Latest news with #S&P500Index
Business Insider
3 hours ago
- Business
- Business Insider
Etsy upgraded to Equal Weight from Underweight at Morgan Stanley
Morgan Stanley upgraded Etsy (ETSY) to Equal Weight from Underweight with a price target of $50, up from $38. The firm sees a more balanced catalyst path for the shares after they underperformed the S&P 500 Index by 20% over the past year. Etsy's valuation has compressed on slower merchandise sales growth but sales can accelerate on easy compares going forward, the analyst tells investors in a research note. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
The Star
8 hours ago
- Business
- The Star
After stock market's torrid run, earnings misses face punishment
NEW YORK: The second-quarter earnings season is off to a ripping start, with consumer strength powering resilient corporate profits. In the stock market, however, the reaction has been fairly quiet, an ominous sign that much of the good news is priced in - and investors are punishing disappointments. Take financials, which reported blockbuster numbers this week that failed to juice their shares. 'Financials have crushed second quarter earnings expectations with a 94.4% beat rate so far, yet stocks saw only muted reactions as investors largely anticipated the results,' Bloomberg Intelligence strategists Gina Martin Adams and Michael Casper wrote in a note last Friday. Similarly, streaming platform Netflix Inc exceeded outlooks in every major metric, and United Airlines Holdings Inc was upbeat about travel demand gaining steam. Yet, investors largely reacted to these numbers with a collective shrug. Netflix closed down over 5% last Friday despite its strong performance. 'With stock valuations where they are, all the good news is priced into the market now,' said Greg Taylor, chief investment officer (CIO) at PenderFund Capital Management Ltd. What's more, the market is penalising results that fall short of expectations by the most in nearly three years, data compiled by Bloomberg Intelligence showed. 'The margin of error here is small,' said Michael Arone, chief investment strategist at State Street Investment Management. 'When the valuations are high and you miss, the punishment is more severe.' Combined profit and revenue beats, on the other hand, are being rewarded by only the most in a year. 'At an index level, good earnings are not likely the broad market catalyst investors are waiting for,' said Julian Emanuel, chief equity and quantitative strategist at Evercore ISI. The S&P 500 Index closed near an all-time high Friday, after notching seven new records in just 15 sessions. The equities benchmark is trading at 22 times expected 12-month profits and is fast approaching the level it hit in February, before April 2 when President Donald Trump unleashed his global tariffs that weighed on sentiment. This week, investors will get results from a slew of Big Tech giants including Alphabet Inc and Tesla Inc, industrial behemoth Honeywell International Inc, chemicals maker Dow Inc, defence contractors Lockheed Martin Corp and Northrop Grumman Corp, and auto manufacturer General Motors Co, among many others. Big US banks delivered an earnings bonanza based on record-breaking trading revenues, as the volatility sparked by Trump's tariff offensive ignited market activity at some of Wall Street's biggest firms. Still, the share moves were underwhelming. Goldman Sachs Group Inc equities traders posted the largest revenue haul in Wall Street history, but the company's shares rose less than 1% on the day it reported earnings. Even worse, Morgan Stanley's net revenue topped estimates and the shares closed down 1.3%. And JPMorgan Chase & Co's stock traders notched their best second quarter ever, while fixed-income trading trounced expectations, yet the stock dropped 0.7%. Still, market pros noted that the powerful bank earnings offer an encouraging indication for the overall economy. 'Banks can only be healthy when the economy is strong,' said Mark Malek, chief investment officer at Siebert. 'So their earnings along with their commentary serve as a broader benchmark on economic health.' The durability of the US consumer has been a major question for investors and economists, especially in the face of still-high inflation, elevated interest rates and continued uncertainty about the new US trade regime. The initial signs are encouraging based on earnings from airlines to PepsiCo Inc to Netflix to jeans-maker Levi Strauss & Co. 'The consumer remains strong,' Malek said. 'That is paramount.' Travel in the United States is recovering with the approval of Trump's tax cut and spending package and negotiators appearing to make progress in tariff discussions, Delta Air Lines Inc chief executive officer Ed Bastian said. PepsiCo's North American business improved and it saw strong growth in international markets. Netflix raised its full-year forecast. And Levi Strauss said it expects sales growth to outweigh the impact of Trump's tariffs. Retail sales figures last Thursday offered proof of this continued strength. Commerce Department data showed the value of retail purchases, not adjusted for inflation, increased 0.6% after declines in the prior two months, exceeding nearly all estimates in a Bloomberg survey of economists. 'So far it has been a thumbs up from earnings,' Malek said. — Bloomberg
Straits Times
a day ago
- Business
- Straits Times
After stock market's torrid run, earnings misses face punishment
