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Globe and Mail
6 days ago
- Business
- Globe and Mail
Selloff? What Selloff? Monday Market Rebound
Markets reversed Friday's selloff with relative ease today, hitting the tape in the green this morning and staying higher throughout the session. It's a clear bounce-back to start a new week of trading. The Dow gained +585 points, +1.34%, while the S&P 500 grew +91, +1.47%. The Nasdaq was up an impressive +403 points, +1.95% on the day, and the small-cap Russell 2000 beat the field: +44 points, +2.05%. Bond yields had already come down and they were steady today, as well: +4.20% on the 10-year and +3.69% on the 2-year. These are clear indicators that interest rates will need to come down — they are currently between +4.25-4.50%, as they have been all year so far. There is no August Fed meeting, however; unless an emergency arises, the Fed's next chance to lower rates will come September 17th. Factory Orders for June came in at negative levels, as expected, but 10 basis points (bps) better than expected at -4.8%. This follows the best single-month in factory orders for at least 10 years, an upwardly revised +8.3%. This clearly was a result of tariff and tariff deadline adjustments post-'Liberation Day' at the start of calendar Q2. A tariff reprieve gave companies (and individuals) the opportunity to load up ahead of any future unforeseen moves. Q2 Earnings After the Close Denver-based intelligence software firm Palantir Technologies PLTR posted robust numbers in its Q2 report after the closing bell sounded today, beating on its bottom line by only 2 cents to 16 cents per share, but revenues of $1.0 billion surging past the $938.3 million expected — a record high quarter on the top line. The U.S. grew +68%, commercial was up +93% and the government +53%. Palantir's revenue guidance for next quarter is well beyond prior estimates, for both next quarter and the full year. The low-end of revenue guidance of $1.083 billion for the quarter and $4.14 billion for the year were already well beyond the $989.4 million and $3.92 billion, respectively. Shares are up +4% currently, and the company expects 10x revenue growth over the next decade. We expect the company will be able to shake off its Zacks Rank #5 (Strong Sell) rating. Hims & Hers Health HIMS, on the other hand, came up short on both top and bottom lines this afternoon, with earnings of 17 cents per share missing the Zacks consensus by a penny, with revenues of $545 million below the $553.2 million expected. The company reaffirmed full-year guidance, but at +162% year to date, shares are trading off -12% in the after-market. Vertex Pharmaceuticals VRTX is off by an even more significant margin, -13.5%, even as the biopharma firm beat estimates on both top and bottom lines after today's close. One of its pain drugs in Phase 2 testing failed to meet its objectives and will be discontinued. CSO David Altshuler will also be stepping down from his post. What to Expect from the Stock Market Tomorrow Q2 earnings season hits full throttle Tuesday, with Caterpillar CAT, McDonald's MCD, big pharma Pfizer PFE and biotech Amgen AMGN all reporting ahead of the open, and chipmaker AMD AMD and EV upstart Rivian RIVN coming out with numbers after the close. The U.S. Trade Deficit will hit the tape Tuesday morning, expected to improve to -$61.0 billion from -$75.5 billion reported last time around. We'll also see S&P and ISM Services PMI once the market opens, expected to remain north of the 50-level, which depicts growth versus loss. Trade deals have gone quiet of late, but there's always a chance something new will be agreed upon, or signed. Questions or comments about this article and/or author? Click here>> Zacks Names #1 Semiconductor Stock This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Caterpillar Inc. (CAT): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report Amgen Inc. (AMGN): Free Stock Analysis Report McDonald's Corporation (MCD): Free Stock Analysis Report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report Palantir Technologies Inc. (PLTR): Free Stock Analysis Report Hims & Hers Health, Inc. (HIMS): Free Stock Analysis Report Rivian Automotive, Inc. (RIVN): Free Stock Analysis Report
Wall Street Journal
6 days ago
- Business
- Wall Street Journal
Treasury Yields Keep Falling Amid Signs of Economic Cooldown
