Latest news with #LafferTenglerInvestments
CNBC
2 hours ago
- Business
- CNBC
Do not underestimate Tim Cook, says Laffer Tengler Investments' Nancy Tengler
Nancy Tengler, Laffer Tengler Investments CEO, joins 'Power Lunch' to discuss Tengler's thoughts on Apple's stock, if Tim Cook's passive about AI and much more.
Yahoo
3 days ago
- Business
- Yahoo
LHX- A "Triple Beat" Earnings Play in the Defense Sector
While equity markets have staged a strong rebound from the April bottom, earnings estimates look to have just begun forming a bottom as the Q2 2025 earnings season unfolds. Meanwhile, L3Harris Technologies Inc. (LHX) delivered a triple play (beat, beat, raise) this quarter, observes Nancy Tengler, CIO at Laffer Tengler Investments. To get more articles and chart analysis from MoneyShow, subscribe to our .) The question we ask ourselves every day is 'What are we missing? Where is the puck going?' because that is where we want to be focused. Though we remain bullish on technology and the AI revolution, we are also always scanning the horizon for new opportunities. (Editor's Note: Nancy will be speaking at the 2025 MoneyShow Masters Symposium Sarasota, scheduled for Dec. 1-3. Click HERE to register.) In our previous bulletin, we highlighted the equity market price and fundamental resilience over the past 12 months amid significant structural changes, including shifts in monetary policy, political regimes, foreign trade policies, and a technological revolution. Shifting our focus to the latter half of 2025 and where equity prices could go, a key question emerges as to the trajectory of fundamentals: Have the downward revisions in S&P 500 EPS estimates reached a bottom, signaling the onset of stabilization, or even an upward inflection? L3Harris Technologies Inc. (LHX) At LHX, revenues were up 2% year-on-year (+6% organically), driven by higher volumes, new program ramps, and increased international demand. This looks to be the inflection point we've been waiting for. See also: NJR: A Higher-Yielding Nat Gas Utility Stock The company is well ahead of its cost savings goals. There is strong demand across the portfolio. And management confirmed that negative Estimates At Completion (EACs) are through. Moreover, with increased international defense spending, the company is finding that it is replacing many indigenous players – a trend we expect will continue. Recommended Action: Buy LHX. More From With Services Flat-Lining, Can the Economy Hold Up? EXK: Why the Silver Miner is Primed to Catch Up to its Peers Market Minute 8/8/25: Gold Flirts with Fresh Highs Amid Tariff Turmoil 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
NBC News
3 days ago
- Business
- NBC News
How Tim Cook convinced Trump to drop made-in-USA iPhone — for now
President Donald Trump has made clear that he wants Apple to make iPhones in the U.S. Apple CEO Tim Cook is doing what he can to appease the commander in chief, without making that ultimate concession. Cook on Wednesday appeared at the White House with Trump to announce plans to spend about $600 billion over four years in the U.S. Apple didn't announce the made-in-USA iPhone that Trump wants, but Cook got to tout Apple's position on U.S. production. Some of Apple's most valuable parts, such as its glass and facial recognition sensor, are made by U.S. companies that Apple has worked with for years. Final assembly is only a small, though very critical, part of iPhone production. 'The final assembly that you focus on, that will be elsewhere for a while,' Cook said Wednesday in the Oval Office. Trump appeared happy enough, for now. 'He makes many of the components here, and we've been talking about it,' Trump said. 'The whole thing is set up in other places, and it's been there for a long time in terms of cost and all, but I think we may incentivize him enough that one day he'll be bringing that back.' Experts said Cook's announcement seemed designed to get Apple out of Trump's crosshairs with respect to tariffs. Trump announced during the public meeting that the administration planned to place a tariff on chips that would double their price, but Apple — which relies on hundreds of different chips for its devices — would be exempt. 'CEOs are realizing that they do have to do something, and what they've discovered is that if they give the president something to brag about without destroying their company, that the problem might go away for a certain amount of time,' said Peter Cohan, professor of strategy and entrepreneurship at Babson College who has written case studies on Apple. The gambit worked. Apple stock rose 5% on Wednesday and another 3% on Thursday. 'What Tim Cook demonstrated in the first administration was a real savvy navigation of the treacherous waters,' said Nancy Tengler, CEO of Laffer Tengler Investments, which holds a position in Apple. 