Latest news with #MarkCosta
Yahoo
31-07-2025
- Business
- Yahoo
Eastman Chemical forecasts downbeat quarterly profit, to reduce inventory as tariffs bite
(Reuters) -Eastman Chemical projected a downbeat third-quarter profit on Thursday and announced plans to cut inventory amid soft demand and U.S. trade policy challenges, sending its shares down over 10% after the bell. Global chemical companies are under pressure to reassess strategies due to increasing production costs, lackluster demand and stringent environmental regulations in key markets. The industry is also bracing itself for the impact of U.S. President Donald Trump's sweeping tariffs on most imports, which have forced companies to contend with higher raw material costs and weakening demand. "As we have entered the second half of the year, we are encountering a global macroeconomic environment that remains challenging," CEO Mark Costa said. "Customer caution is intensifying due to a changing tariff landscape and weak underlying demand," Costa added. Eastman Chemical makes a wide range of chemicals used in manufacturing end-products across the construction, agricultural and automotive sectors. The impacts of the trade dispute and seasonality would result in a decline in volumes in the second half of the year, the company said, adding that it plans to reduce inventory by more than $200 million below current levels. The reduction of inventory is expected to negatively impact earnings by $75 million to $100 million for the rest of the year, with around $50 million of that impact expected in the current quarter. The Kingsport, Tennessee-based company said it expects an adjusted profit of $1.25 per share for the third quarter ending September 30, falling short of analysts' expectations of $1.91 per share, according to data compiled by LSEG.
Boston Globe
25-04-2025
- Business
- Boston Globe
Big Tech carries Wall Street to the close of its winning, roller-coaster week
Alphabet climbed 1.7 percent in its first trading after Google's parent company reported late Thursday that its Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up Alphabet is one of the biggest companies on Wall Street in terms of size, and that gives its stock's movements extra influence on the S&P 500 and other indexes. Another market heavyweight, Nvidia, was also a major force pushing the S&P 500 index upward after the chip company rose 4.3 percent. Advertisement They helped offset a 6.7 percent drop for Intel, which fell even though its results for the beginning of the year also topped expectations. The chip company said it's seeing 'elevated uncertainty across the industry' and gave a forecast for upcoming revenue and profit that fell short of analysts' expectations. It wasn't just Intel. Roughly three out of every five stocks in the S&P 500 sank, including Eastman Chemical, which dropped 6.2 percent after it gave a forecast for profit this spring that fell short of analysts' expectations. Advertisement CEO Mark Costa said that the 'macroeconomic uncertainty that defined the last several years has only increased' and that future demand for its products 'is unclear given the magnitude and scope of tariffs.' Skechers U.S.A., the shoe and apparel company, pulled its financial forecasts for the year due to 'macroeconomic uncertainty stemming from global trade policies' even though it just reported a record quarter of revenue at $2.41 billion. Its stock fell 5.3 percent. Companies Stocks bounced back from a But Trump's on-again-off-again tariffs may nevertheless be pushing households and businesses to alter their spending and freeze plans for long-term investment because of how quickly conditions can change, sometimes seemingly by the hour. 'Business owners scrambling to figure out their supply chains and exposure to tariffs is more than just a distraction,' according to Brian Jacobsen, chief economist at Annex Wealth Management. 'It could be an existential threat, especially for smaller businesses that don't have the scale or resources to have the same supply chain flexibility as larger firms.' Advertisement All told, the S&P 500 rose 40.44 points to 5,525.21. The Dow Jones Industrial Average added 20.10 to 40,113.50, and the Nasdaq composite jumped 216.90 to 17,382.94. In stock markets abroad, indexes rose modestly across much of Europe following more mixed movements in Asia. Tokyo's Nikkei 225 jumped 1.9 percent, but stocks in Shanghai slipped 0.1 percent. In the bond market, Treasury yields eased some more, and the yield on the 10-year Treasury fell to 4.25 percent from 4.32 percent late Thursday. It's been generally falling since approaching 4.50 percent earlier this month in a Yields have dropped as several reports on the US economy have come in weaker than expected, bolstering expectations that the Federal Reserve may cut interest rates later this year to support growth. A report on Friday morning said sentiment among US consumers sank in April, though not by as much as economists expected. The survey from the University of Michigan said its measure of expectations for coming conditions has dropped 32 percent since January for the steepest three-month percentage decline seen since the 1990 recession. The value of the US dollar meanwhile held steady against the euro and other rival currencies. It's been recovering some of its sharp, unexpected AP Writers Jiang Junzhe and Matt Ott contributed.
