Latest news with #JoelJose
USA Today
14-05-2025
- Business
- USA Today
JP Morgan, Goldman Sachs brokerages scale back recession forecasts after US-China truce
JP Morgan, Goldman Sachs brokerages scale back recession forecasts after US-China truce Show Caption Hide Caption US and China reach deal to slash tariffs, officials say The U.S. and China have agreed a deal to slash reciprocal tariffs for now, agreed to a 90-day pause following talks in Switzerland. Major brokerages, including Goldman Sachs, have lowered their U.S. recession forecasts due to the temporary tariff truce between the U.S. and China. Several brokerages, like Barclays and J.P. Morgan, now predict only one Fed rate cut in December 2025. Goldman Sachs raised its S&P 500 year-end target to 6,100 points, citing reduced tariff and recession risks. Major brokerages have scaled back their U.S. recession forecasts following a temporary tariff truce between the U.S. and China, which has fueled optimism for easing global trade tensions. Goldman Sachs reduced its U.S. recession forecast to 35% from 45%, marking the first major brokerage to do so, while Barclays dismissed recession risks entirely and J.P. Morgan placed the probability below 50%. On Monday, the U.S. and China agreed to reduce tariffs on each other's imports for 90 days, with the U.S. lowering its tariffs on Chinese goods to 30% from 145% and China cutting duties on U.S. imports to 10% from 125%. CPI report: Inflation eased to 4-year low in April as Trump's tariffs took effect Global brokerages had raised their odds of a U.S. and global recession last month as tariff concerns threatened to weaken business confidence and slow growth. Goldman also hiked its 2025 U.S. GDP growth forecast by 0.5 percentage points to 1%, it said in a note on Monday. With the growth outlook potentially improving, Goldman now expects a total of three rate cuts from the Federal Reserve in 2025 and 2026. It sees one reduction in December instead of July and the remaining in March and June next year. The brokerage had earlier predicted three rate cuts for this year itself. "The rationale for rate cuts shifts from insurance to normalization as growth remains somewhat firmer, the unemployment rate rises by somewhat less, and the urgency for policy support is reduced," Goldman said. Barclays and J.P. Morgan have aligned with Goldman Sachs in forecasting just one Federal Reserve rate cut in December 2025. Previously, Barclays had projected two rate cuts in July and September, while J.P. Morgan anticipated a single reduction in September. Goldman Sachs additionally raised the year-end target for the S&P 500 index .SPX to 6,100 points from 5,900, citing lower tariff and recession risks, according to a separate note. The index closed at 5,844.19 points on Monday. Citigroup, meanwhile, pushed its expectations for a Fed rate cut to July from June, it said on Monday. (Reporting by Joel Jose in Bengaluru; Editing by Sonia Cheema and Tasim Zahid)
The Star
07-05-2025
- Business
- The Star
EA shares jump as it scores big with upbeat forecast, 'Battlefield' release
An Electronic Arts office building is shown in Los Angeles, California, U.S., July 27, 2020. REUTERS/Mike Blake (Reuters) - Shares of Electronic Arts rose nearly 5% in premarket trading, after the gaming giant's upbeat forecast eased concerns about slowing momentum and revived confidence in its blockbuster sports titles. EA's forecast underscores the gaming industry's confidence in sustained sales strength, even as U.S. tariffs stir up economic uncertainty and put consumer wallets to the test. The upbeat forecast follows concerns about FC 25's performance, as the formerly FIFA-branded soccer franchise showed signs of slowing momentum and hints of player fatigue in a highly competitive market. The company on Tuesday said monetization for "FC" was up double digits after a January update. EA also announced the launch of "Battlefield", stepping in just as Take Two Interactive pushes the release of the long-awaited "Grand Theft Auto VI" beyond fiscal 2026. "The rebound in FC, continued success of American Football and upcoming Battlefield launch all give us confidence in a more sustainable top and bottom line story," analysts at Jefferies wrote in a note. Analysts have said pushing back the release of "GTA VI" could ease competition in the gaming market, potentially boosting sales for other videogame publishers as players seek alternative big-name titles. "FC proved to be a temporary "ebb" and the delay of GTA VI opened a window for Battlefield to launch in FY26," analysts noted. Shares of Take Two Interactive were up 1.15% at $234.5 in premarket trade. EA sees fiscal 2026 bookings ranging from $7.60 billion to $8 billion, outpacing market estimates of $7.62 billion according to data compiled by LSEG. At least 10 brokerages raised their price targets on the stock following the results, bringing the median to $166, according to data compiled by LSEG. EA currently trades at 19.96 times the estimates of its earnings for the next 12 months, compared with Take Two's 31.47. So far this year, EA's stock has gained 5.6%, trailing Take Two's jump of ~26%. (Reporting by Joel Jose and Rashika Singh in Bengaluru; Editing by Krishna Chandra Eluri)
Yahoo
07-05-2025
- Business
- Yahoo
EA shares jump as it scores big with upbeat forecast, 'Battlefield' release