'I thought this announcement was super-important symbolically, because the president is looking for headlines.' What Apple announced The centerpiece of Apple's announcement was the so-called American Manufacturing Program, which Apple said was designed to incentivize other companies to make parts for computers in the U.S. By Apple committing to purchase parts and expand its relationship with U.S. suppliers, it could give those companies the skills and capacity to expand their business. And it lets Apple take some credit for supporting the 450,000 total jobs at its suppliers. A closer look at the members of the program shows that Apple is leaning on some of its longest-tenured partners. All together, Apple said that its U.S. suppliers are on track to make 19 billion chips for its products this year. That level of business doesn't appear overnight. For example, Apple said that all of its cover glass for iPhones and Apple Watches would be made by Corning, in Kentucky, and that it would spend $2.5 billion on that effort. It's a powerful symbol — while the phone might be screwed together in China or India, the surface that users touch around the world will be made in the U.S. But Apple has pointed to Corning as a critical American supplier in the past. The company's glass has been used on the iPhone since its first version in 2007. While Apple typically doesn't let its suppliers talk about their relationships, former COO Jeff Williams hailed Corning's glass in 2017, when it got an 'investment' from the Apple Advanced Manufacturing Fund. Apple followed that up with a $250 million commitment in 2019, and $45 million in 2021. Analysts are skeptical that the partnership could substantially improve Corning's revenue. Morgan Stanley analysts wrote on Thursday that Corning 'already produces 100% of the cover glass for Apple's phones and tablets,' adding that Corning's glass business called Specialty Materials is worth about $2 billion per year. Apple also highlighted its partnership with Coherent, a longtime supplier of lasers for Apple's facial recognition hardware, which is made in Texas. Morgan Stanley pegged the business at about $100 million per year, and said Apple has options including Lumentum and Sony. The iPhone maker said it expanded a partnership with Texas Instruments to make chips in Texas and Utah. Texas Instruments has long supplied chips for the iPhone, such as circuits to control USB interfaces or power displays. Apple said it would partner with Samsung, another key supplier of parts like iPhone displays, to launch an 'innovative new technology for making chips,' without offering additional details. Apple declared that it will partner directly with companies in the semiconductor chain, even if they typically sell services or goods to Apple suppliers. Other partnerships are with Applied Materials, a tooling company, GlobalFoundries, a chip foundry, and GlobalWafers America, which is supplying Taiwan Semiconductor Manufacturing Co. and Texas Instruments with made-in-USA wafers, the starting point for a batch of chips. GlobalFoundries manufactures chips for Broadcom, which supplies wireless chips for iPhones. Both will work with Apple to develop and manufacture 5G components in the U.S. Meanwhile, Apple will buy millions of advanced chips made by TSMC in Arizona, where it will be the factory's largest customer. Cook joined former President Joe Biden at the plant in 2022 and committed to buying chips from the factory. Apple said it would invest in and become a customer at an Arizona Amkor facility, which packages and tests chips, the final stage before installation in a computer. Apple also said it would expand existing data centers for artificial intelligence in North Carolina, Iowa, Nevada and Oregon. It's highlighted these data centers in the past in spending commitments. While Apple's announcement sent partner stocks up, JPMorgan Chase analysts warned in a note on Thursday that 'the new and expanded engagements might not be completely incremental to global revenues and outlook.' Trump had a different take. 'Oh, I love that you're doing this,' the president said, after reading a list of Apple's commitments. 'Cost of doing business' Apple has little to worry about when it comes to who will hold the company accountable for its promises. The company doesn't break out U.S. spending, and most of Apple's suppliers are contractually required to keep the information secret. Apple doesn't report how much its new campuses in Austin, Texas, or North Carolina end up costing. Additionally, the $600 billion headline number likely includes lots of regular expenses. Apple said in February that its $500 billion commitment included payments to U.S. suppliers, direct employment, data centers for Apple Intelligence and corporate facilities, as well as spending on Apple TV+ productions in 20 states. Apple started publicly announcing U.S. spending during Trump's first administration in 2018, at a rate of about $70 billion per year. In February, the company committed to $125 billion per year. Wednesday's announcement brings that figure to $150 billion annually. That's still a fraction of Apple's total spending. In Apple's fiscal 2024, the company spent $210 billion globally on cost of goods sold, $57.5 billion on operating expenses and $9.45 billion in capital expenditures for nearly $275 billion in global spending during the period. Teffler said she didn't think the newly announced spending would be material to Apple's profitability, especially since it already has relationships with the various companies such as Corning. 'They're going to spend money somewhere,' Tegler said. Wedbush analyst Dan Ives, who previously predicted a made-in-USA iPhone would cost billions to produce and would leave consumers paying $3,500, said the Wednesday announcements indicate a much different approach. He said it's 'the cost of doing business.'
