow Jones Industrial Average gained 0.28% and the Nasdaq Composite climbed 0.39%. Asia-Pacific markets fell Friday. Japan's Nikkei 225 retreated 1.15% at 1:30 p.m. Singapore time as data showed annual core inflation in Tokyo hitting 3.6% in May, the highest since January 2023. Powell stressed rate decisions cannot be politicalFederal Reserve Chair Jerome Powell met Trump Thursday, according to a release by the U.S. central bank. "Chair Powell did not discuss his expectations for monetary policy," the statement said. However, Powell did "stress that the path of policy will depend entirely on incoming economic information and what that means for the outlook" — essentially, that interest rates cannot be swayed by politics. SEC dropped its lawsuit against BinanceThe SEC has formally dropped its lawsuit against Binance and founder Changpeng Zhao, which was first brought in June 2023. The case had accused the crypto exchange of illegally serving U.S. users, inflating trading volumes and commingling customer funds. The dismissal marks a symbolic end to the agency's crypto crackdown and comes as the Trump administration attempts to prove it's an ally to the industry. [PRO] European sectors to play: JPMorganEuropean equities have fared better than those in the U.S. so far this year. JPMorgan analysts think the trend could continue, with non-U.S. markets trading "increasingly more favorably" against their American counterparts for the next 12 to 18 months. Here are the bank's preferred sectors for this period. South Korea's Hybe opens China office amid hopes of a K-pop reversal from Beijing South Korea's largest K-pop agency Hybe, which established its first office in China on April 2 and announced the launch on Thursday, has been preparing to enter the Chinese market since last year, a Hybe official said recently. There have been indications that Beijing might be softening its stance on K-pop in the face of weak domestic consumption and stalled trade talks with China. And in another sign of thawing relations, China announced its decision to waive visas for South Koreans last November. South Korea followed suit in March 2025 with its plans to offer a visa exemption to Chinese visitors in the third quarter. "In contrast with semiconductors or autos, where global trade policy directly impacts supply chains and pricing, K-pop consumption is far less sensitive to protectionist measures," Shinhan Securities said in a note in April.
CNBC
3 days ago
- Business
- CNBC
CNBC Daily Open: Definite tariffs could be better for markets than on-and-off ones
A U.S. federal trade court striking down President Donald Trump's "reciprocal" tariffs on a broad swathe of countries seems, on the surface, a positive development all around. A lack of tariffs leads to cheaper goods, likely more consumer spending and higher corporate revenue, which tends to flow back to stock prices. This ideal scenario, however, rests on the assumption that the court's decision is final and the Trump administration does not have other ways of reinstating its muscular trade policies. Events on Thursday have already shown us that is not the case. An appeals court temporarily paused the tariff ruling to allow the Trump administration to respond to the case. "Even if we lose, we will do it another way," Trump trade advisor Peter Navarro told reporters at the White House Thursday afternoon. This uncertainty could roil markets and trade negotiations with countries further. If tariffs could pop in and out of existence based on policy and judicial decisions, how do nations discuss trade deals, and how do investors allocate their capital efficiently? Indeed, the S&P 500 was up nearly 0.9% when trading began, but fell sharply after the Trump administration said it may ask the Supreme Court to halt the federal trade court's ruling. "In general, markets don't like uncertainty, because it makes forecasting more difficult," said Larry Tentarelli, founder of the Blue Chip Daily Trend Report. "We expect the tariff news cycle to be an extended process, which can lead to higher short-term volatility." In other words, if there was a definite universal tariff of 10% — while it's undeniably still a tax — the surety of it could be better for markets and economies globally in the long run. Trump 'reciprocal' tariffs reinstated for nowA U.S. federal appeals court on Thursday granted the Trump administration's request to temporarily pause a lower-court ruling that struck down most of Trump's tariffs. Trump officials maintain that they have other options for imposing tariffs, even if they do not prevail in the case. Earlier in the day, the White House said it would seek "emergency relief" from the Supreme Court if the ruling was not paused. U.S. market gains capped by tariff confusionU.S. stocks rose Thursday. They were buoyed by Nvidia — which climbed 3.3% on its positive earnings — but were held back from bigger gains by uncertainty around tariffs. The S&P 500 added 0.4%, the Dow Jones Industrial Average gained 0.28% and the Nasdaq Composite climbed 0.39%. Europe's Stoxx 600 index slipped 0.19% and Germany's Dax lost 0.44% — but the latter is still up more than 20% year to date. Powell stressed rate decisions cannot be politicalFederal Reserve Chair Jerome Powell met Trump Thursday, according to a release by the U.S. central bank. "Chair Powell did not discuss his expectations for monetary policy," the statement said. However, Powell did "stress that the path of policy will depend entirely on incoming economic information and what that means for the outlook" — essentially, that interest rates cannot be swayed by politics. SEC dropped its lawsuit against BinanceThe SEC has formally dropped its lawsuit against Binance and