Latest news with #ShashwatChauhan
Zawya
2 days ago
- Business
- Zawya
Boeing shares fall after plane crashes in India
Shares of planemaker Boeing slid in premarket U.S. trading on Thursday after an Air India aircraft with more than 200 people crashed near the airport in India's western city of Ahmedabad. The aircraft involved was Boeing 787-8 Dreamliner, according to Flightradar data. Reuters could not independently verify the make of the aircraft. It was not immediately clear what caused the crash. Boeing did not immediately respond to a Reuters' request for comment. The plane was headed to Gatwick airport in the UK, Air India said, while police officers said it crashed in a civilian area near the airport. Boeing shares fell 7.8% to $197.3 in premarket trading. (Reporting by Shashwat Chauhan in Bengaluru; Editing by Saumyadeb Chakrabarty)
Yahoo
05-06-2025
- Business
- Yahoo
Wall Street's potential winners and losers from Trump's tax bill
By Shashwat Chauhan (Reuters) -As President Donald Trump's sweeping tax-cut and spending bill heads to the Senate, analysts examine how his broad-ranging policies could turn the fortunes of U.S. companies if the package is enacted as law. What Trump has dubbed a "big, beautiful bill", narrowly passed the Republican-controlled House on May 22. The bill seeks to extend tax breaks, set during Trump's first term in 2017 and on track to expire at the end of 2025, for multinational corporations. It is also expected to fulfill many of Trump's populist campaign pledges, including an immigration crackdown and ending some green energy incentives. The tax breaks are largely expected to be positive for the U.S. stock markets, but some analysts see only a modest upside. "Since the 2025 tax cuts are primarily an extension of the current tax code, we expect changes to provide only marginal benefits to equity performance," Morgan Stanley analysts said in a note last month. Overall, the bill is expected to add about $2.4 trillion to the $36.2 trillion U.S. debt pile, the Congressional Budget Office said on Wednesday. Here is a list of industries and companies that are likely to be affected by the bill: AEROSPACE AND DEFENSE - WINNERS Defense companies could see renewed interest from investors as the new bill looks to step up spending on air and missile defense, munitions and border security. "There should be some benefit there to the defense contractors," said Chris Haverland, global equity strategist at Wells Fargo Investment Institute. "We currently rate industrials at a neutral. There'll be some offsets there, but there should be some benefits to the defense area." Brian Mulberry, client portfolio manager at Zacks Investment Management, named defense contractors RTX and General Dynamics as potential beneficiaries. The iShares US Aerospace & Defense ETF is trading at all-time highs. RENEWABLE ENERGY - LOSERS Shares of U.S. solar companies slumped on May 22, as the bill aims to cancel funding for green-energy grant programs, which were established under the Biden administration in the 2022 Inflation Reduction Act. "If the bill passes, that's going to be a huge negative for renewable (energy stocks)," said Dave Grecsek, managing director of investment strategy and research at wealth management firm Aspiriant. "We could have a little bit more downside to the renewable energy space, but a lot of it is already priced in." Companies including First Solar, Enphase Energy and Sunrun are all in the red for the year. HEALTH INSURERS - LOSERS The bill includes substantial funding cuts for the U.S. Medicaid program, with fiscal hawks pushing for cuts to partly offset the cost of the bill's tax components. "Reductions to Medicaid funding also shift the cost to state and local governments that may be burdened by increased health care costs. This may cause notable revenue losses for hospitals, potentially pressuring (the) credit quality of both state and nonprofit health care municipal bonds," Morgan Stanley said. Shares of major health insurers CVS, Humana, UnitedHealth, Elevance and Cigna would be in focus. The S&P 500 managed healthcare index is down 30.6% year to date. HOUSING & REAL ESTATE - LOSERS BofA Global Research said it expects interest rates to remain high if the bill does not meaningfully address deficit reduction, and flagged several companies that could be hurt by higher rates. SBA Communications, Equinix and Alexandria Real Estate Equities are some of the real estate-linked companies that are at risk, BofA Global Research said. "Homebuilders need to take a margin hit on the house to increase