CNBC
4 days ago
- Business
- CNBC
How Tim Cook convinced Trump to drop made-in-USA iPhone — for now
President Donald Trump has made clear that he wants Apple to make iPhones in the U.S. Apple CEO Tim Cook is doing what he can to appease the commander in chief, without making that ultimate concession. Cook on Wednesday appeared at the White House with President Trump to announce plans to spend about $600 billion over four years in the U.S. Apple didn't announce the made-in-USA iPhone that Trump wants, but Cook got to tout Apple's position on U.S. production. Some of Apple's most valuable parts, such as its glass and facial recognition sensor, are made by U.S. companies that Apple has worked with for years. Final assembly is only a small, though very critical, part of iPhone production. "The final assembly that you focus on, that will be elsewhere for a while," Cook said Wednesday in the Oval Office. Trump appeared happy enough, for now. "He makes many of the components here, and we've been talking about it," Trump said. "The whole thing is set up in other places, and it's been there for a long time in terms of cost and all, but I think we may incentivize him enough that one day he'll be bringing that back." Experts said Cook's announcement seemed designed to get Apple out of Trump's crosshairs with respect to tariffs. Trump announced during the public meeting that the administration planned to place a tariff on chips that would double their price, but Apple — which relies on hundreds of different chips for its devices — would be exempt. "CEOs are realizing that they do have to do something, and what they've discovered is that if they give the president something to brag about without destroying their company, that the problem might go away for a certain amount of time," said Peter Cohan, professor of strategy and entrepreneurship at Babson College who has written case studies on Apple. The gambit worked. Apple stock rose 5% on Wednesday and another 3% on Thursday. "What Tim Cook demonstrated in the first administration was a real savvy navigation of the treacherous waters," said Nancy Tengler, CEO of Laffer Tengler Investments, which holds a position in Apple. "I thought this announcement was super-important symbolically, because the president is looking for headlines." The centerpiece of Apple's announcement was the so-called American Manufacturing Program, which Apple said was designed to incentivize other companies to make parts for computers in the U.S. By Apple committing to purchase parts and expand its relationship with U.S. suppliers, it could give those companies the skills and capacity to expand their business. And it lets Apple take some credit for supporting the 450,000 total jobs at its suppliers. A closer look at the members of the program shows that Apple is leaning on some of its longest-tenured partners. All together, Apple said that its U.S. suppliers are on track to make 19 billion chips for its products this year. That level of business doesn't appear overnight. For example, Apple said that all of its cover glass for iPhones and Apple Watches would be made by Corning, in Kentucky, and that it would spend $2.5 billion on that effort. It's a powerful symbol — while the phone might be screwed together in China or India, the surface that users touch around the world will be made in the U.S. But Apple has pointed to Corning as a critical American supplier in the past. The company's glass has been used on the iPhone since its first version in 2007. While Apple typically doesn't let its suppliers talk about their relationships, former COO Jeff Williams hailed Corning's glass in 2017, when it got an "investment" from the Apple Advanced Manufacturing Fund. Apple followed that up with a $250 million commitment in 2019, and $45 million in 2021. Analysts are skeptical that the partnership could substantially improve Corning's revenue. Morgan Stanley analysts wrote on Thursday that Corning "already produces 100% of the cover glass for Apple's phones and tablets," adding that Corning's glass business called Specialty Materials is worth about $2 billion per year. Apple also highlighted its partnership with Coherent, a longtime supplier of lasers for Apple's facial recognition hardware, which is made in Texas. Morgan Stanley pegged the business at about $100 million per year, and said Apple has options including Lumentum and Sony. The iPhone maker said it expanded a partnership with Texas Instruments to make chips in Texas and Utah. Texas Instruments has long supplied chips for the iPhone, such as circuits to control USB interfaces or power displays. Apple said it would partner with Samsung, another key supplier of parts like iPhone displays, to launch an "innovative new technology for making chips," without offering additional details. Apple declared that it will partner directly with companies in the semiconductor chain, even if they typically sell services or goods to Apple suppliers. Other partnerships are with Applied Materials, a tooling company, GlobalFoundries, a chip foundry, and GlobalWafers America, which is suppling Taiwan Semiconductor Manufacturing Company and Texas Instruments with made-in-USA wafers, the starting point for a batch of chips. GlobalFoundries manufactures chips for Broadcom, which supplies wireless chips for iPhones. Both will work with Apple to develop and manufacture 5G components in the U.S. Meanwhile, Apple will buy millions of advanced chips made by TSMC in Arizona, where it will be the factory's largest customer. Cook joined former President Biden at the plant in 2022 and committed to buying chips from the factory. Apple said it would invest in and become a customer at an Arizona Amkor facility, which packages and tests chips, the final stage before installation in a