Latest news with #SruthiShankar
Yahoo
27-05-2025
- Business
- Yahoo
European stocks ease from 2-month highs as JD Sports, Julius Baer slide (May 21)
(This May 21 story has been corrected to change the company name to Societe Generale from BNP Paribas in paragraph 8) By Sruthi Shankar (Reuters) - European stocks retreated from two-month peaks on Wednesday, led by a drop in the shares of JD Sports and Julius Baer, while investors kept a cautious eye on U.S. trade developments and the tax bill debate. The pan-European STOXX 600 fell 0.4% by 0907 GMT, led by retail and auto stocks. Shares of Julius Baer slid 4.6% after the Swiss bank reported a 130 million Swiss franc ($156.4 million) charge from a credit portfolio review and announced the replacement of its chief risk officer. JD Sports fell 6.5% to the bottom of the STOXX 600 after the British sportswear retailer posted a 2% fall in first-quarter underlying sales and warned that higher prices in its key U.S. market could hit customer demand. Further spooking investors, data showed British inflation surged by more than expected in April, including in key areas closely watched by the Bank of England, complicating its path towards gradual interest rate cuts. Investors are worried about the lack of progress on trade deals as the clock ticks down to the end of U.S. President Donald Trump's 90-day tariff respite, as well as a sweeping U.S. tax bill that has raised concerns about the fiscal health. However, the STOXX 600 has recovered from its April slump, and is trading less than 3% away from its all-time highs. "We are not particularly comfortable with much higher levels in markets because what is missing is earnings growth in Europe," said Roland Kaloyan, head of European equity strategy at Societe Generale. "Utilities, pharma, staples - those are the sectors that we are pushing rather than cyclical sectors like consumer discretionary or industrial sector, which are more exposed to reduction of earnings expectations." Morgan Stanley raised its view on the European banking sector to "attractive," citing better earnings potential from continued yield steepening. The European banks index is among the top performing sectors this year. With a 31% year-to-date gain, it is trading at its highest level since 2008. German chipmaker Infineon rose 0.9% after it said it would work with Nvidia to develop chips for new power delivery systems inside artificial intelligence data centers. Marks & Spencer dipped 0.5% after the British retailer said a "highly sophisticated" cyber attack would cost it about 300 million pounds ($403 million) in operating profit.
Mint
02-05-2025
- Business
- Mint
Futures edge up on hopes of easing trade tensions, jobs data awaited
(For a Reuters live blog on U.S., UK and European stock markets, click or type LIVE/ in a news window.) Futures up: Dow 0.47%, S&P 500 0.43%, Nasdaq 0.33% April nonfarm payrolls data in focus Chevron falls after quarterly results (Updates with earnings, quote) By Sruthi Shankar and Purvi Agarwal May 2 (Reuters) - U.S. stock index futures rose on Friday as hopes of a de-escalation in a punishing U.S.-China trade war offset disappointing earnings updates from Apple and Amazon, while a monthly jobs report remained on the radar. Global stocks advanced as Beijing said on Friday it was "evaluating" an offer from Washington to hold talks over U.S. President Donald Trump's 145% tariffs on China. Their tit-for-tat tariffs have kept investors on edge, with both sides unwilling to be seen backing down in a trade war that has roiled global markets and upended supply chains. Investors now await the Labor Department's closely watched employment report at 8:30 a.m. ET (1230 GMT) for clues on the health of the U.S. labor market. It is expected to show nonfarm payrolls increased by 130,000 jobs last month after rising by 228,000 in March. Part of the anticipated step-down in payrolls would be due to the fading boost from warmer weather. "Faced with rising policy uncertainty, companies are hesitant to meaningfully hire or reduce their workforce," said Seema Shah, chief global strategist at Principal Asset Management. "This paralysis has led the labor market into an uneasy equilibrium where it will not take much to trigger a rise in unemployment." Apple slid 3.5% in premarket trading after the iPhone maker trimmed its share buyback program by $10 billion and CEO Tim Cook told analysts that tariffs could add about $900 million in costs this quarter. "Apple claimed