(Reuters) - Shares of Electronic Arts rose nearly 5% in premarket trading, after the gaming giant's upbeat forecast eased concerns about slowing momentum and revived confidence in its blockbuster sports titles. EA's forecast underscores the gaming industry's confidence in sustained sales strength, even as U.S. tariffs stir up economic uncertainty and put consumer wallets to the test. The upbeat forecast follows concerns about FC 25's performance, as the formerly FIFA-branded soccer franchise showed signs of slowing momentum and hints of player fatigue in a highly competitive market. The company on Tuesday said monetization for "FC" was up double digits after a January update. EA also announced the launch of "Battlefield", stepping in just as Take Two Interactive pushes the release of the long-awaited "Grand Theft Auto VI" beyond fiscal 2026. "The rebound in FC, continued success of American Football and upcoming Battlefield launch all give us confidence in a more sustainable top and bottom line story," analysts at Jefferies wrote in a note. Analysts have said pushing back the release of "GTA VI" could ease competition in the gaming market, potentially boosting sales for other videogame publishers as players seek alternative big-name titles. "FC proved to be a temporary "ebb" and the delay of GTA VI opened a window for Battlefield to launch in FY26," analysts noted. Shares of Take Two Interactive were up 1.15% at $234.5 in premarket trade. EA sees fiscal 2026 bookings ranging from $7.60 billion to $8 billion, outpacing market estimates of $7.62 billion according to data compiled by LSEG. At least 10 brokerages raised their price targets on the stock following the results, bringing the median to $166, according to data compiled by LSEG. EA currently trades at 19.96 times the estimates of its earnings for the next 12 months, compared with Take Two's 31.47. So far this year, EA's stock has gained 5.6%, trailing Take Two's jump of ~26%. (Reporting by Joel Jose and Rashika Singh in Bengaluru; Editing by Krishna Chandra Eluri)
Time of India
22-04-2025
- Business
- Time of India
Nvidia-backed CoreWeave gets largely bullish coverage from brokerages
By Joel Jose and Siddarth S Wall Street brokerages on Tuesday began coverage of Nvidia-backed CoreWeave with broadly bullish views, although the stock has failed to gain traction with investors following a lackluster initial public offering and market debut. Among the five major brokerages covering CoreWeave's shares, Goldman Sachs set the highest price target at $54, while had the lowest at $43. The stock, which was priced at $40 in its IPO, is currently trading at $36.25. After the expiration of the industry-required quiet period, the brokerages started coverage of the stock, citing the company's strong foothold in the booming AI infrastructure market for their bullish stance. "CoreWeave exhibits a track record of being first to deploy next-gen GPUs, making it difficult for other hyperscalers to claim industry leadership," said. Livingston, New Jersey-based CoreWeave offers access to data centers and high-powered Nvidia chips, which are highly coveted in the competitive AI development landscape. However, they also expressed caution about its over-reliance on some of its customers and a tough market backdrop. "Volatile macro (and equities) backdrop may limit investors' willingness," said Morgan Stanley, as it started coverage with an "equal-weight" rating. Last year, CoreWeave - whose 32 data centers house over 250,000 GPUs, mainly supplied by Nvidia - generated 77% of its revenue from just its top two clients, one of which was Microsoft . Ahead of its IPO, CoreWeave inked a blockbuster $11.9 billion, five-year deal with OpenAI , Reuters reported last month, forging an alliance with the industry's top startup. "Close relationship with Microsoft and OpenAI could cut both ways ... and the customer concentration here does pose a risk," Barclays said. "We expect the stock to provide a wild, lumpy, volatile ride, requiring a risk tolerance that may not exist for most investors," said, warning that the firm's debt-fueled, capital-intensive business could pose risks. The IPO was underwritten by a syndicate of 18 banks, led by Morgan Stanley, and Goldman Sachs and was seen as a pivotal gauge of investor enthusiasm for new listings and AI-related stocks, especially in light of China's DeepSeek launch.
Yahoo
22-04-2025
- Business
- Yahoo
Nvidia-backed CoreWeave gets largely bullish coverage from brokerages
By Joel Jose and Siddarth S (Reuters) - Wall Street brokerages on Tuesday began coverage of Nvidia-backed CoreWeave with broadly bullish views, although the stock has failed to gain traction with investors following a lackluster initial public offering and market debut. Among the five major brokerages covering CoreWeave's shares, Goldman Sachs set the highest price target at $54, while had the lowest at $43. The stock, which was priced at $40 in its IPO, is currently trading at $36.25. After the expiration of the industry-required quiet period, the brokerages started coverage of the stock, citing the company's strong foothold in the booming AI infrastructure market for their bullish stance. "CoreWeave exhibits a track record of being first to deploy next-gen GPUs, making it difficult for other hyperscalers to claim industry leadership," said. Livingston, New Jersey-based CoreWeave offers access to data centers and high-powered Nvidia chips, which are highly coveted in the competitive AI development landscape. However, they also expressed caution about its over-reliance on some of its customers and a tough market backdrop. "Volatile macro (and equities) backdrop may limit investors' willingness," said Morgan Stanley, as it started coverage with an "equal-weight" rating. Last year, CoreWeave - whose 32 data centers house over 250,000 GPUs, mainly supplied by Nvidia - generated 77% of its revenue from just its top two clients, one of which was Microsoft. Ahead of its IPO, CoreWeave inked a blockbuster $11.9 billion, five-year deal with OpenAI, Reuters reported last month, forging an alliance with the industry's top startup. "Close relationship with Microsoft and OpenAI could cut both ways ... and the customer concentration here does pose a risk," Barclays said. "We expect the stock to provide a wild, lumpy, volatile ride, requiring a risk tolerance that may not exist for most investors," said, warning that the firm's debt-fueled, capital-intensive business could pose risks. The IPO was underwritten by a syndicate of 18 banks, led by Morgan Stanley, and Goldman Sachs and was seen as a pivotal gauge of investor enthusiasm for new listings and AI-related stocks, especially in light of China's DeepSeek launch. Following are the ratings and price targets for CoreWeave from some of the major brokerages: Brokerage Rating Price Target Jefferies Buy $51 Overweight $43 Barclays Overweight $48 Morgan Stanley Equal-weight $46 Goldman Sachs Neutral $54