affordability. So that's a very simple translation of how fiscal stimulus is leading to a negative consequence for the stock market," said Viresh Kanabar, macro strategist - asset allocation at Macro Hive. DOMESTIC PRODUCERS - WINNERS The bill also includes legislation to extend or expand Tax Cuts and Jobs Act (TCJA) provisions that are set to expire at the end of 2025. The provisions include 100% bonus depreciation for equipment investment, immediate deduction of domestic research and development (R&D) expenses and looser business interest expensing through 2029. BofA Global Research named a slew of S&P 500 companies with no overseas sales that could benefit from these items, including utility firms Alliant Energy, Ameren Corp and American Electric Power Company. Sign in to access your portfolio
Yahoo
11-04-2025
- Business
- Yahoo
US stock futures gain as big bank results roll in; China hits back with tariffs
By Shashwat Chauhan and Purvi Agarwal (Reuters) -U.S. stock index futures were higher on Friday following earnings from big banks including JPMorgan, while markets also assessed the latest escalation in the trade war with China increasing its tariffs on U.S. imports to 125%. JPMorgan Chase jumped 3.5% and Wells Fargo gained 1.2% before the bell after both the banks reported a higher profit, kicking off the quarterly earnings season. Asset manager BlackRock was up 2.2% after its first-quarter results, while Morgan Stanley is scheduled to report before markets open. Meanwhile, China retaliated after U.S. President Donald Trump on Thursday doubled down on the country by lifting tariffs to an effective rate of 145%, even as he announced a 90-day tariff reprieve on most trading partners. Stocks have been on a roller-coaster ride in response to tariff announcements in the past few days. Wall Street fell for four straight sessions, before bouncing back on Wednesday with the S&P 500 seeing its largest one-day percentage jump since October 2008. Stocks, however, slumped again on Thursday and were more than 7% off from levels seen before last week, when Trump's "reciprocal" tariffs sparked the market rout. "The significant tariffs on China will cause economic disruption if they remain in place ... while downside risks do remain, we believe the risk of a more severe economic downturn is now more limited," Mark Haefele, chief investment officer at UBS Global Wealth Management said. At 06:58 a.m., Dow E-minis were up 238 points, or 0.60%, S&P 500 E-minis were up 37.5 points, or 0.71%, while Nasdaq 100 E-minis were up 135.5 points, or 0.73%. Most megacap and growth stocks edged higher after initial losses in premarket trade, with gains in Apple, Nvidia and Investors sought refuge in traditional safe-haven assets such as gold, which jumped to a record high. Safe-haven currencies such as the Japanese yen and Swiss franc also strengthened against the dollar. The rally in the precious metal lifted gold miners, with Newmont and U.S.-listed shares of Barrick Gold rising 2.8% and 2.6%, respectively. On the data front, a monthly reading of producer prices is expected at 8.30 a.m. ET on Friday, which can provide more insights on the inflation trajectory amid worries of Trump's tariffs hampering global growth. Treasury yields remained elevated after a steep bond selloff earlier this week. The yield on the 10-year note was at 4.393%, hovering near its February highs. At least three Fed officials, including New York Fed President John Williams, are scheduled to speak throughout the day. Traders currently expect more than 90 basis points of interest rate cuts by the Federal Reserve this year, starting in June, according to LSEG data. Sign in to access your portfolio
Yahoo
25-02-2025
- Business
- Yahoo
AI stocks battered heading into make-or-break Nvidia earnings
By Shashwat Chauhan (Reuters) - Artificial intelligence-linked shares fell on Tuesday, in lead-up to AI bellwether Nvidia's quarterly earnings, which could offer clarity on demand and justify the sector's lofty valuations. Technology stocks globally sold off this week after a TD Cowen analyst note said Microsoft has canceled leases for sizeable data center capacity in the U.S., with at least two private data-center operators. AI-darling Nvidia dropped 2.1% ahead of its highly anticipated quarterly earnings on Wednesday, where investors will focus on demand for its pricey AI chips after low-cost AI models from China's DeepSeek rattled the industry. "It must be noted that such lulls are not uncommon, especially ahead of a set of results, but bulls of US equities more generally