Latest news with #VictoriaFernandez
BBC News
5 days ago
- Business
- BBC News
Corporate earnings soothe investors' worries
Strong corporate earnings are offsetting investor concerns over President Trump's new looming tariffs. Both Disney and McDonald's exceeded earnings expectations with their latest results. Disney raised its profit forecast thanks to strong performances in streaming and its theme park divisions, while McDonald's was successful in winning back diners. Victoria Fernandez, Chief Market StrategistExperts for Crossmark Global Investments, told the BBC what this meant for the US economy.
Yahoo
28-07-2025
- Business
- Yahoo
Cheap stock trading is rising this year: What does it mean?
There has been an uptick in cheap stocks trading, according to data from Jefferies. The firm said that stocks under $5 represent more than a quarter of all trades this year. The Opening Bid team and Crossmark Global Investments' chief market strategist Victoria Fernandez take a closer look at what the rise in cheap stock trading signals about the broader market. To watch more expert insights and analysis on the latest market action, check out more Opening Bid here. Jeffrey's noting that trading in stocks under $5 has risen to 26% of whole volume so far this year. That's a huge number. Uh my question to the round table is this, why is this activity in speculative stocks happening? Brook, let me set this up with you because you talked about the meme stock trade earlier on in the show. Uh what is it looking like today because I know a lot of the names that did well early last week sold off into the weekend. Yeah, if we take a look at the YF interactive over the past five days, if you take a look at the equal weight, we've seen crispy cream really coming to play over the past five days alone. That stock's up more than 20% uh 26% rather. Macy's is also getting a bit of a buzz here. That stock up more than 9%. And what we really know here is what I'm hearing from my sources is that as we reach these record highs, ultimately retail investors are looking for other ways to get in on the market here and that's contributed to the recent gains from American Eagle. Once they announced that Sydney Sweeney campaign, retail investors thinking that there's a potential growth story there, they're looking to get in on American Eagle. In addition to that, we've seen Kohls, the company that has really struggled over the past year, especially as they search for a new chief uh you know, CEO there. These companies that really have not been performing well. A Kohls, a crispy cream, uh um you know, Macy's has been underperforming and American Eagle, they're getting this recent buzz from retail investors who think potentially there could be an uh a growth story there. Open door and Carvana also getting attention there. Open door thinking that, you know, investors around there are thinking this could be another turnaround story like we saw with Carvana as well. Uh we had a great chat with uh Tasty Trades uh Tom Sos. Now take a listen to what he said on this meme stock menu. This is also the time of year where there's no real sports to bet on because it's really just baseball. So, you know, what better place to gamble than a zero commission, zero fees, you know, in and out of of all these little penny stocks for basically no money. Victoria is that we're looking at here. Uh there's really no sports to bet on and people want to try to pick a winner that's priced at $2 a share. Well, it's an interesting perspective. I mean, I do have to say go Strows since it's baseball season. But um it could be an element that people are looking for of ways to play this and you look at these stocks, they're mostly like these shorted stocks. So these are more day traders that are going in. These are not your long-term investors that are going and trying to build their portfolio. They are quick trades that are being done, they're small dollar amounts, they're highly shorted stocks, so there's a lot of volatility around them. So maybe it is a little bit of the the gambler's addiction if you want to put that that phrase there of people looking for ways to play the market on a on a quick basis, but this is definitely not a long-term investment strategy that we would want people to invest in. And as I'm of the mindset that this type of activity is a sign of froth in the broader stock market. It certainly is and Wall Street has been certainly talking about this. Goldman Sachs has talked about the fact that you are seeing speculative trading on the rise with their speculative trading index that they have. And call options have been surging, you have the volatility index that's sitting at around 15. So that means that there's really no fear in the market right now. You've got Bitcoin that's been surging, equities surging, these meme stocks that have been surging. So this indicates a strong risk on sentiment, but Wall Street warns time and again that when you see this type of scenario, this is ripe for some type of pullback. So we look overbought in a lot of categories and Wall Street's warning, hang on because this is when you may see a pullback.
