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Business Recorder
a day ago
- Business
- Business Recorder
Wall Street mixed after Trump's steel tariff threat
NEW YORK: Wall Street's main indexes were mixed on Monday after President Donald Trump said he plans to double tariffs on imported steel and aluminum, fueling more uncertainty around US trade policies. Trump said late on Friday he planned to increase tariffs on imported steel and aluminium to 50% from 25% starting Wednesday, just hours after he accused China of violating an agreement. Shares of US steel companies rose, with Cleveland-Cliffs jumping 23.6%, Nucor up 9.2% and Steel Dynamics 10.1% higher. However, shares of automakers fell. Ford was down 4.3% and General Motors was 4.7% lower. 'It's the continued uncertainty, not knowing whether the trade war is on or it's off,' said Sam Stovall, chief investment strategist at CFRA Research. 'Something new gets added, something gets postponed, so essentially it is that uncertainty reigns.' The increased levies risk deepening Trump's global trade war, and dousing enthusiasm in markets stemming from the US president's softer trade stance that drove a recovery in risky assets last month. A temporary relief on some levies on China and a rollback of steep tariff threats on the European Union, along with strong earnings and improving economic picture helped the benchmark S&P 500 log its best monthly performance in 18 months in May. Also fueling risk-off moves in global markets, Kyiv struck some of Moscow's nuclear-capable bombers on Sunday, renewing concerns around further escalation of the war. At 11:49 a.m. ET, the Dow Jones Industrial Average fell 196.92 points, or 0.47%, to 42,073.15, the S&P 500 lost 9.21 points, or 0.16%, to 5,902.48 and the Nasdaq Composite gained 17.73 points, or 0.09%, to 19,131.49. Seven of the 11 major S&P 500 sub-sectors fell, with consumer discretionary declining the most with a nearly 1% fall. On the flip side, energy rose over 1% tracking a rise in oil prices. US-listed energy stocks advanced after producer group OPEC+ kept output increases in July at the same level as the previous two months. Most megacap and growth stocks fell, with Tesla, down 2.8% after it reported lower monthly sales for Portugal, Denmark and Sweden. Google-parent Alphabet also lost 1.7%. The Institute for Supply Management's (ISM) survey showed US manufacturing contracted for a third straight month in May and suppliers took longer to deliver inputs amid tariffs, potentially signaling looming shortages of some goods. Dallas Federal Reserve Bank President Lorie Logan said that with the labor market stable, inflation running somewhat above target and the outlook uncertain, the central bank is keeping a watchful eye on a broad range of data to judge what response might be needed, and when.
Economic Times
a day ago
- Business
- Economic Times
US stocks trade mixed after Trump's steel tariff threat
Synopsis Wall Street's main indexes opened lower on Monday after President Donald Trump revealed plans to double tariffs on imported steel and aluminum, fueling more uncertainty around U.S. trade policies. Wall Street's main indexes were mixed on Monday after President Donald Trump said he plans to double tariffs on imported steel and aluminum, fueling more uncertainty around U.S. trade policies. Tired of too many ads? Remove Ads Trump said late on Friday he planned to increase tariffs on imported steel and aluminum to 50% from 25% starting Wednesday, just hours after he accused China of violating an of U.S. steel companies rose, with Cleveland-Cliffs jumping 23.6%, Nucor up 9.2% and Steel Dynamics 10.1% shares of automakers fell. Ford was down 4.3% and General Motors was 4.7% lower."It's the continued uncertainty, not knowing whether the trade war is on or it's off," said Sam Stovall, chief investment strategist at CFRA Research. Tired of too many ads? Remove Ads "Something new gets added, something gets postponed, so essentially it is that uncertainty reigns."The increased levies risk deepening Trump's global trade war, and dousing enthusiasm in markets stemming from the U.S. president's softer trade stance that drove a recovery in risky assets last month. A temporary relief on some levies on China and a rollback of steep tariff threats on the European Union, along with strong earnings and improving economic picture helped the benchmark S&P 500 log its best monthly performance in 18 months in May. Also fueling risk-off moves in global markets, Kyiv struck some of Moscow's nuclear-capable bombers on Sunday, renewing concerns around further escalation of the war. At 11:49 a.m. ET, the Dow Jones Industrial Average fell 196.92 points, or 0.47%, to 42,073.15, the S&P 500 lost 9.21 points, or 0.16%, to 5,902.48 and the Nasdaq Composite gained 17.73 points, or 0.09%, to 19,131.49. Seven of the 11 major S&P 500 sub-sectors fell, with consumer discretionary declining the most with a nearly 1% fall. On the flip side, energy rose over 1% tracking a rise in oil prices.U.S.-listed energy stocks advanced after producer group OPEC+ kept output increases in July at the same level as the previous two megacap and growth stocks fell, with Tesla, down 2.8% after it reported lower monthly sales for Portugal, Denmark and Sweden. Google-parent Alphabet also lost 1.7%. Tired of too many ads? Remove Ads TheInstitute for Supply Management's (ISM) survey showed U.S. manufacturing contracted for a third straight month in May and suppliers took longer to deliver inputs amid tariffs, potentially signaling looming shortages of some Federal Reserve Bank President Lorie Logan said that with the labor market stable, inflation running somewhat above target and the outlook uncertain, the central bank is keeping a watchful eye on a broad range of data to judge what response might be needed, and will be on comments from Federal Reserve Chair Jerome Powell later in the day as he presents opening remarks before the Federal Reserve Board International Finance Division's 75th anniversary conference at 1:00 p.m. ET (1700 GMT).Traders currently see at least two 25 basis points of cuts by the end of the year, according to data compiled by are also looking ahead to a crucial nonfarm-payrolls report on Friday to gauge the U.S. labor market's strength amid tariff issues outnumbered advancers by a 1.6-to-1 ratio on the NYSE and by a 1.09-to-1 ratio on the S&P 500 posted 14 new 52-week highs and four new lows, while the Nasdaq Composite recorded 69 new highs and 67 new lows.
