Latest news with #Magnificent7
CNBC
9 hours ago
- Business
- CNBC
When risk-on sentiment returns, here's an options trade on a stock that may lead the charge
After a strong rebound from the tariff-induced correction, the markets have now been moving sideways for the past three weeks. This kind of consolidation is typical — it's how markets build up energy for the next leg, whether that's higher or lower. When risk-on sentiment returns and money starts flowing into growth stocks, the Magnificent 7 typically lead the charge. As that momentum builds, we can expect several trading opportunities to emerge. One stock that appears to be setting the stage is Meta (META) , which has been range-bound since May 14th and looks poised for a breakout. To confirm this potential setup, I'm relying on several technical indicators that can help validate the breakout and improve the probability of a successful trade. MACD (5,13,5): Since the traditional MACD is slower to react, I often use a short-term MACD to capture earlier entry signals. A bullish crossover, where the MACD line moves above the signal line, can be a helpful early indicator for starting a position. That said, the quicker sensitivity of this version also means it can produce more false positives, so tight trade management is essential. A common approach is to close the trade if the MACD line dips back below the signal line, suggesting momentum is fading. In the case of META, we just saw this faster MACD trigger a bullish crossover on May 30, 2025, offering a potential early entry point. DMI (Directional Movement Index): The DMI (Directional Movement Index) is made up of three components: DI+ (green), DI- (red), and the ADX (blue), which measures overall trend strength. When DI- is above DI+, it generally indicates a downtrend. However, when these lines start to reverse direction, it often signals a potential shift in trend. For META, the DI+ line is spiking sharply upward, suggesting a strengthening bullish trend and offering early confirmation of a possible breakout. Support/Resistance Even without relying on technical indicators, a simple look at price action reveals that META is testing a key resistance zone. A decisive breakout above this level would serve as strong confirmation that the stock is ready to push into the $700s in the near future. The Trade Setup: META 670-675 Bull Call Spread To take advantage of a potential breakout in META, I'm deploying a bull call spread. With the stock trading near $670.90, the position is built by purchasing the $670 call and simultaneously selling the $675 call, creating a defined-risk trade. If META ends up at or above $675 by June 27th, the trade stands to deliver a 100% return on the amount invested. This setup provides a cost-effective way to gain upside exposure while keeping risk tightly controlled. Here is my exact trade setup: Buy $670 call, June 27th expiry Sell $675 call, June 27th expiry Cost: $250 Potential Profit: $250 I explore many such setups in depth in my book, Mean Reversion Trading , and there is a plethora of great examples on my website . -Nishant Pant Founder: Author: Mean Reversion Trading Youtube, Twitter: @TheMeanTrader DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
Yahoo
18 hours ago
- Business
- Yahoo
Meta (Facebook) shocks retail world with unexpected news
Meta (Facebook) shocks retail world with unexpected news originally appeared on TheStreet. Meta Platforms () has been in full focus recently after an internal communication revealed something shocking. After becoming the market's first social media giant, the company has shifted its focus to expanding into the artificial intelligence (AI) field. As this new frontier of the tech sector has continued to grow rapidly, Meta has maneuvered to compete with its Magnificent 7 peers, a group of market leaders responsible for much of the industry's growth. 💵💰💰💵 Last week (the final week of May), Meta reported strong Q1 earnings and high capital expenditure plans, indicating that it intends to continue scaling its AI efforts. However, that's not the only noteworthy thing Meta has revealed recently. According to reports, the company is planning on expanding into another area, one that many people likely didn't see coming. This news has left both investors and consumers with pressing questions. In March 2016, long before the launch of ChatGPT kicked off the current AI revolution, Meta captured many people's attention when it released the Oculus Rift, its first virtual reality (VR) headset. This device marked the company's foray into consumer products. Since then, Meta has expanded its VR lineup, cashing in on the growing interest in both VR and metaverse gaming. Its products can be found in stores such as Best Buy, Walmart, and Target. But now Meta plans on taking its consumer tech expansion a step further, in the form of retail stores. Per Business Insider:'The company has a project to expand its retail footprint, which is not broadly known internally yet, according to an internal communication seen by Business Insider. The communication also said Meta planned to hire retail employees.' Meta already has one retail store, which is located on its campus in Burlingame, California. Opened in 2022, the Meta Store allows visitors to sample the company's hardware products, similar in both strategy and appearance to the typical Apple store. Additionally, last year, Meta hinted at a retail expansion when it debuted a pop-up shop in Los Angeles to sell its Ray-Ban Meta smart glasses. CTO Andrew Bosworth has described 2025 as the company's 'most critical' year, adding that it plans to significantly expand its AI-powered wearables lineup. Now it seems that Meta is delivering on that promise, threatening to rival Apple as it expands into the physical retail space. While the number of stores Meta plans on opening has not yet been revealed, some experts believe this step is necessary for Meta's growth to continue. More Consumer Tech News: Analyst has blunt words on Trump's iPhone tariff plansBest Buy CEO raises red flag about startling customer behaviorApple users will hate the latest news from Capitol Hill 'They aren't opening stores because they want to—they're doing it because they have to,' states technology founder and strategist Jared Navarre. 