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Yahoo
an hour ago
- Business
- Yahoo
Nvidia, Meta, Google, Microsoft, and other giant tech stocks have one important challenge coming up
Large-cap tech stocks will likely soon be forced to meet the moment. The do-or-die challenge for the tech bulls? A series of hot financial results and outlooks to match three months of hot stock price gains. "I anticipate that the quality of earnings from these [large cap tech] companies will continue to be strong, but their ability to move their valuations to move higher and higher, completely unfettered, certainly is likely to be challenged here in the next couple of quarters," New York Life Investments chief markets strategist Lauren Goodwin said on Yahoo Finance's Opening Bid (watch above). New York Life Investments has more than $800 billion in assets under management (AUM). Goodwin cited cost challenges and trade uncertainty as risks to the sizzling tech trade headed into the second half of the year. Unfettered tech valuations have been the modus operandi for the large-cap tech space of late. Podcast: How this Big Tech investor is allocating cash right now High-profile tech names in Alphabet (GOOG, GOOGL), Meta (META), Nvidia (NVDA), and Microsoft (MSFT) have advanced an average of 35% in the past three months, according to Yahoo Finance analysis. The top two performers are AI darlings Nvidia and Meta, which have logged respective gains of 52% and 41%. The four giant tech stocks have an average forward price-to-earnings (PE) multiple of 30 times, well above the S&P 500's (^GSPC) 22 times. Meta, Nvidia, and Microsoft's forward PE multiples are above their three-year averages, while Alphabet's is slightly below. Large-cap tech's strong rally extends beyond the household names in the "Magnificent Seven" complex. For instance, Broadcom (AVGO) is up 57% in the past three months, pushing its valuation multiples to some of the highest levels in five years. The same situation extends to Uber (UBER) after a 25% stock price increase in the last three months. Nowhere has the rush to drive up large-cap valuations been more evident than in Nvidia. On Wednesday, the company's market cap stood at nearly $4.2 trillion amid enthusiasm about its AI chips flowing back into China soon. "The AI Revolution is just hitting its next stage of growth," crowed tech analyst Dan Ives of Wedbush, epitomizing the enthusiasm in the space. Event: Secure your tickets for Yahoo Finance's annual Invest conference But others eyeing the tech trade are beginning to echo Goodwin's more measured tone when putting money to work at higher valuations. "We note that the recent rally in large-cap tech and AI stocks has been fueled mainly by price-to-earnings (P/E) multiple expansion," Ulrike Hoffmann-Burchardi, global head of Equities for UBS Financial Services, pointed out. "While we remain structurally bullish on AI, we would prefer to see further gains underpinned by upward earnings-per-share (EPS) revisions rather than valuation expansion alone." She added, "Pockets of elevated valuations across leading AI companies, ongoing geopolitical uncertainty, and the upcoming second-quarter earnings season all point to the need for a balanced and selective approach. We recommend investors seek diversified exposure across semiconductors, software, and internet platforms, rather than concentrating risk in any single segment or individual stock." Brian Sozzi is Yahoo Finance's Executive Editor and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email
Yahoo
2 hours ago
- Business
- Yahoo
Stock market today: Dow futures rise as S&P 500, Nasdaq lag as Wall Street juggles tariffs, earnings, and inflation
US stock futures felt the pressure on Wednesday as Wall Street scoured the latest earnings for signs that corporate America is weathering the tariff turmoil that's keeping inflation aloft. Dow Jones Industrial Average futures (YM=F) rose 0.2% after the blue-chip index lost over 400 points on Tuesday, while S&P 500 futures (ES=F) were little changed. Those on the tech-heavy Nasdaq 100 (NQ=F) slipped roughly 0.2%. Solid earnings from Bank of America (BAC) and Johnson & Johnson (JNJ) helped ease some Wall Street worry about President Trump's cycle of escalating tariff threats. BofA's trading desks benefited from trade policy-driven market gyrations, as did those at fellow banks Morgan Stanley (MS) and Goldman Sachs (GS). But techs were set to lose their record-setting shine after a tariff-fueled growth warning from ASML (ASML). Shares in the top supplier of chipmaking equipment sank before the bell. Read more: Full earnings coverage in our live blog At the same time, markets are bracing for another inflation checkup after the latest consumer price reading spurred traders to pare bets on Federal Reserve interest-rate cuts. Tuesday's CPI report showed inflation accelerated in June. It rose at its fastest year-over-year clip since February, with signs of tariff-driven inflation starting to show up in the data. That has led to more speculation that the Fed will stand pat on rates not just this month — an outcome that seems virtually guaranteed at this point — but also in September, even as President Trump pushes furiously for cuts. Markets will get another