Latest news with #FreedomCapitalMarkets
Qatar Tribune
7 hours ago
- Business
- Qatar Tribune
US stocks edge toward records with inflation data in focus
Agencies New York The US stock rebound has driven key indexes to the cusp of record levels, with fresh economic data and trade and fiscal policy developments set to test whether equities will get an extra push higher in thenear term. A monthly US inflation report headlines the events for markets in the coming week. Equities have bounced back from a steep fall in April, sparked by concerns about the economic fallout from President Donald Trump's tariff plans. Stocks ended the week on a high note, with the S&P 500 closing on Friday above 6,000 for the first time since late February, buoyed by a monthly US jobs report that calmed worries about theeconomy. The benchmark S&P 500 ended on Friday 2.3 percent off its record closing high from February. 'I'd still say it's a cautious tone' in the market, said Jim Baird, chief investment officer with Plante Moran Financial Advisors. Despite a 'recovery off the lows, I still think it's a market that is looking for greater clarity.' Some uncertainty stems from how the US economy is weathering the shifting trade backdrop. Trump has eased back on some of the harshest tariffs since his April 2 'Liberation Day' announcement sent stocks tumbling, but investors are waiting to see how other levies may be rippling through the economy. The consumer price index report for May, due on Wednesday, could give insight into the tariff impact at a time investors are wary of any flare-ups in inflation. 'Consumers are feeling the impact of higher prices and if there are indications that near-term inflation could re-accelerate, that is going to put further pressure on discretionary spending and ultimately could lead to a more pronounced slowdown in growth,'Baird said. The CPI report will be one of the last key pieces of data before the Federal Reserve's June 17-18 meeting. The US central bank is widely expected to hold interest rates steady at that meeting, but traders are pricing in nearly two 25-basis point cuts by the end of the year. 'If we see inflationary data that defies what people are concerned about based on this tariff talk and it comes in cooler, then that could also be a catalyst to at least test those old highs,' said Jay Woods, chief global strategist at Freedom Capital Markets. US stocks closed higher on Friday, with the Dow and S&P 500 gaining 1 percent and the Nasdaq climbing 1.2 percent. For the year, the S&P 500 is up 2 percent. But the index has stormed back over 20 percent since April 8, at the depth of the stock market's plunge on concerns over the tariff fallout. Investors also are grappling with uncertainty over a sweeping tax-cut and spending bill under review in the US Senate. Wall Street is monitoring how much the legislation could stimulate economic growth, but also inflate the country's debt burden as widening fiscal deficits have become a central concern for markets in recent weeks. 'As debt increases, it has a greater negative impact on growth,' said Kristina Hooper, chief market strategist at Man Group. The legislation also appeared to be the source of a severe rift between Trump and Tesla chief Elon Musk, which weighed on stock indexes. Former Trump ally Musk called the bill at the heart of Trump's agenda a 'disgusting abomination,' while Trump said he was 'disappointed' by the billionaire's public opposition. Trade talks also remain at the forefront of markets, with a 90-day pause on a wide array of Trump's tariffs set to end on July 8. Trump said on Friday three of his cabinet officials will meet with representatives of China in London on Monday to discuss a trade deal. 'When it comes to policy from Washington, there are still big question marks,' said Bob Doll, chief investment office at Crossmark Global Investments.
Hans India
7 days ago
- Business
- Hans India
Dow drops 200 points as U.S.-China trade tensions and tariff fears rattle markets
Markets opened June with renewed volatility as global trade tensions resurfaced, dragging the Dow Jones Industrial Average down 200 points. The S&P 500 slipped 0.2%, while the Nasdaq remained mostly flat. The downturn came as U.S.-China relations grew strained. China rejected U.S. claims of violating a temporary trade agreement and countered that Washington failed to uphold its commitments. This dispute follows recent talks in Geneva that temporarily paused tariffs. A direct call between President Donald Trump and Chinese President Xi Jinping is expected this week. 'This back-and-forth could prolong volatility, but a clear resolution could drive markets to new highs,' said Jay Woods, Chief Global Strategist at Freedom Capital Markets. U.S.-EU tensions also flared after Trump announced plans to double steel tariffs to 50%, prompting an EU warning that such moves raise costs and sow economic uncertainty. Steelmakers rallied sharply in response: Cleveland-Cliffs surged 25%, while Steel Dynamics and Nucor jumped nearly 10%. Meanwhile, economic data showed continued weakness. U.S. manufacturing contracted for the second month, with the ISM index at 48.5%, and construction spending fell 0.4% in April. JPMorgan analysts warned that the full impact of tariffs—especially on inflation and growth—has yet to hit, noting a possible slowdown in consumer activity and rising prices in the months ahead. Adding to the market pressure, shares of Flutter Entertainment and DraftKings fell after Illinois passed a higher sports betting tax, which analysts say could push users to illegal markets and lead to similar hikes in other states.
