Latest news with #SteveSosnick
CNBC
18 hours ago
- Business
- CNBC
Steve Sosnick: 'Buckle up' if markets don't get best-case scenario on trade
Steve Sosnick, Interactive Brokers chief strategist, joins 'Power Lunch' to discuss how much trade talks matter to equity markets, if the market is pricing in the best-case scenario on trade and much more.
Axios
a day ago
- Business
- Axios
Good guidance is the new earnings beat for investors
This earnings season, it's not enough to beat Wall Street estimates on profits or revenue. If you're not bullish on your future earnings, investors will punish you. Why it matters: In a moment of marked policy uncertainty, companies are struggling to meet investors' lofty expectations on their forward guidance, which could put pressure on the broader market. By the numbers: Companies that beat both revenue and profit estimates on average outperform the S&P 500 by nearly 1.9 points the following day, per data from Bank of America. Companies that deliver upward guidance outperform the index by 3 points the next day, but companies that miss on guidance underperform by nearly 4 points. Meanwhile, the gap between how many companies beat expectations, versus miss them, is now at its widest point in three years. 40% of companies have raised guidance for the second quarter, versus 10% for the first following tariff uncertainty, per data from Citi. What they're saying:"Meeting expectations isn't even necessarily sufficient," said Steve Sosnick, chief investment officer at Interactive Brokers. It's not enough to hit guidance expectations anymore. Companies have to exceed them. For example: Alphabet reported beats on the top and bottom lines, but the company doesn't provide formal guidance on earnings calls. The stock had a modest upside reaction the day after. Texas Instruments delivered guidance that was better than most estimates, but its stock still saw its worst decline in nearly two decades, all because its outlook wasn't rosy enough. Be smart: In a frothy market, guidance matters. Upbeat forecasts suggest that companies see enough growth ahead to justify lofty valuations. "I think it's a sign of the market's mood right now," said Sosnick, who added that markets have already priced in good news on earnings. That means companies have to "not just meet expectations" but also "exceed them" in order to really drive outperformance. Yes, but: Sosnick adds that investors have seen this movie before. Some CFOs had to reforecast daily during the coronavirus pandemic, said Chris Wright, a managing director at global consulting firm Protiviti. "There's muscle memory there," he told Axios.
CNBC
5 days ago
- Business
- CNBC
Interactive Brokers' Steve Sosnick on whats fueling the comeback in meme stocks
Steve Sosnick, Interactive Brokers chief strategist joins 'Closing Bell Overtime' to talk the rise in meme stock investing and what is driving it.
Yahoo
6 days ago
- Business
- Yahoo
Fortune 500 retailer Kohl's gets meme stock treatment as shares double before falling back to earth
Kohl's has leapt into the spotlight as the newest meme stock phenomenon, experiencing a wild surge in its share price driven by retail investors coordinating on social media. Echoing the notorious GameStop and AMC frenzies of 2021, the department-store chain saw its shares more than double at the open on Tuesday, beginning at $10.52 and nearly doubling to about $20, before paring some gains to close up 38% at $14.34. The shares are up more than 50% over a five-day trading period. The dramatic rally in Kohl's stock was not triggered by any turnaround in the retailer's financials or corporate news. Instead, the momentum was fueled by a wave of social media excitement, particularly on Reddit's WallStreetBets and similar forums. 'It's all social media chatter,' Steve Sosnick of Interactive Brokers told Bloomberg. 'Remember that a highlight of the meme stock era was a dose of nostalgia for companies like GameStop and AMC. Social media chatter can become self-fulfilling.' Users spotlighted the company's extraordinarily high short interest—roughly 49% of its float, or 53 million shares—making it a prime target for a so-called short squeeze. This buying frenzy forced traders betting against the stock to cover their short positions, amplifying the upward pressure on share prices. Trading in Kohl's shares was briefly halted by the New York Stock Exchange, evoking memories of pandemic-era meme stock rallies, although trading halts are typical for various kinds of volatile activity. Even after the initial surge abated, Kohl's shares