inflation pulse check on Wednesday with the release of the Producer Price Index, which measures wholesale inflation before prices reach consumers. Like consumer prices, the PPI is expected to show a pickup in inflation last month. As the market attempts to digest the early effects of Trump's trade moves, he has signaled that tariffs on drug imports will probably come in on Aug. 1, when the pause on implementation of "reciprocal" rates lifts. Implementation of levies on semiconductors are likely to follow the same timeline. Read more: The latest on Trump's tariffs Meanwhile, Trump has plowed ahead with plans to impose increased duties next month on key trading partners, including the European Union, Canada, and Mexico. Trump announced Tuesday that the US had reached a deal with Indonesia as it continues talks. Shares of Goldman Sachs (GS), JPMorgan Chase (JPM), and Citigroup (C) were moving higher in premarket trading on Wednesday after the Wall Street firms reported higher dealmaking and trading revenue this week to kick off earnings season. Yahoo Finance's David Hollerith reports: Read more here. Yahoo Finance's Ben Werschkul reports: Read more here. ASML (ASML, shares slumped almost 8% in premarket trading after the chip industry linchpin said it may not achieve growth in 2026. The warning came even as the world's biggest supplier of chipmaking gear's second quarter bookings topped Wall Street estimates on Wednesday. Reuters reported: Read more here. Gold (GC=F) rose overnight Tuesday as a wave of tariff updates did little to appease flighty investors looking for safe investments. With multiple rocky trade deals on the table, markets have pushed back into the valuable metal which has risen by over 25% this year so far. Bloomberg reports: Read more here. President Trump is in the process of signing an executive order that will allow retirement plan providers to invest more heavily in private assets, according to those familiar with the matter. The order should take place within the next few days and will open up retirement plans to riskier investments. Reuters reports: Read more here. Shares of Goldman Sachs (GS), JPMorgan Chase (JPM), and Citigroup (C) were moving higher in premarket trading on Wednesday after the Wall Street firms reported higher dealmaking and trading revenue this week to kick off earnings season. Yahoo Finance's David Hollerith reports: Read more here. Yahoo Finance's Ben Werschkul reports: Read more here. ASML (ASML, shares slumped almost 8% in premarket trading after the chip industry linchpin said it may not achieve growth in 2026. The warning came even as the world's biggest supplier of chipmaking gear's second quarter bookings topped Wall Street estimates on Wednesday. Reuters reported: Read more here. Gold (GC=F) rose overnight Tuesday as a wave of tariff updates did little to appease flighty investors looking for safe investments. With multiple rocky trade deals on the table, markets have pushed back into the valuable metal which has risen by over 25% this year so far. Bloomberg reports: Read more here. President Trump is in the process of signing an executive order that will allow retirement plan providers to invest more heavily in private assets, according to those familiar with the matter. The order should take place within the next few days and will open up retirement plans to riskier investments. Reuters reports: Read more here.
Yahoo
2 hours ago
- Business
- Yahoo
J&J second quarter earnings beat Wall Street estimates, stock up on increased 2025 guidance
Johnson & Johnson's JNJ) second quarter earnings beat Wall Street's estimates Wednesday, and the company raised its outlook for the year, giving the stock a boost in pre-market trading. The pharma giant reported revenues of $23.7 billion, versus expectations of $22.8 billion. Earnings per share came in at $2.77, compared to Street estimates of $2.66. The stock was up more than 2% in early trading. The company raised guidance at the midpoint by $2 billion dollars to 5.4% and full year earnings per share guidance by $0.25 to $10.85. CEO Joaquin Duato said in a statement the company is looking to make up first half softness in the second half of the year. "Our portfolio and pipeline position us for elevated growth in the second half of the year, with game-changing approvals and submissions anticipated in areas like lung and bladder cancer, major depressive disorder, psoriasis, surgery and cardiovascular, which will extend and improve lives in transformative ways," he said. Jay Woods, Freedom Capital Markets chief global strategist, recently told Yahoo Finance that the stock has been stuck "in a neutral pattern" for some time. It's a great long-term play, consistent returns and dividends, but there isn't much that is exciting about the stock. J&J, like other big pharma peers, faces patent expiry of some of its biggest drugs in the coming years. How it will fill that gap remains to be seen, once the drugs' market share are lost to generic competition. J&J saw its first drug face generic competition this year with Stelara, which the company attributed to some of the loss in the second quarter. "Growth was partially offset by an approximate (1,170) basis points impact from Stelara in Immunology, and an approximate (130) basis points impact from COVID-19 in Infectious Diseases," the earnings statement said. In addition, that drug had been embroiled in Medicare's drug pricing negotiations, as part of the Inflation Reduction Act signed by the prior administration. Those factors, plus the medtech sector facing pressure from tariffs, and the ongoing overhang of the talc litigations, are reasons why investors may have a cooler tone about the stock. "The quarter we believe will be defined by two main items on the fundamental side (new drug launches and pipeline which we believe Street views remain more skeptical than not) and whether JNJ's Medtech business can turn the corner and grow closer towards a 5% rate. We expect the analyst community to focus on both equally and also attempt to push management to talk more openly about its M&A strategy," wrote Jared Holz, Mizuho's healthcare sector expert, in a note to clients Tuesday. Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, provider services, digital health, PBMs, and health policy and politics. That includes GLP-1s, of course. Follow Anjalee as AnjKhem on social media platforms X, LinkedIn, and Bluesky @AnjKhem. Click here for in-depth analysis of the latest health industry news and events impacting stock prices 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
2 hours ago
- Business
- Yahoo
Gold price today, Wednesday, July 16, 2025: Gold is steady after higher inflation report
Gold (GC=F) futures opened at $3,330.50 per ounce Wednesday, nearly flat with Tuesday's close of $3,329.80. This week, the price of gold reached a high of $3,375.50 on Monday. The S&P 500 fell 0.8% on Tuesday after the Bureau of Labor Statistics (BLS) released the June Consumer Price Index (CPI) report. The CPI rose 2.7% for the year ending in June, up from an annual increase of 2.4% in May. The inflation increase likely delays any rate reductions by the Fed and fuels the argument that even higher tariffs will be inflationary. An inflationary environment often reduces demand for stocks and increases demand for gold, which is considered a store of value. Learn more: Inflation accelerates in June as investors eye tariff-related price increases The opening price of gold futures on Wednesday is nearly flat with Tuesday's close of $3,329.80 per ounce. Wednesday's opening price marks a gain of 1.2% over the past week, compared to the opening price of $3,289.40 on July 9. In the past month, the gold futures price has lost 3.2% compared to the opening price of $3,442 on June 16, 2025. In the past year, gold is up 37.2% from the opening price of $2,427.40 on July 16, 2024. This marks the lowest year-over-year gain so far this summer. Don't forget you can monitor the current price of gold on Yahoo Finance 24 hours a day, seven days a week. Want to learn more about the current top-performing companies in the gold industry? Explore a list of the top-performing companies in the gold industry using the Yahoo Finance Screener. You can create your own screeners with over 150 different screening criteria. As we've been saying all week, investing in gold is a four-step process, and today, we'll explore step 3, choosing a form. Once you define your target gold allocation, you must choose a form of gold to hold. Your three options are: Physical gold Gold mining stocks Gold ETFs Physical gold includes jewelry, gold bars, and gold coins. The advantages of physical gold include: Readily accessible for use. If you keep your physical gold at home, it is easily available for you to use as a medium of exchange in an economic emergency. No added volatility or ongoing fees. Gold mining stocks tend to rise and fall with gold prices, and business-related factors enhance their volatility. Gold ETFs charge administrative fees in the form of expense ratios. Learn more: Take a deeper dive into the gold sector The disadvantages of physical gold include: Risk of theft or loss. Physical gold must be properly secured. Whether you store it in your home or with a depository, gold can be stolen. Lower liquidity. Physical gold is less liquid than stocks or ETFs. If you are not using the gold as a medium of exchange, you may need to locate a dealer and pay a markup on the sale. Owning shares in gold mining stocks provides indirect gold exposure. The advantages of mining stocks over physical gold include: Greater liquidity. Large-cap gold mining stocks like Barrick Gold Corporation (GOLD) and Franco-Nevada Corporation (FNV) generally enjoy a narrow bid-ask spread, which is a sign of liquidity. The bid-ask spread is the difference between what buyers will pay and what sellers will accept. Easy to store. Stocks live in your brokerage account and do not consume physical space. In normal times, this is an advantage. In an economic catastrophe, this could be a disadvantage if brokers or the stock market are temporarily shut down. Learn more: The top performing companies in the gold industry The disadvantages of owning gold mining stocks include: Greater volatility. Since 2000, gold mining stocks have risen and fallen faster than gold spot prices. And in recent years, gold mining stocks have trended down even as gold has gained value. No utility as a medium of exchange. Gold mining stocks can appreciate, but they