1542 ET – Treasury yields extend the decline triggered by Friday's disappointing jobs report, after June factory orders contract by 4.8%. Odds of an interest rate cut by the Fed in September are priced at 90% on the CME's FedWatch tool. Economists surveyed by WSJ expect the U.S. trade deficit to shrink in June, in data due tomorrow. July services PMI is expected to move up. The 10-year yield falls 0.021 percentage point to 4.197% and the two-year declines 0.022 p.p. to 3.680%, in both cases the lowest yield since April 30. ( @ptrevisani) 0901 ET – Treasury yields fall in the absence of major U.S. economic indicators and as markets increase odds of an interest rate cut after Friday's dismal jobs report. President Trump is expected to place an ally at the top of the agency in charge of measuring employment, after firing the BLS commissioner following below-forecast job creation in July and sharp downward revisions in May and June. Markets are pricing in 86% odds of a Fed cut in September, up from 63% a week ago, CME data show. June factory orders are expected to contract, in a WSJ survey. The data is due at 10 a.m. ET. The 10-year yield is at 4.198% and the two-year at 3.666%. ( @ptrevisani)
Yahoo
7 days ago
- Business
- Yahoo
Dollar Under Pressure as Fed Rate Cut Expectations Increase
The dollar index (DXY00) today added to last Friday's losses and is down by -0.43%. The dollar is falling today on negative carryover from last Friday's weaker-than-expected US payroll and ISM manufacturing reports, which bolstered speculation that the Fed may cut interest rates as soon as next month. Also, questions about Fed credibility are weighing on the dollar after Fed Governor Adriana Kugler resigned last Friday, which could prompt President Trump to nominate a new governor who is more dovish and could undermine Fed Chair Powell's influence. Strength in stocks today has also reduced liquidity demand for the dollar. US June factory orders fell -4.8% m/m, right on expectations and the biggest decline in more than 5 years. However, June factory orders ex-transportation rose +0.4% m/m, stronger than the expectations of +0.3% m/m and the largest increase in 7 months. More News from Barchart Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Federal funds futures prices are discounting the chances for a -25 bp rate cut at 90% at the September 16-17 FOMC meeting and 73% at the following meeting on October 28-29. EUR/USD (^EURUSD) today is down by -0.08%. The euro is modestly lower today after the Eurozone Aug Sentix investor confidence index unexpectedly declined. Also, today's fall in the 10-year German bund yield to a 1-month low has weakened the euro's interest rate differentials. In addition, the euro is struggling due to concerns that President Trump's tariff policies will curb economic growth in the Eurozone. The Eurozone Aug Sentix investor confidence index unexpectedly fell -8.2 to -3.7, weaker than expectations of an increase to 6.9. Swaps are pricing in a 16% chance of a -25 bp rate cut by the ECB at the September 11 policy meeting. USD/JPY (^USDJPY) today added to last Friday's sharp losses and is down by -0.21%. The yen rallied to a 1-week high against the dollar today after the Nikkei Stock index fell to a 1.5-week low, which spurred some safe-haven buying of the yen. Also, today's slide in T-note yields is supportive of the yen. December gold (GCZ25) today is up +33.80 (+0.99%), and September silver (SIU25) is up +0.411 (+1.11%). Precious metals are climbing today, with gold prices rising to a 1-week high. Today's dollar weakness is bullish for metals. Precious metals also have carryover support from last Friday's weaker-than-expected US July payroll and July ISM manufacturing reports, which boosted speculation that the Fed may cut interest rates as soon as next month. The chance of a Fed interest rate cut at the September FOMC meeting has risen to 90% from 40% before the reports. Precious metals prices also have safe-haven support on concerns that President Trump's tariff policies will weigh on global economic growth prospects. Finally, precious metals continue to receive safe-haven support from geopolitical risks, including the conflicts in Ukraine and the Middle East. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Wall Street Journal
04-07-2025
- Business
- Wall Street Journal
German Factory Orders Sink as Uncertainty Weighs
Demand for German manufactured goods dropped in May, reflecting continued economic uncertainty, though foreign orders held up, suggesting U.S. firms continue to stockpile goods amid concerns over future U.S. tariff policies. Factory orders fell 1.4% on month, Germany's statistics agency Destatis said Friday, almost offsetting the rise of 1.6% in April that was prompted by tariff front-running. May's level was weaker than expectations of a 0.2% decrease from a consensus of economists polled by The Wall Street Journal.