Yahoo
25-05-2025
- Business
- Yahoo
See a big stock rally ahead? Be patient, money manager says
The Standard & Poor's 500 index has jumped some 20% from its April low, but the trauma of the 10%-plus sell-off is still with us. Want some proof? Look at what happened Friday when President Trump threatened to boost tariffs to 50% on imports from the European Union and add 25% tariffs on iPhones imported from India. 💵💰 💰💵 The S&P 500 fell 0.7%. The Dow was off 0.6%. The Nasdaq Composite and Nasdaq-100 indexes were down about 1% each. Information technology stocks tumbled 1.3%. Apple () fell 3% (and 7.6% for the week), and its market capitalization dropped under $3 trillion. That's why Jay Woods, chief global strategist with Freedom Capital Markets, thinks investors need to be patient over the next few months. There are important earnings coming up this week and other events in the next few months that can whipsaw markets, Woods said this week in an interview with Chris Versace, columnist and portfolio manager of theStreet Pro. The interview is part theStreet Pro's "Stocks and Markets" podcast series. Watch the complete interview here. The U.S. market has seen a big runup since bottoming in early April, and it's a bit frothy. The Nasdaq saw its relative strength index top 70 — an overbought signal — for four days ending on May 19. The S&P 500 came within 3% of a new high on May 19 and now looks like it needs to bounce off its 200-day moving average, now about 5,773, to boost investor confidence. Plus, it's not clear when the tariff battles will end. One reason for the 50% tariff threat on the European Union is the Trump Administration thinks the progress on trade talks is too has been working on Wall Street for 20-plus years after graduating from Fordham University. His career includes time spent as a floor trader on the New York Stock Exchange. By training, he is a technically-minded analyst and starts any analysis by understand financial charts and moving on to the fundamentals. Here are the key challenges Woods said markets and investors face: Nvidia () , the high-end chip maker, reports second-quarter earnings after Wednesday's close, and Woods said the company hasn't been rewarded for the strong earnings it has reported in recent quarters. Nvidia is the developer of graphic processing units that are key to making artificial intelligence stock closed Friday at $131.29. But it hasn't come close lately to its 52-week high of $153.13, reached on Jan. 7. The problem is the hangover from the emergence of DeepSeek, a Chinese AI development company founded in July 2023. In January, DeepSeek said could deliver large-language models of software as freeware. By Jan. 27, its freeware was the most downloaded software ap on Apple's IOS app store, exceeding Chat GPT's OpenAI software. Nvidia shares dropped as much as 18% before stabilizing with a 17% loss. Nvidia shares are up 11% since that January low and 21% in the second quarter. The shares are still down 2.3% on the year. But, again, not through $150. And that affects other big tech names, including Microsoft () , Woods said. Pure tech is only part of what's needed to boost stocks, Woods said. The other is strength in two tech stocks listed as Consumer Discretionary stocks: () Tesla () . These stocks represent about 40% of the market capitalization of the sector. Amazon is off 8.4% this year. Tesla is still down 16% in 2025, despite jumping 31% so far in the second quarter. Apple is more problematic because it hasn't had a "wow" product in some time, Woods trade talks are critical for the market. And Woods is confident that most trade talks will be completed at worst by the end of the year and more likely in the third quarter. To make sense for investors, however, the Trump tariff rates have to come down and come down a lot, he said. Why? Then, companies won't have to raise prices. "If tariffs don't come down as quick as we might hope they do, that guidance (companies) are supposedly keeping could be at risk." (A note: Woods' interview was conducted on Tuesday before Trump's threats against European Union and Apple.) More Tech Stocks: Amazon makes move that the White House hates, then walks it back Analyst reboots Apple stock price target ahead of earnings Controversial EV tax credits will be bad news for Tesla The Federal Reserve's key interest rate is at 4.25% to 4.5%. "I think we could get a rate cut in June, but we won't until the following meeting," he said. That assumes economic data is stable. particularly on inflation. That meeting is scheduled for July 28-29. Part of the inflation question, of course, depends on trade a big stock rally ahead? Be patient, money manager says first appeared on TheStreet on May 25, 2025 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
CNBC
22-05-2025
- Business
- CNBC
Three Stock Lunch: BJ's Wholesale, Uber and Palo Alto Networks
Jay Woods, Freedom Capital Markets, joins 'Power Lunch' to discuss Woods' investing take on three stocks: BJ's Wholesale, Uber and Palo Alto Networks.
CNBC
22-05-2025
- Business
- CNBC
Equity market will 'tire out' if it continues on this rally, says Freedom Capital's Jay Woods
Victoria Greene, G Squared Private Wealth, and Jay Woods, Freedom Capital Markets, join 'Power Lunch' to discuss how strong markets are holding up, what yield levels would be more worrisome for stocks and much more.
