Latest news with #USBureauofEconomicAnalysis
Yahoo
2 days ago
- Business
- Yahoo
Hoosiers expected to spend 35% of income on bills by 2035, according to new study
TERRE HAUTE, Ind. (WTWO/WAWV) — A new study, conducted by coupon website Bravo Deal, reveals that Hoosiers are projected to spend 35% of their income on household bills by 2035. According to Bravo Deal's research, this 35% of income spent on bills is equivalent to $30,639, nearly tripling the 2011 figure of $11,453, and almost doubling the 2023 figure of $18,597. While the national average of income spent on bills in 2035 is expected to decrease to 29.7%, compared to the 30.4% Americans spent in 2023, Indiana's share of income is expected to be a 4.6% increase from the 2023 national average and 5.3% more than the projected national average in 2035. Where does your city rank in retiree Social Security income? According to the study, Indiana residents' 35% of income allocated to household bills, will be the fifth highest percentage in the nation by 2035. Trailing West Virginia (45%), Louisiana (40.6%), Kentucky (39.2%) and Alaska (35.5%). Bravo Deal's research analyzed consumers' spending patterns and income from 2011 to 2023 from the US Bureau of Economic Analysis to determine how the cost of utilities, insurance, healthcare and car expenses have impacted Americans' finances over time. Bravo Deal said the analysis calculated the percentage of disposable income spent on bills in each state, then measured the percentage change in spending in income. The growth rates between the two years were then used to project how these expenses could affect Americans by 2035. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
USA Today
12-05-2025
- Health
- USA Today
Calif. Gov. Gavin Newsom unveils homelessness plan to clear street camps
Calif. Gov. Gavin Newsom unveils homelessness plan to clear street camps Show Caption Hide Caption Gavin Newsom says California has world's 4th largest economy California was officially named the world's fourth-largest economy, according to the International Monetary Fund and the US Bureau of Economic Analysis. unbranded - Newsworthy California Gov. Gavin Newsom unveiled a wide-reaching plan to tackle the state's severe homelessness crisis that would direct hundreds of cities, towns and counties to effectively ban tent camping on sidewalks and parks, according to a statement released early Monday, May 12. "The Governor is calling on every local government to adopt and implement local policies without delay," the statement says. The move comes as the state prepares for a surge of funding for homelessness and mental health after voters approved a multi-billion-dollar bond measure in November, and after a landmark U.S. Supreme Court ruling in 2024 that opened the door to arresting and fining individuals for sleeping in public spaces. More: California failed to track how billions are spent to combat homelessness programs, audit finds The model ordinance is not a flat directive, giving local municipalities a guideline and an effective choice to implement the policies. The template will be provided to every community as a "starting point," the statement says, so jurisdictions can tailor it. California is the nation's most populous state and is home to a significant portion of the country's homeless individuals. Nearly a quarter of all unhoused Americans live in California, according to federal data and local studies. The two-term governor will join California Department of Health and Human Services Secretary Kim Johnson, the Director of the California Department of Health Care Services Michelle Baass and unnamed mental health leaders at 1 p.m. PT, according to a news release. More: The homeless population is increasing. Will Trump's second term make it worse? The event, which will be livestreamed across the governor's social media pages, is an "announcement regarding his administration's continued transformation of behavioral health services supporting California's seriously ill and homeless populations," the release says. "There's nothing compassionate about letting people die on the streets," Newsom said in the statement. "Local leaders asked for resources — we delivered the largest state investment in history. They asked for legal clarity — the courts delivered. Now, we're giving them a model they can put to work immediately, with urgency and with humanity, to resolve encampments and connect people to shelter, housing, and care." Kathryn Palmer is a trending news reporter for USA TODAY. You can reach her at kapalmer@ and on X @KathrynPlmr.
