Latest news with #MichaelReynolds
UPI
3 days ago
- Business
- UPI
Peloton launches 'Repowered' platform to resell used fitness equipment
Pedestrians walk past a Peloton store in Bethesda, Maryland in August 2022. The fitness company announced Tuesday it was launching a resale platform for its fitness equipment, called Repowered. File Photo by Michael Reynolds/EPA-EFE June 4 (UPI) -- Peloton is geared-up to help customers sell their bikes and treadmills online with Tuesday's launch of Repowered, a resale marketplace that could bring in top secondhand dollars for the connected fitness company. Repowered is currently operating in New York City, Boston and Washington, D.C., with plans to go nationwide within the year. The platform is available to sellers only and will become available to buyers, once there's enough inventory, Peloton said. "The official Peloton resale site where you can find great deals on gently used Peloton equipment or sell your pre-loved pieces for cash," the company announced on its website. According to Peloton, the platform will cut third party friction by coordinating pickups and deliveries. Sellers will receive 70% of the proceeds, with Peloton splitting the rest with platform provider Archive. Sellers can also receive up to a $600 discount on new equipment. Peloton says the resale market aligns with its sustainability goals to "help give used equipment a second life," while providing transparency on the product. "If you're buying or selling used Peloton equipment, you will have access to the Peloton History Summary that includes details like service history, warranty and more, directly from us," the company said. "This ensures transparency about the item's condition, giving both parties confidence in the transaction." The fitness company has seen a drop in the monthly subscriptions that go with their equipment, as treadmills and bikes collect dust and clothing once owners stop using them. Those subscriptions are a big part of Peloton's revenue, according to the company's financial records. Last year, Peloton cut 15% of its workforce as chief executive officer Barry McCarthy stepped down. At the same time, the company noticed a spike in the resale of its equipment on Facebook Marketplace and Trade My Stuff, which manages transactions and heavy lifting for buyers and sellers. The delivery team also sets up the equipment and teaches the buyer how to use it. After reporting a 13% decline in revenue during its third quarter, Peloton announced it would help facilitate the resale of its own equipment as part of its full-spectrum wellness offerings that include mindfulness and sleep.
CNBC
22-05-2025
- Business
- CNBC
Transport stock charts aren't saying the economy is fine
Markets stabilized on Thursday after the dual sell-off in stocks and bonds, but a key corner of the equity market is blinking a caution light on the economy. The Dow Jones Transportation Average is headed for a losing week and has fallen back below its pre-April 2 Liberation Day levels. JB Hunt Transport Services and C.H. Robinson Worldwide have both dropped for four straight sessions. The performance of transportation stocks is often seen as a harbinger of the U.S. economy as they serve as an intermediary between producers and end customers. The chart of J.B. Hunt in particular is worrisome, as the stock is down more than 18% year to date. JBHT YTD mountain Shares of JB Hunt are trailing the broader market significantly in 2025. The struggles of transport stocks are not necessarily predictive of an economic downturn, but serve as a reminder that the outlook is still murky. Michael Reynolds, vice president of investment strategy at Glenmede, told CNBC that the odds of a recession have fallen in recent weeks due to the deescalation of tariffs on China and cautioned against reading too much into short-term moves over the past few days. However, his firm's outlook doesn't call for an economic boom, either, even as it sees upside ahead for stocks. "Are we going to get our trend 2-to-2.5% growth in 2025? We don't think so. But there is a sort of muddle-through scenario here that is quite a bit more constructive, I think, for risk assets," Reynolds said. Meager economic growth could be good enough to support corporate earnings and help put a floor under the equity market. However, simply avoiding a recession isn't great news for investors if it takes a large amount of deficit spending by the government to prop up growth, and pushes up bond yields at the same time. "You have a debt problem, there's three ways to get out: you inflate out, you grow out, or you default," John Luke Tyner, head of fixed income at Aptus Capital Advisors, told CNBC. "And we know that default's not an option. Significant austerity measures aren't an option because it doesn't get elected in D.C. ...so some combination of growth and inflation seems likely to persist to get out of this problem, and that's going to pressure long-term yields."
Yahoo
19-05-2025
- Business
- Yahoo
How rate cuts could spark small-cap growth in 2025
Small-cap stocks have struggled to gain momentum, but investors are starting to take a closer look. Michael Reynolds, vice president of investment strategy at Glenmede, joins Market Domination Overtime to explain why he's watching small caps closely and why he thinks two to three rate cuts in the second half of 2025 could unlock their upside. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.
