Latest news with #MichiganConsumerSentimentIndex
Yahoo
02-07-2025
- Business
- Yahoo
3 Mutual Funds to Buy as Consumer Sentiment Makes a Solid Rebound
Wall Street is on a rally, with the S&P 500 and the Nasdaq reaching record highs amid easing trade concerns and reduced geopolitical tensions. Investor confidence has also been lifted by growing expectations that the Federal Reserve may soon cut interest rates. This wave of positive momentum has led to a rebound in consumer sentiment for the first time in 2025. This renewed optimism is fueling investor confidence, making it a favorable time to consider investing in large-cap growth funds. Three such funds are Fidelity Contrafund FCNTX, Janus Henderson Research A JRAAX and MassMutual Disciplined Gr Svc DEIGX. Consumer confidence surged in June, with the Michigan Consumer Sentiment Index jumping 16.3% to 60.7 from May's 52.2, marking the largest monthly gain in more than three decades. Several factors have been contributing to this rebound in sentiment. The United States is nearing a trade agreement with China after extensive negotiations, and more trade deals are expected ahead of the July 8 deadline for tariff talks. Meanwhile, tensions in the Middle East have eased. Although the United States conducted airstrikes on Iran's nuclear sites, Iran's retaliation was less severe than feared. Alongside easing inflation and a softer labor market, this has raised hopes for Fed rate cuts. Easing tensions are boosting markets. The S&P 500 notched another record close on Monday, rising 0.5% to finish at 6,204.95, following Friday's high. The Nasdaq also climbed 0.5%, closing at 20,369.73. However, the tech-heavy Nasdaq gave up some of its gains on Wednesday but is on track to resume its northbound journey. The S&P 500 has surged 20% since its April lows, and is up nearly 5% for the year. Markets are expected to gain further momentum if the Fed begins cutting rates, with traders anticipating at least two 25 basis point cuts in 2025. The first could come as early as July, based on signals from Fed officials. We have selected three large-cap growth funds that are poised to gain from the above factors. Moreover, these funds have encouraging three and five-year returns. The minimum initial investment is within $5000. We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors in identifying potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund. The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money). Fidelity Contrafund seeks capital appreciation. FCNTX invests primarily in the common stock of companies whose value management believes is not fully recognized by the public. Fidelity Contrafund has a track of positive total returns for over 10 years. Specifically, FCNTX's returns over the three and five-year benchmarks are 21.8% and 17.4%, respectively. FCNTX has an annual expense ratio of 0.63%, which is lower than its category average. To see how this fund performed compared to its category and other #1 or 2 Ranked Mutual Funds, please click here. Janus Henderson Research A fund is part of the Large Cap Growth mutual fund category. JRAAX invests in many large U.S. companies that are expected to grow much faster than the other large-cap stocks. Janus Henderson Research A fund has had a track of positive total returns for over 10 years. Specifically, JRAAX's returns over the three and five-year benchmarks are 21.4% and 16%, respectively. The fund's annual expense ratio is 0.86%, which is lower than its category average. To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here. MassMutual Disciplined Gr Svc fund seeks to outperform the total return performance of its benchmark index, the Russell 1000 Growth Index, while maintaining risk characteristics similar to those of the benchmark. DEIGX invests substantially all (but no less than 80%) of its net assets in common stocks of companies included in the fund's benchmark index. MassMutual Disciplined Gr Svc has a track of positive total returns for over 10 years. Specifically, DEIGX's returns over the three and five-year benchmarks are 18.3% and 16%, respectively. DEIGX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.79%, which is lower than its category average. To see how this fund performed compared to its category, and other #1 or 2 Ranked Mutual Funds, please click here. Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (DEIGX): Fund Analysis Report Get Your Free (FCNTX): Fund Analysis Report Get Your Free (JRAAX): Fund Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
01-07-2025
- Business
- Yahoo
4 Discretionary Stocks to Buy as Consumer Sentiment Rebounds
Wall Street is on a rally, with the S&P 500 and the Nasdaq hitting new all-time highs as trade worries and geopolitical tensions have eased. Also, optimism surrounding a rate cut by the Federal Reserve in the coming weeks has lifted the confidence of investors. These positive developments over the past few weeks have seen consumer sentiment rebound for the first time in 2025. Given the positive sentiment, consumer discretionary stocks such as Interface, Inc. TILE, Carnival Corporation & plc CCL, Grand Canyon Education, Inc. LOPE and fuboTV Inc. FUBO have a strong potential in 2025. These stocks currently have a Zacks Rank #2 (Buy) each and assure good returns. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Consumer sentiment rose for the first time in six months, with the Michigan Consumer Sentiment Index rising 16.3% to 60.7 in June from May's 52.2. This was also the biggest monthly increase in more than 30 years. The jump in consumer sentiment comes on multiple positive developments. The United States is on the verge of signing a trade deal with China following weeks of negotiations. Investors are expecting announcements of more trade deals as President Donald Trump's 90-day tariff pause is set to expire next week. Also, geopolitical tensions in the Middle East between Iran and Israel have eased over the past week. The United States entered the conflict and targeted Iran's nuclear facilities with airstrikes, but Iran's response has been less intense than expected. Meanwhile, easing inflation and a weakening job market have fueled optimism that the Federal Reserve may now have justification to restart interest rate cuts. Easing tensions have been boosting markets. The S&P 500 extended its gains after hitting a fresh closing high on Friday. On Monday, the S&P 500 posted another record close, jumping 0.5% to close at 6,204.95 points. The Nasdaq also hit a new all-time high, climbing 0.5% to close at 20,369.73. The S&P 500 is now up nearly 20% from its April lows and has gained 5% year to date. The markets could get a further boost once the Federal Reserve starts its rate cuts. Market participants are expecting at least two 25 basis point rate cuts this year, with several Federal Reserve officials having hinted at the first rate cut as early as July. Interface, Inc is the world's largest manufacturer of modular carpet, which it markets under the Interface and FLOR brands. TILE is committed to the goal of sustainability and doing business in ways that minimize the impact on the environment, while enhancing shareholder value. Interface's expected earnings growth rate for the current year is 8.2%. The Zacks Consensus Estimate for current-year earnings has improved 2.6% over the past 60 days. Carnival Corporation & plc operates as a cruise and vacation company. As a single economic entity, CCL forms the largest cruise operator in the world. Carnival Corporation & plc is the world's leading leisure travel firm and carries nearly half of the global cruise guests. Carnival Corporation's expected earnings growth rate for the current year is 38%. The Zacks Consensus Estimate for current-year earnings improved 5.8% over the last 60 days. Grand Canyon Education, Inc. is a regionally accredited provider of online postsecondary education services focused on offering graduate and undergraduate degree programs in its core disciplines of education, business, and healthcare. In addition to its online programs, LOPE offers programs at its traditional campus in Phoenix, Arizona and onsite at the facilities of employers. Grand Canyon Education's earnings growth rate for the current year is 8.8%. The Zacks Consensus Estimate for current-year earnings has improved 1.3% over the past 60 days. fuboTV Inc. offers sports first live TV streaming platform as well as news and entertainment content. FuboTV is based in New York. fuboTV's expected earnings growth rate for next year is 69%. The Zacks Consensus Estimate for current-year earnings has improved 25% over the past 60 days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Carnival Corporation (CCL) : Free Stock Analysis Report Grand Canyon Education, Inc. (LOPE) : Free Stock Analysis Report Interface, Inc. (TILE) : Free Stock Analysis Report fuboTV Inc. (FUBO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
27-06-2025
- Business
- Yahoo
Consumers Shrug Off Geopolitical Conflict to Send Sentiment Higher
The Michigan Consumer Sentiment Index improved to 60.7 in June, ticking higher than its preliminary reading. Consumers reported improved sentiment for the first time in six months. Consumer expectations improved by more than 20% amid higher optimism over personal finances and business conditions, while inflation expectations also improved. The reading is still lower than the post-election bump in December as worries over the impacts of tariffs economic effects of the conflict in the Middle East didn't weigh on consumers' minds in June as sentiment continued to inch higher and inflation concerns faded. The Michigan Consumer Sentiment Index improved in June to 60.7, a tick higher than its preliminary reading and 8.5 points higher than the prior month. It was the first improvement of the closely followed survey results in six months. The reading comes after a similar survey ticked lower this month. Consumers were still worried about tariffs but were more optimistic about personal finances and business conditions. The survey that ended on Monday also showed that the U.S. airstrikes on Iran didn't impact consumers' feelings about the economy. 'It's not that consumers don't recognize the risks that are present; they do. Instead, they appear to be adapting to the new reality of geopolitical instability and fluid policy, and the sense that developments can change the narrative—and the resulting outlook—meaningfully and with little warning,' wrote Jim Baird, chief investment officer with Plante Moran Financial Advisors. Sentiment is still about 18% lower than the December 2024 post-election surge. Pessimism about the labor market and worries that tariffs will raise prices have faded but still persist. Inflation expectations improved, as consumers predicted prices would increase by 5% over the next year, lower than May's expectation of 6.6%. 'Consumers feel they have some breathing room given that the historically high tariffs announced earlier this year have not been sustained, and the worst-case scenarios for the economy have not come to fruition,' said Survey Director Joanne Hsu. Read the original article on Investopedia
Yahoo
30-05-2025
- Business
- Yahoo
Consumer Sentiment Held Steady in May As Tariff Uncertainty Persists