CNBC
5 days ago
- Business
- CNBC
There's a 'weird dichotomy' between the Magnificent Seven and the rest of the market
Stocks appear to have come full circle since the start of the year, but with one key difference: the "Magnificent Seven" stocks are not as expensive as they were coming into 2025. The S & P 500 is virtually unchanged on the year, following an extraordinary selloff and recovery over the past two months. In that time, the index slumped 20% from its February peak following the April 2 tariff announcement, then made back all those losses. The broader index is now a little more than 3% off its record high. For all off of 2025, the broad market index has eked out a 0.8% gain, not including reinvested dividends. .SPX YTD mountain S & P 500 in 2025 This time, however, there's a different nuance in the market, according to Marta Norton, chief investment strategist at Empower Investments. She pointed out that while the overall market is more expensive than it was at the start of the year, the Magnificent Seven stocks are cheaper than they were. "At the start of the year, the Mag Seven were very expensive, and you felt like that was going to lead the market down. But at this point in the year, Mag Seven is, you know, certainly rallied back a bit, but it's cheaper than it looked at the start of the year, and it's the rest of the market around the Mag Seven that looks expensive," said Norton. "So, there's this weird dichotomy where the area of greatest risk doesn't look to be quite as big a risk, at least from a valuation standpoint, that it had [at] the start of the year," Norton added. Take Nvidia , which started 2025 with a forward P/E of 31.3, is now trading at 29.6 forward earnings, according to FactSet data. Apple , which was at 33.0, now sells for 26.6 times the coming year's profits. Google-parent Alphabet , which was trading at 21.1, is now at 17.7. Amazon , previously at 35.2, now changes hads at 31.3. Only two of the megacaps stocks trade above their Dec. 31 forward valuations. Meta Platforms , which was at 23.0, is now at 24.3. Microsoft , once at 29.9, is now 30.6. Meanwhile, the broader market looks more expensive. The S & P 500, at 21.3 currently, is trading about where it was in December. But consumer staples companies were at 18.6 times at the end of last year, and are now at 19.9. The cheaper Mag Seven valuations suggest there could be some momentum left in the market even after its huge upswing since early April, since the elite group combined accounts for roughly 30% of the S & P 500 market value. Norton, however, is skeptical the market will rally meaningfully higher in 2025. She thinks the S & P 500 will be rangebound for the rest of the year as expensive valuations in the rest of the market, as well as the impact of tariffs on corporate earnings, will offset any benefits from deregulation later this year. "Should we see the Mag Seven continue to recover, that would certainly be a force for strength in the market, but we still have to watch that remaining 70%," Norton said. Other Wall Street firms are sounding similar concerns. In fact, a note from UBS said that "MAG-7 dominance risk has yet again returned" following Nvidia's latest earnings beat, a development that suggests the market is "now priced for perfection and is vulnerable to even slightly disappointing news."
