Latest news with #EWW
CNBC
8 hours ago
- Business
- CNBC
A cybersecurity play set to run even higher, and how to trade this week's inflation reports
(This is a wrap-up of the key money moving discussions on CNBC's "Worldwide Exchange" exclusive for PRO subscribers. Worldwide Exchange airs at 5 a.m. ET each day.) Investors are looking for opportunities in emerging markets on the back of U.S.-China trade talks and at a cybersecurity play focused on AI and remote work. Worldwide Exchange pick: CrowdStrike Shana Sissel of Banrion Capital sees more upside in CrowdStrike despite the cybersecurity giant seeing a more than 35% gain this year. "It's the leading player in that space. … Its Falcon XDR technology is incorporating AI, remote work continues to be a tailwind to the stock," said Sissel. CrowdStrike reported Tuesday where revenue inline with estimates and a better-than-expected profit, but guidance that was below expectations. But Bernstein downgraded CrowdStrike on Friday to market perform from outperform, citing valuation concerns. CrowdStrike trades at roughly 133 times forward earnings. Worldwide Exchange pick: Mexican stocks Alastair Pinder, head of emerging markets at HSBC, said U.S.-China trade talks in London are a tailwind for emerging markets and believes Mexico will be one of the biggest winners. "A surprise market that could do very well this year is Mexico," said Pinder. "They are a beneficiary long term of these trade tensions and this rejiggering of supply chains away from Asia and towards America … this is a market that trades at 12-times earnings it's used to be 19 times a lot of the bad news is already reflected in the price." The iShares MSCI Mexico ETF (EWW) has gained nearly 30% year to date. The dollar has dropped 8% against the Mexican peso. The trade ahead of CPI and PPI Jimmy Lee of Wealth Consulting group sees inflation improving and growing opportunities in interest rate sensitive cyclicals and small caps. His comments come ahead of the latest consumer and producer price index readings due this week. "I believe if the headline number continues to come in lower that there may be one or two more cuts than what the market is pricing in," Lee said to CNBC. "I like the cyclical sectors that would perform better in a lower rate environment as well as an economy that is not going into recession. … I think the smaller cap and mid cap stocks that have not participated in this year will come back." Citi on Monday lowered its outlook for Federal Reserve rate cuts from 100 basis points in 2025 to 75 basis points. Tracking the TIPS Gilbert Garcia of Garcia Hamilton believes we are likely seeing a peak in U.S. Treasury yields, noting it's an ideal time to buy at any point on the curve. "If you look at the real rate on TIPS (Treasury Inflation Protected Securities) they are unusually high … the real rate is roughly 250 basis points, which it should normally be 50 to 75 basis points," he said. Garcia noted bond yields moved higher after the jobs report but expects continued downward revisions similar to the 30,000 in April and 65,000 in March. Garcia expects those revisions to be eventually be reflected in bond pricing.
Yahoo
05-02-2025
- Business
- Yahoo
Trump's Tariff Talk Shakes Up ETF Sectors, Assets Classes
The Trump administration's weekend promise to implement a program of tariffs rattled stock, bond and crypto markets Monday morning, as traders alternatively punished and rewarded asset classes and sectors expected to be most impacted. Among exchange-traded funds, the volatility hit the broad equity market indexes with unbiased force, driving the SPDR S&P 500 ETF Trust (SPY) and the iShares Russell 2000 ETF (IWM) down more than 1.3% at the opening bell. Both ETFs pared their deepest losses after several hours of trading, particularly after the U.S. and Mexico agreed on a one-month delay to the duties around 10:30 a.m. ET. The iShares MSCI Mexico ETF (EWW) reversed earlier declines to rally after the tariff delay. It gained 2.5% shortly after midday but dipped almost 6% since earlier Monday. Canada and Mexico have been singled out by President Trump for increased tariffs. Trump has said the added fees will pressure the countries to boost efforts to cut the flow of illegal drugs into the U.S. Both of those nations' financial markets dipped upon opening. Meanwhile, the iShares MSCI Canada ETF (EWC) remained negative, falling nearly 7% from Friday to early Monday. At midday, it had declined 1.5%. Paul Schatz, president of Heritage Capital in Woodbridge, Connecticut, said investors should brace for more unrest. 'Back-to-back blue Mondays,' he said. 'The markets seemingly did not believe Trump would follow through with the tariffs, and price action this morning suggests we're revisiting the lows from last week's DeepSeek selloff.' Underscoring the whipsawed ride of EWW Monday morning, Schatz said, 'This is part of the sell-the-rallies theme we are employing in the first quarter. This bull market isn't over.' Commodities including oil lost earlier gains. The United States Oil Fund LP (USO) rose more than 3% from Friday's low to just before Monday's market open. It had lost half of a percentage point midday. Meanwhile, the SPDR Gold Shares ETF (GLD) stands out as one of the steadier outliers amid the broader selloff. GLD, which is up 38% over the past 12 months, pared earlier gains and was higher by 0.6% | © Copyright 2025 All rights reserved Sign in to access your portfolio