The Michigan Consumer Sentiment Index improved from its mid-May preliminary reading to 52.2, matching April's results. Inflation expectations moved lower as consumers factored in President Donald Trump's move to reduce tariffs on China temporarily. While consumers felt better about the short-term economic outlook, they were more worried about wages and remained pessimistic about long-term economic freefall in sentiment leveled off in May as consumers worried less about price increases from tariffs, but still felt uneasy about the economic outlook. The final Michigan Consumer Sentiment Index for May improved slightly from the preliminary results released two weeks ago to 52.2, matching the final results from April. The reading ends four straight months of declines for the closely watched consumer survey. The improved sentiment reflected President Donald Trump's move on May 12 to temporarily reduce tariffs on China to 30% from 145%. It shadows a similar improvement in the Conference Board's Consumer Confidence report, which rose by more than 12 points in May on the temporary tariff truce. Consumers also felt a little better about inflation at the end of the month, with year-ahead expectations for price increases coming in at 6.6%, lower than the preliminary reading but higher than April's inflation expectations. Long-term inflation expectations ticked lower in the report. 'In the second half of the month, sentiment lifted and inflation expectations eased in the wake of the May 12 pause on some tariffs on goods from China,' said Joanne Hsu, director of the University of Michigan Survey of Consumers. 'With continued policy uncertainty, however, consumers continue to expect an economic slowdown to come.' Uncertainty has spread since consumers were asked about their outlook. Courts have gotten involved in tariffs, and Trump has called the tariff pause on Chinese goods into question. While expected short-term business conditions improved, likely from the pause in tariffs, they were offset by declines in consumers' current personal finances that stemmed from stagnant wages, the report said. About 64% of consumers said they expect business conditions to worsen in the year ahead, the same as last month, but more than double the 29% who expressed similar concerns six months ago. 'Consumers still expect the economy to weaken and foresee weaker business conditions and income growth as they express ongoing frustration with the cost of living,' said Oren Klachkin, financial market economist for Nationwide. 'However, the survey suggests consumer attitudes may improve if trade deals are announced and tariff uncertainty diminishes.' The report continued to show the separation between 'hard' and 'soft' data as economic indicators like retail sales remained strong despite consumers raising worries about the economy. 'While the soft data continue to cast an unfavorable light, the hard data paint a comparatively better picture,' Klachkin said. 'Developments on the tariff front will likely continue to shape consumer attitudes.' Read the original article on Investopedia Sign in to access your portfolio
Yahoo
28-05-2025
- Business
- Yahoo
4 Ways Retailers Are Preying on Your Tariff Anxieties and Making You Spend More
Americans have gone on a money-spending spree this spring — and not because they feel rich. Quite the opposite, with the University of Michigan Consumer Sentiment Index falling nearly 30% since January. Already, 72% of consumers have changed their shopping habits per a Collage study, with many stockpiling goods and even 'doom spending.' And retailers have played an active role in stoking those tariff anxieties — below are some examples of how. Trending Now: For You: The most obvious way that retailers have spurred more spending is simply saying 'Price hikes are coming.' Quynh Mai, founder of retailer PR agency Qulture, explained how effective the strategy has been. 'Retailers from Walmart to Amazon have already warned their customers about rising prices and the media has been showing pictures of empty shelves. Customers, who remember scrambling for toilet paper, get the subliminal message and are pre-shopping before prices skyrocket, especially on high-ticket items like iPhones.' Read Next: A sneakier tactic involves retailers hiking prices now, before tariffs have hit their wholesale costs and then announcing discounts and sales. 'For example, say a flooring company paid $1.50 a square foot and they normally sell for $2.50 a square foot,' explained Melanie Musson, finance expert with 'Then they increase pricing to $3.50 a square foot and offer you a 10% 'pre-tariff discount,' you're going to pay over $3 a square foot. The buyer feels like they got a deal, but they didn't.' Retailers have banged the tariff drum on earnings calls, loudly and repeatedly. In fact, FactSet reported that 91% of the S&P 500 companies who have reported first quarter earnings mentioned tariffs. They beat out artificial intelligence (AI) as the new corporate buzzword. By doing so, retailers lay the groundwork for future earnings misses while simultaneously fueling inflation fears and doom spending. Mai, who works with fashion retail brands, said many have grown aggressive in how they message tariff risks. 'Many brands, afraid of the future of their businesses, are pushing outrageous sales and speaking publicly about possibly closing their businesses, prompting a hoarding mentality amongst their customers.' Will tariffs send consumer prices through the roof? Maybe. In the meantime, retailers are doing some stockpiling of their own: profits. More From GOBankingRates 8 Dollar Tree Items Retirees Need To Buy Ahead of Summer 2025 How Far $750K Plus Social Security Goes in Retirement in Every US Region 4 Affordable Car Brands You Won't Regret Buying in 2025 This article originally appeared on 4 Ways Retailers Are Preying on Your Tariff Anxieties and Making You Spend More Sign in to access your portfolio
