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CNBC
5 days ago
- Business
- CNBC
Stock futures are little changed as investors parse earnings reports: Live updates
Traders work on the floor of the New York Stock Exchange during afternoon trading on August 1, 2025 in New York City. Michael M. Santiago | Getty Images Stock futures are near flat Tuesday night as investors analyzed the latest batch of corporate earnings. Dow Jones Industrial Average futures rose 32 points, or 0.1%. S&P 500 futures were little changed, as were Nasdaq 100 futures . In extended trading, Snap shares tumbled more than 14% after revenue came in slightly below expectations, while Advanced Micro Devices fell more than 3% after posting adjusted earnings per share that missed estimates. On the other hand, Arista Networks rallied more than 14% on a stronger-than-expected report. Those moves follow a losing day on Wall Street, marking the S&P 500 's fifth down day of the last six and the Dow 's sixth negative session of the past seven. Tech stocks lagged in Tuesday's session, with the Nasdaq Composite sliding nearly 0.7%. Small caps were able to buck the market downtrend, with the Russell 2000 climbing 0.6%. "We just need some digestion," said Keith Lerner, co-chief investment officer at Truist Wealth, on CNBC's "Closing Bell." "Markets don't move in a straight line. … But, overall, I still think the underlying trend is positive." Investors on Wednesday will monitor earnings reports slated from Disney , Uber and McDonald's before the bell, followed by Airbnb , DoorDash and Lyft after the market closes. While there's no economic data of note expected Wednesday, traders will follow speeches by Federal Reserve officials including Boston Fed President Susan Collins and San Francisco Fed President Mary Daly during the day. These are some of the stocks making notable moves after hours: Snap — The social media platform plunged 14% after missing revenue expectations for the second quarter. Snap said it recorded $1.34 billion, slightly under the consensus forecast of $1.35 billion from analysts polled by LSEG. — The social media platform plunged 14% after missing revenue expectations for the second quarter. Snap said it recorded $1.34 billion, slightly under the consensus forecast of $1.35 billion from analysts polled by LSEG. Rivian Automotive — The electric vehicle company dropped more than 3% on the back of mixed second-quarter results. Adjusted losses for the period came in at 80 cents per share, compared to the LSEG consensus call for a loss of 65 cents per share. Revenue of $1.30 billion narrowly beat the $1.28 billion anticipated by the Street. — The electric vehicle company dropped more than 3% on the back of mixed second-quarter results. Adjusted losses for the period came in at 80 cents per share, compared to the LSEG consensus call for a loss of 65 cents per share. Revenue of $1.30 billion narrowly beat the $1.28 billion anticipated by the Street. Skyworks Solutions — The wireless network stock jumped 9% after providing earnings for the third fiscal quarter and current-quarter guidance that was better than expected. Skyworks reported adjusted earnings of $1.33 per share on $965 million in revenue for the third quarter. Analysts surveyed by LSEG had penciled in $1.22 per share and $941 million in revenue. Click here for the full list. — Alex Harring Futures tied to the Dow, S&P 500 and Nasdaq 100 are all little changed shortly after 6 p.m. ET. — Alex Harring
Axios
01-08-2025
- Business
- Axios
Wall Street still bullish as stocks slide on weak jobs data
Stocks are sinking and the VIX, a measure of volatility, is spiking, off the back of weak jobs data and new tariffs. Yet Wall Street is still bullish. Why it matters: Strategists who spoke with Axios believe the long-term upside for the stock market outweighs any near-term weakness and suggest buying dips, especially in tech. What they're saying:"The April tariff-driven pullback serves as a reminder to avoid overreacting," Keith Lerner, co-chief investment officer and chief market strategist at Truist, wrote in a note to clients. "The dominant bull market theme – artificial intelligence and technology – remains intact, with earnings in those sectors still strong," he added. The pullback comes amid increasing calls that valuations are stretched and stocks have gotten overvalued. Driving the news: The market is capping off the week with two major headwinds. A weaker-than-expected jobs report coupled with eye-popping revisions indicate cracks in the labor market, to say the least. The Trump administration released a new slate of tariffs on dozens of nations. Stocks were already down. Then the labor data crossed. Zoom out: It's not just the labor market and tariffs plaguing investors – it's also the time of year. August and September are seasonally weak months for financial markets. That choppiness was overwhelmingly anticipated by Wall Street. Yes, but: This "soft patch" will not derail the bull market, thanks to a slew of catalysts, says Jeff Mills, chief investment officer at Bessemer Trust. "We're on the precipice of a fairly large boom in capital spending," he says. Capex is still expanding especially amongst the AI names, which could fuel further economic growth and earnings growth. The intrigue: Despite the selloff, large-cap tech may still offer safety as these stocks lead in earnings growth, free cash flow, and are "insulated" from typical business cycle swings, Mills tells Axios. "When there's a drought, people will pay more for water and when growth slows, people pay more for growth, and [tech] is where the growth is," he notes. Amid the risk-off trade Friday, the Magnificent 7 names were all under pressure even after a record breaking week of earnings from four members of the group. The bottom line: Remember that volatility is part of the game for investing.