A Wall Street plate is seen on a street vendor stall outside the New York Stock Exchange (NYSE) in New York City, U.S., July 11, 2025. REUTERS/Jeenah Moon NEW YORK – The second-quarter earnings season is off to a ripping start, with consumer strength powering resilient corporate profits. In the stock market, however, the reaction has been fairly quiet, an ominous sign that much of the good news is priced in – and investors are punishing disappointments. Take financials, which reported blockbuster numbers this week that failed to juice their shares. 'Financials have crushed 2Q earnings expectations with a 94.4 per cent per cent beat rate so far, yet stocks saw only muted reactions as investors largely anticipated the results,' Bloomberg Intelligence strategists Gina Martin Adams and Michael Casper wrote in a July 18 note. Similarly, streaming platform Netflix exceeded outlooks in every major metric, and United Airlines Holdings was upbeat about travel demand gaining steam. Yet, investors largely reacted to these numbers with a collective shrug. Netflix closed down over 5 per cent on July 18 despite its strong performance. 'With stock valuations where they are, all the good news is priced into the market now,' said Mr Greg Taylor, chief investment officer at PenderFund Capital Management. What's more, the market is penalising results that fall short of expectations by the most in nearly three years, data compiled by Bloomberg Intelligence shows. 'The margin of error here is small,' said Mr Michael Arone, chief investment strategist at State Street Investment Management. 'When the valuations are high and you miss, the punishment is more severe.' Combined profit and revenue beats, on the other hand, are being rewarded by only the most in a year. Top stories Swipe. Select. Stay informed. Singapore Tampines regional centre set to get more homes, offices and public amenities Multimedia How to make the most out of small homes in Singapore Life US tech CEO Andy Byron resigns after viral Coldplay 'kiss cam' video Asia From toy to threat: 'Killer kites' bring chaos to Indonesian airspace Opinion I thought I was a 'chill' parent. Then came P1 registration Singapore 'God and government are the only things beyond our control,' says Group CEO Business Me and My Money: He overcomes a $100k setback to build a thriving online tuition business Asia At least 34 killed as tourist boat capsizes in Vietnam's Halong Bay 'At an index level, good earnings are not likely the broad market catalyst investors are waiting for,' said Mr Julian Emanuel, chief equity and quantitative strategist at Evercore ISI. The S&P 500 Index closed near an all-time high on July 18, after notching seven new records in just 15 sessions. The equities benchmark is trading at 22 times expected 12-month profits and is fast approaching the level it hit in February, before April 2 when President Donald Trump unleashed his global tariffs that weighed on sentiment. This week, investors will get results from a slew of Big Tech giants including Alphabet and Tesla, industrial behemoth Honeywell International, chemicals maker Dow, defense contractors Lockheed Martin and Northrop Grumman, and auto manufacturer General Motors, among many others. Big US banks delivered an earnings bonanza based on record-breaking trading revenues, as the volatility sparked by Trump's tariff offensive ignited market activity at some of Wall Street's biggest firms. Still, the share moves were underwhelming. Goldman Sachs Group equities traders posted the largest revenue haul in Wall Street history, but the company's shares rose less than 1 per cent on the day it reported earnings. Even worse, Morgan Stanley's net revenue topped estimates and the shares closed down 1.3 per cent. And JPMorgan Chase & Co.'s stock traders notched their best second quarter ever, while fixed-income trading trounced expectations, yet the stock dropped 0.7 per cent. Still, market pros noted that the powerful bank earnings offer an encouraging indication for the overall economy. 'Banks can only be healthy when the economy is strong,' said Mr Mark Malek, chief investment officer at Siebert. 'So their earnings along with their commentary serve as a broader benchmark on economic health.' The durability of the US consumer has been a major question for investors and economists, especially in the face of still-high inflation, elevated interest rates and continued uncertainty about the new US trade regime. The initial signs are encouraging based on earnings from airlines to PepsiCo Inc. to Netflix to jeans-maker Levi Strauss & Co. 'The consumer remains strong,' Mr Malek said. 'That is paramount.' Travel in the US is recovering with the approval of Trump's tax cut and spending package and negotiators appearing to make progress in tariff discussions, Delta Air Lines Inc. Chief Executive Officer Ed Bastian said. PepsiCo's North American business improved and it saw strong growth in international markets. Netflix raised its full-year forecast. And Levi Strauss said it expects sales growth to outweigh the impact of Trump's tariffs. Retail sales figures on Thursday offered proof of this continued strength. Commerce Department data showed the value of retail purchases, not adjusted for inflation, increased 0.6% after declines in the prior two months, exceeding nearly all estimates in a Bloomberg survey of economists. 'So far it has been a thumbs up from earnings,' Malek said. 'While a big tariff-driven breakdown may still lurk in the shadows, the harbinger has not shown up yet.' Shares of PepsiCo and Delta have been the stark outliers this quarter, bringing in big gains after strong results. Both stocks were lagging the broader market significantly this year ahead of the numbers. With so many uncertainties still lingering – especially on tariffs, economic growth, inflation and the Federal Reserve's rate-cut plan – corporate outlooks will play a significant role in shaping investor confidence from here. 'The biggest question facing S&P 500 earnings is who bears the tariff bill,' said Mr Dec Mullarkey, managing director at Sun Life Investment Management. Second-quarter earnings estimates for the S&P 500 have been drastically reduced this year, with analysts expecting profits to rise 3.3 per cent from a year ago as of the last close, down from the 9.5 per cent growth expected at the beginning of the year. 'The bar is low,' said Ms Irene Tunkel, chief US equity strategist at BCA Research. 'Companies will likely clear it, but that's no longer enough. With valuations stretched, investors want strong guidance, and earnings misses will be punished fast.'
