Latest news with #SamStovall
Yahoo
2 days ago
- Business
- Yahoo
Market recovery is 'ignoring' remaining tariff uncertainty
Markets (^GSPC, ^IXIC, ^DJI) are climbing back toward record highs despite lingering trade uncertainty. Sam Stovall, CFRA Research chief investment strategist, joins Morning Brief to explain why investors may be underestimating risks as the recovery outpaces historical norms. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. What are the technicals telling us for right now from what you've been able to read through? Well, good morning, Brad. Uh basically it seems as if the uh all-time high set on February 19th is sort of serving as a tractor beam for those uh Trekkies out there, uh dragging in a sense the market up toward it, uh and causing this correction of 19% to be concluded. So, recovering all that we lost in a fairly short period of time. Historically, it takes us about four months to get back to break even, uh after reaching a bottom, uh but in this case, it's going to end up being half of that amount of time. So, I I would tend to say that even though we have an awful lot of uncertainty relating to tariffs, relating to, uh, trade negotiations, etc., uh, the market seems to be ignoring it like a ping pong ball dropping on a table. The first reaction was the greatest and every subsequent one has been more muted. Is the market right to be doing that, or is there a potential for investors to be caught off sides, especially heading into their summer vacations? Can they trust that the worst is behind them? Well, historically, June is a fairly unimpressive month. Uh, it's in the bottom third in terms of average price change, uh, significantly underperforming the average return for the S&P 500 itself, um, during all months. Uh, also, um, essentially the volatility is fairly mild, but, yeah, I would tend to say that, um, since this is a manufactured correction, uh, the one who's holding all the cards is the president, and should he decide not to make some agreements with China, uh, or to initiate, uh, new obstacles in terms of trade with our other partners, etc., that could end up upsetting the Apple cart, if you will, especially if we end up having problems with rare earth minerals, uh, being, um, imported to the US to, uh, help out our automobile industry and other areas.
CNBC
5 days ago
- Business
- CNBC
CNBC Daily Open: Recent gains in markets are likely just short-term optimism
Over the past week, Washington and Beijing have been trading barbs about violating their preliminary trade deal. Aside from that, higher steel and aluminum tariffs announced by U.S. President Donald Trump will kick in Wednesday. Amid all the trade tensions, the Organisation for Economic Co-operation and Development slashed its U.S. and global growth forecast for this year and the next, citing "barriers to trade tighter financial conditions, weaker business and consumer confidence and heightened policy uncertainty." Investors, however, are still pushing up stocks, with Nvidia on Tuesday regaining the crown of most valuable public company. That said, CFRA Research's Sam Stovall thinks that the market is "going to just sort of bob and weave in the meantime until we start to get a clearer understanding, if we get one, of the outlook for earnings, GDP growth, etc." In other words, recent gains in markets aren't likely to be indicative of a longer-term trajectory. Where stocks go will depend on where the U.S. economy lands amid the developments surrounding tariffs. Markets in U.S. and Europe riseU.S. stocks climbed Tuesday, boosted by rises in chip stocks and more-than-expected job openings in April. The S&P 500 gained 0.58%, the Dow Jones Industrial Average advanced 0.51% and the Nasdaq Composite closed 0.81% higher. Europe's Stoxx 600 index edged up 0.09%, reversing losses from earlier in the day. Nvidia is king againNvidia shares added 2.8% Tuesday to close at $141.22, giving it a market capitalization of $3.45 trillion. That move puts the chipmaker ahead of Microsoft's $3.44 trillion cap, which means Nvidia is again the most valuable publicly traded company in the world. The stock has surged more than 23% over the past month as Nvidia's growth has persisted even through export control and tariff concerns. OECD slashes U.S. and global growth rate The Organisation for Economic Co-operation and Development drastically cut its growth forecast for the U.S. to 1.6% in 2025 from an earlier estimate of 2.2%, according to a Tuesday report. OECD also lowered global economic growth this year to 2.9% from 3.1%. "Substantial increases