Latest news with #China-exposed
CNBC
6 days ago
- Business
- CNBC
Bad trade headline after another hit the market — but a key economic tracker is looking up
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets and trade: Stocks dropped Friday but are still on pace for a solid weekly gain. The market broke down around noon ET after Bloomberg reported that the Trump Administration was planning to broaden restrictions on Chinese tech companies. According to the report, the new rule would require U.S. licenses for transactions with subsidiaries of companies on the U.S. sanctions list. It's too early to know the impact, if any, this could have on U.S. tech companies. One would think most companies have stopped selling to businesses associated with U.S.-sanctioned companies, like Huawei. Until we know for sure, these restrictions represent a negative headline for the tech sector and China-exposed companies that were hoping for the recent detente to continue. Developments over the past 24 hours suggest a notable decline in goodwill between the United States and China. On Thursday, Treasury Secretary Scott Bessent said on Fox News that trade talks with China "are a bit stalled." Then Friday morning, President Donald Trump said on Truth Social that China had violated its recent trade agreement with the U.S. He ended the post by saying, "so, much for being Mr. Nice Guy," in a possible foreshadowing of these new restrictions. We all know by now that everything is subject to negotiation with the current administration, and the technology sector is going to be a big focus of upcoming trade talks. The recent episode involving a threatened tariff increase on the European Union — delayed just days later — served as a key reminder not to overreact to individual headlines. But, the market probably needs the U.S. and China to get along for this rally to continue, so we have to stay focused on what the two countries are saying. Economic activity: Following Friday's data releases, the Atlanta Fed's GDPNow tracker was upwardly revised to a gain of 3.8% for the second quarter from its previous estimate of 2.2% on May 27. To be fair, the model isn't always the most accurate predictor of the growth rate of real gross domestic product. On Thursday, the Bureau of Economic Analysis released its second estimate of first-quarter gross domestic product, showing the economy declined 0.2%. That's much better than the GDPNow final forecast of down 2.7% for Q1 (or down 1.5% using the alternative model that adjusts for imports and exports of gold). So, that's our caution about reading too deeply into one model or forecast. Still, the tracker provides a useful gauge of economic momentum, and the fresh data suggest the economy rebounded solidly in the second quarter, with one month remaining. Up next: Two companies in the portfolio are scheduled to report next week: CrowdStrike and Broadcom . Other notable earnings report includes Campbell's, Dollar General, Five Below, and Lululemon. On the economic data side, it's jobs week. That means data on job openings on Tuesday, ADP private payrolls on Wednesday, and the government's nonfarm payrolls report on Friday. Some of the other key reports are ISM manufacturing, factory orders, and durable goods orders. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Yahoo
05-04-2025
- Business
- Yahoo
Analysts see challenges for Apple over tariffs
Say this much for Dan Ives, the guy can sure turn a phrase. When the Wedbush analyst weighed in recently on President Donald Trump's plan to slap a 25% tariff on all imported cars, he boiled his feelings down to two words: "pure chaos." 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💵 Ives and his team were back on April 3 to share their thoughts on Trump's latest rounds of tariffs, which have sent stocks tumbling, in a research note with the very subtle title: "What To Do After Trump Dropped This Economic Armageddon Tariff Slate?" "In the Rose Garden at the White House President Trump laid out a jaw-dropping reciprocal-tariff chart that will be showed in classrooms and be written about for years to come by economists ... because they are so illogical and absurd," Ives said. After speaking with business leaders and supply-chain experts from around the world, Ives said the investment firm was taking the view that the tariffs are the start of negotiations with countries and even individual companies to level the playing field. Many tech companies depend heavily on China for manufacturing, market access and revenue. Ives warned that "especially China-exposed names" like Apple () , Nvidia () , Tesla () , Taiwan Semiconductor () , and a host of other tech and supply-chain companies will be