Latest news with #DowJones'
Yahoo
30-07-2025
- Business
- Yahoo
Fed continues rate freeze, faces heat from industry
The Federal Reserve, as expected, opted to hold interest rates steady Wednesday for the fifth consecutive meeting. For real estate, patience is running thin. Fed officials left the benchmark rate unchanged at 4.25 to 4.5 percent, citing tariff-related uncertainty and cautious inflation signals, the Wall Street Journal reported. But dissent is growing. For the first time since 1993, two dissenting board members voted in favor of a cut, a rarity likely foreshadowing movement at the Fed's September meeting as pressure mounts from the White House and the market. In real estate circles, there's no ambiguity that rate relief can't come soon enough. On CNBC Wednesday morning, the LeFrak Organization's Richard LeFrak likened housing affordability to gas prices — something Americans feel viscerally — and called for rate cuts to ease the burden on builders and buyers alike. 'It would be helpful to increase the supply of housing for interest rates to go down,' he said, framing the crunch as rate-driven as much as it is policy-driven. That pressure is acute in housing. This year's spring sales season was the slowest in 13 years, according to Bloomberg, with mortgage rates still stuck near 7 percent and affordability near its worst levels since the 1980s. Some buyers are backing out entirely. Developers and brokers nationwide are increasingly vocal in calling for lower borrowing costs to unlock supply and jumpstart stalled transactions. LeFrak, active in luxury and multifamily development, said rate-sensitive projects remain on hold in many markets. 'Do I think rates should be lower? Yes,' he said. Fanning the flames, the Fed's decision Wednesday also came on the heels of the surprising news that the U.S. economy expanded at a 3 percent annual pace in the second quarter, topping Dow Jones' estimate of 2.3 percent. '2Q GDP JUST OUT: 3%, WAY BETTER THAN EXPECTED! 'Too Late' MUST NOW LOWER THE RATE. No Inflation! Let people buy, and refinance, their homes!' President Donald Trump posted on Truth Social Wednesday morning. Still, Fed Chair Jerome Powell and his colleagues are wary of easing too soon. Inflation has cooled, but not decisively (the annual rate was 2.7 percent in June 2025, the highest level since February). New tariffs, consumer spending and labor market data could all tilt the scales in either direction. — Judah Duke Homeowners hoping for mortgage rate drops stuck with bad bets Jerome Powell asks for probe into Federal Reserve's $2.5B HQ renovation Richard LeFrak to step back from day-to-day role at firm This article originally appeared on The Real Deal. Click here to read the full story. Error al recuperar los datos Inicia sesión para acceder a tu cartera de valores Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos
Yahoo
24-06-2025
- Business
- Yahoo
Is It Time to Buy 2 of the Worst-Performing Dow Jones Stocks This Year?
Not all of the components of the Dow Jones have been winners recently. Investors are still waiting for Apple to make a big splash in artificial intelligence. Shares of athletic-wear giant Nike are absurdly cheap from a historical perspective. 10 stocks we like better than Apple › The Dow Jones Industrial Average tracks the performance of 30 blue chip stocks. These are some of the world's strongest companies. The index has climbed about 17,000% since 1930. This is also why some investors like to bottom fish for undervalued stocks among the Dow Jones' worst performers each year. So far in 2025, Apple (NASDAQ: AAPL) and Nike (NYSE: NKE) are swimming at the bottom. Both stocks are down over 20% year to date. Let's see if either is worth buying right now. Apple stock has slid 21% year to date. Weak iPhone sales, especially in China, have weighed on the stock's performance. The weak growth from its largest product category raises concerns about Apple's strategy to tackle the burgeoning opportunity in artificial intelligence (AI). Apple launched its AI platform, Apple Intelligence, last year. This brought several new AI features to its Mac and iOS operating system. But Apple Intelligence hasn't translated to the strong sales cycle investors were expecting. In the first half of fiscal 2025, total net sales were $219 billion, up just 4% year over year. This was mostly driven by double-digit growth in services (e.g. apps and subscriptions). Product sales posted just a 2% year-over-year increase in the most recent quarter. Apple has tremendous brand power, and it's loaded with cash. The company hauled in $98 billion of free cash flow over the last year. It certainly has the money to make some moves in AI. But it is concerning that Apple's former chief design officer, Jony Ive -- who was instrumental in designing the iPhone and other products until leaving Apple in 2019 -- recently merged his design company with OpenAI and will consult the AI leader on new hardware products. The fact that Ive is not coming back to Apple, but instead is joining the company that brought us ChatGPT speaks loud and clear that Apple is at risk of being disrupted in the next decade. Apple still has its "walled garden" advantage of hardware and services that many people attribute to a quality user experience. But it needs to make a bigger splash in AI than it has so far. Given these developments, the stock doesn't