in barriers to trade" is one factor weighing down growth prospects, the report said. Inflation in the euro zone dips below 2%Euro zone inflation fell to 1.9% in May — below the European Central Bank's 2% target — on sharp declines in services, flash data from statistics agency Eurostat showed Tuesday. Economists polled by Reuters had expected the May reading to come in at 2%, compared to the previous month's 2.2% figure. Core inflation, which excludes energy, food, tobacco and alcohol prices, also eased, falling to 2.3% in May from 2.7% in April. Trump's bill is a 'disgusting abomination': MuskElon Musk in a Tuesday post on X described U.S. President Donald Trump's "big, beautiful bill" as a "disgusting abomination" and subsequently wrote that the bill "will massively increase the already gigantic budget deficit to $2.5 trillion (!!!)" Trump is still pressuring U.S. lawmakers to pass the bill, blasting Rand Paul after he said on CNBC's "Squawk Box" that he is "just not open" to supporting a $5 trillion increase in the debt ceiling. [PRO] Watch out for new stocks in S&PSeveral financial services stocks could be rotated into the S&P 500, according to Bank of America. Stocks added to the index often rise in value because funds that track the benchmark will add it to their portfolios, so investors should pay attention to the moves, which will be announced by the end of the week. Tesla's planned robotaxi launch in tech-friendly Austin has Musk playing catch-up in his hometown Tesla's long-awaited entry into the robotaxi market — expected later this month — will begin in Austin, Texas, which has emerged as a key battleground for self-driving technology. CEO Elon Musk wrote in a post on X last week that the company has been testing Model Y vehicles with no safety drivers on board in the Texas capital for several days. But while the market remains nascent, Tesla already faces a hefty amount of competition. Alphabet's Waymo, Amazon's Zoox, Volkswagen subsidiary ADMT and startup Avride are already present in Austin. "The winners of the space are emerging, and it's just a matter of scaling," said Toby Snuggs, head of sales and partnerships at Avride.
New Straits Times
14-05-2025
- Automotive
- New Straits Times
US stocks mostly rise on better inflation data while dollar retreats
NEW YORK: Wall Street stocks mostly rose Tuesday while oil prices advanced, extending a rally as the improved state of US-China trade boosts the economic outlook. Both the S&P 500 and Nasdaq finished solidly higher following benign US inflation data while the Dow retreated after weakness in UnitedHealth Group shares. Markets continued to cheer the US-China announcement Monday of a de-escalation of trade tensions. The two countries agreed to significantly lower levies for 90 days while they work to hash out an agreement. The tech-rich Nasdaq led major US indices, winning 1.6 per cent. Oil prices also climbed more than two per cent as traders pencil in more oil demand. "It seems as if the euphoria that was ignited yesterday or over the weekend has continued into today at least for the S&P 500 and the Nasdaq," said Sam Stovall of CFRA Research. The consumer price index eased to 2.3 per cent in April from a year ago, a tick below the 2.4 per cent figure recorded in March. Some analysts cautioned that it was still too early to see the implications of US President Donald Trump's tariff policies, some of which have been rolled back or suspended. But the weaker inflation data put pressure on the dollar, with more traders betting the Federal Reserve will soon cut interest rates. In Europe, London closed barely changed, while Paris and Frankfurt both ticked up 0.3 per cent. Asian equities had finished with strong gains, in their catch-up session digesting Wall Street's jump on Monday, although Hong Kong dropped nearly two per cent on profit-taking. On the corporate front, the big focus was on the auto sector after major news out of Japan. Nissan posted an annual net loss of US$4.5 billion, confirmed plans to slash 15 per cent of its global workforce and warned about the possible impact of US tariffs. The carmaker, whose mooted merger with Honda collapsed this year, is heavily indebted and engaged in an expensive business restructuring plan. For its part, Honda on Tuesday forecast a 70-per cent drop in net profit for the 2025-26 financial year. "The impact of tariff policies in various countries on our business has been very significant, and frequent revisions are being made, making it difficult to formulate an outlook," said Honda chief executive Toshihiro Mibe.