'Because the technology they're building can't be sold through a screen. It has to be experienced. It's like trying to describe childbirth to someone who's never felt it—words will never be enough.' Meta's decision makes sense, as it looks to cement its reputation not just as a social media company but as a consumer tech producer that makes wearable AI-powered devices. However, it comes at a time when Jonny Ive, the former Apple leader credited with designing the iPod and iPhone, has joined forces with partnership with the maker of ChatGPT is poised to make the consumer tech market even more competitive. And as Reilly Newman, founder of Motif Brands, tells TheStreet, it isn't the only risk Meta is facing. 'The desired behavior of shoppers is likely to be uphill for Meta because the brand isn't associated with a 'physical' brand in the minds of consumers,' he speculates.'The brand's position as a social media and advertising empire frames it not as a product brand. Overcoming this perception will be challenging because it involves rewiring how people view Meta, which must be accomplished through reassigning new meanings via associations.' Even so, other experts feel that Meta may benefit from a shift in the industry if it can correctly execute this transition. Felix Hartmann, Managing Partner at Hartmann Capital, predicts that the consumer tech market is entering a 'story over storefront' era. 'In a world flooded with digital noise, the companies that win will be the ones who can create visceral, in-person magic,' he (Facebook) shocks retail world with unexpected news first appeared on TheStreet on Jun 2, 2025 This story was originally reported by TheStreet on Jun 2, 2025, where it first appeared. 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
Forbes
a day ago
- Business
- Forbes
More Evidence Of A Slowing Economy – When Will The Fed React?
The incoming data says that the economy is cooling; shhh! – don't tell the equity market. The major indexes rose in the 1.3% - 2.0% range for the last week in May and were up significantly for the month with Nasdaq leading the charge advancing 9.6% (see table). This market action appears to be more related to the tariff file (on again off again) rather than to underlying economic conditions.1 Equities Markets Universal Value Advisors All the Magnificent 7 were up in the 2% - 3% range for the week. So, a very good week for equity investors. And it was a great month for all except Apple (AAPL). The average gain for the week was nearly +2.5%; and +13.5% for the month. Still, on average, on a year-to-date basis, the Magnificent 7 remain in negative territory (-4.2%). 1 Magnificent 7 Universal Value Advisors The soft data (based on surveys) have been signaling that the economy, specifically economic growth, is softening. Not quite a Recession, but could turn into one if that softening turns into contracting numbers. 23 Pending Home Sales Universal Value Advisors S&P Case-Shiller Home Price Index Universal Value Advisors Global Economic Policy Uncertainty Universal Value Advisors It is generally accepted in economic circles that when the Fed alters monetary policy it takes several months to percolate through to the general economy.3 Given the weakening soft data, some of which has already shown up in the hard date (i.e., housing, and GDP growth), the Fed should be actively moving monetary policy toward ease.3 To repeat: Because of the lag between Fed actions and the impact of those policy changes on the economy, the Fed should be acting now, when the survey (soft) data is telling it that the hard data will soon show up weaker.3 But not this FOMC or its Chair. According to Chair Powell, the FOMC is waiting for the weakness in the soft data to show up in the hard data! A good example is the rate of inflation. For some strange reason, unbeknownst to the public, the Fed (and therefore the media) choose to concentrate on the year/year CPI inflation rate. In April, that year/year CPI was +2.3% - getting close to the Fed's 2% target.3 And that appears to be where the analysis ends. Looking further, however, reveals that the three-month annualized CPI was 1.6%, below their 2% target. Now, a key CPI component is rents (35% weighting in the CPI index). But the rents used in the calculation are lagged nearly a year. If current rents were used, the three-month annualized rate computes to just +0.7%, Inflation is withering! In our view, we could actually end up with a bout of deflation over the next year or so.3 Based on this analysis, the Fed appears to be behind the curve, hung up on lagging indicators. They should be lowering aggressively now. But market odds for a rate cut in June are about 5%, and only 27% for the July meeting. Markets think that we will have to wait for the September 16-17 meeting to see the next cut (75% odds).1 From the analysis above, the Fed appears to be behind the curve! Financial markets appear to be reacting to the policy uncertainty surrounding Trump's tariffs (on again, off again…), and ignoring the incoming data which imply a slowdown in the economy.2 3 There is a significant amount of soft (anecdotal) data regarding a weakening economy, all the way from Regional Federal Reserve Bank surveys to analysis in the Wall Street Journal.2 The last few JOLTS have shown a slowing jobs market. And the U3 Unemployment Rate has had a couple of upticks. It appears that the job market is softening (rapidly) and that the Unemployment Rate (U3) will be heading higher.3 4 We've already seen Q1 GDP growth with a negative sign. Chances are that will also be the case in Q2. Retail sales have been flat and so has manufacturing output. This could mean Recession.7 The housing market is certainly in a downturn.5 If Q2 GDP growth is negative, that satisfies the two-quarter rule (i.e., a Recession occurs when GDP growth is negative for two quarters in a row).4 Will this time be different? We hope so, but won't be counting on it. Will the Fed adjust in a timely fashion? We don't know for sure, but based on past actions and recent pronouncements, odds are they will wait too long once again. We hope we are wrong!3 (Joshua Barone and Eugene Hoover contributed to this blog.)