will be looking to Nvidia for reassurance," AJ Bell's investment director Russ Mould said in a note. Chip stocks were also hit following a report that said the U.S. was planning further restrictions on Nvidia's chip exports to China and that Washington was consulting with allies about tightening chip controls on China. Other chipmakers such as Broadcom and Micron Technology were down around 2.1% each, with a gauge of semiconductor stocks sliding 1.8%. Investor skepticism has grown over the billions that U.S. tech firms have channeled into AI infrastructure due to slow payoffs and breakthroughs at Chinese startup DeepSeek. Data center operator Digital Realty slipped 1.2%. Vertiv Holdings, which designs and builds data center infrastructure, slipped around 2.3%. Power companies, which are expected to see a surge in demand from energy-intensive data centers needed to develop AI technology, also came under pressure, with Vistra dropping 5.9% and Constellation Energy off 3.3%. AI server maker Super Micro Computer was among the top laggards on the S&P 500, with shares sliding 8.7%, ahead of the deadline for its delayed annual filing. Data analytics firm Palantir — a favorite among retail investors to trade AI — dipped 3.7%. Sign in to access your portfolio
Yahoo
20-02-2025
- Business
- Yahoo
Wall St set for lower open as markets assess Trump's tariff threats; Walmart drops
By Shashwat Chauhan and Sukriti Gupta (Reuters) -Wall Street's main indexes were set for a lower open on Thursday as investors avoided risky bets after another bout of tariff threats from President Donald Trump, while heavyweight retailer Walmart plunged on a downbeat fiscal 2026 sales forecast. Walmart slid 7.4% in premarket trading after the world's largest retailer forecast sales for the fiscal year ending January 2026 below estimates, as it anticipates inflation-weary consumers to pull back after several quarters of solid growth. "Walmart set a negative tone for expectations ... that's adding to concerns that the improvement in fourth quarter earnings were the result of weaker expectations for the first quarter of 2025," said Sam Stovall, chief investment strategist at CFRA. The company's forecast dragged down other major retailers such as Target, Costco Wholesale and Dollar General, which fell between 1.5% and 2.2%. Stovall also added that a fall in Walmart's earnings was the confirmation of a "slowdown in retail sales that we saw last week", and a warning about declining consumer confidence. Apart from Walmart, the market is reacting to Trump's Wednesday announcement of fresh tariffs over the next month or sooner, adding lumber and forest products to previously announced plans involving duties on imported cars, semiconductors and pharmaceuticals. Since returning to office four weeks ago, Trump has imposed an additional 10% tariff on all imports from China. He also announced, and then delayed for a month 25% tariffs on goods from Mexico and non-energy imports from Canada. Last week, he unveiled plans to slap reciprocal tariffs on all countries that have tariffs on U.S. goods. Separately, minutes from the U.S. Federal Reserve's January policy meeting showed on Wednesday that Trump's initial policy proposals raised inflationary concerns at the central bank. Mixed readings of consumer and producers prices, along with a sharp drop in retail sales last week, has led to uncertainty around the Fed's rate outlook. The S&P 500 crawled to a record closing high for the second time this week on Wednesday, as markets took stock of the Fed's meeting minutes and Trump's directives. On Thursday, data showed weekly jobless claims for the week ended February 15 stood at 219,000, compared with an estimate of 215,000, as per economists polled by Reuters. At least four Fed officials, including Chicago Fed President Austan Goolsbee, are due to speak later in the day. At 08:34 a.m. ET, Dow E-minis were down 136 points, or 0.31%, S&P 500 E-minis were down 18.5 points, or 0.3%, and Nasdaq 100 E-minis were down 57.5 points, or 0.26%. Palantir Technologies, which provides governments with services such as software that visualizes army positions, fell 3.7% after the Pentagon said on Wednesday it was looking at potential budget cuts for the fiscal year 2026. U.S.-listed shares of Alibaba Group advanced 11% after the Chinese e-commerce firm topped expectations for third-quarter revenue. Hasbro advanced 1.2% after the toymaker beat quarterly profit and revenue estimates, while Baxter International gained 7.6% after the medical device maker forecast 2025 profit above estimates.