Globe and Mail
25-04-2025
- Business
- Globe and Mail
Wall Street's rally slows as more CEOs talk about uncertainty because of Trump's trade war
NEW YORK (AP) — Wall Street's three-day rally is running out of momentum Friday, and U.S. stocks are drifting in mixed trading as they near the end of another roller-coaster week. The S&P 500 was 0.2% higher in early trading, though the majority of stocks within it were falling. The Dow Jones Industrial Average was down 10 points, or less than 0.1% , as of 9:40 a.m. Eastern time, and the Nasdaq composite was 0.3% higher. Intel weighed on the market after the chip company said it's seeing 'elevated uncertainty across the industry' and gave a forecast for upcoming revenue and profit that fell short of analysts' expectations. Its stock fell 7.6% even though its results for the beginning of the year topped expectations. Eastman Chemical fell 4.3% after it gave a forecast for profit this spring that fell short of analysts' expectations. CEO Mark Costa said that the 'macroeconomic uncertainty that defined the last several years has only increased' and that future demand for its products 'is unclear given the magnitude and scope of tariffs.' They're the latest companies to say the uncertainty created by President Donald Trump's trade war is making it difficult to give financial forecasts for the upcoming year. Stocks had rallied earlier in the week on signals that Trump may be softening his approach on tariffs and his criticism of the Federal Reserve, which had earlier shaken markets. The hope is that if Trump can roll back some of his stiff tariffs, he could avert a recession that many investors see as otherwise likely. But Trump's on-again-off-again tariffs may nevertheless be pushing households and businesses to freeze plans on spending and long-term investment because of how quickly conditions can change, sometimes seemingly by the hour. Skechers U.S.A., the shoe and apparel company, pulled its financial forecasts for the year due to 'macroeconomic uncertainty stemming from global trade policies,' for example. That was even though it just reported a record quarter of revenue at $2.41 billion. Its stock fell 3.4%. Helping to keep Wall Street's losses in check was Alphabet, which rose 3.1%. Google's parent company reported late Thursday that its profit soared 50% in the first quarter. Alphabet is one of the biggest U.S. companies on Wall Street in terms of size, and that gives movements for its stock extra heft on the S&P 500 and other indexes. It was the strongest single force pushing upward on the S&P 500 and the main reason the index was holding steady. In stock markets abroad, indexes rose modestly across much of Europe following more mixed movements in Asia. Tokyo's Nikkei 225 jumped 1.9%, but stocks in Shanghai slipped 0.1%. In the bond market, Treasury yields were easing ahead of a report on sentiment among U.S. consumers. The yield on the 10-year Treasury fell to 4.28% from 4.32% late Thursday. It's been easing since approaching 4.50% earlier this month in a surprising rise that had suggested investors worldwide may be losing faith in the U.S. bond market's reputation as a safe place to park cash. The U.S. dollar also strengthened against the euro and other rival currencies after its unexpected dip earlier this month rattled investors.
Los Angeles Times
25-04-2025
- Business
- Los Angeles Times
Big Tech carries Wall Street to the close of its winning, roller-coaster week
NEW YORK — Big Tech stocks carried Wall Street Friday to the close of a winning, roller-coaster week, one that saw markets swing from fear to relief and back to caution because of President Trump's trade war. The Standard and Poor's 500 rose 0.7% to add some more to a big three-day rally, and it's back within 10.1% of its record set earlier this year. Spurts for Nvidia and other influential tech stocks sent the Nasdaq composite up a market-leading 1.3%. But they masked a mixed day of trading on Wall Street, where more stocks fell within the S&P 500 than rose, and the Dow Jones Industrial Average added only a modest 20 points, or 0.1%. Alphabet climbed 1.7% in its first trading after Google's parent company reported late Thursday that its profit soared 50% in the beginning of 2025 from a year earlier, more than analysts expected. Alphabet is one of the biggest companies on Wall Street in terms of size, and that gives its stock's movements extra influence on the S&P 500 and other indexes. Another market heavyweight, Nvidia, was also a major force pushing the S&P 500 index upward after the chip company rose 4.3%. They helped offset a 6.7% drop for Intel, which fell even though its results for the beginning of the year also topped expectations. The chip company said it's seeing 'elevated uncertainty across the industry' and gave a forecast for upcoming revenue and profit that fell short of analysts' expectations. It wasn't just Intel. Roughly three out of every five stocks in the S&P 500 sank, including Eastman Chemical, which dropped 6.2% after it gave a forecast for profit this spring that fell short of analysts' expectations. CEO Mark Costa said that the 'macroeconomic uncertainty that defined the last several years has only increased' and that future demand for its products 'is unclear given the magnitude and scope of tariffs.' Skechers U.S.A., the shoe and apparel company, pulled its financial forecasts for the year due to 'macroeconomic uncertainty stemming from global trade policies' even though it just reported a record quarter of revenue at $2.41 billion. Its stock fell 5.3%. Companies across industries have increasingly been saying the uncertainty created by Trump's tariffs is making it difficult to give financial forecasts for the upcoming year. Stocks bounced back from a steep slide on Monday on hopes that Trump may be softening his approach on trade and his criticism of the Federal Reserve, which had earlier shaken markets. The hope is that if Trump rolls back some of his stiff tariffs, he could avert a recession that many investors see as otherwise likely because of his trade war. But Trump's on-again-off-again tariffs may nevertheless be pushing households and businesses to alter their spending and freeze plans for long-term investment because of how quickly conditions can change, sometimes seemingly by the hour. 'Business owners scrambling to figure out their supply chains and exposure to tariffs is more than just a distraction,' according to Brian Jacobsen, chief economist at Annex Wealth Management. 'It could be an existential threat, especially for smaller businesses that don't have the scale or resources to have the same supply chain flexibility as larger firms.' All told, the S&P 500 rose 40.44 points to 5,525.21. The Dow Jones Industrial Average added 20.10 to 40,113.50, and the Nasdaq composite jumped 216.90 to 17,382.94. In stock markets abroad, indexes rose modestly across much of Europe following more mixed movements in Asia. Tokyo's Nikkei 225 jumped 1.9%, but stocks in Shanghai slipped 0.1%. In the bond market, Treasury yields eased some more, and the yield on the 10-year Treasury fell to 4.25% from 4.32% late Thursday. It's been generally falling since approaching 4.50% earlier this month in a surprising rise that suggested investors worldwide may have been losing faith in the U.S. bond market's reputation as a safe place to park cash. Yields have dropped as several reports on the U.S. economy have come in weaker than expected, bolstering expectations that the Federal Reserve may cut interest rates later this year to support growth. A report on Friday morning said sentiment among U.S. consumers sank in April, though not by as much as economists expected. The survey from the University of Michigan said its measure of expectations for coming conditions has dropped 32% since January for the steepest three-month percentage decline seen since the 1990 recession. The value of the U.S. dollar meanwhile held steady against the euro and other rival currencies. It's been recovering some of its sharp, unexpected losses from earlier this month that had rattled investors. Choe writes for the Associated Press.