look that attractive from a valuation standpoint. Its forward P/E of 27 looks expensive against analysts' estimates for 10% annualized earnings growth over the long term. Investors looking for better return prospects might want to wait until Apple settles on a more promising AI strategy to grow sales before buying shares. Nike stock is down 21% this year and off by a stunning 66% since its previous peak four years ago. Declining sales and earnings caused Nike to bring in a new CEO last year. Company veteran Elliott Hill is aiming to return Nike to profitable growth, and if successful, could make the stock a bargain at current share prices. The company is on pace to report earnings per share of $1.93 for fiscal 2025 based on consensus analyst estimates. The stock's price-to-earnings multiple looks fair based on this year's estimate, but Nike is capable of much higher earnings. The stock is currently trading at 16 times its $3.75 peak earnings in fiscal 2022, which seems too low for a brand of this caliber. I believe Nike is a solid investment at these share prices. This is one of the world's iconic brands, generating $47 billion in trailing-12-month sales. Roughly two-thirds of that comes from footwear. Nike is still the leader in an industry that has a long history of growth and is expected to reach $677 billion by 2030, according to Grand View Research. Nike has a straightforward path to growth. It involves investing in new products and shifting the current sales mix to those categories that are seeing the strongest demand. On that score, the company is seeing healthy demand in running shoes, such as the Peg 41 and Vomero 18. Despite posting a 9% year-over-year decline in total sales, Nike noted growth in running and training products last quarter. To improve margins and grow earnings, Nike is tightening its inventory to better match supply and demand. Certain products like Air Jordan 1 and Dunk remain above demand levels, which could weigh on margins in the near term. However, as inventory tightens up over the next year, it should lead to more full-price sales and less discounting. Wall Street analysts are expecting Nike to report earnings of $2.68 in fiscal 2026, representing a 38% increase over fiscal 2025 estimates. By 2030, Nike's earnings could be back to its previous peak, if not at new highs, and that could spell market-beating returns for investors. Before you buy stock in Apple, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Apple wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $676,023!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,692!* Now, it's worth noting Stock Advisor's total average return is 793% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Nike. The Motley Fool has a disclosure policy. Is It Time to Buy 2 of the Worst-Performing Dow Jones Stocks This Year? was originally published by The Motley Fool 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
13-06-2025
- Business
- Yahoo
The deadly 787 Dreamliner crash came at a testing time for Boeing and Air India
An Air India Boeing 787 crashed less than a minute after takeoff on Thursday. The crash comes as both Boeing and Air India are trying to turn themselves around. Attorneys and aviation experts said no conclusions could be drawn until the investigation ended. Thursday's fatal crash of an Air India Boeing 787 shortly after takeoff comes as both the airline and Boeing try to revive their public images. After 2024 became an annus horribilis for Boeing, 2025 is crucial for the planemaker to show it is successfully overhauling its processes. CEO Kelly Ortberg, who took over last year and has made the turnaround the centerpiece of his leadership, has scrapped plans to travel to next week's Paris Air Show, CNBC and Bloomberg reported. The event is a crucial industry showcase. Neither Boeing nor Air India responded to requests for comment from Business Insider. On Thursday, Ortberg shared the company's "deepest condolences" to everyone affected and said a team stood ready to support the investigation. After visiting the crash site Friday morning, Air India CEO Campbell Wilson said in a video statement, "We know that the investigations will take time but we will be fully transparent and will support the process for as long as it takes." "Air India will continue to do everything we can to care for those affected by this tragedy, and to uphold the trust placed in us," he added. When an Alaska Airlines 737 Max lost a door plug during a January 2024 flight, regulators capped Boeing's production of the type. A seven-week strike then shut down key facilities, further hurting revenue. Boeing ended 2024 as the Dow Jones' biggest loser, as its share price fell 31%. Investors had been reassured by Ortberg's work to turn the company around, and the stock had risen more than 20% in 2025 before the crash. It dropped about 4% after Thursday's crash and fell more than 3% Friday morning. Morgan Stanley analysts said Thursday that the crash "derails the positive momentum on Boeing's stock." Jeff Windau, a senior industrials analyst for Edward Jones, said in a research note that he expects near-term volatility and raised the possibility of enhanced scrutiny on Boeing's processes. "However, at this time, we do not feel there will be a long-term impact to production," he added. Following decades of state ownership and huge losses, Air India