Mint
05-05-2025
- Business
- Mint
Key trends in charts: How the US is performing under Trump
The early months of US President Donald Trump's second term have already led to global chaos, particularly because of reciprocal tariffs. While US GDP contracted in the first quarter, a recession may still be a few months away. Nevertheless, Trump's approval ratings have taken a hit, bond yields and uncertainty have surged, and the economic outlook has dampened. A stronger US jobs report brought some optimism, but there are questions about whether it will last. The impact of Trump's policies, especially his flip-flops on reciprocal tariffs, is yet to fully kick in. However, the US economy already suffered a setback in the first quarter of the year. GDP contracted 0.3% in January-March, the first such decline since the first quarter of 2022. Since the contraction was mainly on account of a surge in imports in the run-up to the reciprocal tariffs announcement, Q2 may see a rebound, pushing a potential recession to later in the year. Nevertheless, fears of reciprocal tariffs led to a sharp surge in imports in the first quarter as companies and consumers rushed to buy foreign goods. Imports soared 41.3% from the preceding quarter, which pulled GDP growth into negative territory. Since imports are subtracted from the GDP calculation, their impact is usually negative, but Q1 saw a sharper negative contraction. According to the US Bureau of Economic Analysis, the contribution of imports was -5.0 percentage points in the first quarter as opposed to +0.27 in Q4 2024 and -0.82 in the same quarter last year. Also read | Nouriel Roubini: US economic tailwinds will help it overcome tariff headwinds 44%: That's the percentage of Americans who approved of the way Donald Trump handled his job as president in April, down from 47% at the start of his second term in January, according to the presidential approval ratings poll conducted by Gallup. Other presidents who served a second term had a higher approval rating in the same month of their first year. Barack Obama had a 49% approval rating in April 2013, George W. Bush had a 49% rating in April 2005, and Bill Clinton had a 54% rating in April 1997. While stock markets around the world crashed after the reciprocal tariff announcement and have since recovered to some extent, movement in US bond yields made investors especially nervous. Bond selling accelerated after the tariffs came into effect, pushing government borrowing costs higher. The benchmark 10-year bond yield jumped sharply and was as high as 4.48% on 11 April before seeing a partial correction. The surge in bond yields, along with a declining dollar index and rising gold prices, has raised questions over the US's safe-haven status. It's not just investors – US citizens in general are more concerned about the country's economic prospects. According to a survey conducted by the Pew Research Center from 7-13 April, 45% of Americans believe the US's economic situation will worsen over the coming year, up from 37% in February. While Republicans remain more optimistic, negative outlook is on the rise, with 15% of Republicans/Republican-leaning respondents expecting a worse economic outlook in April, up from just 9% in February. Also read: Apple's US tariff-led $900 million pain is India's gain 177,000 : That's the number of non-farm jobs the US labour market added in April, exceeding the Dow Jones estimate of 133,000 and bringing some cheer amid the gloom. As a result, the unemployment rate held steady at 4.2% during the month, remaining near historic lows. While strong jobs data has brought some optimism, economists warn that trade and tariff uncertainties could still take a toll on the economy and lead to a weaker job market as companies adjust their hiring plans in response to trade tensions. Uncertainty has become a dominant theme in economic reporting during Trump's second term. Analysis by reveals a dramatic surge in its US Economic Policy Uncertainty Index, which analyses policy-related economic uncertainty based on the number of news articles across a set of newspapers that contain words related to economic uncertainty. Since Trump took office on 20 January, the index has jumped from 193 to 786. It scaled a recent new peak of 975 on 5 April. Several countries are expected to feel the impact of the US's policies. International agencies have cut India's GDP growth projections for 2025-26 at least once since January. India's growth relies heavily on the information technology (IT) sector and exports to the US. A historical analysis of GDP growth in the US and India shows similar economic momentum, which suggests India is not completely insulated from US economic trends. Also read: Advocates of free trade should articulate an alternative to US tariffs
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Business Standard
05-05-2025
- Business