Khaleej Times
20-07-2025
- Business
- Khaleej Times
Lofty US stock market valuations bank on earnings strength
With Wall Street's surge to record highs, the U.S. stock market looks nearly as expensive as ever, and investors are debating whether the lofty valuations are a bearish signal or justified by the technology-heavy market's profit outlook. Few investors would argue the broad stock market is cheap. Since late last month, the benchmark S&P 500 has traded above 22 times its expected earnings over the next year, according to LSEG Datastream. That's a price-to-earnings level the index has ascended to only about 7% of the time over the past 40 years. Determining appropriate market valuations could help investors understand how expensive stocks could get or how deeply they might fall, especially if there are renewed recession concerns. Whether current valuations are an imminent sell signal remains to be seen. Investors say the U.S. stock market can trade at elevated levels for an extended period of time. Some investors believe a number of structural changes could justify higher stock valuations, including greater representation in indexes from tech companies that generate massive profits. "By pretty much every historical metric (the market's valuation) is rich," said Keith Lerner, co-chief investment officer at Truist Advisory Services. "The question investors are grappling with is, is it warranted?" The SP 500 has soared 25% since April, as investors grew less fearful that President Donald Trump's "Liberation Day" tariffs would cause a recession. The index has gained 6% so far in 2025, and over 60% in the past three years. last week, the S&P 500's forward P/E ratio was 22.2, according to LSEG Datastream. That level is over 40% above the index's 40-year average of 15.8 and about 20% above its 10-year average of 18.6. A metric comparing price to expected sales shows the S&P 500 trading over 60% above its average of the past 20 years, according to Datastream. "On the broadest basis, the market has clearly got a valuation headwind relative to where it has been in history," said Patrick Ryan, chief investment strategist at Madison Investments. Investors debate the relevance of historical comparisons. The bigger presence in indexes of technology and tech-related companies, which tend to carry higher valuations, drives up the P/E ratio, while the profit strength of the largest companies also means the index could deserve higher valuations, investors said. The S&P 500's operating profit margin stood at 12% at the end of 2024, up from 9% in 2014, according to SP Dow Jones Indices. Other potential justifications for higher valuations include regular buying of equities from 401(k) and other retirement plans, and lower fees for index funds easing access to stocks. While studies show elevated valuations suggest diminished returns over the longer term, they are not always the best "timing tools" for determining the market's near-term direction, said Ed Clissold, chief U.S. strategist at Ned Davis Research. Still, Clissold said, "a lot of good news is priced into stocks at these levels." In the April swoon, the S&P 500's P/E ratio sank to 17.9; in 2022's bear-market drop, driven by spiking interest rates, the P/E fell as low as 15.3. Indeed, investors are wary that current valuations make stocks particularly susceptible to disappointments. One worry: Washington could fail to strike deals with trading partners ahead of August 1, when higher U.S. levies on numerous countries are set to start. Another shock could be the early departure of Federal Reserve Chair Jerome Powell, whom Trump has persistently pressured to leave. Corporate results also pose a test. Second-quarter reports are kicking off with SP 500 earnings expected to have increased 6.5% from the year-earlier period, according to LSEG IBES. Wall Street increasingly is focused on next year's profit potential, with SP 500 earnings expected to rise 14% in 2026. "Investors seem somewhat convinced that the SP is going to generate about 10% earnings growth for a few years after this year," said David Bianco, Americas chief investment officer at DWS Group. "The equity market has become fairly dismissive of any kind of significant recession risk." Some investors say that if artificial intelligence adoption broadly benefits the economy, "then maybe the valuations would be justified because the earnings growth the next few years could be substantial," Clissold said. To be sure, some investors are investing more in relatively cheaper