computer. Apple also said it would expand existing data centers for artificial intelligence in North Carolina, Iowa, Nevada and Oregon. It's highlighted these data centers in the past in spending commitments. While Apple's announcement sent partner stocks up, JPMorgan Chase analysts warned in a note on Thursday that "the new and expanded engagements might not be completely incremental to global revenues and outlook." Trump had a different take. "Oh, I love that you're doing this," the president said, after reading a list of Apple's commitments. Apple has little to worry about when it comes to who will hold the company accountable for its promises. The company doesn't break out U.S. spending, and most of Apple's suppliers are contractually required to keep the information secret. Apple doesn't report how much its new campuses in Austin or North Carolina end up costing. Additionally, the $600 billion headline number likely includes lots of regular expenses. Apple said in February that its $500 billion commitment included payments to U.S. suppliers, direct employment, data centers for Apple Intelligence and corporate facilities, as well as spending on Apple TV+ productions in 20 states. Apple started publicly announcing U.S. spending during Trump's first administration in 2018, at a rate of about $70 billion per year. In February, the company committed to $125 billion per year. Wednesday's announcement brings that figure to $150 billion annually. That's still a fraction of Apple's total spending. In Apple's fiscal 2024, Apple spent $210 billion globally on cost of goods sold, $57.5 billion on operating expenses, and $9.45 billion in capital expenditures for nearly $275 billion in global spending during the period. Teffler said she didn't think the newly announced spending would be material to Apple's profitability, especially since it already has relationships with the various companies such as Corning. "They're going to spend money somewhere," Tegler said. Wedbush analyst Dan Ives, who previously predicted a made-in-USA iPhone would cost billions to produce and would leave consumers paying $3,500, said the Wednesday announcements indicate a much different approach. He said it's "the cost of doing business."
Dubai Eye
5 days ago
- Business
- Dubai Eye
Trump announces $100 billion new investment pledge from Apple
President Donald Trump announced that Apple will invest an additional $100 billion in the US, a move that could help it sidestep potential tariffs on iPhones. The new pledge raises Apple's total domestic investment commitment in the us to $600 billion over the next four years. Earlier this year, the company announced it would invest $500 billion and hire 20,000 workers across the country in that period. The announcement centers on expanding Apple's supply chain and advanced manufacturing footprint in the US, but still falls short of Trump's demand that Apple begin making iPhones domestically. "Companies like Apple, they're coming home. They're all coming home," Trump told reporters in the Oval Office, moments after Apple CEO Tim Cook gave him a US-made souvenir with a 24-karat gold base. "This is a significant step toward the ultimate goal of ensuring that iPhones sold in America also are made in America," Trump added. Asked if Apple could eventually build entire iPhones in the US, Cook noted that many components such as semiconductors, glass and Face ID modules are already made domestically, but said that final assembly will remain overseas "for a while". While the investment pledge is significant, analysts say the numbers align with Apple's typical spending patterns and echo commitments made during both the Biden administration and Trump's previous term. In May, Trump had threatened Apple with a 25 per cent tariff on products manufactured overseas, a sharp reversal from earlier policy when his administration had exempted smartphones, computers and other electronics from rounds of tariffs on Chinese imports. Trump's effort to reshape global trade through tariffs cost Apple $800 million in the June quarter. "Today is a good step in the right direction for Apple, and it helps get on Trump's good side after what appears to be a tension-filled few months in the eyes of the Street between the White House and Apple," said Daniel Ives, an analyst with Wedbush Securities. Apple has a mixed track record when it comes to following through on investment promises. In 2019, for instance, Cook toured a Texas factory with Trump that was promoted as a new manufacturing site. But the facility had been producing Apple computers since 2013 and Apple has since moved that production to Thailand. Apple continues to manufacture most of its products, including iPhones and iPads, in Asia, primarily in China, although it has shifted some production to Vietnam, Thailand and India in recent years. Despite political pressure, analysts widely agree that building iPhones in the US remains unrealistic due to labor costs and the complexity of the global supply chain. "The announcement is a savvy solution to the president's demand that Apple manufacture all iPhones in the US," said Nancy Tengler, CEO and CIO of Laffer Tengler Investments, which holds Apple shares. Partners on Apple's latest US investment effort include specialty glass maker Corning, semiconductor manufacturing equipment supplier Applied Materials, and chipmakers Texas Instruments, GlobalFoundries, Broadcom and Samsung. Apple said Samsung will supply chips from its production plant in Texas for its products including iPhones, while GlobalWafers said it would be supplying 300mm silicon wafers from its Texas plant. Apple shares closed up 5 per cent on Wednesday. Shares of Corning rose nearly 4 per cent in extended trading, while Applied Materials gained almost 2 per cent.
