Latest news with #WellsFargo&Co
Fashion Network
3 days ago
- Business
- Fashion Network
US clothes, toy prices show tariff impact only at margins so far
For all the hand-wringing about tariffs, Americans are so far experiencing limited inflation from President Donald Trump 's protectionist trade policy. For heavily imported goods like smartphones, new cars and clothing, price indexes are actually down since the Trump administration began implementing levies on key trade partners including China, based on data released Wednesday. Other categories including sporting goods and toys have risen only so much since February. Companies may be finding ways to shield consumers from higher costs as they fear prices hikes — after years of lingering inflation — could lead to a pullback in demand. Some firms stocked up on inventories ahead of tariffs, allowing them to maintain pricing discipline, while others are absorbing some of the extra costs at the expense of lower margins. Some may also be taking solace in Trump's decision to pause or lower some of the more punitive tariffs as the administration works toward trade agreements, which has bought companies some extra time to weigh price hikes. Still, most economists largely expect businesses to start passing more of the trade costs this summer, with Walmart Inc. and Ford Motor Co. among the firms that are warning higher prices for consumers are coming. The CPI report also showed bigger increases in some tariff-exposed categories. An index of toy prices rose by the most since 2023, while major appliances posted the largest advance in nearly five years. More broadly, the government's consumer price index report showed underlying inflation rose less than forecast for a fourth month in May. Goods costs, excluding the volatile food and energy categories, were flat compared with a month earlier. 'It is too early to declare victory and say that the significant increase in tariffs over the past few months will have no material impact on consumer price growth,' Wells Fargo & Co economists Sarah House, Michael Pugliese and Nicole Cervi wrote in a note after the report. 'Pre-tariff inventory building and anticipation that tariffs may eventually be dialed back are likely leading to some of the effects being delayed, and we see a particular risk of vehicle and apparel prices bouncing back in the near term,' they said. Lawrence Werther and Brendan Stuart, economists at Daiwa Capital Markets, also expect tariff-related price pressures to emerge in the next few months, but 'ongoing trade negotiations, along with anchored longer-term inflation expectations, point to a one-off (and relatively short-lived) shift.'
Fashion Network
3 days ago
- Business
- Fashion Network
US clothes, toy prices show tariff impact only at margins so far
For all the hand-wringing about tariffs, Americans are so far experiencing limited inflation from President Donald Trump 's protectionist trade policy. For heavily imported goods like smartphones, new cars and clothing, price indexes are actually down since the Trump administration began implementing levies on key trade partners including China, based on data released Wednesday. Other categories including sporting goods and toys have risen only so much since February. Companies may be finding ways to shield consumers from higher costs as they fear prices hikes — after years of lingering inflation — could lead to a pullback in demand. Some firms stocked up on inventories ahead of tariffs, allowing them to maintain pricing discipline, while others are absorbing some of the extra costs at the expense of lower margins. Some may also be taking solace in Trump's decision to pause or lower some of the more punitive tariffs as the administration works toward trade agreements, which has bought companies some extra time to weigh price hikes. Still, most economists largely expect businesses to start passing more of the trade costs this summer, with Walmart Inc. and Ford Motor Co. among the firms that are warning higher prices for consumers are coming. The CPI report also showed bigger increases in some tariff-exposed categories. An index of toy prices rose by the most since 2023, while major appliances posted the largest advance in nearly five years. More broadly, the government's consumer price index report showed underlying inflation rose less than forecast for a fourth month in May. Goods costs, excluding the volatile food and energy categories, were flat compared with a month earlier. 'It is too early to declare victory and say that the significant increase in tariffs over the past few months will have no material impact on consumer price growth,' Wells Fargo & Co economists Sarah House, Michael Pugliese and Nicole Cervi wrote in a note after the report. 'Pre-tariff inventory building and anticipation that tariffs may eventually be dialed back are likely leading to some of the effects being delayed, and we see a particular risk of vehicle and apparel prices bouncing back in the near term,' they said. Lawrence Werther and Brendan Stuart, economists at Daiwa Capital Markets, also expect tariff-related price pressures to emerge in the next few months, but 'ongoing trade negotiations, along with anchored longer-term inflation expectations, point to a one-off (and relatively short-lived) shift.'
Los Angeles Times
3 days ago
- Business
- Los Angeles Times
U.S. clothes, toy costs show tariff hit only at margins so far
For all the hand-wringing about tariffs, Americans are so far experiencing limited inflation from President Donald Trump's protectionist trade policy. For heavily imported goods like smartphones, new cars and clothing, price indexes are actually down since the Trump administration began implementing levies on key trade partners including China, based on data released Wednesday. Other categories including sporting goods and toys have risen only so much since February. Companies may be finding ways to shield consumers from higher costs as they fear prices hikes — after years of lingering inflation — could lead to a pullback in demand. Some firms stocked up on inventories ahead of tariffs, allowing them to maintain pricing discipline, while others are absorbing some of the extra costs at the expense of lower margins. Some may also be taking solace in Trump's decision to pause or lower some of the more punitive tariffs as the administration works toward trade agreements, which has bought companies some extra time to weigh price hikes. Still, most economists largely expect businesses to start passing more of the trade costs this summer, with Walmart Inc. and Ford Motor Co. among the firms that are warning higher prices for consumers are coming. The CPI report also showed bigger increases in some tariff-exposed categories. An index of toy prices rose by the most since 2023, while major appliances posted the largest advance in nearly five years. More broadly, the government's consumer price index report showed underlying inflation rose less than forecast for a fourth month in May. Goods costs, excluding the volatile food and energy categories, were flat compared with a month earlier. 'It is too early to declare victory and say that the significant increase in tariffs over the past few months will have no material impact on consumer price growth,' Wells Fargo & Co economists Sarah House, Michael Pugliese and Nicole Cervi wrote in a note after the report. 'Pre-tariff inventory building and anticipation that tariffs may eventually be dialed back are likely leading to some of the effects being delayed, and we see a particular risk of vehicle and apparel prices bouncing back in the near term,' they said. Lawrence Werther and Brendan Stuart, economists at Daiwa Capital Markets, also expect tariff-related price pressures to emerge in the next few months, but 'ongoing trade negotiations, along with anchored longer-term inflation expectations, point to a one-off (and relatively short-lived) shift.' Saraiva writes for Bloomberg.
