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Yahoo
6 days ago
- Business
- Yahoo
From TACO to FAFO, investors love parodies of Trump acronyms
By Stephen Culp and Suzanne McGee NEW YORK (Reuters) -Four months into President Donald Trump's second term, market observers have taken a cue from his fondness for condensing slogans into catchy acronyms like MAGA, DOGE and MAHA, and devised a few of their own that have been spreading across trading desks. Even those acronyms that do not directly reflect a specific trading strategy, still capture factors that traders say are important in Trump-era markets, such as volatility and uncertainty, that investors need to consider when making decisions. Some of the new labels are associated with investment strategies that aimed to capitalized on Trump's economic and trade polices, and international relations goals. Others riff off economic implications or his abrupt U-turns as markets and trade partners react to his proposals. The "Trump Trade" that played on the Make America Great Again theme in the wake of his November election victory and January inauguration, and contributed to record highs on Wall Street in February, is hardly discussed now that stocks, the dollar and Treasury bonds have succumbed to worries about his tariff polices. "Post the election, we heard a lot about YOLO (You Only Live Once), which seemed to promote taking outsize risks in a concentrated investment theme," Art Hogan, strategist at B. Riley Wealth, said. YOLO, is an acronym used to describe the tendency that was part of that Trump trade to chase high momentum strategies such as cryptocurrency. "While the term YOLO was popular for a period of time, it goes against all traditional advice," Hogan said. Here are of few more acronyms that have gotten play in the investment world in recent weeks: ** TACO (Trump Always Chickens Out) - This one coined by a Financial Times columnist, has been used as a way to describe Trump's to-ing and fro-ing on tariffs in the wake of his April 2 "Liberation Day" speech. When asked about TACO in a recent press conference, the president lashed out, calling the question "nasty" "Where we end up might not be too far from what he promised on the campaign trail. So, does he always chicken out? I wouldn't go as far as to say that," said Christian DiClementi, fixed income portfolio manager at AllianceBernstein. "I think that he wants to rebalance the economy without pushing it off a cliff. And we're watching that being executed in real time. I think some of the ideas are thought out and some of them change on the fly." ** MEGA (Make Europe Great Again) - Mega first coined last year to address European competitiveness, resurfaced this Spring as a way to describe the flurry of investor interest in and flows into European markets. MEGA hats, spoofing their MAGA counterparts, are easily purchased online It's been revived by investors and traders in light of the outperformance European stocks in the immediate aftermath of Trump's "Liberation Day" tariffs bombshell. ** MAGA (Make America Go Away) - While the original Trump Trade was also known as the MAGA trade, this variation cribbed the president's motto, first appearing in response to Vice President JD Vance's brief and unfruitful visit to Greenland, the autonomous territory of Denmark, which Trump has expressed interest in annexing. At least one Canadian investor says that quip is making the rounds of trading desks in Toronto and Montreal and sparking "wishful thinking" about simply boycotting U.S. investments. ** FAFO (Fuck Around and Find Out) - Although the acronym also came into being well before Trump's inauguration, it is being heard with increasing frequency in trading desk conversations. It is used to capture the financial market's volatility and chaos that Trump's policymaking process has created. Mark Spindel, chief investment officer of Potomac River Capital LLC, described the market as being caught in a "pinball machine as a result of that policymaking process." When reached for comment, White House spokesman Kush Desai said in an email "these asinine acronyms convey how unserious analysts have consistently beclowned themselves by mocking President Trump and his agenda that've already delivered multiple expectation-beating jobs and inflation reports, trillions in investment commitments, a historic UK trade agreement, and rising consumer confidence."