was acquired by the Tata Group in 2022. The airline has expanded with hundreds of additional flights, flying 60 million customers to 103 destinations through 2024. The new owners invested billions, and the airline has ordered hundreds of planes to replace its aging fleet. In a December interview with BI, Wilson compared his work revitalising Air India to "drinking from a firehose." He added that he thought the turnaround was close to completion, but said there were supply-chain constraints. "Until we upgrade the aircraft, then people won't believe that the transformation has happened," Wilson said. Alan Tan, an aviation law professor at the National University of Singapore, told BI that Air India in particular would have an immediate hit to customer perception. "But as other leading airlines facing crises have shown, these are not insurmountable," he added. "Transparency and accountability in investigations, and consistent messaging to the public, will hopefully reduce the risks of a media spectacle." It will take a thorough and lengthy investigation before there are answers about what caused the crash. Attorneys who have battled Boeing in the courts were among the people BI spoke to who were hesitant to draw any conclusions. "The fact that this tragedy involves a Boeing aircraft does not necessarily mean that there's something wrong with the actual aircraft — as distinguished from issues surrounding maintenance, or even products that are not Boeing's, such as the engines," said Robert Clifford, lead counsel for the families of victims of the 2019 Ethiopian Airlines crash, in which a 737 Max crashed shortly after takeoff, killing more than 150 people. He added that a quick and efficient investigation is necessary to "help calm the public." Thursday's incident was the first fatal crash and total hull loss of a Boeing 787 Dreamliner, one of the most advanced passenger jets, which entered service in 2011. The model has faced some criticism from whistleblowers. Last year, Sam Salehpour, a quality engineer at Boeing, told NBC he observed "shortcuts to reduce bottlenecks" in manufacturing 787s. Boeing responded that it was "fully confident in the 787 Dreamliner." On Thursday, Salehpour's attorneys urged the Federal Aviation Administration to release a report investigating his claims. Richard Aboulafia, managing director at Aerodynamic Advisory, told BI, "It's a terrible tragedy, but I just don't see how this impacts anything [for Boeing]." "Unless it's the unlikely event that they do find a design or manufacturing flaw, but after all these years, both for this type of aircraft and this particular aircraft, that's not normal," he added. Read the original article on Business Insider
Business Insider
13-06-2025
- Business
- Business Insider
The deadly 787 Dreamliner crash came at a testing time for Boeing and Air India
Thursday's fatal crash of an Air India Boeing 787 shortly after takeoff comes as both the airline and Boeing try to revive their public images. After 2024 became an annus horribilis for Boeing, 2025 is crucial for the planemaker to show it is successfully overhauling its processes. CEO Kelly Ortberg, who took over last year and has made the turnaround the centerpiece of his leadership, has scrapped plans to travel to next week's Paris Air Show, CNBC and Bloomberg reported. The event is a crucial industry showcase. Neither Boeing nor Air India responded to requests for comment from Business Insider. On Thursday, Ortberg shared the company's "deepest condolences" to everyone affected and said a team stood ready to support the investigation. Air India CEO Campbell Wilson released a video statement about the crash, saying, "Our efforts now are focused entirely on the needs of our passengers, crew members, their families, and loved ones." 'The crash derails Boeing stock's positive momentum' When an Alaska Airlines 737 Max lost a door plug during a January 2024 flight, regulators capped Boeing's production of the type. A seven-week strike then shut down key facilities, further hurting revenue. Boeing ended 2024 as the Dow Jones' biggest loser, as its share price fell 31%. Investors had been reassured by Ortberg's work to turn the company around, and the stock had risen more than 20% in 2025 before the crash. It dropped about 4% after Thursday's crash and fell more than 3% Friday morning. Morgan Stanley analysts said Thursday that the crash "derails the positive momentum on Boeing's stock." Jeff Windau, a senior industrials analyst for Edward Jones, said in a research note that he expects near-term volatility and raised the possibility of enhanced scrutiny on Boeing's processes. "However, at this time, we do not feel there will be a long-term impact to production," he added. Air India has been working to turn itself around Following decades of state ownership and huge losses, Air India was acquired by the Tata Group in 2022. The airline has expanded with hundreds of additional flights, flying 60 million customers to 103 destinations through 2024. The new owners invested billions, and the airline has ordered hundreds of planes to replace its aging fleet. In a December interview with BI, Wilson compared his work revitalising Air India to "drinking from a firehose." He added that he thought the turnaround was close to completion, but said there were supply-chain constraints. "Until we upgrade the aircraft, then people