Latest news with #MorganStanley
Yahoo
2 hours ago
- Business
- Yahoo
Amazon.com, Inc. (AMZN): Watch Out For AWS Cloud Performance, Says Jim Cramer
We recently published . Inc. (NASDAQ:AMZN) is one of the stocks Jim Cramer recently discussed. Inc. (NASDAQ:AMZN), one of the world's largest eCommerce retailers, has recently started to become a regular feature on Cramer's morning show. The CNBC host recently interviewed the firm's CEO, Andy Jassy, and since then, he has discussed Inc. (NASDAQ:AMZN) on nearly every Squawk on the Street appearance. Cramer's latest remarks revolved around the firm's Prime Day and Morgan Stanley's pre-earnings coverage: 'I want to go away from Amazon Prime. A lot of people are saying it's good, a lot of bad. There was an excellent piece by Morgan Stanley, that it's not about Prime. It's not about retail. It's about Amazon Web Services, which you have long reminded me is really where the money is. What I thought that was interesting was, they're saying that Azure's got good numbers that could be harbinger for Amazon's numbers. But they said the latest CIO survey shows that Amazon is gaining over Microsoft, Google, and Oracle. And then they even say, now I don't know how important this really is, but non-Anthropic AWS growth speaks to the strength of the business. And Anthropic growth is going to be good. Now Anthropic, they're mistaken. But David, what they're really saying is that part that you really should be concerned about is not is not Prime. It's web services. And the web service could be better. And because of that, that you really are looking at lower estimates. And they could beat those estimates. . . .And I thought that was interesting because this is the one, that I think a lot of people say, you know what, Jassy hasn't done as well as the other guys. . .but I think Jassy's doing well and I think that web services is really doing well. A customer entering an internet retail store, illustrating the convenience of online shopping. Previously, Cramer discussed Inc. (NASDAQ:AMZN)'s shares and the Alexa assistant: 'Two things I want to emphasize. I don't believe in the death cross and the golden cross. They never made me any money. And I'm not going to buy, I wanna buy Amazon because I think that the, I check Prime every minute, and I'm seeing more and more deals. I mean people, if you don't check Prime every four hours, I don't know what your problem is. I mean you're not American. While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. 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
CNBC
3 hours ago
- Business
- CNBC
These banks are still paying 4% yields on CDs. How to figure out whether you should lock in
The Federal Reserve is in a holding pattern on interest rates – and some banks are similarly keeping a steady hand on yields for certificates of deposit. In June, average CD rates were relatively unchanged on the month, according to a July 7 report from Morgan Stanley. The highest average CD rate among the banks in the firm's coverage ticked up 1 basis point to 3.94%. The average rate on one-to-12-month CDs inched higher by 1 basis point to 3.9%. One basis point equals one one-hundredth of a percent, or 0.01%. Earnings calls from banks should shed some light on where CD yields are heading next, said Morgan Stanley analyst Betsy Graseck. "Our expectation is portfolio CD rates should be down in 2Q as longer term CDs continue to mature, but the benefit should fade until we get the next round of rate cuts," she wrote. The Federal Reserve's stance on interest rate policy affects CD rates. Central bank policymakers have kept the fed funds target rate at 4.25% to 4.5% since December, and CD yields – though well off highs that once exceeded 5% – are still rich if you know where to look. Rates topping 4% Though CD yields aren't high enough to keep up with inflation over the long term, they can reward investors who want to earn some interest on idle cash. "I have clients with extra cash where we have plenty invested in markets, and this is a buffer if they need it," said Catherine Valega, certified financial planner at Green Bee Advisory in the Boston area. Investors who recently had their CDs mature are locking up in three-to-six-month instruments for now, she said. "To me, it's the shorter term that's the sweet spot of the curve, versus the longer term," Valega added, noting that investors can opt to stagger short-term maturities. This means buying several CDs with varying maturities – say three, six and nine months – and taking advantage of the highest yields. As those CDs mature, investors can decide how to move forward with the proceeds, including whether they want to redeploy that money into the market. "When that 4% gets closer to 3%, we start thinking, 'Let's get some of this money out of cash and into the stock market,'" Valega added. Banks offering annual percentage yields (APY) exceeding 4% include Sallie Mae, which touts a 4.2% yield for a 12-month CD, and Popular Direct, which pays a 4.4% APY on a 12-month CD. Keep your time horizons and goals in sight Even while yields are attractive, investors should proceed carefully before they lock up their money in a CD. Those who "break" a CD prior to its maturity are subject to penalties, so be sure you can commit money you won't need right away. If you'll need access to your funds, a high-yield savings account or a money market fund might be a more prudent choice. Consider that the Crane 100 Money Fund Index has an annualized seven-day yield of 4.11%. Just be aware that banks and fund families can and do adjust those rates at any time. "Make sure you understand what you need the money for and your goals for it in the long- and short term," said Matt Schulz, chief consumer finance analyst at LendingTree. "I do think generally speaking that if you're looking to maximize your rates, it's a good time to lock that down now."