areas such as small caps and international stocks. Ryan and others point to higher yields on U.S. government bonds, seen as risk-free if held to term, as one factor dimming the allure of stocks. The benchmark 10-year yield is around 4.5%, well above its level for much of the past 15 years. "There are alternatives out there for you to move your capital to," Ryan said. Scott Wren, senior global market strategist at Wells Fargo Investment Institute, said the firm is recommending clients trim equities in areas including industrials and consumer discretionary sectors, expecting broadly slowing earnings growth in coming months before accelerating. The firm has a year-end SP 500 target of 6,000, about 4% below current levels. "Valuation-wise, stocks are pretty lofty," Wren said. Still, he added, determining a fair valuation is trickier than it has been. "Where is the line in the sand between expensive and not expensive?" Wren said. "It's harder to determine that."
Zawya
18-07-2025
- Business
- Zawya
Lofty US stock market valuations bank on earnings strength
NEW YORK - With Wall Street's surge to record highs, the U.S. stock market looks nearly as expensive as ever, and investors are debating whether the lofty valuations are a bearish signal or justified by the technology-heavy market's profit outlook. Few investors would argue the broad stock market is cheap. Since late last month, the benchmark S&P 500 has traded above 22 times its expected earnings over the next year, according to LSEG Datastream. That's a price-to-earnings level the index has ascended to only about 7% of the time over the past 40 years. Determining appropriate market valuations could help investors understand how expensive stocks could get or how deeply they might fall, especially if there are renewed recession concerns. Whether current valuations are an imminent sell signal remains to be seen. Investors say the U.S. stock market can trade at elevated levels for an extended period of time. Some investors believe a number of structural changes could justify higher stock valuations, including greater representation in indexes from tech companies that generate massive profits. "By pretty much every historical metric (the market's valuation) is rich," said Keith Lerner, co-chief investment officer at Truist Advisory Services. "The question investors are grappling with is, is it warranted?" The S&P 500 has soared 25% since April, as investors grew less fearful that President Donald Trump's "Liberation Day" tariffs would cause a recession. The index has gained 6% so far in 2025, and over 60% in the past three years. As of Tuesday, the S&P 500's forward P/E ratio was 22.2, according to LSEG Datastream. That level is over 40% above the index's 40-year average of 15.8 and about 20% above its 10-year average of 18.6. A metric comparing price to expected sales shows the S&P 500 trading over 60% above its average of the past 20 years, according to Datastream. "On the broadest basis, the market has clearly got a valuation headwind relative to where it has been in history," said Patrick Ryan, chief investment strategist at Madison Investments. Investors debate the relevance of historical comparisons. The bigger presence in indexes of technology and tech-related companies, which tend to carry higher valuations, drives up the P/E ratio, while the profit strength of the largest companies also means the index could deserve higher valuations, investors said. The S&P 500's operating profit margin stood at 12% at the end of 2024, up from 9% in 2014, according to S&P Dow Jones Indices. Other potential justifications for higher valuations include regular buying of equities from 401(k) and other retirement plans, and lower fees for index funds easing access to stocks. While studies show elevated valuations suggest diminished returns over the longer term, they are not always the best "timing tools" for determining the market's near-term direction, said Ed Clissold, chief U.S. strategist at Ned Davis Research. Still, Clissold said, "a lot of good news is priced into stocks at these levels." In the April swoon, the S&P 500's P/E ratio sank to 17.9; in 2022's bear-market drop, driven by spiking interest rates, the P/E fell as low as 15.3. Indeed, investors are wary that current valuations make stocks particularly susceptible to disappointments. One worry: Washington could fail to strike deals with trading partners ahead of August 1, when higher U.S. levies on numerous countries are set to start. Another shock could be the early