won't believe that the transformation has happened," Wilson said. Alan Tan, an aviation law professor at the National University of Singapore, told BI that Air India in particular would have an immediate hit to customer perception. "But as other leading airlines facing crises have shown, these are not insurmountable," he added. "Transparency and accountability in investigations, and consistent messaging to the public, will hopefully reduce the risks of a media spectacle." A lengthy investigation It will take a thorough and lengthy investigation before there are answers about what caused the crash. Attorneys who have battled Boeing in the courts were among the people BI spoke to who were hesitant to draw any conclusions. "The fact that this tragedy involves a Boeing aircraft does not necessarily mean that there's something wrong with the actual aircraft — as distinguished from issues surrounding maintenance, or even products that are not Boeing's, such as the engines," said Robert Clifford, lead counsel for the families of victims of the 2019 Ethiopian Airlines crash, in which a 737 Max crashed shortly after takeoff, killing more than 150 people. He added that a quick and efficient investigation is necessary to "help calm the public." Thursday's incident was the first fatal crash and total hull loss of a Boeing 787 Dreamliner, one of the most advanced passenger jets, which entered service in 2011. The model has faced some criticism from whistleblowers. Last year, Sam Salehpour, a quality engineer at Boeing, told NBC he observed "shortcuts to reduce bottlenecks" in manufacturing 787s. Boeing responded that it was "fully confident in the 787 Dreamliner." On Thursday, Salehpour's attorneys urged the Federal Aviation Administration to release a report investigating his claims. Richard Aboulafia, managing director at Aerodynamic Advisory, told BI, "It's a terrible tragedy, but I just don't see how this impacts anything [for Boeing]." "Unless it's the unlikely event that they do find a design or manufacturing flaw, but after all these years, both for this type of aircraft and this particular aircraft, that's not normal," he added.
Yahoo
29-05-2025
- Business
- Yahoo
Maple Tree Capital's Heartwood's Latest Addition: Reddit (RDDT)
Maple Tree Capital, an investment management company, released its Q1 2025 investor letter. A copy of the letter can be downloaded here. Q1 2025 saw a strong start but turned sour due to tariff concerns and macroeconomic fears, leading to a sharp market pullback, with the Nasdaq falling nearly 22% from its highs and the S&P 500 down 20%. Despite the challenges, the firm made significant progress this quarter by averaging in the top-conviction stocks, utilizing covered calls, and exercising patience. Maple's growth-oriented fund, Jonagold, has become a standout performer, greatly surpassing all major benchmarks since its launch in 2023. While Heartwood is still facing difficulties. Maple Tree Capital's Jonagold returned -13.64% in Q1 compared to the Nasdaq's -10.26% return and the Russel 2000's -9.48% return. Maple Tree Capital's Heartwood returned -18.04% in Q1 vs. the S&P 500's -4.27% and the Dow Jones' -0.87% return. In addition, please check the fund's top five holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, Maple Tree Capital highlighted stocks such as Reddit, Inc. (NYSE:RDDT). Reddit, Inc. (NYSE:RDDT) is a mining company that engages in uranium and titanium mining and related activities. The one-month return of Reddit, Inc. (NYSE:RDDT) was -11.25%, and its shares gained 87.26% of their value over the last 52 weeks. On May 28, 2025, Reddit, Inc. (NYSE:RDDT) stock closed at $105.43 per share with a market capitalization of $19.45 billion. Maple Tree Capital stated the following regarding Reddit, Inc. (NYSE:RDDT) in its Q1 2025 investor letter: "Reddit, Inc. (NYSE:RDDT) is Heartwood's newest, and smallest, position. We anticipate growing this position in size over the coming quarters and years as the story parallels pretty closely to what we see in Grindr in the Jonagold portfolio. Reddit holds incredibly unique and structured user-generated data, which will be extremely valuable in the AI era. Additionally, their user base spends a ton of time on the app. It is far easier to monetize users if you have users! Reddit has spent decades acquiring a user base and is just at the beginning of their monetization journey. More people visit Reddit every day than they do Netflix. Their balance sheet is clean, but stock-based compensation and dilution are significant. We wrote a little more about Reddit here and expect to share more on our thesis shortly." An aerial view of a large telecommunications network covering a city skyline. Reddit, Inc. (NYSE:RDDT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 72 hedge fund portfolios held Reddit, Inc. (NYSE:RDDT) at the end of the first quarter, which was 87 in the previous quarter. Reddit, Inc. (NYSE:RDDT) reported revenue of $392 million in Q1 2025, reflecting a 61% increase compared to the same period last year, and marking the third straight quarter of growth exceeding 60%. While we acknowledge the potential of Reddit, Inc. (NYSE:RDDT) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered Reddit, Inc. (NYSE:RDDT) and shared the list of AI stocks surging on news and analyst ratings. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data