Yahoo
6 days ago
- Business
- Yahoo
From TACO to FAFO, investors love parodies of Trump acronyms
By Stephen Culp and Suzanne McGee NEW YORK (Reuters) -Four months into President Donald Trump's second term, market observers have taken a cue from his fondness for condensing slogans into catchy acronyms like MAGA, DOGE and MAHA, and devised a few of their own that have been spreading across trading desks. Even those acronyms that do not directly reflect a specific trading strategy, still capture factors that traders say are important in Trump-era markets, such as volatility and uncertainty, that investors need to consider when making decisions. Some of the new labels are associated with investment strategies that aimed to capitalized on Trump's economic and trade polices, and international relations goals. Others riff off economic implications or his abrupt U-turns as markets and trade partners react to his proposals. The "Trump Trade" that played on the Make America Great Again theme in the wake of his November election victory and January inauguration, and contributed to record highs on Wall Street in February, is hardly discussed now that stocks, the dollar and Treasury bonds have succumbed to worries about his tariff polices. "Post the election, we heard a lot about YOLO (You Only Live Once), which seemed to promote taking outsize risks in a concentrated investment theme," Art Hogan, strategist at B. Riley Wealth, said. YOLO, is an acronym used to describe the tendency that was part of that Trump trade to chase high momentum strategies such as cryptocurrency. "While the term YOLO was popular for a period of time, it goes against all traditional advice," Hogan said. Here are of few more acronyms that have gotten play in the investment world in recent weeks: ** TACO (Trump Always Chickens Out) - This one coined by a Financial Times columnist, has been used as a way to describe Trump's to-ing and fro-ing on tariffs in the wake of his April 2 "Liberation Day" speech. When asked about TACO in a recent press conference, the president lashed out, calling the question "nasty" "Where we end up might not be too far from what he promised on the campaign trail. So, does he always chicken out? I wouldn't go as far as to say that," said Christian DiClementi, fixed income portfolio manager at AllianceBernstein. "I think that he wants to rebalance the economy without pushing it off a cliff. And we're watching that being executed in real time. I think some of the ideas are thought out and some of them change on the fly." ** MEGA (Make Europe Great Again) - Mega first coined last year to address European competitiveness, resurfaced this Spring as a way to describe the flurry of investor interest in and flows into European markets. MEGA hats, spoofing their MAGA counterparts, are easily purchased online It's been revived by investors and traders in light of the outperformance European stocks in the immediate aftermath of Trump's "Liberation Day" tariffs bombshell. ** MAGA (Make America Go Away) - While the original Trump Trade was also known as the MAGA trade, this variation cribbed the president's motto, first appearing in response to Vice President JD Vance's brief and unfruitful visit to Greenland, the autonomous territory of Denmark, which Trump has expressed interest in annexing. At least one Canadian investor says that quip is making the rounds of trading desks in Toronto and Montreal and sparking "wishful thinking" about simply boycotting U.S. investments. ** FAFO (Fuck Around and Find Out) - Although the acronym also came into being well before Trump's inauguration, it is being heard with increasing frequency in trading desk conversations. It is used to capture the financial market's volatility and chaos that Trump's policymaking process has created. Mark Spindel, chief investment officer of Potomac River Capital LLC, described the market as being caught in a "pinball machine as a result of that policymaking process." When reached for comment, White House spokesman Kush Desai said in an email "these asinine acronyms convey how unserious analysts have consistently beclowned themselves by mocking President Trump and his agenda that've already delivered multiple expectation-beating jobs and inflation reports, trillions in investment commitments, a historic UK trade agreement, and rising consumer confidence." 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
Yahoo
05-05-2025
- Business
- Yahoo
US stocks end higher on tech boost, yen slides on BOJ gloom
By Stephen Culp NEW YORK (Reuters) - Wall Street stocks rallied and gold prices slid on Thursday as solid earnings from big tech bolstered investor risk appetite. All three major U.S. stock indexes began the month with solid gains, with upbeat quarterly results from Meta Platforms and Microsoft benefiting the Nasdaq most, sending the tech-laden index up 1.5%. The bellwether S&P 500 extended its run of gains to eighth consecutive sessions, marking its longest winning streak since August 2024. "Clearly sparking (Thursday's) rally was better-than-expected earnings from Microsoft and Meta, and once again calming some of the over-the-top recessionary worries that we were dealing with just a couple of weeks ago," said Ryan Detrick, chief market strategist at Carson Group in Omaha. "But the good news is stocks have now recovered from the selloff after 'Liberation Day.'" U.S. President Donald Trump announced steep tariffs on April 2, which rattled world markets for much of last month. The dollar advanced