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Yahoo
12-04-2025
- Business
- Yahoo
US stocks end up. S&P 500 and Nasdaq post best week since November despite tariff swings.
U.S. stocks bounced back in early afternoon, helped by some dip-buying after a brief decline earlier on a weaker-than-expected consumer sentiment reading in the University of Michigan's preliminary April survey. The mid-month reading on sentiment fell to 50.8 from 57.0 in March and below the Dow Jones consensus estimate for 54.6. Inflation is becoming a major concern, according to the report, with expectation for inflation a year from now jumping to 6.7%, the highest level since November 1981 and up from 5% in March. Expectations for economic conditions also dropped 10.3% to 47.2, the lowest since May 1980. The drop in consumer sentiment has been alarming to some economists who say when consumers feel nervous and gloomy about the economy, they tend to close their wallets. Consumers make up about 70% of the economy, so a slowdown in consumer spending will take a toll on economic growth. That pressured stocks around mid-morning, but buyers emerged to buy the dip and pushed all three major indexes back in the green. Despite stocks' violent swings, all three major stock indexes are on pace for gains this week. The S&P 500 and Nasdaq are on pace for their best weekly performance since November. "It's been a challenging week, but also a moment to seek opportunities and not succumb to fear," said Mark Dowding, BlueBay chief investment officer at RBC Global Asset Management. Indeed, individual investors have been buying the dips throughout the downturn. On April 9, the day Trump announced a 90-day tariff pause, investing platform Wealthfront said it saw most money flowing into accounts in the early morning hours before the tariff pause was announced. Additionally, on April 8 when markets tanked, Wealthfront saw a significant increase in deposits into bond ladders, making it the highest single day for bond ladder deposits this year and signaling that some investors are taking advantage of rising Treasury yields. Bond ladders are created by buying bonds at varying maturities. Investors use them to provide a more predictable income stream and potentially reduce interest rate risk if rates move. If rates rise, investors won't be locked into a single bond with a lower rate. The blue-chip Dow rose 1.56%, or 618.99 points to 40,212.65; the S&P 500 added 1.81%, or 95.31 points, to 5,363.36; and the tech-heavy Nasdaq rose 2.06%, or 337.14 points, to 16,724.46. The benchmark 10-year yield rose to 4.478%. Gold, seen as a safe asset during tumultuous times, rallied past $3,200 per ounce to set another record high early in the day. It was last up 2.23%. Overnight, China increased its tariff on U.S imports to 125% but signaled it wouldn't match anymore increases by the U.S. 'Even if the U.S. continues to impose higher tariffs, it would be economically meaningless and would become a joke in the history of the world economy," China's finance ministry said. Despite those comments, the White House said Trump is "optimistic" China will seek a deal with the U.S. Meanwhile, the European Union said its trade representative would fly to Washington on Sunday to 'try and sign deals," a sign a full-out global trade war may be averted. That sentiment helped stocks shortly after the open reverse a small part of Thursday's freefall, but money managers warn investors should remain cautious. Stocks swooned Thursday on fears President Donald Trump's triple-digit tariff on China would significantly damage the U.S. economy and corporate profits. Trump kept his 10% tariff on all countries but put reciprocal tariffs on hold for 90 days for all countries except China. Because China retaliated, Trump raised his tariff on Chinese goods to a total 145%. "While it was positive that most tariffs were lowered to 10%, the 145% tariff on China will still impair corporate profits," said Mike O'Rourke, chief market strategist at JonesTrading. "The $440 billion of goods the U.S. imported from China last year was second only to Mexico," he said. "Those low production-cost goods, whether they are technology, apparel, or materials, are important to corporate earnings. The auto and metals tariffs remain in place, and pharma and semiconductor tariffs are on deck. Exemptions may be coming, but they are not here yet." Wholesale prices in March unexpectedly fell 0.4%, posting the first decline since October 2023. The drop compares with February's 0.1% gain and economists' forecasts for a 0.2% rise. Excluding the volatile food and energy sectors, so-called core wholesale fell 0.1% against the estimate for a 0.3% increase. Wholesale prices are what businesses pay for their goods and services and sometimes seen as the first line for inflation to show up. This comes on the heesl of annual consumer inflation on Thursday showing a 2.4% rise in March, below economists' forecasts and February's 2.8%. It was the lowest annual increase since September. Still, some economists pointed out the inflation data are old, and "if tariffs stay in place, they will push inflation considerably higher in coming months," said Bill Adams, chief economist at Comerica Bank. Comforting words, though, came from New York Federal Reserve President John Williams. Williams said the U.S. economy is not entering a period of high inflation and low growth, and the U.S. Federal Reserve will act to keep so-called "stagflation" at bay. JP Morgan, Wells Fargo, Morgan Stanley and BlackRock kicked off earnings season. They provided the first glimpse into how businesses and consumers may be handling tariff volatility and how they see tariffs unfolding this year. Wells Fargo, JP Morgan, Blackrock and Morgan Stanley all beat quarterly earnings and revenue estimates. Chief executives of those banks warned of uncertainty ahead due to tariffs. Wells Fargo CEO Charlie Scharf said his bank is "prepared for a slower economic environment in 2025, but the actual outcome will be dependent on the results and timing of the policy changes.' JP Morgan and Wells Fargo said they haven't seen a surge in companies tapping their credit lines. During times of stress and anxiety, companies grab cash from these credit lines to shore up financials, just in case. JP Morgan CEO Jamie Dimon said consumers also contninued to spend, though he said some may have been buying ahead of tariffs. Shares of JP Morgan closed up 4%; Wells Fargo