Latest news with #JohnFlood
Business Insider
20 hours ago
- Business
- Business Insider
Goldman Sachs Says the Magnificent 7 Are Set to Rebound This Summer
After leading the market for two straight years, the Magnificent 7 – Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), Meta Platforms (META), Nvidia (NVDA), and Tesla (TSLA) – are underperforming in 2025. Some investors are even wondering if these tech giants are in bubble territory, despite the recent month-long rally. Confident Investing Starts Here: John Flood of Goldman Sachs sees it differently. In a June 3 commentary titled Revenge of the Magnificent 7, he argues that the recent sell-off might be a buying opportunity. The group just beat earnings expectations by 13%, yet stock prices are down. This disconnect means their valuations are now more reasonable compared to past years. Flood Points to Key Catalysts Flood points out that the valuation premium these companies enjoyed has dropped sharply. Despite their size, these firms are showing strong profit growth, with forward profit margins at record levels. They also tend to be less dependent on economic cycles, giving them a more defensive profile when the outlook turns uncertain. Positioning is another factor. Many mutual and hedge funds are still underweight these names. If sentiment improves, there's plenty of room for institutional buying. Flood sees this 'dry powder' as a potential tailwind. He also brings in seasonality. July is historically strong for corporate buybacks, and many of the Magnificent 7 are known for their large repurchase programs. That should provide additional support for stock prices in the weeks ahead. All these signals point to better earnings, lower valuations, defensive business models, underweight institutional exposure, and seasonal buyback strength, leading Flood to expect the Mag 7 to outperform the broader market this summer. In short, if Flood is right, this summer could mark a return to form for the market's most-watched stocks. Using Tipranks' Comparison Tool, we've assembled the Magnificent 7 and compared notable performance factors to gain a broader perspective on each of the stocks.
Yahoo
09-04-2025
- Business
- Yahoo
'BE COOL!': Trump assures Americans things will work out as markets reel from tariff shocks
President Trump on Wednesday attempted to calm some nerves as his controversial tariff policies continue to shake markets with his sweeping reciprocal duties on some 185 countries now officially in effect. "BE COOL!," Trump wrote in a post on his social media platform Truth Social. "Everything is going to work out well. The USA will be bigger and better than ever before!" Stocks were working to bounce back early Wednesday after a brutal sell-off that's threatened to send the S&P 500 into bear market territory. In the Treasury market, the 10-year yield (^TNX) logged its biggest three-day jump since December 2001, raising alarms across Wall Street about further risks lurking in the global financial system. Despite a US labor market that largely held up in the run-up to Trump's tariffs, Wall Street remains on edge that shifting trade dynamics could induce a self-inflicted recession. On Wednesday, China announced retaliatory tariffs of 84% on US imports after the Trump administration delivered on its threat to impose 104% duties on its exports to the US. In a follow-up post on Truth Social on Wednesday, Trump said the market has created a great opportunity to buy. Some strategists have argued a dip below 5,000 for the S&P 500 could be a buy signal, with the index coming off one of its worst two-day stretches on record last Thursday and Friday. "From my conversations with longer-duration investors, it feels like they will start scale buying the S&P 500 at 5,000 and get more aggressive in the mid-4,000s,' Goldman Sachs partner John Flood wrote in a client note on Tuesday. Others aren't so sure. "Ultimately, the catalyst needs to be a change in the tone of rhetoric," Michael Kantrowitz, chief investment strategist at Piper Sandler, told Yahoo Finance in an interview. "A lot of historical analogs may or may not be as useful today because of this really unprecedented situation. " One of the biggest concerns is stagflation, where growth stalls, inflation persists, and unemployment rises. Risks of that scenario have shown up more firmly in Wall Street's projections following a string of disappointing data releases, along with the administration's latest trade shocks and other policy unknowns like recent efforts to cut government jobs from Elon Musk's Department of Government Efficiency (DOGE). "While it's too early to fully understand the economic ramifications of a potential trade war, the tug-of-war between slowing growth and higher inflation will likely continue to add volatility," LPL Financial said in a research note published on Monday. Kantrowitz added the economic situation could quickly deteriorate as more countries retaliate. "If things continue to escalate and the duration of this persists, then we'll start to see the data get worse," he warned. "That could lead to people focusing on a more ominous outlook for the economy." Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at Sign in to access your portfolio
Bloomberg
09-04-2025
- Business
- Bloomberg
Goldman's Flood Sees Buy the Dip Returning With S&P 500 at 5,000
The S&P 500 stock index has dropped to a level where long-term investors are starting to buy the dip, according to Goldman Sachs Group Inc. partner John Flood. The US stock index is flirting with bear market levels after plunging nearly 19% since its February peak. The benchmark closed below the 5,000 level for the first time in nearly a year on Tuesday after the US administration implemented reciprocal tariffs on trading partners, boosting recession risk.
Bloomberg
08-04-2025
- Business
- Bloomberg
Goldman Trading Desk ‘9.5 Out of 10' on Activity Level Amid Rout
Goldman Sachs Group Inc.'s trading desk has seen a level of activity on Thursday that's practically 'unheard of' apart from stock-market rebalancing days as clients dumped equities after President Donald Trump's tariff announcement. It's the busiest day for the desk since the emergence of Chinese AI startup DeepSeek rattled global markets in late January, John Flood, a Goldman partner and trading specialist, wrote in a note to clients.