Bloomberg
20-05-2025
- Business
- Bloomberg
Wells Fargo Says to Buy US Stocks and Cut EM After Strong Rally
Investors should reduce their holdings of emerging market equities and buy US stocks instead, according to Wells Fargo & Co. While shares in up-and-coming economies have outperformed the S&P 500 benchmark index this year, emerging market outperformance is typically correlated with a weak dollar, Austin Pickle, an investment strategist, wrote a note dated May 19. He forecasted a stronger greenback while flagging the risk of China-US tensions.
Yahoo
23-04-2025
- Business
- Yahoo
Is Wells Fargo & Co. (NYSE:WFC) the Best Stock Under $100 to Buy According to Hedge Funds?
We recently published a list of the 12 Best Stocks Under $100 to Buy According to Hedge Funds. In this article, we are going to take a look at where Wells Fargo & Co. (NYSE:WFC) stands against other stocks under $100 to buy according to hedge funds. On April 21, Chris Davis of Davis Advisors appeared on 'The Exchange' on CNBC to talk about selectivity in today's market. Davis pointed out that putting companies in groups like the MAG7 covers their underlying businesses, which can have different fundamentals and therefore prospects. For this reason, he acknowledged that he owns certain stocks from MAG7 but not all. Davis also clarified that his overall focus is on value and growth, which leads him to a diverse set of holdings and not just tech, such as financials and healthcare names. He then argued that the market is shifting back toward selectivity and active management. He suggested that active management is positioned for a resurgence because the indexes have become highly concentrated and richly valued. Davis acknowledged that while he cannot predict the market's short-term movements, the present environment is ideal for stock pickers who can identify resilient businesses that are trading at reasonable valuations. He sees this as an opportunity for active management to outperform, as investors move away from momentum-driven index investing toward a more selective approach. He noted the growing popularity of actively managed ETFs as evidence that investors are beginning to act on this shift away from index concentration. He also believes that within the MAG7, only a few companies are truly well-positioned. Similarly, within the S&P 500, only 5% to 10% of companies possess the resiliency and durability needed for such volatile times. Davis laid out what he sees as the major transitions shaping the current investment environment. First, he described the shift from nearly 15 years of free money to a more normal interest rate environment. Second, he pointed to the end of a multi-decade era of globalization, which was replaced by deglobalization, rising nationalism, and geopolitical tensions. Third, he highlighted the impact of AI. He said that these transitions are occurring against a backdrop of market complacency, with high valuations and concentrated growth expectations. We first used the Finviz stock screener to compile a list of the top stocks that were trading under $100 as of April 22. We then selected the 12 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey's database which tracks the moves of over 1000 elite money managers. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A team of bankers in suits, discussing the success of the company's banking products. Share Price as of April 22: $64.01 Number of Hedge Fund Holders: 96 Wells Fargo & Co. (NYSE:WFC) is a financial services company that provides diversified banking, investment, mortgage, and consumer & commercial finance products and services. It operates through four segments: Consumer Banking & Lending, Commercial Banking, Corporate & Investment Banking, and Wealth & Investment Management. The company's revenue in the Consumer Small & Business Banking area fell by 2% year-over-year in 2024. This was due to higher deposit costs, which shows that customers are shifting towards higher-yielding deposit products. However, deposit balances grew year-over-year and marked the first such increase since Q4 2022. WFC's debit card spending also remained strong and was up 4% year-over-year. The credit card business grew by 2% due to higher loan balances. On April 8, Evercore ISI analyst John Pancari reiterated his bullish stance on the company and assigned its stock a Buy rating. Wells Fargo & Co.'s (NYSE:WFC) strategic business investments, active capital deployment, and efficiency improvements contribute to its financial performance. The company's extensive branch network and large customer base provide numerous cross-selling opportunities and a source of low-cost deposits. Hotchkis & Wiley Large Cap Fundamental Value Fund stated the following regarding Wells Fargo & Company (NYSE:WFC) in its Q4 2024 investor letter: 'Wells Fargo & Company (NYSE:WFC) is one of the nation's largest depositories and banks by assets. In addition to having a very high market share of deposits, they also enjoy high market share within the geographies they operate in such as western and southeastern US. In our opinion, WFC is one of the best franchises in banking with a history of very high returns on assets and equity. Performance over the quarter was strong due to potential deregulation with the onboarding of a new presidential regime and speculation that the company's asset cap could be lifted as early as 1H25.' Overall, WFC ranks 8th on our list of the best stocks under $100 to buy according to hedge funds. While we acknowledge the growth potential of WFC, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than WFC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