- Business Standard
'I set the deal': Trump says trade agreements may come as soon as this week
While Trump did not name countries, he suggested trade deals may be finalised within weeks as talks progress with several nations including India amid tariff tensions and slowdown fears New Delhi US President Donald Trump has indicated that his administration could finalise new trade agreements with select countries as early as this week. Speaking aboard Air Force One on Sunday (local time), he declined to name any countries but stressed that he would be the one to determine the terms. 'I set the deal — they don't set the deal,' he remarked. When asked if any trade deals were imminent this week, Trump said, 'It could very well be.' However, when asked to elaborate on a timeline, he did not provide clarity, stating, 'At some point in the next two weeks or three weeks, I'm going to be setting the deal.' Trade talks underway, but Trump's tariff threat looms Discussions have already been underway between Trump's aides and several other countries. However, Trump also maintained that new duties could still be imposed, saying, 'At a certain point, I'll be just setting a certain tariff number.' 'I'm going to say that such and such a country has had a tremendous trade surplus — surplus their way — with us, and they've taken advantage of us in various ways, and we fully understand what they were doing,' he added. Trump's sweeping tariffs, announced on April 2, have triggered major upheavals in global markets in recent weeks, with fears of a global economic slowdown mounting. Within the US, concerns about a potential recession have also grown. Last week, data from the US Bureau of Economic Analysis, cited by Bloomberg, revealed that the country's gross domestic product (GDP) had contracted for the first time in three years. The economic headwinds may have intensified pressure on the Trump administration to secure quick trade wins. Are the US and India nearing a trade agreement? India has been subjected to tariffs of up to 26 per cent. The Indian government has been engaged in trade talks with the US over a possible bilateral trade agreement. US Vice-President JD Vance recently visited India and held discussions with Prime Minister Narendra Modi, fuelling speculation that a deal may be close. US-China trade talks may begin soon China — the primary target of Trump's tariff campaign — said last week it is evaluating messages sent by the US government expressing a desire to resume trade negotiations. 'The US has recently sent messages to China through relevant parties, hoping to start talks with China,' China's Commerce Ministry said in a statement on Friday. 'China is currently evaluating this.' Beijing has been hit with import duties of 145 per cent, with tariffs reaching up to 245 per cent on some goods. While Trump said on Sunday that he does not currently plan to speak directly with Chinese President Xi Jinping, he suggested his administration may be open to scaling back tariffs as part of future negotiations.
Yahoo
30-04-2025
- Business
- Yahoo
Stock market today: Dow, S&P 500, Nasdaq fall on bleak GDP, jobs data with Big Tech earnings on deck
US stocks fell on Wednesday but came off their lows of the session as investors digested a deluge of economic data, led by the first contraction of the US economy in three years, and waited for a parade of Big Tech earnings to begin. The benchmark S&P 500 (^GSPC) dropped around 0.9%, while the tech-heavy Nasdaq Composite (^IXIC) sank 1.4%. The Dow Jones Industrial Average (^DJI) pulled back about 0.6% after the blue-chip index notched its longest win streak of 2025. Markets are getting set to wrap up a tumultuous April that saw stocks whipsawed by President Trump's tariff hikes and burgeoning trade war with China. The Dow (^DJI) is on track for a monthly drop of just over 3%, alongside much smaller moves for the other major gauges. An update on gross domestic product (GDP) showed a sharp drop in growth. The US economy contracted at an annual rate of 0.3% in the first quarter, according to an advanced estimate released by the US Bureau of Economic Analysis on Wednesday. The decrease primarily reflected an increase in imports as Trump's tariff push rattled confidence and businesses rushed to stockpile. Economists had expected a drop in growth of 0.1%. In the fourth quarter of 2024, real GDP increased 2.4%. Prior to the GDP release, an ADP read on private payroll growth in April showed a pullback in hiring amid what the report called a "difficult" environment defined by an "unease" among businesses. On the inflation front, the March reading of the Federal Reserve's preferred inflation gauge showed prices eased last month as investors brace for an uptick in pricing pressures following the implementation of President Trump's tariff agenda. At the same time, inflation in the first quarter clocked in hotter than expected, complicating the path forward for the Federal Reserve. The "core" Personal Consumption Expenditures index, which excludes the volatile food and energy categories, grew by 3.5% in the first quarter, above estimates for 3.2% and above the 2.6% seen in the prior quarter. Meanwhile, tech giants are the highlights in Wednesday's flood of earnings reports. Microsoft (MSFT) is set to report its earnings after the bell, with pressure mounting for an AI payoff. Meta's (META) quarterly report is also due after the market close, with the focus on how tariffs could impact its business. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Lately, Wall Street has found new reason to believe that Trump's upbeat stance on tariff negotiations will result in the duties ultimately being dialed down. Read more: The latest on Trump's tariffs Trump said on Tuesday that he believed China would "eat" the cost of his tariffs, which would limit the impact on US consumers. For its part, Beijing is quietly creating a list of US-made products to be exempt from its 125% tariffs, sources told Reuters. Yahoo Finance's Claire Boston reports: Read more here. Starbucks stock fell 7.8% early Wednesday after the coffee giant's second quarter earnings report disappointed Wall Street and cast a shadow over its CEO's plan to turn around the company. US comparable store sales — a closely watched metric that includes results from stores open for more than a year — fell for the fifth consecutive quarter, sinking 2% as consumers sought cheaper alternatives at rivals such as Dunkin' and McDonald's (MCD). Wall Street analysts had expected a more modest 0.3% decline in the results on Tuesday. Starbucks' slumping store sales are a result of fewer customers visiting its stores to buy drinks, though those who still frequent its shops are spending more money. Transactions fell 4% from the prior year, while the average ticket size, or dollar amount spent in each transaction, rose 3% in the US. Other key stats disappointed too. The coffee chain reported adjusted earnings per share of $0.41 for the quarter ending March 30, less than the $0.49 expected from Wall Street analysts, according to Bloomberg data. Its revenue of $8.76 billion fell short of the projected $8.83 billion. Read the full story here. The latest reading of the Fed's preferred inflation gauge showed inflation eased in March as investors brace for an uptick in pricing pressures following the implementation of President Trump's tariff agenda. The core Personal Consumption Expenditures (PCE) index, which strips out the cost of food and energy and is closely watched by the Federal Reserve, came in flat over the prior month, above expectations of a 0.1% increase and slower than the revised 0.5% increase seen in February. Core PCE was up 2.6% over the prior year in March, in line with estimates and also ahead of February's upwardly revised 3% increase. In the all-items measure, the price index came in flat month over month and rose 2.3% from a year ago, both roughly in line with forecasts. February's yearly price index reading was revised up to 2.7% from the prior 2.5%. At the same time inflation in the first quarter clocked in hotter than expected, according to an earlier Bureau of Economic Analysis (BEA) report. The "core" Personal Consumption Expenditures index, which excludes the volatile food and energy categories, grew by 3.5% in the first quarter, above estimates for 3.2% and above the 2.6% seen in the prior quarter. Separately, the BEA said consumer spending accelerated 0.7% for the month, above the 0.6% forecast. That came as personal income posted a 0.5% rise, against the estimate for 0.4%. Nvidia (NVDA) stock fell as much as 4.1% early Wednesday as news from Wall Street and Washington spurred fears of moderating AI demand and tightening chip trade rules from the Trump administration. Nvidia customer Super Micro Computer (SMCI), which makes servers using Nvidia's designs to sell to data center operators and tech firms, cut its revenue and profit outlook for the third quarter — the latest news to signal a wider potential pullback in demand for AI infrastructure. Super Micro dropped roughly 18% on Wednesday morning. Another challenge for Nvidia stock, according to analysts, is further potential changes from the Trump administration to AI chip export rules. Reuters reported late Tuesday that Trump officials are working to change a Biden-era AI trade rule capping access to US AI chips, potentially making it stricter. Tech stocks were also under broad pressure amid a market sell-off spurred by negative news early Wednesday on US economic growth and the state of the labor market. Read the full story here. Norwegian Cruise Line Holdings (NCLH) stock fell on Wednesday after the company reported weaker-than-expected first quarter earnings and indicated a slowdown in demand. Shares were down over 9% on Wednesday morning. Cruise lines