departure of Federal Reserve Chair Jerome Powell, whom Trump has persistently pressured to leave. Corporate results also pose a test. Second-quarter reports are kicking off with S&P 500 earnings expected to have increased 6.5% from the year-earlier period, according to LSEG IBES. Wall Street increasingly is focused on next year's profit potential, with S&P 500 earnings expected to rise 14% in 2026. "Investors seem somewhat convinced that the S&P is going to generate about 10% earnings growth for a few years after this year," said David Bianco, Americas chief investment officer at DWS Group. "The equity market has become fairly dismissive of any kind of significant recession risk." Some investors say that if artificial intelligence adoption broadly benefits the economy, "then maybe the valuations would be justified because the earnings growth the next few years could be substantial," Clissold said. To be sure, some investors are investing more in relatively cheaper areas such as small caps and international stocks. Ryan and others point to higher yields on U.S. government bonds, seen as risk-free if held to term, as one factor dimming the allure of stocks. The benchmark 10-year yield is around 4.5%, well above its level for much of the past 15 years. "There are alternatives out there for you to move your capital to," Ryan said. Scott Wren, senior global market strategist at Wells Fargo Investment Institute, said the firm is recommending clients trim equities in areas including industrials and consumer discretionary sectors, expecting broadly slowing earnings growth in coming months before accelerating. The firm has a year-end S&P 500 target of 6,000, about 4% below current levels. "Valuation-wise, stocks are pretty lofty," Wren said. Still, he added, determining a fair valuation is trickier than it has been. "Where is the line in the sand between expensive and not expensive?" Wren said. "It's harder to determine that." (Reporting by Lewis Krauskopf; Editing by Alden Bentley and David Gregorio)
CNBC
17-07-2025
- Business
- CNBC
Stock futures are little changed after earnings, economic data lift S&P 500 to records: Live updates
A screen displays The Walt Disney Company's logo and trading information as traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., July 17, 2025. Brendan McDermid | Reuters Stock futures were little changed on Thursday after a batch of earnings and economic reports pushed the S&P 500 to a record close. S&P 500 futures traded at the flatline, while Nasdaq 100 futures inched up 0.01%. Futures linked to the Dow Jones Industrial Average added 7 points, or 0.02%. Shares of streaming giant Netflix fell more than 1% in extended trading following its latest quarterly results. The company posted an earnings and revenue beat for the second quarter and raised its full-year revenue forecast. The moves come after Wall Street saw a winning day. The S&P 500 finished 0.5% higher, closing at a new record after hitting an all-time high during the session. Meanwhile, the Nasdaq Composite gained about 0.7%, and the Dow climbed 0.5%. The broad market, along with the other two major averages, is currently on pace for a positive week, bolstered by optimism surrounding the latest earnings results. On Thursday, PepsiCo and United Airlines shares both popped after the respective companies beat analyst estimates on earnings. Those follow solid results from big banks like JPMorgan and Goldman Sachs earlier in the week. The index also moved higher on notable economic data, which signaled that the U.S. economy was holding up. Initial jobless claims for the week ending July 12 decreased from the prior week, and June's retail sales reading surpassed expectations. "I think this market deserves the benefit of the doubt, and what got you here is still the growth sectors," Keith Lerner, co-chief investment officer and chief market strategist at Truist, said on CNBC's "Closing Bell." "You put that together with also today the economic data showing the economy may be cooling, but it's certainly not collapsing." "We would stick with the underlying trend, which still seems positive in our world," he continued. Investors are now looking ahead to more earnings reports due out Friday. That includes 3M and American Express , both slated for release before market open. Meanwhile, on the economic front, the Street is eyeing the preliminary reading for July consumer sentiment data. Economists polled by Dow Jones are expecting that to show a reading of 61.8, up from the prior reading of 60.7.