the most under pressure "as worries about this China 34% tariff (could be 54% when adding the baseline) and 32% Taiwan tariff are almost hard to look at." More Tech Stocks: Analysts revisit Apple stock price targets as Cook courts Beijing Veteran trader takes hard look at Tesla stock price amid slump, controversy Analysts rework Micron stock price targets after earnings "No matter what the White House says ... basic economic theory over the last 100 tells you one person pays these tariffs ... the US consumer.... [It's] not a debate," Ives said. The analyst added that numbers are now going to have come down across the tech world "as just the sheer uncertainty from this tariff announcement heard around the world will cause some IT budgets to freeze and C-level management to figure out their own supply chain and how to navigate this near-term Category 5 hurricane." "We will see an upcoming earnings season for 1Q in which it would not surprise us if many companies/management teams did not give guidance and would take us back to some of those March/June 2020 Covid days of uncertainty," Ives said. Apple is scheduled to report earnings May 1. The Cupertino, Calif., tech giant's shares up are 20% from a year ago but at last check April 3 were down nearly 9%. Ives rates the stock outperform with a $325 price target. Other investment firms issued research reports on Apple following the tariff announcement. Citi maintained a buy rating with a $275 price target on the computer and iPhone producer but warned that with Apple having more than 90% of its manufacturing done in China, it faces a 9% negative impact to total gross margin as a result of the reciprocal tariff rate. The new tariffs are expected to be effective April 9. Citi said it was awaiting more details from the company and the administration on how the tariffs will be implemented, the analyst says in a of America Securities analysts cut their price target on Apple to $250 from $265 and maintained a buy rating. Given the latest news around tariffs being set at 54% on China, 26% on India and 46% on Vietnam, all Apple products will be subject to tariffs at various rates, the investment firm said. B of A expects Apple to manage its supply chain to minimize the impact, but if these tariff rates stand and Apple absorbs the entire $20 billion of headwind and 5 percentage points to gross margins, the firm expects a $1.24 hit to EPS in calendar 2026. Meanwhile, France is pushing the European Union to retaliate against U.S. tech companies in response to Trump's tariffs, Bloomberg reported. The EU is considering using its anti-coercion instrument to strike back against the U.S., with French government spokeswoman Sophie Primas saying responses could be ready by the end of April. The issue of taxing digital services has split the EU, with countries like France and Italy implementing national taxes while others, like Germany, have opposed the idea. Sign in to access your portfolio
Miami Herald
03-04-2025
- Business
- Miami Herald
Analysts see challenges for Apple over tariffs
Say this much for Dan Ives, the guy can sure turn a phrase. When the Wedbush analyst weighed in recently on President Donald Trump's plan to slap a 25% tariff on all imported cars, he boiled his feelings down to two words: "pure chaos." Don't miss the move: Subscribe to TheStreet's free daily newsletter Ives and his team were back on April 3 to share their thoughts on Trump's latest rounds of tariffs, which have sent stocks tumbling, in a research note with the very subtle title: "What To Do After Trump Dropped This Economic Armageddon Tariff Slate?" "In the Rose Garden at the White House President Trump laid out a jaw-dropping reciprocal-tariff chart that will be showed in classrooms and be written about for years to come by economists ... because they are so illogical and absurd," Ives said. After speaking with business leaders and supply-chain experts from around the world, Ives said the investment firm was taking the view that the tariffs are the start of negotiations with countries and even individual companies to level the playing field. Many tech companies depend heavily on China for manufacturing, market access and revenue. Ives warned that "especially China-exposed names" like Apple (AAPL) , Nvidia (NVDA) , Tesla (TSLA) , Taiwan Semiconductor (TSM) , and a host of other tech and supply-chain companies will be the most under pressure "as worries about this China 34% tariff (could be 54% when adding the baseline) and 32% Taiwan tariff are almost hard to look at." More Tech Stocks: Analysts revisit Apple stock price targets as Cook courts BeijingVeteran trader takes hard look at Tesla stock price amid slump, controversyAnalysts