held on to double-digit gains, finishing the day far above Monday's close and drawing attention from both regulators and analysts. Fundamentals vs. fad: The disconnect Despite the dramatic price action, Kohl's has struggled operationally. Once a staple of American malls, Kohl's has faced a string of challenges, including consecutive quarters of falling same-store sales and shrinking net revenue. The Fortune 500 retailer recently ousted CEO Ashley Buchanan over conflicts of interest, marking Kohl's third CEO in as many years. Major banks have slashed price targets on the shares, with some analysts predicting fair value for the stock as low as $4 to $8, citing persistent weaknesses in store traffic, competition, and strategy. Also, the company recently trimmed its dividend amid attempts to shore up cash. Several ingredients made Kohl's enticing for meme stock traders, though. Beyond the high amount of short activity, the stock was perceived as a bargain by contrarian meme traders, having languished in single digits for months. The flurry of comments about Kohl's stock on Reddit includes many since-deleted comments. Analyst and industry reaction Wall Street skepticism has grown amid the frenzy. Most analysts maintain a cautious tone, noting there is little in the way of fundamental news to justify the move. Goldman Sachs and UBS both maintain price targets below $10, emphasizing concerns over the sustainability of the hype-driven rally. Jay Woods, a strategist at Freedom Capital Markets, offered a blunt assessment to Axios: 'Meme stocks are back … There's no apparent reason for the stock price to have surged this much.' Kohl's dramatic surge is part of a broader rebound in meme stock enthusiasm. Opendoor Technologies, another struggling firm, experienced a similar spike earlier in the week, suggesting the appetite for speculative group action remains alive among retail investors. The market's robust rally in 2025, combined with lingering high short interest in a handful of beaten-down names, has created fertile ground for rapid—and risky—run-ups. Kohl's entry into meme stock territory highlights the enduring influence of online communities in shaping financial markets. While some retail traders may score quick profits, history suggests such episodes of exuberance can quickly unwind, leaving latecomers nursing losses. For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing. This story was originally featured on 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
Business Recorder
6 days ago
- Automotive
- Business Recorder
Automakers propel European shares to two-week highs
FRANKFURT: European shares closed near two-week highs on Wednesday, led by automakers, as investors anticipated a possible agreement between the United States and European Union to soften the blow of growth-denting tariffs. Futures tracking the pan-European STOXX 600 index got a further boost and were last up 2.1% as EU diplomats said the bloc and Washington were headed for a potential trade deal including a 15% US baseline tariff on European imports - half the level US President Donald Trump had threatened. Negotiations between the two economies have lagged in recent weeks, and investors are keen for an agreement before the August 1 deadline. The European Commission is planning to unveil counter-tariffs if the talks fail. The benchmark STOXX index closed 1% higher and logged its biggest one-day gain in nearly a month, after Japan struck a trade deal with the US, sparking a rally in automobile stocks earlier in the day. 'One of the premises underlying global markets is that once tariffs are implemented, they will not be as negative as feared,' said Steve Sosnick, chief market analyst at Interactive Brokers. 'From the European point of view, it's understandable why that would be perceived as good news, because it's reasonable to think that there will be some sort of negotiation between the US and the EU to arrive at a deal'. Most of the major bourses in the region, including Germany's DAX, France's CAC 40 along with main stock indexes in Italy, rallied more than 1.3%. European automobile stocks surged 3.7% and logged its biggest daily rise in close to a month, tracking a steep rally by some Asian rivals. European carmakers such as Stellantis, Mercedes-Benz, Volkswagen and Porsche gained between 6.1% and 7.3%. Earnings were also on the radar, with technology stocks bogged down by a 4.1% slide in SAP as investors were disappointed the software company held off on increasing full-year targets after reporting higher quarterly sales and earnings.