the sort of earnings beat that was never likely to win much favor... at a time when its products business is fraught with uncertainty, it's not great that growth on the services side has disappointed," said AJ Bell investment director Russ Mould. was down marginally after it forecast second-quarter operating income below estimates as concerns about tariffs and its impact on consumer spending clouded the outlook. At 07:25 a.m. ET, Dow E-minis were up 192 points, or 0.47%, S&P 500 E-minis were up 24.25 points, or 0.43%, and Nasdaq 100 E-minis were up 66 points, or 0.33%. The tech-heavy Nasdaq closed on Thursday at levels last seen before April 2, dubbed "Liberation Day", when Trump unveiled massive global tariffs. His reversal of some tariffs has helped U.S. stock indexes recover from recent losses. Despite signs of reprieve on the trade front, the rapid shifts in U.S. tariff policies have forced some companies to warn of business impacts or pull earnings forecasts amid worries of higher costs and a hit to economic growth. Oil giant Chevron lost 2% after its quarterly results, while Exxon Mobil was up 0.9% after beating first-quarter profit estimates. Block slumped more than 20% after cutting its profit forecast for 2025 and missing estimates for quarterly earnings, as the payments firm grapples with muted consumer spending. Airbnb dipped 5.1% after the vacation rental platform forecast second-quarter revenue largely below Wall Street estimates and signaled softening demand in the U.S. (Reporting by Sruthi Shankar and Purvi Agarwal in Bengaluru; Editing by Devika Syamnath) First Published: 2 May 2025, 05:24 PM IST
Yahoo
01-05-2025
- Business
- Yahoo
Gloomy retail earnings show consumers are feeling the pinch of US tariffs
By Sruthi Shankar (Reuters) -Lackluster quarterly results from consumer-facing companies including McDonald's and Harley-Davidson are the latest sign that American shoppers are curbing spending amid shifting U.S. trade policies. McDonald's posted a surprise decline in quarterly global sales on Thursday and said it was navigating the "toughest of market conditions". It echoed recent warnings from restaurant operators Domino's Pizza, Chipotle Mexican Grill and Starbucks that Americans were spending less on dining out. Cosmetics maker Estee Lauder forecast a bigger-than-expected drop in fiscal 2025 sales, while motorbike maker Harley-Davidson joined a spate of companies this week in pulling forecasts, citing the uncertain macroeconomic environment. Investors have been worried that the Trump administration's tariff plans will spur a resurgence in inflation and hurt global economic growth, in turn deterring discretionary spending. "It's very difficult for retailers to give solid guidance and not be conservative when they don't know what they're going to be able to get in terms of inventories, especially ones that come from China," said Art Hogan, chief market strategist at B Riley Wealth. Estee Lauder said sales in the Americas declined primarily due to a dip in "consumer confidence and sentiment", which led to elevated inventory levels and destocking at certain retailers. The U.S. economy contracted in the first quarter for the first time in three years, data on Wednesday showed, and consumer spending - which accounts for more than two-thirds of the economy - grew at 1.8% after a robust 4% pace in the fourth quarter. The United States has approached China, seeking talks over Trump's 145% tariffs, a social media account affiliated with Chinese state media said on Thursday, potentially signaling Beijing's openness to negotiations. Trump instituted sweeping tariffs in early April, unleashing a wave of selling across stocks worldwide and prompting several companies to either withdraw guidance or warn about their performance in the coming months. Fast-casual chain Shake Shack posted weaker-than-expected first-quarter revenue on Thursday and said it was factoring in some level of pressure on consumer spending as well as headwinds from higher inflation this year. However, results from card companies Mastercard and Visa signaled resilience in consumer spending. "Visa and Mastercard data say consumers are doing fine, but reports from the likes of McDonald's suggest that it's still the higher-income shopper that is doing the heavy lifting," said Brian Jacobsen, chief economist at Annex Wealth Management. "It's an unsustainable situation and likely to break towards a breakdown in spending without a tariff reprieve soon."