like Royal Caribbean Cruises (RCL) have been saying that demand and bookings are holding up well, even with concerns that people might start spending less on travel. But Norwegian's earnings report tells a different story, pointing to a drop in bookings over the next year. The cruise operator reported adjusted earnings of $0.07 per share on revenue of $2.13 billion, falling short of Wall Street forecasts of $0.09 per share and $2.15 billion in revenue. For the second quarter, the company is expecting adjusted earnings of $0.51 per share, falling below expectations of $0.52 per share. It also forecast occupancy at 102.5% for the full year, missing estimates of 103.5%. Norwegian attributed the shift to recent booking patterns and a more challenging macroeconomic environment. 'While we recognize there may be potential pressures on the top line, we believe these can be effectively offset by the continued execution of our cost savings initiatives,' CEO Harry Sommer said in a statement. US stocks fell on Wednesday as investors digested a deluge of economic data, led by the first contraction of the US economy in three years, and waited for a parade of Big Tech earnings to begin. The benchmark S&P 500 (^GSPC) slid 1.4%, while the tech-heavy Nasdaq Composite (^IXIC) dropped around 2.1%. The Dow Jones Industrial Average (^DJI) sank 0.8% after the blue-chip index notched its longest win streak of 2025. An update on gross domestic product (GDP) showed a sharp drop in growth with the US economy contracting at an annual rate of 0.3% in the first quarter, according to an advanced estimate released by the US Bureau of Economic Analysis on Wednesday. It was the first negative reading in three years. Economists had expected a drop to 0.1% growth. In the fourth quarter of 2024, real GDP increased 2.4%. The decrease primarily reflected an increase in imports as Trump's tariff push rattled confidence and businesses rushed to stockpile. Along with an uptick in imports, the BEA said a deceleration in consumer spending and a downtick in government spending also added pressure to the reading. Compared to the fourth quarter, these were partly offset by upturns in investment and exports. Pricing pressures also escalated. The personal consumption expenditures (PCE) price index increased 3.6%, compared to an increase of 2.4% in the prior quarter. Excluding food and energy prices, the PCE price index jumped 3.5%, an acceleration from the 2.6% increase in Q4. Read more here. ADP's read on private payroll growth in April showed a pullback in hiring amid what the report called a "difficult" environment defined by an "unease" among businesses. The report showed private payrolls rose by 62,000 in April, fewer than forecast by economists. Stock futures fell following the report, with Nasdaq futures off more than 1% to lead losses. 'Unease is the word of the day. Employers are trying to reconcile policy and consumer uncertainty with a run of mostly positive economic data,' said Nela Richardson, chief economist at ADP. 'It can be difficult to make hiring decisions in such an environment.' Humana stock (HUM) jumped 5% premarket after the health insurer reported mixed first quarter results and reaffirmed its full-year guidance. Investors were watching Humana after UnitedHealth Group (UNH) reported higher-than-expected medical costs in its Medicare Advantage business, which caused the stock to crash on April 17. Humana noted in its earnings that its Medicare Advantage costs were in line with expectations and that the government-funded private health insurance business was "performing as expected." The company beat on adjusted earnings per share of $11.58, compared to Wall Street's estimates of $10.09. Revenue came in at a slight miss of $32.11 billion, just under the consensus of $32.15 billion. Read more here. Caterpillar (CAT) reported first quarter earnings that missed Wall Street's expectations Wednesday, as sales fell across all its segments and demand for construction equipment weakened in the quarter. The industrial company also laid out two different scenarios for its annual forecast, one accounting for a tariff impact and one excluding that impact. The forecast that excluded tariffs showed an improvement from its previous outlook, which sent the stock more than 3% in premarket trading. As for the tariff impact, Caterpillar said it expects $250 million and $350 million in additional tariff-related costs in its second quarter. As Yahoo Finance's Dani Romero reported yesterday, construction job openings fell in March as developers hesitated to move forward with new projects since President Trump's across-the-board tariff announcements. Overall, Caterpillar stock has had a tough year so far and is down 15% year to date. Read more here. Yahoo Finance's David Hollerith reports: Read more here. Earnings: Microsoft (MSFT), Meta (META), ADP (ADP), Albermarle (ALB), Caterpillar (CAT), Generac (GNRC), GE HealthCare (GEHC), Humana (HUM), Hess (HES), Qualcomm (QCOM), Robinhood (HOOD) Economic data: MBA Mortgage Applications (week ending April 25); ADP employment change (April); GDP annualized (first quarter advance estimate); Personal consumption (first quarter advance estimate); Employment cost index (first quarter); Personal spending (March); Personal income (March) MNI Chicago PMI (April); PCE price index; Pending home sales (March) Here are some of the biggest stories you may have missed overnight and early this morning: M&A accelerates worldwide, but not in US in new Trump era China creates list of US goods spared from 125% tariffs The US economy may have avoided a recession so far. Here's how that could change. Starbucks slides as sales slump, CEO points to turnaround plan House Republicans plan to defund the CFPB Super Micro stock sinks as AI server maker slashes profit forecast Stellantis suspends guidance, to reassess capex due to US tariffs Corporate earnings paint 2 different pictures of the US consumer Trump officials eye changes to Biden's AI chip export rule Old wisdom of 'sell in May' back in focus as stock market churns Super Micro Computer's (SMCI) cuts to revenue and profit expectations are rattling nerves about prospects for AI-linked spending ahead of Big Tech's moment of earnings truth. The AI server maker's customers have unexpectedly pushed back procurement decisions from the third quarter to the fourth, prompting the company to slash its sales guidance to $4.5 billion to $4.6 billion, down from the prior $5 billion to $6 billion. Shares in Super Micro tumbled almost 16% in premarket trading after the disappointing preliminary results. The AI jitters spread to chipmakers Nvidia (NVDA) and AMD (AMD), which saw their stock slip about 2% and 1%, respectively. Meanwhile, shares in server rivals Dell (DELL) and HPE (HPE) also retreated. Reuters reports: Read more here. Oil prices are on track to post their worst monthly performance for April, as mounting concerns over a slowing global economy—fueled by the ongoing U.S.-led trade tensions—dampen outlook for energy demand. Bloomberg reports: Read more here. Starbucks (SBUX) The stock in the coffee shop franchise dropped as much as 6.7% in extended trading as the Q2 earnings report disappointed Wall Street and lost investor faith in the new CEO. The company has also faltered in its Chinese expansion, with customer visits up but per-customer spending declining. Super Micro Computer (SMCI) Shares in server giant Super Micro Computer plummeted 15% in after-hours trading. The drop occurred after the company released disappointing preliminary third quarter results, citing delayed customer platform decisions moving sales into the fourth quarter. Seagate (STX) Seagate Technology stock jumped over 8.9% after the data storage provider released positive guidance for Q4, pointing towards revenue of $2.40 billion and adjusted earnings of $2.40 per share. Yahoo Finance's Claire Boston reports: Read more here. Starbucks stock fell 7.8% early Wednesday after the coffee giant's second quarter earnings report disappointed Wall Street and cast a shadow over its CEO's plan to turn around the company. US comparable store sales — a closely watched metric that includes results from stores open for more than a year — fell for the fifth consecutive quarter, sinking 2% as consumers sought cheaper alternatives at rivals such as Dunkin' and McDonald's (MCD). Wall Street analysts had expected a more modest 0.3% decline in the results on Tuesday. Starbucks' slumping store sales are a result of fewer customers visiting its stores to buy drinks, though those who still frequent its shops are spending more money. Transactions fell 4% from the prior year, while the average ticket size, or dollar amount spent in each transaction, rose 3% in the US. Other key stats disappointed too. The coffee chain reported adjusted earnings per share of $0.41 for the quarter ending March 30, less than the $0.49 expected from Wall Street analysts, according to Bloomberg data. Its revenue of $8.76 billion fell short of the projected $8.83 billion. Read the full story here. The latest reading of the Fed's preferred inflation gauge showed inflation eased in March as investors brace for an uptick in pricing pressures following the implementation of President Trump's tariff agenda. The core Personal Consumption Expenditures (PCE) index, which strips out the cost of food and energy and is closely watched by the Federal Reserve, came in flat over the prior month, above expectations of a 0.1% increase and slower than the revised 0.5% increase seen in February. Core PCE was up 2.6% over the prior year in March, in line with estimates and also ahead of February's upwardly revised 3% increase. In the all-items measure, the price index came in flat month over month and rose 2.3% from a year ago, both roughly