as the yen took a hit after the Bank of Japan cut its growth forecasts due to uncertainties surrounding U.S. tariff policy. Trading was thin throughout Asia and Europe due to May Day holidays. First-quarter earnings season is well past its halfway point, with 325 companies in the S&P 500 having reported. Of those, 74% have beaten analyst expectations, according to LSEG. Apple and are due to report after the closing bell, the fifth and sixth members of the so-called "magnificent seven" to post quarterly results, leaving chipmaker Nvidia, which is expected to release its first-quarter earnings on May 28. "The reality is the economy is slowing but not dropping off a cliff, and some of these large tech companies are confirming that," Detrick added. "It's nice to talk about something besides tariffs, especially when it's backed by some solid earnings overall by some of the large tech companies." On the economic front, U.S. factory activity remained in contraction, while jobless claims increased more than analysts expected. The Dow Jones Industrial Average rose 83.42 points, or 0.21%, to 40,752.78, the S&P 500 rose 35.04 points, or 0.63%, to 5,604.11 and the Nasdaq Composite rose 264.40 points, or 1.52%, to 17,710.74. MAY DAY HOLIDAY Many markets in Europe and the rest of the world were closed for the May Day holiday. MSCI's gauge of stocks across the globe rose 1.47 points, or 0.18%, to 835.01. The pan-European STOXX 600 index rose 0.02%, while Europe's broad FTSEurofirst 300 index fell 1.12 points, or 0.05%. Emerging market stocks fell 2.97 points, or 0.27%, to 1,109.87. MSCI's broadest index of Asia-Pacific shares outside Japan closed lower by 0.21%, to 579.81, while Japan's Nikkei rose 406.92 points, or 1.13%, to 36,452.30. The greenback continued its rebound on growing optimism over trade deals, gaining ground against the yen after the BoJ's outlook downgrade, which reduced the prospect for future rate hikes. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.52% to 100.19, with the euro down 0.34% at $1.1289. Against the Japanese yen, the dollar strengthened 1.72% to 145.53. Longer-dated U.S. Treasury yields rose after factory data showed tariff-related strain on supply chains and elevated input prices, likely delaying potential rate cuts from the Federal Reserve. The yield on benchmark U.S. 10-year notes rose 4.3 basis points to 4.218%, from 4.175% late on Wednesday. The 30-year bond yield rose 4.5 basis points to 4.7248% from 4.68% late on Wednesday. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 8 basis points to 3.701%, from 3.621% late on Wednesday. Oil prices reversed their earlier slump on waning fears of softening demand. U.S. crude rose 1.77% to settle at $59.24 per barrel, while Brent settled at $62.13 per barrel, up 1.75% on the day. Gold prices dropped to a two-week low, pressured by signs of easing trade tensions. Spot gold fell 1.82% to $3,227.78 an ounce. U.S. gold futures fell 2.76% to $3,213.80 an ounce. Sign in to access your portfolio
Yahoo
29-04-2025
- Business
- Yahoo
Wall St closes mixed, gold rebounds amid trade fog; earnings, data loom
By Stephen Culp NEW YORK (Reuters) -The S&P 500 and the Dow ended in positive territory at the conclusion of a choppy session on Monday and gold advanced as investors looked for signs of progress in tariff negotiations at the top of an eventful week of corporate earnings and economic data. Tech sector weakness pulled the Nasdaq lower, while the dollar advanced against a basket of world currencies and safe-haven gold rebounded. "We had a nice rally last week," said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky. "But in the absence of a major positive catalyst, I think it's going to be harder for equities to climb much higher from here." Mayfield called Monday's market gyration "just a little bit of drift, with a lack of catalysts and a lot concentrated in the back half of the week." U.S. Treasury Secretary Scott Bessent said on Monday many top U.S. trading partners have made "very good" tariff proposals, adding that China's recent moves to exempt certain U.S. goods from its retaliatory tariffs showed a willingness to de-escalate tensions between the world's two largest economies. "We were at a point where, unless we get a major resolution on the trade front, or big upside from some of the economic data or earnings this week, I think we're in this trading range that I feel we're going to be trapped in for a while," Mayfield said. Despite hopes for progress, economists polled by Reuters see a high risk of global recession due to Trump's tariffs. Three months ago, they projected the world economy growing at a healthy clip. First-quarter earnings season heats up this week, with Meta Platforms, Microsoft, Apple and among the high-profile results on the docket. While no U.S. economic data were released on Monday, the week is back-end loaded with closely watched indicators such as Personal Consumption Expenditures, the Institute for Supply Management's purchasing managers' index, an advance take on U.S. GDP and the April employment report. The Dow Jones Industrial Average rose 114.09 points, or 0.28%, to 40,227.59, the S&P 500 rose 3.54 points, or 0.06%, to 5,528.75 and the Nasdaq Composite fell 16.81 points, or 0.10%, to 17,366.13. European shares rose as investors remained optimistic that U.S.