fell almost 1 % after it lowered its full-year net interest income expectations; BlackRock rose 2.33%; and Morgan Stanley added 1.43%. Novartis said Thursday it will spend $23 billion over the next five years to expand in the U.S. The drugmaker expects this will create about 1,000 new jobs at Novartis, and lead to around 4,000 other jobs in the U.S. outside of Novartis. The company will be able to make domestically all of its medicines for the U.S., it added. Shares gained almost 4%. Frontier Group cut its outlook for the first three months of the year and pulled its full-year outlook, citing weaker-than-expected demand and economic uncertainty. Shares of the discount airline tumbled 5.6%. Stellantis said its global shipments fell to 1.2 million vehicles in the first three months of the year. That's down 9% from a year ago. The drop was primarily due to lower North American production, extended holiday downtime in January, product transitions and lower van sales in Europe, it said in a press release. Shares of the carmaker shed about 0.5%. Bitcoin rose back above the key $80,000 level, last up 5.23% at $83,756.51. Investors may watch to see if insiders sell any Trump digital tokens on April 17. Forty million of the tokens, recently worth more than $300 million, will be unlocked that day, meaning the owners of those tokens will be able to sell them for the first time since the Trump coin launched in January, according to the Trump cryptocurrency's website. A company controlled by the Donald J. Trump Revocable Trust is among the owners that will be able to sell, according to Trump's 2024 public financial disclosure required for federal candidates. The story was updated with new information. Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday. This article originally appeared on USA TODAY: Stock market ends higher on the day and week despite wild tariff ride Sign in to access your portfolio
NBC News
14-03-2025
- Business
- NBC News
Federal Reserve is likely to hold interest rates steady next week. But some consumer loans are getting cheaper.
The Federal Reserve is expected to hold interest rates steady at the end of its two-day meeting next week, despite some encouraging news on inflation. Although inflation receded last month, an escalating trade war threatens to cause prices to rise on a wide range of consumer goods going forward. 'This is likely just the beginning with tariffs on Europe and universal ones to follow suit over the coming weeks,' Andrzej Skiba, head of U.S. fixed income at RBC Global Asset Management, said in an email. 'This will be inflationary, and the Fed won't likely be able to cut rates in this environment.' The federal funds rate sets what banks charge each other for overnight lending, but also affects many of the borrowing and savings rates Americans see every day. 'Consumers are stretched and stressed,' said Greg McBride, chief financial analyst at Once the federal funds rate comes down, consumers may see their borrowing costs decrease across a variety of consumer debt such as auto loans, credit cards and mortgages, making it cheaper to borrow money. But even with the Fed on the sidelines for now, households could see some relief. Already, rates for mortgages, auto loans and credit cards are edging lower. Still, these rates remain relatively elevated compared to recent highs, with credit card APRs down only slightly from an all-time record. Here's a look at where consumer borrowing costs stand. Mortgages Although 15- and 30-year mortgage rates are fixed, and largely tied to Treasury yields and the economy, rates have been trending lower for weeks. Worries about a possible recession and increased uncertainty over President Donald Trump 's tariff plans have soured consumers' outlook and dragged down rates, according to the Mortgage Bankers Association. 'The good news is that even though the Fed has taken its foot off the gas when it comes to rate cuts, mortgage rates have fallen,' said Matt Schulz, chief credit analyst at LendingTree. The average rate for a 30-year, fixed-rate mortgage is now 6.77%, down from 7.04% at the beginning of the year, according to Bankrate. Credit cards Most credit cards have a variable rate, so there's a direct connection to the Fed's benchmark. But even though the central bank held rates at the last few meetings, the average annual percentage rate has moved lower too — it's currently, down to 20.09%, from 20.27% at the start of the year, thanks to the lingering effects of last year's rate cuts. 'March was the sixth straight monthly decline, but the decreases have slowed as Fed rate cuts get further back in the rearview mirror,' Schulz said of credit card APRs. In the meantime, credit card debt continues to be a pain point for consumers struggling to keep up with high prices. Revolving debt, which mostly includes credit card balances, is up 8.2% year over year, while nonrevolving debt, such as auto loans and student loans, is 3% higher, according to the Federal Reserve's latest consumer credit report. Auto loans Although auto loan rates are fixed, those payments continue to grow because car prices are rising, in addition to pressure from trade policy uncertainty. 'That's troubling news for potential car buyers, who are already beset on all sides by high rates and high prices and also face the possibility of tariffs pushing car costs even higher,' Schulz said. However, auto loan rates have also backed down from recent highs. The average rate on a five-year new car loan is now 7.42%, down from 7.53% in January, according to Bankrate. Student loans Federal student loan rates are fixed, as well, so most borrowers are somewhat shielded from Fed moves and recent economic turmoil. Undergraduate students who took out direct federal student loans for the 2024-25 academic year are paying 6.53%, up from 5.50% in 2023-24. Interest rates for the upcoming school year will be based in part on the May auction of the 10-year Treasury note. Private student loans tend to have a variable rate tied to the prime, Treasury bill or another rate index. Savings On the upside, top-yielding online savings accounts have offered the best returns in more than a decade and currently pay 4.4%, on average, according to Bankrate. While the Fed holds rates steady, 'savings rates really haven't changed all that much, that's the good news,' said Bankrate's McBride. 'Savings rates are still at attractive levels and the top yields are still well in excess of inflation.'