in line with forecasts. February's yearly price index reading was revised up to 2.7% from the prior 2.5%. At the same time inflation in the first quarter clocked in hotter than expected, according to an earlier Bureau of Economic Analysis (BEA) report. The "core" Personal Consumption Expenditures index, which excludes the volatile food and energy categories, grew by 3.5% in the first quarter, above estimates for 3.2% and above the 2.6% seen in the prior quarter. Separately, the BEA said consumer spending accelerated 0.7% for the month, above the 0.6% forecast. That came as personal income posted a 0.5% rise, against the estimate for 0.4%. Nvidia (NVDA) stock fell as much as 4.1% early Wednesday as news from Wall Street and Washington spurred fears of moderating AI demand and tightening chip trade rules from the Trump administration. Nvidia customer Super Micro Computer (SMCI), which makes servers using Nvidia's designs to sell to data center operators and tech firms, cut its revenue and profit outlook for the third quarter — the latest news to signal a wider potential pullback in demand for AI infrastructure. Super Micro dropped roughly 18% on Wednesday morning. Another challenge for Nvidia stock, according to analysts, is further potential changes from the Trump administration to AI chip export rules. Reuters reported late Tuesday that Trump officials are working to change a Biden-era AI trade rule capping access to US AI chips, potentially making it stricter. Tech stocks were also under broad pressure amid a market sell-off spurred by negative news early Wednesday on US economic growth and the state of the labor market. Read the full story here. Norwegian Cruise Line Holdings (NCLH) stock fell on Wednesday after the company reported weaker-than-expected first quarter earnings and indicated a slowdown in demand. Shares were down over 9% on Wednesday morning. Cruise lines like Royal Caribbean Cruises (RCL) have been saying that demand and bookings are holding up well, even with concerns that people might start spending less on travel. But Norwegian's earnings report tells a different story, pointing to a drop in bookings over the next year. The cruise operator reported adjusted earnings of $0.07 per share on revenue of $2.13 billion, falling short of Wall Street forecasts of $0.09 per share and $2.15 billion in revenue. For the second quarter, the company is expecting adjusted earnings of $0.51 per share, falling below expectations of $0.52 per share. It also forecast occupancy at 102.5% for the full year, missing estimates of 103.5%. Norwegian attributed the shift to recent booking patterns and a more challenging macroeconomic environment. 'While we recognize there may be potential pressures on the top line, we believe these can be effectively offset by the continued execution of our cost savings initiatives,' CEO Harry Sommer said in a statement. US stocks fell on Wednesday as investors digested a deluge of economic data, led by the first contraction of the US economy in three years, and waited for a parade of Big Tech earnings to begin. The benchmark S&P 500 (^GSPC) slid 1.4%, while the tech-heavy Nasdaq Composite (^IXIC) dropped around 2.1%. The Dow Jones Industrial Average (^DJI) sank 0.8% after the blue-chip index notched its longest win streak of 2025. An update on gross domestic product (GDP) showed a sharp drop in growth with the US economy contracting at an annual rate of 0.3% in the first quarter, according to an advanced estimate released by the US Bureau of Economic Analysis on Wednesday. It was the first negative reading in three years. Economists had expected a drop to 0.1% growth. In the fourth quarter of 2024, real GDP increased 2.4%. The decrease primarily reflected an increase in imports as Trump's tariff push rattled confidence and businesses rushed to stockpile. Along with an uptick in imports, the BEA said a deceleration in consumer spending and a downtick in government spending also added pressure to the reading. Compared to the fourth quarter, these were partly offset by upturns in investment and exports. Pricing pressures also escalated. The personal consumption expenditures (PCE) price index increased 3.6%, compared to an increase of 2.4% in the prior quarter. Excluding food and energy prices, the PCE price index jumped 3.5%, an acceleration from the 2.6% increase in Q4. Read more here. ADP's read on private payroll growth in April showed a pullback in hiring amid what the report called a "difficult" environment defined by an "unease" among businesses. The report showed private payrolls rose by 62,000 in April, fewer than forecast by economists. Stock futures fell following the report, with Nasdaq futures off more than 1% to lead losses. 'Unease is the word of the day. Employers are trying to reconcile policy and consumer uncertainty with a run of mostly positive economic data,' said Nela Richardson, chief economist at ADP. 