Yahoo
a day ago
- Business
- Yahoo
Goldman says hedge funds are buying U.S. tech stocks at fastest pace in a decade
-- U.S. hedge funds have been buying equities for four consecutive weeks, with the last week's long buying in dollar terms being the largest since November, according to Goldman Sachs' prime brokerage desk. Vincent Lin of Goldman Sachs has noted that this trend indicates a heightened willingness by hedge funds to assume idiosyncratic risk. In terms of sectors, 10 out of 11 U.S. sectors witnessed net buying, with the information technology sector leading the pack. This sector witnessed the most significant long buying in over a decade. Fund managers purchased nearly every subsector within tech, with semiconductors and semiconductor equipment leading the way. However, software experienced a modest net selling last week. Last week, hedge funds adjusted their positions by decreasing their holdings in the Magnificent 7 tech stocks while increasing their exposure to China ADRs in the first quarter. Despite the escalating trade tensions at the end of the quarter, hedge funds increased their exposure to China ADRs. The most popular China ADRs among U.S. hedge funds include Alibaba Group (NYSE:BABA), PDD Holdings (NASDAQ:PDD), Baidu (NASDAQ:BIDU), and (NASDAQ:JD). However, this shift in investment strategy did not yield the expected results as the Magnificent 7 stocks returned a positive 12% during the second quarter to date, while trade tensions negatively impacted China ADRs. Despite this, U.S. megacap companies continue to be among the most popular long positions for hedge funds. Ben Snider, leading the team at Goldman Sachs, noted that despite a volatile macroeconomic backdrop, U.S. equity long/short hedge funds have managed to maintain a positive return of 1% year-to-date, thanks to strong stock-picking. He also mentioned that the rising short interest has pushed hedge fund gross leverage to a record high. For the first time since the 2021 short squeeze, short interest in the median S&P 500 stock has risen above the long-term historical average, increasing to 2.3% of float from 1.8% in December 2024. In terms of sectors, hedge funds reduced their net exposure to healthcare and increased their holdings in infotech, consumer discretionary, and industrials. Related articles Goldman says hedge funds are buying U.S. tech stocks at fastest pace in a decade BTIG upgrades Doximity saying pullback on macro fears overdone CAE taps Northrop Grumman's Matthew Bromberg as new CEO Sign in to access your portfolio
Free Malaysia Today
6 days ago
- Business
- Free Malaysia Today
Asian shares, US dollar climb on rosy data, tech optimism
Confidence grew that Nvidia could beat consensus estimates, with strong sales and margins expected to trigger a sustained tech rally. (EPA Images pic) TOKYO : Asian shares continued a rally from Wall Street and the dollar held gains on Wednesday on promising economic signs in the US and speculation of strong tech earnings. Markets welcomed what appeared to be easing trade frictions between the US and Europe while global bond markets settled down after a scary surge in long-term yields. US consumer confidence surprised on the upside ahead of closely watched jobs figures on Thursday. Nvidia jumped more than 4% yesterday and will be the last of the Magnificent 7 tech giants to report earnings after markets close in the US. 'There is renewed confidence that Nvidia can beat the consensus estimates,' said Chris Weston, head of research at Pepperstone. If Nvidia comes through with better-than-expected sales and profit margins 'the rally is on,' he added. The chipmaker is expected to report that first-quarter revenue surged 66.2% to US$43.28 billion, according to data compiled by LSEG. In signs of a thaw between the US and Europe, European Union officials have asked companies for details of their US investment plans, according to two sources familiar with the matter. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.3% in morning trading while Japan's Nikkei advanced 0.6%, climbing a fourth straight session. The dollar index, which tracks the greenback against a basket of currencies, rose 0.1%, adding to Tuesday's 0.6% rally. The greenback advanced 0.1% to US$1.132 against the euro. Australian shares were up 0.17%, but the nation's currency slid 0.2% after April consumer price data came in above expectations. The kiwi dollar slid 0.3% after the Reserve Bank of New Zealand cut rates as expected. Japanese bonds slid, trimming a surge yesterday, ahead of a 40-year auction and on speculation the ministry of finance will reduce the issuance of long-dated securities. Oil prices ticked up in early trading as the US barred Chevron from exporting crude from Venezuela under a new authorisation on its assets there, raising the prospect of tighter supply. Brent crude futures rose 0.4% to US$64.37 a barrel, while US Spot gold rallied 0.1% after dropping more than 1% on Tuesday.