have no direct utility as a medium of exchange. Gold ETFs are funds that invest in gold mining stocks or physical gold. Their advantages include: Easy to store. Like gold mining stocks, ETF shares are essentially digital assets with no storage requirements. Greater liquidity. Shares of the most popular gold ETFs, like SPDR Gold Shares ($GLD), are heavily traded which implies good liquidity. Tied directly to gold prices. ETFs backed by physical gold can be less volatile than gold mining stocks or gold mining ETFs. The disadvantages of gold ETFs include: Fund fees. Funds charge fees, which dilute returns over time. For context, the expense ratio of SPDR Gold Shares is 0.40%. This translates to $4 in fees annually for every $1,000 invested. No utility as a medium of exchange. As with gold mining stocks, you probably cannot use ETF shares to trade for food in an economic emergency. Whether you're tracking the price of gold since last month or last year, the price-of-gold chart below shows the precious metal's steady upward climb in value. Historically, gold has shown extended up cycles and down cycles. The precious metal was in a growth phase from 2009 to 2011. It then trended down, failing to set a new high for nine years. In those lackluster years for gold, your position will negatively impact your overall investment returns. If that feels problematic, a lower allocation percentage is more appropriate. On the other hand, you may be willing to accept gold's underperforming years so you can benefit more in the good years. In this case, you can target a higher percentage. The precious metal has been in the news lately, and many analysts are bullish on gold. In May, Goldman Sachs Research predicted gold would reach $3,700 a troy ounce by year-end 2025. That would equate to a 40% increase for the year, based on gold's January 2 opening price of $2,633. Rising demand from central banks, along with uncertainty related to changing U.S. tariff policy, are the factors driving the increase. If you are interested in learning more about gold's historical value, Yahoo Finance has been tracking the historical price of gold since 2000.
Yahoo
3 hours ago
- Business
- Yahoo
J&J second quarter earnings beat Wall Street estimates, stock up on increased 2025 guidance
Johnson & Johnson's (JNJ) second quarter earnings beat Wall Street's estimates Wednesday, and the company raised its outlook for the year, giving the stock a boost in pre-market trading. The pharma giant reported revenues of $23.7 billion, versus expectations of $22.8 billion. Earnings per share came in at $2.77, compared to Street estimates of $2.66. The stock was up more than 2% in early trading. The company raised guidance at the midpoint by $2 billion dollars to 5.4% and full year earnings per share guidance by $0.25 to $10.85. CEO Joaquin Duato said in a statement the company is looking to make up first half softness in the second half of the year. "Our portfolio and pipeline position us for elevated growth in the second half of the year, with game-changing approvals and submissions anticipated in areas like lung and bladder cancer, major depressive disorder, psoriasis, surgery and cardiovascular, which will extend and improve lives in transformative ways," he said. Jay Woods, Freedom Capital Markets chief global strategist, recently told Yahoo Finance that the stock has been stuck "in a neutral pattern" for some time. It's a great long-term play, consistent returns and dividends, but there isn't much that is exciting about the stock. J&J, like other big pharma peers, faces patent expiry of some of its biggest drugs in the coming years. How it will fill that gap remains to be seen, once the drugs' market share are lost to generic competition. J&J saw its first drug face generic competition this year with Stelara, which the company attributed to some of the loss in the second quarter. "Growth was partially offset by an approximate (1,170) basis points impact from Stelara in Immunology, and an approximate (130) basis points impact from COVID-19 in Infectious Diseases," the statement said. In addition, that drug had been embroiled in Medicare's drug pricing negotiations, as part of the Inflation Reduction Act signed by the prior administration. Those factors, plus the medtech sector facing pressure from tariffs, and the ongoing overhang of the talc litigations, are reasons why investors may have a cooler tone about the stock. "The quarter we believe will be defined by two main items on the fundamental side (new drug launches and pipeline which we believe Street views remain more skeptical than not) and whether JNJ's Medtech business can turn the corner and grow closer towards a 5% rate. We expect the analyst community to focus on both equally and also attempt to push management to talk more openly about its M&A strategy," wrote Jared Holz, Mizuho's healthcare sector expert, in a note to clients Tuesday. Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, provider services, digital health, PBMs, and health policy and politics. That includes GLP-1s, of course. Follow Anjalee as AnjKhem on social media platforms X, LinkedIn, and Bluesky @AnjKhem. Click here for in-depth analysis of the latest health industry news and events impacting stock prices