'It can be difficult to make hiring decisions in such an environment.' Humana stock (HUM) jumped 5% premarket after the health insurer reported mixed first quarter results and reaffirmed its full-year guidance. Investors were watching Humana after UnitedHealth Group (UNH) reported higher-than-expected medical costs in its Medicare Advantage business, which caused the stock to crash on April 17. Humana noted in its earnings that its Medicare Advantage costs were in line with expectations and that the government-funded private health insurance business was "performing as expected." The company beat on adjusted earnings per share of $11.58, compared to Wall Street's estimates of $10.09. Revenue came in at a slight miss of $32.11 billion, just under the consensus of $32.15 billion. Read more here. Caterpillar (CAT) reported first quarter earnings that missed Wall Street's expectations Wednesday, as sales fell across all its segments and demand for construction equipment weakened in the quarter. The industrial company also laid out two different scenarios for its annual forecast, one accounting for a tariff impact and one excluding that impact. The forecast that excluded tariffs showed an improvement from its previous outlook, which sent the stock more than 3% in premarket trading. As for the tariff impact, Caterpillar said it expects $250 million and $350 million in additional tariff-related costs in its second quarter. As Yahoo Finance's Dani Romero reported yesterday, construction job openings fell in March as developers hesitated to move forward with new projects since President Trump's across-the-board tariff announcements. Overall, Caterpillar stock has had a tough year so far and is down 15% year to date. Read more here. Yahoo Finance's David Hollerith reports: Read more here. Earnings: Microsoft (MSFT), Meta (META), ADP (ADP), Albermarle (ALB), Caterpillar (CAT), Generac (GNRC), GE HealthCare (GEHC), Humana (HUM), Hess (HES), Qualcomm (QCOM), Robinhood (HOOD) Economic data: MBA Mortgage Applications (week ending April 25); ADP employment change (April); GDP annualized (first quarter advance estimate); Personal consumption (first quarter advance estimate); Employment cost index (first quarter); Personal spending (March); Personal income (March) MNI Chicago PMI (April); PCE price index; Pending home sales (March) Here are some of the biggest stories you may have missed overnight and early this morning: M&A accelerates worldwide, but not in US in new Trump era China creates list of US goods spared from 125% tariffs The US economy may have avoided a recession so far. Here's how that could change. Starbucks slides as sales slump, CEO points to turnaround plan House Republicans plan to defund the CFPB Super Micro stock sinks as AI server maker slashes profit forecast Stellantis suspends guidance, to reassess capex due to US tariffs Corporate earnings paint 2 different pictures of the US consumer Trump officials eye changes to Biden's AI chip export rule Old wisdom of 'sell in May' back in focus as stock market churns Super Micro Computer's (SMCI) cuts to revenue and profit expectations are rattling nerves about prospects for AI-linked spending ahead of Big Tech's moment of earnings truth. The AI server maker's customers have unexpectedly pushed back procurement decisions from the third quarter to the fourth, prompting the company to slash its sales guidance to $4.5 billion to $4.6 billion, down from the prior $5 billion to $6 billion. Shares in Super Micro tumbled almost 16% in premarket trading after the disappointing preliminary results. The AI jitters spread to chipmakers Nvidia (NVDA) and AMD (AMD), which saw their stock slip about 2% and 1%, respectively. Meanwhile, shares in server rivals Dell (DELL) and HPE (HPE) also retreated. Reuters reports: Read more here. Oil prices are on track to post their worst monthly performance for April, as mounting concerns over a slowing global economy—fueled by the ongoing U.S.-led trade tensions—dampen outlook for energy demand. Bloomberg reports: Read more here. Starbucks (SBUX) The stock in the coffee shop franchise dropped as much as 6.7% in extended trading as the Q2 earnings report disappointed Wall Street and lost investor faith in the new CEO. The company has also faltered in its Chinese expansion, with customer visits up but per-customer spending declining. Super Micro Computer (SMCI) Shares in server giant Super Micro Computer plummeted 15% in after-hours trading. The drop occurred after the company released disappointing preliminary third quarter results, citing delayed customer platform decisions moving sales into the fourth quarter. Seagate (STX) Seagate Technology stock jumped over 8.9% after the data storage provider released positive guidance for Q4, pointing towards revenue of $2.40 billion and adjusted earnings of $2.40 per share. Sign in to access your portfolio