Yahoo
08-03-2025
- Business
- Yahoo
Is B2Gold Corp. (BTG) the Cheap Canadian Stock to Buy According to Analysts?
We recently published a list of . In this article, we are going to take a look at where B2Gold Corp. (NYSEAMERICAN:BTG) stands against other cheap Canadian stocks to buy according to analysts. In January, RBC Global Asset Management released its Market Outlook for Canada. Scott Lysakowski, the Managing Director & Senior Portfolio Manager, Head of Canadian Equities reflected on the Canadian market's performance in 2024. He noted that the Canadian equity market, particularly the S&P/TSX Composite Index, experienced a notable year. The TSX achieved a total return of approximately 21%, which Lysakowski thinks is commendable, especially considering the broader economic context. However, this performance was somewhat overshadowed by the US market, where mega-cap stocks led the charge. The TSX's gains, while substantial, were not as robust as those in the US, which Lysakowski attributed to the dominance of large-cap stocks in the latter part of the year. Lysakowski noted that one interesting observation from 2024 was the brief increase in market breadth following significant events, such as elections. During these periods, mid-cap and small-cap stocks temporarily outperformed, suggesting a potential shift towards broader market participation. However, this trend was short-lived, and the year concluded with mega-cap stocks once again driving the majority of returns. The top ten stocks in the market contributed significantly to the overall performance, highlighting the persistent dominance of these large players. Moreover, in analyzing the composition of returns for the TSX, Lysakowski suggests that it's clear that the 21% total return consisted of a 3% dividend yield, with the remaining 18% split between earnings growth and valuation changes. Specifically, earnings growth accounted for about 9%, and multiple expansions contributed around 7%. In contrast, the US market, particularly mega-cap stocks, saw more pronounced earnings growth and multiple expansions, which explains their superior performance. Looking ahead to 2025, Lysakowski noted that the outlook remains uncertain, partly due to macroeconomic factors such as the weakness in the Canadian dollar. This currency volatility is a significant concern for Canadian equities, as it impacts both investor sentiment and the macroeconomic outlook. Furthermore, the divergence in earnings growth between mega-cap and small-cap stocks suggests that until smaller companies demonstrate stronger earnings growth, the dominance of large-cap stocks will likely continue. This dynamic will be crucial to monitor in the coming year, as broader market participation could have a positive impact on Canadian equities. For this article, we used the Finviz stock screener, Yahoo Finance, Seeking Alpha, and CNN as our sources. Using the screener we aggregated a list of Canadian stocks that are trading below a Forward P/E of 15, with earnings growth expectations this year, and an upside potential of more than 10%. Next, we cross-checked the FWD P/E for each stock from Seeking Alpha and earnings growth from Yahoo Finance. Lastly, we ranked the stocks in ascending order of the average upside potential. Please note that the data was recorded on March 3rd, 2025. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Aerial view of a gold mine in Mali, showing the scale of the mining operations.B2Gold Corp. (NYSEAMERICAN:BTG) is a Canadian company that specializes in gold mining. It has operations in several countries including the Fekola Mine in Mali, the Otjikoto Mine in Namibia, and the Masbate Mine in the Philippines. The company is also involved in developing new projects and exploring for gold in countries like Colombia, Finland, and Canada. In Canada, it is working on the Goose Project in Nunavut and has interests in the Back River Gold District. On February 20, analyst Brian Quast from BMO Capital maintained a Buy rating on the stock while keeping the price target at C$7.00. The analyst noted that the company's gold production levels were in line with expectations, reaching the lower end of their revised annual guidance for 2024. This stability suggests a reliable production base moving forward. In addition, the cash operating costs and all-in-sustaining costs were within the company's guidance ranges as well, indicating that the company is managing its expenses effectively. During the fiscal fourth quarter of 2024, B2Gold Corp. (NYSEAMERICAN:BTG) produced 186,001 ounces of gold. Management noted that strong performance from the Masbate and Otjikoto mines aided in offsetting the lower output from Fekola. It is one of the cheap Canadian stocks to buy according to analysts. Overall, BTG ranks 3rd on our list of cheap Canadian stocks to buy according to analysts. While we acknowledge the potential of BTG as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BTG but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