Yahoo
6 days ago
- Business
- Yahoo
Nvidia's earnings are the stock market's next major test after May's Big Tech comeback
Megacap technology stocks have gotten a huge boost in May, as investors seek to turn the page on recent tariff tumult and as Nvidia Corp.'s earnings loom. U.S. banks might kick off earnings season and help set the tone, but it's the tech companies that lately have had the final word on whether the stock market had a good quarter or not. 'You never know what might happen': How do I make sure my son-in-law doesn't get his hands on my daughter's inheritance? My ex-wife said she should have been compensated for working part time during our marriage. Do I owe her? Trade court strikes down Trump tariffs: What it means for markets — and what's next My husband and I earn $115K and owe $220K on our home. We're inheriting $300K. Should we invest in real estate or stock? 'Is this a good tax strategy or a sham transaction?' My mother wants to give me her home. I have a plan to avoid taxes. With that in mind, Wednesday's fiscal first-quarter earnings from artificial-intelligence darling Nvidia NVDA have a special place on the week's calendar. Read: Nvidia reports earnings tomorrow. Here's the main issue on investors' minds. Shares of Nvidia climbed 3.1% on Tuesday, a day before its quarterly results were due, and are up 24.3% on the month so far, according to FactSet. The AI chip maker will be the final 'Magnificent Seven' company to walk the earnings gantlet this quarter. While 2025 has been fraught on Wall Street, the past few weeks have benefited this particular group of tech titans. That's because investors worried about tariffs and their potential toll on the economy once again have turned to technology names, instead of the broader stock market, as a port in the storm. This chart shows the huge gains of the 'Magnificent Seven' stocks since the lows of early April, against a rise of about 4.4% for the broader S&P 500 index, as well as a roughly 1.3% gain for its equal-weight version. 'I do think they are viewed, because of their business models and pervasiveness,' as a kind of 'safer play, no matter what happens with the economy,' said Melissa Brown, head of investment decision research at SimCorp. 'And despite their higher valuations, as a group, those have been the ones to really be able to deliver on earnings expectations.' The Big Tech comeback in May followed a harsh fall after President Donald Trump's 'liberation day' tariffs shocked investors, businesses and U.S. trade partners in early April. Trump's proposed 'maximalist' levies triggered a collective $2.12 trillion loss of market capitalization for the 'Magnificent Seven' companies between the market's close on April 2 to the lows of April 8, according to Dow Jones Market Data. In addition to Nvidia, Inc. AMZN, Microsoft Corp. MSFT, Google-parent Alphabet Inc. GOOG GOOGL, Meta Platforms Inc. META, Tesla Inc. TSLA and Apple Inc., AAPL make up this group. Trump's trade fight has evolved since early April to include 'pauses' on some tariffs to help cajole trade partners into quicker negotiations, as well as the promise of more deals to come after the U.S. and U.K. outlined a new trade agreement. Read: Trump rolls out U.K. trade agreement. It's a relief — but deals with other countries are more crucial. After details of the U.S.-U.K. deal emerged, the 'Magnificent Seven' added back $3.7 trillion in market cap between the April 8 low and a May 14 peak, bringing their combined valuation to about $16.8 trillion, according to Dow Jones Market Data. Since then, sharply higher bond yields BX:TMUBMUSD10Y BX:TMUBMUSD30Y have failed to dull demand for this popular group of stocks, a trend strategists attributed to their strong earnings, as well as optimism around plans to keep up AI spending. While first-quarter earnings have been good for the S&P 500 index SPX, they've been even better for technology companies. The S&P 500's blended earnings growth rate was pegged recently at 12.9% for the first quarter versus a year before, well above the 10-year average of 8.9%, according to FactSet data. But that's only part of the story. 'The Communication Services sector reported the second-highest (year-over-year) earnings growth rate of all 11 sectors at 29.2%,' John Butters, senior earnings analyst at FactSet, wrote in a May 23 report. Alphabet and Meta, however, ranked as the biggest contributors to the sector's earnings growth. Without those two companies, its blended earnings growth rate would have fallen to 9.6% from 29.2%, according to Butters. Still, this chart shows just how much the 'Magnificent Seven' stocks have outpaced the broader market, when comparing their earnings growth against the rest of the S&P 500's 493 companies. Their collective capex guidance for 2025 was pegged at about $330 billion, according to Jeff Buchbinder, chief equity strategist at LPL Financial. 'After Nvidia reports this week, these seven companies will likely end up driving nearly half of the S&P 500's EPS growth overall,' he wrote in a Monday client note. The broader S&P 500 posted a 2.1% gain on Tuesday, after Trump said over the long holiday weekend that his idea of a 50% tariff against the E.U. would be delayed until July 9, while the Dow Jones Industrial Average DJIA gained 1.8% and the Nasdaq Composite Index COMP rose 2.5%, according to FactSet. Nvidia's earnings are the stock market's next major test after May's Big Tech comeback Investors who followed 'sell in May and go away' are missing what could be the best May for the S&P 500 in decades It's my dream to travel to Africa. Can I pay for my husband's trip without commingling our finances? Treasury Secretary Bessent has a plan to bring down long-term yields. But will it work? After 25 years, I finally asked for separate checks — and my friends iced me out. Did I do something terrible? Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