Reuters
07-05-2025
- Business
- Reuters
Rising valuations, cloudy earnings view confronts US stocks after tariff rebound
Summary S&P 500 edges back after erasing post-April 2 losses Solid Q1 results help stocks, outlook dims for rest of 2025 S&P 500 P/E ratio back around level on April 2 NEW YORK, May 7 (Reuters) - After a round-trip for U.S. stocks following their tariff-fueled swoon, investors are wary of obstacles that will prevent the market from more significant gains in the near term. A stronger-than-expected first-quarter earnings season and optimism that worst-case trade fears will not come to pass underpinned the stock market's recent gains, after President Donald Trump's April 2 announcement of sweeping tariffs unleashed a burst of severe volatility. The roller-coaster nature of developments in reaching deals with the top U.S. trade partners - most notably China - was seen in stark relief on Tuesday, with sentiment largely depressed during regular Wall Street trading only to reverse course in the evening on news that top U.S. officials will meet with a top China official in Switzerland later in the week. Even so, stocks may struggle as they trade at loftier valuations than they did after recent declines, while companies still face a murky earnings and economic outlook because of the fluctuating trade backdrop, investors said. The S&P 500 (.SPX), opens new tab has pulled back to start the week after the benchmark index as of Friday had erased its losses since April 2. "We've been surprised on the magnitude and just how quickly the market has rebounded," said Michael Reynolds, vice president of investment strategy at Glenmede. "We think to some extent the markets are probably a little overly optimistic relative to where we sit through negotiations and just the fact that there's still so much unknown." Progress on trade, such as deals with key trading partners, could be one catalyst to drive stocks higher. Focus is also on Wednesday's Federal Reserve monetary policy meeting and whether the central bank will signal openness to resuming interest rate cuts. U.S. Treasury Secretary Scott Bessent will meet with China's vice premier, He Lifeng, in Switzerland later this week. Bessent said that, at least for now, he sees the meeting as "about de-escalation." Even with the recent rebound, which included a nine-session streak of gains that ended Friday, the S&P 500 remains down over 8% from its February record high. Here's a look at several factors investors are watching after the S&P 500 erased its "Liberation Day" losses: STRONG Q1 EARNINGS, OUTLOOK MURKIER Investors have pointed to a solid first-quarter earnings season helping to soothe stocks in the wake of the tariff-driven declines. With over 70% of the S&P 500 having reported, earnings overall are on pace to have climbed 13.6% in the quarter from a year ago, according to LSEG IBES. That compares to an estimate of an 8% rise as of April 1. However, in a reflection of the murky outlook, consensus analyst estimates for profit growth in the next three quarters of 2025 have all come down. In a note on Friday, Goldman Sachs strategists said 56% of companies had issued guidance below consensus estimates, compared to the historical average of 51%. Current visibility on the ultimate tariff landscape remains very low, said Allen Bond, portfolio manager at Jensen Investment Management. "To the extent that we start to see some idea of how these policies take shape, companies are going to have to come out and reevaluate what that means for their businesses," Bond said. VALUATIONS RISING AGAIN The forward price-to-earnings ratio as of Monday stood at 20.6 times earnings estimates for the next 12 months, according to LSEG Datastream, which is the same P/E ratio where it stood on April 2. The level is well above the index's 10-year average P/E of 18.5 and long-term average of 15.8. Several factors could make the valuation look more expensive. The yield on the 10-year Treasury is around 4.3%, over 10 basis points higher than on April 2. Higher Treasury yields tend to weigh on equities in several ways, including indicating higher borrowing costs for companies and consumers and greater investment competition from fixed income. Analysts also expect earnings estimates could fall even further because of the tariff fallout, which could mean current valuations are factoring an overly rosy outlook for companies. "The market is starting to embed a lot of good news and is vulnerable to bad news now, which is the opposite to where we were at the lows," said Keith Lerner, "If something goes wrong, you don't have much of a buffer for negative news." NEARING A KEY TREND LINE Investors said the stock market had been due to bounce after its steep decline in April, and its recent streak of gains could bode well. Of 12 times since 1991 that the S&P 500 has gained for at least eight straight sessions, the index posted a positive performance in the next six months in 11 of those times, according to Mark Hackett, chief market strategist at Nationwide. Investors are now focusing on whether the S&P 500 can surpass its 200-day moving average, which is a closely watched long-term trend line. That trend line is about 2% above the S&P 500's current level and may provide resistance against further gains. Unless something significantly positive occurs on the trade front or another catalyst emerges, "we're going to be hard-pressed to push through" that level, said Walter Todd, chief investment officer at Greenwood Capital. PEAK UNCERTAINTY? A belief that "peak uncertainty" when it comes to the tariff situation is in the past also has been driving stocks higher, investors said. The Cboe Volatility index (.VIX), opens new tab, an options-based gauge of investor anxiety, has moderated. After spiking to 52.33 on April 8, its highest closing level in five years, the VIX index has come down to around 25. But that is still above its long-term median level of 17.6, according to LSEG Datastream. "We do think we're through this period of max uncertainty," Reynolds said. "But to call a direction from here I think is really difficult because we could get a news release out of the White House tomorrow on new tariffs and that could completely change the game."