rework Micron stock price targets after earnings "No matter what the White House says ... basic economic theory over the last 100 tells you one person pays these tariffs ... the US consumer.... [It's] not a debate," Ives said. The analyst added that numbers are now going to have come down across the tech world "as just the sheer uncertainty from this tariff announcement heard around the world will cause some IT budgets to freeze and C-level management to figure out their own supply chain and how to navigate this near-term Category 5 hurricane." "We will see an upcoming earnings season for 1Q in which it would not surprise us if many companies/management teams did not give guidance and would take us back to some of those March/June 2020 Covid days of uncertainty," Ives said. Apple is scheduled to report earnings May 1. The Cupertino, Calif., tech giant's shares up are 20% from a year ago but at last check April 3 were down nearly 9%. Ives rates the stock outperform with a $325 price target. Other investment firms issued research reports on Apple following the tariff announcement. Citi maintained a buy rating with a $275 price target on the computer and iPhone producer but warned that with Apple having more than 90% of its manufacturing done in China, it faces a 9% negative impact to total gross margin as a result of the reciprocal tariff rate. The new tariffs are expected to be effective April 9. Citi said it was awaiting more details from the company and the administration on how the tariffs will be implemented, the analyst says in a note. Related: Analysts revisit Apple stock price targets as Cook courts Beijing Bank of America Securities analysts cut their price target on Apple to $250 from $265 and maintained a buy rating. Given the latest news around tariffs being set at 54% on China, 26% on India and 46% on Vietnam, all Apple products will be subject to tariffs at various rates, the investment firm said. B of A expects Apple to manage its supply chain to minimize the impact, but if these tariff rates stand and Apple absorbs the entire $20 billion of headwind and 5 percentage points to gross margins, the firm expects a $1.24 hit to EPS in calendar 2026. Meanwhile, France is pushing the European Union to retaliate against U.S. tech companies in response to Trump's tariffs, Bloomberg reported. The EU is considering using its anti-coercion instrument to strike back against the U.S., with French government spokeswoman Sophie Primas saying responses could be ready by the end of April. The issue of taxing digital services has split the EU, with countries like France and Italy implementing national taxes while others, like Germany, have opposed the idea. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
28-02-2025
- Business
- Yahoo
Beiersdorf expects organic growth to slow in 2025
By Matthias Inverardi, Elizaveta Gladun and Linda Pasquini (Reuters) -Nivea maker Beiersdorf on Thursday reported higher 2024 sales and said it expected sales to still grow in the current year, albeit at a slower pace, amid weaker demand in the global skin care market. Beauty firms are reeling from a growth slowdown from the second half of 2024 and into the new year, exacerbated by soft demand in key market China and inventory reductions at travel retailers and in the U.S. Shares in the company rose 3.3% to 131.3 euros at 1140 GMT, helped by what analysts at JPMorgan said was "a reassuring message on growth momentum amid weakness elsewhere in the beauty sector." Beiersdorf core skincare brands like Nivea and Eucerin and a minor exposure to the Chinese market compared to peers allowed the German company to remain resilient. It expects organic sales to grow between 4% and 6% in 2025, down from a 6.5% rise to 9.9 billion euros ($10.37 billion) it reported for the previous year. While sales at its Nivea brand and skincare business increased 9.0% and 10.6% respectively in the past year, its China-exposed luxury brand La Prairie recorded a 6.2% drop in sales due to weak demand and shifting consumer preferences in the region. For the U.S. Beiersdorf has "very strong plans", Chief Financial Officer Astrid Hermann said in an earnings call. However, she flagged a potentially substantial hit to the firm's business from the planned tariffs, especially on imports from Mexico, from which it sources two-thirds of its products destined to the U.S. She said that the company had been building some inventory in the U.S. to at least temporarily deal with the effects of tariffs, and it was also looking at its pricing strategy there. The company also said it extended the contract of its CEO Vincent Warnery until the end of 2030. ($1 = 0.9551 euros) Sign in to access your portfolio