Bloomberg
7 hours ago
- Business
- Bloomberg
Morgan Stanley's Slimmon: Markets Too Optimistic on Rate Cuts
Andrew Slimmon, Morgan Stanley Investment Management senior portfolio manager, says the markets are bound for a correction but it won't be because of tariffs. He speaks on "Bloomberg Open Interest." (Source: Bloomberg)
Yahoo
8 hours ago
- Business
- Yahoo
UBS sees 'a further slowing in U.S. economic growth' in second half of 2025
-- UBS expects U.S. economic growth to decelerate to around 1% in 2025, citing a mix of fiscal fade, persistent inflation, and elevated interest rates. In a note to clients on Tuesday, the bank stated, 'We see a further slowing in US economic growth to ~1% in 2025,' and warned of a rising unemployment rate, projecting it will reach 4.6% by year-end. UBS analysts pointed to 'softening in private payrolls,' a decline in job listings in services, and higher effective tariffs as primary headwinds. The firm also noted that the average tariff rate is now roughly 16%, up from about 2% in 2024, and expects this to result in 'core PCE of ~3.4% by end-2025.' UBS sees these pressures weighing on real disposable income growth, which is already trailing personal consumption expenditures. While fiscal measures tied to the Big Beautiful Bill may support consumption, UBS noted these won't take effect until the first half of 2026. 'We see tariff impacts in 2H 2025,' the firm wrote. UBS also highlighted signs of stress in consumer and corporate credit. 'Our credit-based recession indicator is rising with a probability of a downturn through Q126 at 47%,' analysts said. Meanwhile, consumer delinquency rates are said to be climbing, especially in student and mortgage loans. Despite these pressures, the firm sees potential offsets, including credit usage and continued upper-income spending. UBS maintains a defensive positioning in credit, favoring higher quality and consumer non-cyclicals given tighter spreads compared to 2022. Related articles UBS sees 'a further slowing in U.S. economic growth' in second half of 2025 Victoria's Secret Exposed: The Warning Sign Behind the Stock's 52% Collapse Buy this massive AI stock into upcoming Q2 print: Morgan Stanley
Business Insider
8 hours ago
- Business
- Business Insider
3 reasons investors are moving on from the trade war
President Donald Trump's trade war is starting to feel like old news for markets. Bank of America's monthly global fund manager survey, published on Tuesday, showed that investors have largely moved past the fear of tariffs and are feeling good about the stock market again. A sentiment reading of fund managers surveyed from July 3 to July 10 rose to 4.3 from 3.3 in the last month, the most positive investors have felt about the market since February, early in Trump's new term and months before the worst of the tariff volatility rocked markets. That boost in sentiment comes even as Trump's latest volley of tariff threats reignites uncertainty around the trade war. More than half—53%—of fund managers said they believed the final tariff rate the US would impose on the rest of the world would hover around 15%, up from the 10% rate investors expected in June. And yet, most investors aren't too worried about the prospect of higher tariff rates. Here's what they're thinking about instead. 1. Recession expectations are falling Investors aren't worried about a global recession. The percentage of investors who believed a global recession is likely in the next year dropped to its lowest level in five months, according to BofA's survey. The percentage of investors who believed a global recession was unlikely also grew to 59%. Meanwhile, 65% of fund managers said they believed the most likely outcome for the world economy was a soft landing, a slight economic slowdown that avoids an outright recession. Twenty-one percent of investors said they believed the most likely outcome was a " no-landing," a situation in which inflation comes down and the economy continues on a path of uninterrupted growth. 2. Corporate earnings optimism Investors are also feeling pretty good about the picture for corporate earnings growth. Forty-two percent of fund managers in the BofA survey said they believe earnings-per-share would surprise to the upside for the second quarter, compared to 19% of investors who said they believed earnings would likely surprise to the downside. The outlook for earnings has brightened in recent weeks. Morgan Stanley's gauge for earnings revisions breadth has climbed from -25% in mid-April to 3%, analysts at the bank wrote in a note on Monday. "The vibe right now is: underpromise and overdeliver," Hardika Singh, an economist strategist at FundStrat, wrote in a note on Tuesday. "And given that there is now more clarity on what's happening with tariffs, it's not an unrealistic scenario," she said of earnings beats. 3. AI bullishness The hype for artificial intelligence is still strong — and some investors think the economy is already starting to reap the benefits. Forty-two percent of fund managers said they believed productivity was already rising from AI use, while 21% said they believed productivity would rise as soon as next year. Meanwhile, the Roundhill Magnificent Seven ETF, which tracks the seven mega-cap tech firms, has rallied nearly 40% from its low on April 8. "The market has become numb to the administration's moves and is instead focusing on AI, tech and corporate America's ability to adapt and be nimble," Skyler Weinand, the chief investment officer at Regan Capital, wrote in a note on Tuesday.