Jordan News
2 days ago
- Business
- Jordan News
U.S. Stock Indices Fluctuate - Jordan News
U.S. stock indices saw fluctuations on Friday, with the Dow Jones Industrial Average dropping by 142 points, settling at 44,342 points. The Nasdaq Index, which is heavily focused on technology stocks, rose slightly by just 10 points, reaching 20,895 points. Meanwhile, the S&P 500 Index remained stable at 6,297 points. اضافة اعلان In related news, the price of West Texas Intermediate (WTI) crude oil saw a very slight decline, reaching $67.31 per barrel. (Petra)
Yahoo
2 days ago
- Business
- Yahoo
Patient Capital Opportunity Equity Strategy Initiated a Position in UnitedHealth Group Incorporated (UNH) on a Dip
Patient Capital Management, a value investing firm, released its 'Patient Capital Opportunity Equity Strategy' second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy generated a total return of 15.3% net of fees in the quarter compared to the strategy's unmanaged benchmark, the S&P 500 Index's 10.9% return. According to a three-factor performance attribution model, the selection effect contributed positively to the portfolio's performance, which was partially offset by allocation and interaction effects. In addition, you can check the fund's top 5 holdings to know its best picks in 2025. In its second quarter 2025 investor letter, Patient Capital Opportunity Equity Strategy highlighted stocks such as UnitedHealth Group Incorporated (NYSE:UNH). UnitedHealth Group Incorporated (NYSE:UNH) is a diversified healthcare company that operates through UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx segments. The one-month return of UnitedHealth Group Incorporated (NYSE:UNH) was -4.62%, and its shares lost 49.04% of their value over the last 52 weeks. On July 17, 2025, UnitedHealth Group Incorporated (NYSE:UNH) stock closed at $288.07 per share, with a market capitalization of $261.32 billion. Patient Capital Opportunity Equity Strategy stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its second quarter 2025 investor letter: "This quarter we entered five new positions, while exiting three. We initiated a position in UnitedHealth Group Incorporated (NYSE:UNH), one of the largest healthcare companies in the United States, after the stock declined more than 50% from its 2025 highs, reaching multi-year lows. The drop followed a rare misstep in its Medicare Advantage business, where higher-than-expected costs drove margin compression, a cut to EPS and ultimately, the withdrawal of forward guidance. In response, the company announced a leadership change, bringing back former CEO and current Chairman Stephen Hemsley. UNH has long been a market favorite for its consistency in growth, earnings and return on capital. The disappointment led investors to flee. While the short-term outlook remains murky, over the long-term we have confidence the company can improve underwriting margins. With all competitors focused on underwriting to margins, future pricing should be more rational and in line with current usage trends. Rebuilding investor confidence may take time, but we believe UNH's integrated platform and unique asset mix position it to remain a category leader and return to strong returns over time. Following the sell-off, several insiders stepped in to buy stock, most notably Stephen Hemsley with a $25M purchase and the CFO, John Rex, with $5M. The company also has an $8.4B buyback authorization (roughly 3% of shares) and a robust 10% free cash flow yield. Management remains confident in its ability to compound EPS at a 13 16% rate over the long term. We view the recent dislocation as an opportunity to own a high-quality compounder at a compelling valuation." A senior healthcare professional giving advice to a patient in a clinic. UnitedHealth Group Incorporated (NYSE:UNH) is in 18th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 139 hedge fund portfolios held UnitedHealth Group Incorporated (NYSE:UNH) at the end of the first quarter, which was 150 in the previous quarter. While we acknowledge the potential of UNH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered UnitedHealth Group Incorporated (NYSE:UNH) and shared Vulcan Value Partners' views on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. 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