founder Changpeng Zhao, which was first brought in June 2023. The case had accused the crypto exchange of illegally serving U.S. users, inflating trading volumes and commingling customer funds. The dismissal marks a symbolic end to the agency's crypto crackdown and comes as the Trump administration attempts to prove it's an ally to the industry. [PRO] European sectors to play: JPMorganEuropean equities have fared better than those in the U.S. so far this year. JPMorgan analysts think the trend could continue, with non-U.S. markets trading "increasingly more favorably" against their American counterparts for the next 12 to 18 months. Here are the bank's preferred sectors for this period. Musk-Altman AI rivalry is complicating Trump's dealmaking in Middle East Elon Musk tried to derail a major artificial intelligence infrastructure deal in the Middle East after learning that his startup, xAI, would be excluded from the initiative, CNBC has confirmed. Earlier this month, OpenAI, Oracle, Nvidia, Cisco and Emirati firm G42 announced plans to build a sweeping Stargate AI campus in the United Arab Emirates. Musk was frustrated that OpenAI, led by personal rival Sam Altman, was tapped for the deal, and he intervened in an effort to get xAI involved, said a person familiar with the matter who asked not to be named in order to speak freely. Musk argued that Trump would not approve the deal, the person said. The announcement was delayed by several days as stakeholders, including the White House, dealt with blowback from Musk, who has been engaged in a public and legal spat with Altman and OpenAI.
Yahoo
04-05-2025
- Business
- Yahoo
‘Sell in May, go away': Why Wall Street isn't buying it this year
It's the seasonal adage investors love to debate: "Sell in May, go away." But in a market currently driven by policy headlines, many strategists say this year's climate doesn't fit the usual patterns. With lingering economic uncertainty, fragile technicals, and geopolitical catalysts like US-China trade talks in play, few see a clear case for stepping to the sidelines — at least not just because the calendar says so. "We're in a different market this year," Larry Tentarelli, chief technical strategist at Blue Chip Daily Trend Report, told Yahoo Finance last week. "Historically, if we go back over the past ten years, sell in May hasn't actually worked too well." The saying traces its roots overseas to when London traders timed their market exits in the summer before buying again just after the famous Saint Leger horse race in September. The idea was to skip the typically sluggish summer months and reenter when markets historically perform better. This approach proved effective during the early days of modern Wall Street between 1960 and 1987. But things shifted after the major market crash of 1987. Following that, a fully invested strategy began to outperform, and staying invested through the summer months became more favorable. Since then, holding steady during this period has generally been a winning strategy, at least on balance. According to data compiled by LPL Financial, the S&P 500 (^GSPC) has historically posted its weakest average returns between May and October — just 1.8% since 1950 — compared to the stronger November-to-April period. While summer returns have been positive 65% of the time, their relative underperformance has reinforced the "sell in May" trend as seasonal market behavior. However, not everyone is convinced the pattern holds in today's volatile market. "Seasonality data can provide important insights into the potential market climate, but it doesn't represent the current weather," Adam Turnquist, chief technical strategist at LPL Financial, wrote in a note to clients on Wednesday. "And when it comes to markets, tariff uncertainty and monetary policy right now have the power to make it rain or part clouds into sunshine." From a technical standpoint, stocks showed significant progress in April but remained in recovery mode after all three major indexes posted their worst monthly performances of the year. "This is a very high volatility news driven cycle," Tentarelli added. "I'm looking to buy the pullbacks as opposed to sell the rallies." Markets have been whipsawed by President Trump's tariff rollout as ongoing back-and-forth trade developments with other countries continue to muddy the outlook. Read more: The latest news and updates on Trump's tariffs "Just because ['sell in May'] has some statistical significance doesn't mean it always works, right?" Siebert Financial chief investment officer Mark Malloch said. "In a situation where we've had markets move up and down quite a bit, it's questionable on whether that can be a factor." Plaza Advisory Group wealth manager Andrew Briggs agreed, noting, "We have had a nice recovery in April, which is great to see. That certainly means we could retest some lows here, but that's not enough evidence for us to recommend selling in May and going away." Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at Sign in to access your portfolio
Yahoo
29-04-2025
- Business
- Yahoo
Mag 7: What the technicals are saying about Big Tech stocks