Business Times
13-05-2025
- Business
- Business Times
US: Stocks mostly rise on Tuesday but UnitedHealth weighs on Dow
[NEW YORK] Wall Street stocks mostly rose on Tuesday after data showed US inflation easing in April, extending the market's positive momentum on the improving outlook for trade relations with major partners. The consumer price index eased to 2.3 per cent in April from a year ago, a tick below the 2.4 per cent figure recorded in March. Some analysts cautioned that it was still too early to see the implications of US President Donald Trump's tariff policies, some of which have been rolled back or suspended. The tech-rich Nasdaq Composite Index led major indices, jumping 1.6 per cent to 19,010.08 The broad-based S&P 500 gained 0.7 per cent to 5,886.65, while the Dow Jones Industrial Average fell 0.6 per cent to 42,140.43 after weakness in UnitedHealth Group stocks. Markets continued to cheer the US-China announcement Monday of a de-escalation of trade tensions. The two countries agreed to much lower levies for 90 days while they work to hash out an agreement. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'It seems as if the euphoria that was ignited yesterday or over the weekend has continued into today at least for the S&P 500 and the Nasdaq,' said Sam Stovall of CFRA Research. The benign US inflation data also furthers the odds the Federal Reserve will cut interest rates twice in 2025, Stovall said. Among individual companies, UnitedHealth Group sank 17.8 per cent after announcing that Andrew Witty was stepping down as CEO for personal reasons, to be replaced by Chair Stephen Hemsley. The company also suspended its 2025 outlook, citing higher-than-expected costs. Hertz plunged 16.9 per cent after reporting weaker-than-expected results, including a quarterly loss of US$443 million. AFP
Yahoo
13-05-2025
- Automotive
- Yahoo
US stocks mostly rise on better inflation data while dollar retreats
Wall Street stocks mostly rose Tuesday while oil prices advanced, extending a rally as the improved state of US-China trade boosts the economic outlook. Both the S&P 500 and Nasdaq finished solidly higher following benign US inflation data while the Dow retreated after weakness in UnitedHealth Group shares. Markets continued to cheer the US-China announcement Monday of a de-escalation of trade tensions. The two countries agreed to significantly lower levies for 90 days while they work to hash out an agreement. The tech-rich Nasdaq led major US indices, winning 1.6 percent. Oil prices also climbed more than two percent as traders pencil in more oil demand. "It seems as if the euphoria that was ignited yesterday or over the weekend has continued into today at least for the S&P 500 and the Nasdaq," said Sam Stovall of CFRA Research. The consumer price index eased to 2.3 percent in April from a year ago, a tick below the 2.4 percent figure recorded in March. Some analysts cautioned that it was still too early to see the implications of US President Donald Trump's tariff policies, some of which have been rolled back or suspended. But the weaker inflation data put pressure on the dollar, with more traders betting the Federal Reserve will soon cut interest rates. In Europe, London closed barely changed, while Paris and Frankfurt both ticked up 0.3 percent. Asian equities had finished with strong gains, in their catch-up session digesting Wall Street's jump on Monday, although Hong Kong dropped nearly two percent on profit-taking. On the corporate front, the big focus was on the auto sector after major news out of Japan. Nissan posted an annual net loss of $4.5 billion, confirmed plans to slash 15 percent of its global workforce and warned about the possible impact of US tariffs. The carmaker, whose mooted merger with Honda collapsed this year, is heavily indebted and engaged in an expensive business restructuring plan. For its part, Honda on Tuesday forecast a 70-percent drop in net profit for the 2025-26 financial year. "The impact of tariff policies in various countries on our business has been very significant, and frequent revisions are being made, making it difficult to formulate an outlook," said Honda chief executive Toshihiro Mibe. - Key figures at around 2050 GMT - New York - Dow: DOWN 0.6 percent at 42,140.43 (close) New York - S&P 500: UP 0.7 percent at 5,886.55 (close) New York - Nasdaq Composite: UP 1.6 percent at 19,010.08 (close) London - FTSE 100: FLAT at 8,602.92 (close) Paris - CAC 40: UP 0.3 percent at 7,873.83 (close) Frankfurt - DAX: UP 0.3 percent at 23,638.56 (close) Tokyo - Nikkei 225: UP 1.4 percent at 38,183.26 (close) Hong Kong - Hang Seng Index: DOWN 1.9 percent at 23,108.27 (close) Shanghai - Composite: UP 0.2 percent at 3,374.87 (close) Euro/dollar: UP at $1.1189 from $1.1087 on Monday Pound/dollar: UP at $1.3304 from $1.3176 Dollar/yen: DOWN at 147.47 yen from 148.46 yen Euro/pound: DOWN at 84.07 pence from 84.14 pence Brent North Sea Crude: UP 2.6 percent at $66.63 per barrel West Texas Intermediate: UP 2.8 percent at $63.67 per barrel burs-jmb/jgc Sign in to access your portfolio