The Hill
25-04-2025
- Business
- The Hill
Wall Street's rally fades as more CEOs talk about uncertainty because of Trump's trade war
NEW YORK (AP) — Wall Street's big three-day rally is running out of steam, and U.S. stocks are drifting in mixed trading Friday as they near the end of another roller-coaster week. The S&P 500 was 0.3% higher in afternoon trading, though the majority of stocks were falling within the index. The Dow Jones Industrial Average was down 104 points, or 0.2%, as of 1:50 p.m. Eastern time, while the Nasdaq composite was 0.7% higher thanks to gains for a handful of influential Big Tech stocks. Intel weighed on the market after the chip company said it's seeing 'elevated uncertainty across the industry' and gave a forecast for upcoming revenue and profit that fell short of analysts' expectations. Its stock fell 7.5% even though its results for the beginning of the year topped expectations. Eastman Chemical fell 5.9% after it gave a forecast for profit this spring that fell short of analysts' expectations. CEO Mark Costa said that the 'macroeconomic uncertainty that defined the last several years has only increased' and that future demand for its products 'is unclear given the magnitude and scope of tariffs.' Skechers U.S.A., the shoe and apparel company, pulled its financial forecasts for the year due to 'macroeconomic uncertainty stemming from global trade policies' even though it just reported a record quarter of revenue at $2.41 billion. Its stock fell 4.7%. They're the latest companies to say the uncertainty created by President Donald Trump's trade war is making it difficult to give financial forecasts for the upcoming year. Stocks had rallied earlier in the week on signals that Trump may be softening his approach on tariffs and his criticism of the Federal Reserve, which had earlier shaken markets. The hope is that if Trump rolls back some of his stiff tariffs, he could avert a recession that many investors see as otherwise likely because of his trade war. But Trump's on-again-off-again tariffs may nevertheless be pushing households and businesses to alter their spending and freeze plans for long-term investment because of how quickly conditions can change, sometimes seemingly by the hour. 'Business owners scrambling to figure out their supply chains and exposure to tariffs is more than just a distraction,' according to Brian Jacobsen, chief economist at Annex Wealth Management. 'It could be an existential threat, especially for smaller businesses that don't have the scale or resources to have the same supply chain flexibility as larger firms.' Helping to keep lift the market was Alphabet, which rose 1.1%. Google's parent company reported late Thursday that its profit soared 50% in the first quarter, more than analysts expected. Alphabet is one of the biggest companies on Wall Street in terms of size, and that gives its stock's movements extra influence on the S&P 500 and other indexes. Another market heavyweight, Nvidia, also helped push the S&P 500 index upward after the chip company rose 3.4%. In stock markets abroad, indexes rose modestly across much of Europe following more mixed movements in Asia. Tokyo's Nikkei 225 jumped 1.9%, but stocks in Shanghai slipped 0.1%. In the bond market, Treasury yields eased some more, and the yield on the 10-year Treasury fell to 4.26% from 4.32% late Thursday. It's been generally falling since approaching 4.50% earlier this month in a surprising rise that had suggested investors worldwide may be losing faith in the U.S. bond market's reputation as a safe place to park cash. Yields have dropped as several reports on the U.S. economy have come in weaker than expected, raising expectations that the Federal Reserve may cut interest rates later this year to support growth. A report on Friday morning said sentiment among U.S. consumers sank in April, though not by as much as economists expected. The survey from the University of Michigan said its measure of expectations for coming conditions has dropped 32% since January for the steepest three-month percentage decline seen since the 1990 recession. The value of the U.S. dollar meanwhile strengthened against the euro and other rival currencies. It's been recovering some of its sharp, unexpected losses from earlier this month that rattled investors.