Stock Market Today: All Eyes Turn to Nvidia
Technology shares were enjoying a modest rally this afternoon as investor awaited earnings from AI giant Nvidia () and Salesforce () , both due after today's close. Nvidia shares were up 1% to $136.90 at 2:40 p.m. Nvidia's semiconductors and Graphic Processing Units dominate the market for chips used to power artificial intelligence applications. Salesforce, a powerhouse in customer relations management, was off 0.8% at $275.01. While techs were higher, the Standard & Poor's 500 Index and the Dow Jones Industrial were both modestly lower. Drifting is a good descriptor for the overall market. The Federal Reserve, meanwhile, released the minutes of its May 6-7 meeting. The minutes suggest Fed officials believed market and trade volatility were enough to leave its key federal funds rate at 4.25% to 4.5%. Nine of 11 S&P 500 sectors were lower. The leading sector was information technology led by Fair Isaac Corp. () , up 8.6%. It was followed by Broadcom () and Super Micro Computer () , up 1.6% and 1.32%, respectively. Communications Services were the other winners led by Discovery Inc. () and News Corp. Class B () , up 4,3% and 1.3%, respectively. Facebook parent Meta Platforms () was up slightly after its annual meeting. The company is breaking its AI team into two pieces to better compete with OpenAI and Google-parent Alphabet () . Utilities were still the weakest sector, off 1.6%, weighed down by higher interest rates. The 10-year yield was at 4.481%, up from 4.45% on Tuesday. Shares of Nvidia () were edging higher this afternoon ahead of its fiscal-first-quarter earnings report, due after Wednesday's close. The shares were up 0.5% to $136.14 at 1:20 p.m. Stocks generally were lower with the Standard &Poor's 500 Index off just six points at 5,915. The Nasdaq Composite was off very slightly at 19,199. The Dow Jones industrials were off 102 points at 42,242. Only two of 11 S&P 500 sectors were higher, however: Communications Services and Information Technology. The first includes Facebook parent Meta Platforms () , up 0.6% to $646.16 as the company holds its annual meeting Techs were led by Fair Isaac () , the company that generates credit scores for consumers. The shares were up 8.6% to $1632. The weakest sector was utilities, lower because bond yields had moved higher today. The 10-year Treasury yield was at 4.49%, up slightly from Monday. The yield had reached as much as 4.61% on May 21. Crude oil was up $1.11 at $62.00. The Federal Reserve was scheduled to release minutes of its May 6-7 meeting at 2 p.m. ET. Stocks are drifting lower in midday trading. The S&P 500 Index is 30 points off the day's highs at 5906, down 0.25% on the day. More stocks are down than up, too. Among S&P 500 constituents, for every stock that's higher today, around 5 are down. You can see that clearly on this heat map, where the biggest ups include AutoZone () , Palantir () , and the healthcare providers like UnitedHealth () , Elevance () and CVS () . UNH has been beaten down, and while there's no big news to explain today's gain, the company has mentioned seeing cost benefits to using AI in the future and reports say that Congress members have bought stock. Nvidia has drifted off the day's highs and is down slightly. But there are way more red boxes that green ones. Yesterday, I mentioned the huge gain in the Conference Board's Consumer Sentiment for May. David Rosenberg tweeted the following, which prompted some discussion in TheStreet Pro's Daily Diary about the value of this survey. Our own Doug Kass at TheStreet Pro suggested that this number should be ignored. It's a lagging indicator that was influenced by the big jump in stock prices. Especially considering that people are more than twice as confident in the stock market as they are in their own jobs! What else is happening? While not directly related to Tesla () , another SpaceX rocket launch failed yesterday. While launching rockets into space is incredibly hard and failure will be part of the road to success, this begs the question of whether Elon Musk has taken his eye off the ball with his foray into politics. That's all for now! Happy Wednesday! After the close of trading today, all eyes will turn to Nvidia () as investors await the company's Q1 earnings release. The Santa Clara, Calif., semiconductor maker is expected to report earnings of 93 cents a share on revenue of $43.2 billion, according to LSEG. TheStreet Pro's Stephen "Sarge" Guilfoyle says in his Market Recon column today that investors should also be on the lookout for "the reality (or not) of the company's April projection of a $5.5 billion inventory-based charge after President Trump tightened export controls for high-technology-type products headed for mainland China that could be used for military purposes." Nvidia shares are up in premarket trading. What else is happening today? Salesforce () is also set to report after the close. Expectations are for quarterly earnings per share of $2.55 on revenue of $9.75 billion. Yesterday was quite a day. Following Sunday's news that the Trump administration's aggressive tariffs on Europe would be delayed at least until July, stocks ripped more than 2% higher. All sectors were up, led by Consumer Discretionary, which gained nearly 3%. Breadth was strong, too. As for today, expect the market to be less exuberant. S&P futures are up 0.11%, while the Dow is down slightly. European markets are lower. Bond prices are slightly lower, sending yields up, while gold and crude oil are higher. Stock Market Today: All Eyes Turn to Nvidia first appeared on TheStreet on May 28, 2025