As four of the Magnificent Seven prepare to release earnings results this week — Microsoft (MSFT), Meta Platforms (META), Apple (AAPL), Amazon (AMZN) — the group of tech stocks has been noted to be underperforming a majority of their 200-day moving averages. Blue Chip Daily Trend Report chief technical strategist Larry Tentarelli comes on the Morning Brief to talk about Amazon's relationship with the broader retail sector and his cautious outlook on the Mag 7. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. It's time now for today's strategy session. Earnings season in full swing with four magnificent seven members reporting this week. All but one of the Mag 7 stocks have fallen below their 200 day moving average. So what do the technical indicators spell out for what comes next? Joining us now, Larry Tentarelli. He's the chief technical strategist for the blue chip daily trend report. Larry, I think if we're talking about the Mag 7 this morning, I have to start with you on Amazon because this is a stock that is now dragging down the entire retail sector with it this morning. To what extent do you think that Amazon is able to pull out something in this earnings print this week that's going to allow them to be a positive bellwether for the Mag 7, despite the current market action that is very much related to Amazon as a retailer not as a tech company? Sure. That's a great question. I don't know that I've got a super clear answer for you. I think that the key thing is really going to be based on forward guidance. We really don't know what that's going to be. Amazon, because they're tied to the consumer, we're we're in uncharted territory because there is no blueprint for this tariff cycle right now. But I think it's going to be a very important tell for the sector. As you kind of look across some of the technical tells that are playing out within the tech sector at this juncture, of course two of those larger Mag 7 names in Nvidia and Apple were two of the first major companies, mega cap tech companies, to really initiate some of the pullback this year. Where are the technicals telling us now? So the Mag 7 still is not my favorite place to be. I see much stronger charts, Palantir, CrowdStrike, Netflix. The Mag 7, I think it got to be overowned. I think that a lot of foreign investors had parked money in the Mag 7 and as the US dollar has sold off, I think they've also sold the Mag 7 stocks. So the triple Q is still underneath the 200 day moving average. The S&P is. So I'm still, I don't like the Mag 7 that much yet, but I am open-minded that if the earnings come through and the stocks turn up, then that could be more positive. And do you think that there is potential for the opposite, for there to be much more downside for the Mag 7, given that you're already a little bit skeptical? I don't know if I'd say much more downside. So what we saw in the S&P 500 two weeks ago, highest weekly volume in 14 years, and it was a major upside reversal week. So historically, that's how many bear markets have bottomed. So I don't know that I'd say that there's major downside per se in the Mag 7, but I think we need to stay open-minded that if they if they're soft on guidance, you could see some downside. Is this still the year for sell in May and go away? Is that at play at all from what you're kind of seeing, especially given where investors have either been guided in the early kind of market correction to to buy on the dip versus what they're being guided towards now, which is sell the rally? Right. I think we're in a different market this year. So I can't say that sell in May, I think historically if we go back over the past 10 years, sell in May hasn't actually worked too well. I think this is a very high volatility news driven cycle. I do think last week we had a very bullish week and volatility is starting to come out of the market. But I think it's really very chart specific. I do think that the S&P and Nasdaq 100 are in a recovery phase. So I'm looking to buy the pullbacks as opposed to sell the rallies. Interesting. Larry, great to see you. Thanks for joining us in studio this morning. Thank you so much. Absolutely. Sign in to access your portfolio
Yahoo
22-04-2025
- Business
- Yahoo
Bitcoin rises back above $90,000 as investors flee volatile stocks and a falling dollar
Bitcoin prices have been on a tear lately, punching through the $90,000 mark for the first time in six weeks Tuesday. And analysts say it could be on the verge of a broader comeback. The cryptocurrency, which has been holding in a range of $75,000 to $90,000, will break out if it tops $90,000, wrote Larry Tentarelli, chief technical strategist for Blue Chip Daily Trend Report. Until recently, Bitcoin had been in a steady slide since Trump was inaugurated. It's currently 20 percent off its $107,000 high, hit before President Trump's inauguration. But recent market volatility could be boosting the cryptocurrency. Analysts say that Bitcoin and gold are offering investors alternative places to stash their cash as they ride out market volatility. Trump's repeated bashing of Fed Chair Jerome Powell could actually be boosting Bitcoin by increasing volatility in the wider market. Cantor analyst Brett Knoblauch wrote in a report that a new Trump-friendly Fed would probably lower interest rates, which would boost Bitcoin. 'If Trump were to be successful in removing Powell, and putting in place a more 'dovish' chairman, this could be viewed as a positive for cryptocurrencies as Bitcoin and alt coins have historically done better in lower interest rate environments,' Knoblauch wrote. So, how high might Bitcoin go in 2025? Christopher McMahon, CEO of Aquinas Wealth Advisors and author of 'Faithful Financese in a January conversation with Quartz predicted Bitcoin could go as high as $130,000 this year under the watch of a crypto-friendly administration. According to CoinDesk, 21Shares' latest analysis predicts that based on historical trends and current market signals, the price of Bitcoin could reach $138,555 by the end of 2025. The world's most popular cryptocurrency, the report emphasizes, is gaining strength due to macroeconomic uncertainty and on-chain momentum. For the latest news, Facebook, Twitter and Instagram. Sign in to access your portfolio