Yahoo
04-04-2025
- Business
- Yahoo
Small caps could be good buys in tariff-fueled bear market
Glenmede vice president of investment strategy Michael Reynolds joins Market Domination with Yahoo Finance Head of News Myles Udland, Epistrophy Capital Research chief market strategist and host of "The Drill Down Podcast" Cory Johnson, and RSM chief economist Joe Brusuelas, to explain the market reaction to US President Donald Trump's new tariffs and outline why small-cap stocks could gain. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Michael Reynolds, VP of Investment Strategy at Glenmede. Michael, I want to get you in here just on how you guys have tried to think through what we've seen over the last 48 hours in markets, what you've talked about internally with clients, and how you're trying to get your head around what's, you know, getting close to a 10% drop here in the S&P in just two sessions. Well, we knew we were heading for some volatility here when, uh, liberation day, so to speak, came around. And the expectation was perhaps we'd get a little bit more certainty on trade policy. To some extent, we actually did, but when one question was answered, it seemed to bring up two more. The biggest of that is, well, okay, we've got the details on what reciprocal tariffs mean now, but what does that mean from here? I mean, countries, some of our trade partners can take one or two paths. They can either bring their rates down and maybe we soften the impact of these tariffs, or maybe they ratchet things higher by putting in tariffs of their own. And so we have so many different questions of where things could be going here. The uncertainty is really here to stay for the near term. So it really doesn't surprise us to see a lot of this volatility when you have really a regime shifting change to global trade, when globalization has become such a big theme over the past two decades. Upturning that is really having some implication for risk assets. I don't know if it's liberation day or obliteration day. It seems like the latter. I mean, I'm just going to go with it is the latter. We can see what's happened to the market here in these last few obliteration days. Um, am I right to focus on when I'm looking for companies that are going to feel the most pain? Am I right to focus on companies that are producing in I'm looking at the 10k of a company. Since I already mentioned one of my shorts, I won't mention this one, but, uh, 91% of our revenues in fiscal '24 are from Malaysia, Mexico, Vietnam, China, Indonesia, and Taiwan. That's not good. So we think there's two ways to look at this. You can look at the direct impact and you can go down that thought process where you look at the companies that are exposed to foreign trade, and really there's nowhere to hide anymore because there's 10% universal tariffs and maybe higher for your Vietnams, your Southeast Asia. But the other part of this is if other countries are going to retaliate, maybe they're going to go after the US cash cows, which is like I would call Big Tech, Mag 7, whatever you want to call it. That's really a big driver of our economy, and if we're going after big drivers of their economy, that's sort of what's vulnerable on the US side. So we're thinking through both indirect impacts as well as the direct impacts, and it's it's really quite a lot all at once. So it's again, not surprising to see a lot of this volatility to the extent we have. All right, this is probably impossible to do, but give us a couple names that are being unduly punished so we can sort of finish maybe on an encouraging note today. Sure. I don't know about specific names, but we're looking at small cap in particular, which has gotten hit really hard in this environment. We sort of liked small caps on some interesting valuations to start the year, and if you liked them then, you're certainly going to love them in a bare market here. But what we've got to watch closely here is where the earnings are going to go, because if things get cheap on earnings that just haven't been adjusted for what the tariffs could do here, maybe you're catching a falling knife so to speak. We're starting to think about that a little bit. And the reason is, Lex, small cap, for the uninitiated out in the audience, is they don't have the exposure to the external sector on tariffs on imported goods for the most part, right? For the most part, yeah. I mean, they're more domestically focused. A smaller portion of their revenues relative to larger cap companies are exposed to to foreign trade. There is some argument to be made that larger companies perhaps are a little bit more dynamic in resourcing their supply chains, and we think there's some truth to that, but at what point does the sell-off get too much? We're starting to have those conversations, and really we're looking at the things that are down the most, and small caps are fitting that bill. You know, Michael, I'm curious. We got a minute here to the bell, and I want to be quick, but just are portfolios in your view positioned to take advantage of these sell-offs? I mean, how are you guys thinking about the mix coming into a year like '25, particularly coming off two straight years where the S&P was up 20%? Well, we've been making the case for diversification really hard at the beginning of this year, and that was both between asset classes as well as within. So if you had a more diversified approach and you're say large cap bucket, you're probably avoiding some of the stocks that are down the most this year. Uh, in addition, if you had some international equities in your portfolio, yeah, I mean, down quite a bit today, but actually year to date doing considerably better. So it sort of depends the approach you took coming into the year. If you were diversified, you had some bonds in your portfolio, yeah, this doesn't feel great, but you're certainly doing a bit better than some of the stark numbers you're seeing on the screen today. Sign in to access your portfolio