Yahoo
11-07-2025
- Business
- Yahoo
Why buybacks are replacing dividends in corporate America
S&P 500 (^GSPC) dividend yields are nearing record lows, raising questions about whether investors still value steady income from stocks. Victoria Fernandez, chief market strategist at Crossmark Global Investments, joins Opening Bid to explain why more companies are opting for buybacks over dividends, and why she thinks Verizon (VZ) is a top dividend pick. To watch more expert insights and analysis on the latest market action, check out more Opening Bid here. where in the world have all the dividends gone? I'm definitely not singing that song. I think it's from the mid to late 90s, whatever it is, I'm not saying it. Uh, get this stat from Deutsche Bank, S&P 500 dividend yields are now within just 20 basis points of their all-time low, last reached during the tech bubble in 2000. Victoria, why don't investors care about dividends anymore? I mean, this is supposed to be a predictable stream of income, comes to you what, every quarter, you could just reinvest it and you get rich in 30 years. Well, I don't know because Brian, I do care about dividends. And I like to see dividends on the stocks in our portfolios. Um, and so I think investors should be paying attention to this. It helps provide a little bit of a buffer to the volatility that you see in the marketplace. It gives you a little extra income and cash flow coming in. So, I like to see a dividend, but I do think a lot of corporations now are saying, wait, we can do buybacks instead of dividends. It's more discretionary. It gives corporations a little more leeway and what they're, and what they're doing. And they can use the cash that they were going to pay dividends to perhaps do other things like acquisitions, invest back in the company and other ways. So I think they're kind of selling it to investors as there are better ways to put our money to work than just giving a dividend. We're going to do something instead that's going to provide growth in the future. I think that's the setup, but I still like to see a dividend on my stocks. Oh, good, uh, good point. I think I will go off the rails if I express my hatred for stock buybacks. I just, I can't stand them. But Victoria, real quick, uh, do you have a favorite dividend stock or two? I do. If you're going to play a stock just for dividend, I think you look at Verizon. You've got something at a very reasonable valuation of 10 times. You've got over a 6% dividend in a company that's paying down debt, increasing cash flow. They're looking to buy frontier communications next year, which increases their broadband subscription. So, I think Verizon's a great dividend stock for your portfolio. Keith, someone crunching the number on the S&P 500, looking at corporate earnings, cash flows, how important is it, uh, that companies are paying higher dividends when you come out with certain calls for the market? It's not the main driver. The reality is we are likely to see an all-time payout this year, even though that dividend yield is lowered. But I think part of this is structural too, Brian. Uh, you know, if you look at the overall composition of the market, you know, as I mentioned earlier, 45% plus is tech and growth sectors, and those tend to be lower dividend sectors. And then you look at historically what have been some of the larger dividend sectors, they've had some challenges, the energy sector, pharmaceuticals, uh, utilities is, is a little bit different, but then real estate as well. So, I think that's part of it. As Victoria mentioned, it also gives by not doing the dividend, which enforces discipline, because you don't want to cut that, by going buybacks, companies have more discretion as well. I agree with Victoria though, the dividend having that discipline is healthy, but I, it makes sense to me that the market composition has shifted so much, and it is not the key driver in our view, especially when you have a dominant theme, which is AI driven and you're seeing a lot more capital spending from these big mega caps as opposed to the dividends. One, one last point, Brian, I do think we're going to start to see a big pickup in the, in the second half, especially in financials with some of the deregulation and passing stress tests. Ally, where are the special dividends from Palantir and Nvidia? He's insane. When I met Brian. Victoria thinks I'm crazy. It's okay, Victoria. All right, we'll take it offline. That's cool. Go ahead, Ally. Go ahead. No, but I, I totally agree with everyone's points here, right? I think we're in a high growth market. Retail trader is really leading the charge. And, uh, you know, those companies just don't have the dividends like some of these more value plays. I should know. Keith already knows I am crazy. I've known him for many years. Uh, Victoria Fernandez, Keith Lerner, Ally Invest. Good to see you all. Thanks for, uh, so much for joining us on a bid. We appreciate it. 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
09-07-2025
- Business
- Yahoo
Victoria Fernandez on Tariffs, Inflation, US Dollar
Crossmark Global Investment Chief Market Strategist Victoria Fernandez discusses how President Trump's tariffs are affecting the market, inflation expectations and the status of the US dollar globally. She speaks with Vonnie Quinn on "Bloomberg Markets."
Bloomberg
09-07-2025
- Business
- Bloomberg
Victoria Fernandez on Tariffs, Inflation, US Dollar
Crossmark Global Investment Chief Market Strategist Victoria Fernandez discusses how President Trump's tariffs are affecting the market, inflation expectationsand the status of the US dollar globally. She speaks with Vonnie Quinn on 'Bloomberg Markets.' (Source: Bloomberg)