-China trade tensions would wane. MSCI's gauge of stocks across the globe rose 3.35 points, or 0.41%, to 828.09. The pan-European STOXX 600 index rose 0.53%, while Europe's broad FTSEurofirst 300 index rose 10.13 points, or 0.49%. Emerging market stocks rose 6.35 points, or 0.58%, to 1,103.45. MSCI's broadest index of Asia-Pacific shares outside Japan closed higher by 0.62%, to 574.20, while Japan's Nikkei rose 134.25 points, or 0.38%, to 35,839.99. U.S. Treasury yields eased ahead of critical earnings and economic data this week. The yield on benchmark U.S. 10-year notes fell 5.6 basis points to 4.21%, from 4.266% late on Friday. The 30-year bond yield fell 5.2 basis points to 4.6862% from 4.738% late on Friday. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, fell 7.7 basis points to 3.685%, from 3.762% late on Friday. The dollar fell as investors awaited trade talks progress and girded themselves for an eventful week. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.8% to 98.93, with the euro up 0.51% at $1.1422. Against the Japanese yen, the dollar weakened 1.13% to 142.05. Sterling strengthened 0.9% to $1.3434. The Mexican peso weakened 0.21% versus the dollar at 19.57. The Canadian dollar strengthened 0.26% versus the greenback to C$1.38 per dollar. Canadians are going to the polls on Monday after an election campaign in which U.S. President Donald Trump's tariffs and musings about annexing Canada became the central issue. Crude oil softened as investors weighed a potential supply increase from OPEC+ amid ongoing trade uncertainties. U.S. crude fell 1.54% to settle at $62.05 per barrel, while Brent settled at $65.86 per barrel, down 1.51% on the day. Gold prices advanced in opposition to the easing greenback as bargain-hunting kicked in. Spot gold rose 0.98% to $3,350.59 an ounce. U.S. gold futures rose 0.06% to $3,284.50 an ounce. Sign in to access your portfolio
Yahoo
22-04-2025
- Business
- Yahoo
Wall Street ends higher on earnings, hopes of easing tariff tensions
By Stephen Culp (Reuters) -U.S. stocks rebounded on Tuesday as a spate of quarterly earnings reports and hints at the de-escalation of U.S.-China trade tensions brought buyers in from the sidelines. U.S. stocks jumped further in extended trade after President Donald Trump said he has no plans to fire Federal Reserve Chair Jerome Powell, stepping back from his recent rhetoric against the central bank chief. In a sign that traders expect Wall Street to rally on Wednesday, S&P 500 futures jumped almost 2% following Trump's comments, while and and Nvidia were last up 3% each and Apple climbed 2% in after-hours trading. During Tuesday's session, a broad rally boosted all three major U.S. indexes by more than 2.5%, as investors looked past Trump's attacks against Powell, who is widely considered a stabilizing force for the markets. After being battered for weeks by the White House's erratic and multi-front tariff disputes, the S&P 500 at Tuesday's close was nearly 14% below its record closing high reached on February 19. Treasury Secretary Scott Bessent said that while trade negotiations with Beijing will likely be "a slog," he believes that there will be a de-escalation of U.S.-China trade tensions. "The roller coaster continues," said Ryan Detrick, chief market strategist at Carson Group in Omaha. "Some thawing of the aggression (between) U.S. and China, thanks to Bessent's comments, helped push things higher." "Washington understands that the uncertainty around tariffs is hurting markets and maybe we can get some type of positive news going forward on the trade front," Detrick added. Those uncertainties helped prompt the International Monetary Fund to slash its forecasts for U.S. economic growth to 1.8% in 2025, citing the impact of U.S. tariffs, now at 100-year highs. First-quarter earnings season gathered steam. So far, 82 of the companies in the S&P 500 have reported. Of those, 73% have beaten expectations, according to LSEG. Analysts now see aggregate S&P 500 earnings growth 8.1% for the Jan - March period, down from the 12.2% growth forecast at the beginning of the quarter, per LSEG. "Current earnings are showing a continuation of good fundamentals, which is not a surprise," said Bill Merz, head of Capital Market Research at U.S. Bank Wealth Management, Minneapolis, who added that investors are parsing corporate guidance for "clarity on what companies are planning to do in response to tariff policy." Shares of industrial conglomerate 3M Co jumped 8.1% after the company posted better-than-expected first-quarter profit expectations, though it flagged a likely hit to 2025 profit from tariffs. Northrop Grumman slumped 12.7% after it reported a sharp drop in profit. Aerospace and defense company RTX tumbled 9.8% after flagging a potential $850 million hit to its annual profit due to tariffs. The Dow Jones Industrial Average rose 1,016.57 points, or 2.66%, to 39,186.98, the S&P 500 gained 129.56 points, or 2.51%, to 5,287.76 and the Nasdaq Composite gained 429.52 points, or 2.71%, to 16,300.42. All 11 major sectors in the S&P 500 advanced, with financials and consumer discretionary enjoying the largest percentage gains. Advancing issues outnumbered decliners by a 6.4-to-1 ratio on the NYSE. There were 50 new highs and 44 new lows on the NYSE. On the Nasdaq, 3,580 stocks rose and 796 fell as advancing issues outnumbered decliners by a 4.5-to-1 ratio. The S&P 500 posted 4 new 52-week highs and one new low while the Nasdaq Composite recorded 31 new highs and 76 new lows. Volume on U.S. exchanges was 15.21 billion shares, compared with the 18.94 billion average for the full session over the last 20 trading days. Sign in to access your portfolio
