Latest news with #intelligence-related
CNA
30-04-2025
- Business
- CNA
Wall Street slumps on GDP decline, crude prices sink; earnings on tap
NEW YORK :U.S. stocks fell on Wednesday, and oil prices logged their biggest monthly drop in 3-1/2 years following news of a U.S. economic contraction and other disappointing data, and mixed earnings reports. The dollar strengthened, and crude oil prices headed lower. All three major U.S. stock indexes were deep in negative territory, with the tech-laden Nasdaq down the most. On the last day of April, all three U.S. stock indexes were on course for their third straight monthly losses. "The market's action ... is reflective of an economy that's probably going to be struggling as the year progresses," said Chuck Carlson, CEO of Horizon Investment Services in Hammond, Indiana. U.S. gross domestic product contracted in the first quarter, largely due to a surge in imports to avoid expected tariffs. U.S. President Donald Trump blamed his Democratic predecessor, Joe Biden, and said his tariffs would eventually bring a booming economy. "There's a general feeling that tariffs are impacting the economy or they're certainly impacting decision-making," Carlson added. "But stocks are off their lows and that may be a result of people digesting some of these numbers and trying to put them into context." "Was it that bad? Are we on the precipice of a recession? Markets are trying to evaluate that and put into some context," Carlson said. The ongoing, multi-front trade war continues to cloud U.S. corporate earnings season, with companies increasingly pulling or reducing guidance due to tariff uncertainties. Wall Street pared losses after the release of more upbeat economic indicators. The Personal Consumption Expenditures (PCE) price index was unchanged on a monthly basis and consumer spending was stronger than expected. Of the "Magnificent Seven" group of artificial intelligence-related megacap companies, Meta Platforms and Microsoft are expected to post results after the bell. The Dow Jones Industrial Average fell 205.15 points, or 0.51 per cent, to 40,321.75, the S&P 500 dropped 41.42 points, or 0.74 per cent, to 5,519.41 and the Nasdaq Composite slipped 172.88 points, or 0.99 per cent, to 17,288.44. European stocks ended a choppy session higher as investors mulled key data and corporate earnings. But the STOXX 600 registered a second consecutive monthly loss due to tariff-related uncertainties. MSCI's gauge of stocks across the globe fell 3.09 points, or 0.37 per cent, to 828.22. The pan-European STOXX 600 index rose 0.46 per cent, while Europe's broad FTSEurofirst 300 index rose 9.45 points, or 0.45 per cent. Emerging market stocks rose 5.38 points, or 0.49 per cent, to 1,111.37. MSCI's broadest index of Asia-Pacific shares outside Japan closed higher by 0.86 per cent, to 580.55, while Japan's Nikkei rose 205.39 points, or 0.57 per cent, to 36,045.38. The dollar held its gains after a swath of mixed U.S. economic data and as trade tensions eased. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.3 per cent to 99.47, with the euro down 0.31 per cent at $1.135. Against the Japanese yen, the dollar strengthened 0.34 per cent to 142.85. Sterling weakened 0.53 per cent to $1.3335. The Mexican peso dropped 0.3 per cent versus the dollar to 19.607. The Canadian dollar strengthened 0.32 per cent versus the greenback to C$1.38 per dollar. The U.S. 10-year Treasury note yield seesawed higher after the weaker-than-expected GDP report, rising 1.1 basis points to 4.185 per cent from 4.174 per cent late on Tuesday. The 30-year bond yield rose 3.8 basis points to 4.6852 per cent from 4.648 per cent late on Tuesday. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, fell 3.3 basis points to 3.625 per cent, from 3.658 per cent late on Tuesday. Oil prices plunged further, logging their largest monthly drop in nearly 3-1/2 years as Trump's trade war eroded the demand outlook. U.S. crude fell 3.66 per cent to settle at $58.21 per barrel, while Brent settled at $63.12 per barrel, down 1.76 per cent on the day. Gold prices dipped in opposition to the dollar.
NDTV
30-04-2025
- Business
- NDTV
US Economy Shrinks By 0.3%, Trump Says "Nothing To Do With Tariffs"
US President Donald Trump said on Wednesday that Americans should be patient in the face of a first-quarter economic contraction, arguing that his tariffs would eventually lead to a boom in the US economy. The economy shrank at a 0.3 per cent pace in the first quarter, weighed down by a deluge of goods imported by businesses eager to avoid higher costs, underscoring the disruptive nature of Trump's often chaotic tariff policy. Republican Trump blamed his Democratic predecessor, Joe Biden, for the poor showing. "This is Biden's Stock Market, not Trump's," he said. "Our Country will boom, but we have to get rid of the Biden 'Overhang.' Trump added: "This will take a while, has NOTHING TO DO WITH TARIFFS, only that he left us with bad numbers, but when the boom begins, it will be like no other. BE PATIENT!!!" Peter Cardillo, Chief Market Economist at Spartan Capital Securities in New York, placed the onus on Trump. "We got to these numbers because of Trump's policies," Cardillo said. "They've created uncertainty and when you create uncertainty, nobody's going to put their foot on the accelerator. "We're seeing that as the earnings come out," Cardillo added. "Guidance has been pulled back." Indeed, the ongoing, multi-front trade war continues to cloud US corporate earnings season, with companies increasingly pulling or reducing guidance due to the fog of tariff uncertainties. Wall Street pared losses after the release of more upbeat economic indicators. Personal Consumption Expenditures (PCE) price index unchanged on a monthly basis and stronger-than-expected consumer spending. Two high-profile members of the "Magnificent Seven" group of artificial intelligence-related megacap companies, Meta Platforms and Microsoft, are expected to post results after the bell, and upbeat results would likely reverse Wednesday's selloff. "We think it's irrational for people to sell off, particularly tech stocks as hard when we got the real big kahunas reporting," said Jay Hatfield, portfolio manager at InfraCap in New York. "If we had this call tomorrow, we could be trying to explain why a market's up 2%." The Dow Jones Industrial Average fell 466.73 points, or 1.15%, to 40,061.02, the S&P 500 fell 83.29 points, or 1.50%, to 5,477.54 and the Nasdaq Composite fell 343.74 points, or 1.97%, to 17,117.58. European stocks erased previous gains following the U.S. GDP data. MSCI's gauge of stocks across the globe fell 8.10 points, or 0.97%, to 823.21. The pan-European STOXX 600 index fell 0.12%, while Europe's broad FTSEurofirst 300 index fell 3.70 points, or 0.18%. Emerging market stocks rose 4.65 points, or 0.42%, to 1,110.64. MSCI's broadest index of Asia-Pacific shares outside Japan closed higher by 0.78%, to 580.07, while Japan's Nikkei rose 205.39 points, or 0.57%, to 36,045.38. The dollar held its gains after a swath of mixed U.S. economic data. The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.26% to 99.42, with the euro down 0.19% at $1.1363. Against the Japanese yen, the dollar strengthened 0.3% to 142.75. Sterling weakened 0.5% to $1.3339. The Mexican peso weakened 0.35% versus the dollar at 19.626. The Canadian dollar strengthened 0.08% versus the greenback to C$1.38 per dollar. After the weaker-than-expected read on first-quarter economic growth, the yield on benchmark U.S. 10-year notes fell 1 basis point to 4.164%, from 4.174% late on Tuesday. The 30-year bond yield rose 1.5 basis points to 4.6626% from 4.648% late on Tuesday. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, fell 4.5 basis points to 3.613%, from 3.658% late on Tuesday. Oil prices slid further, set for their largest drop in nearly 3-1/2 years as Trump's trade war eroded the demand outlook. U.S. crude fell 1.89% to $59.30 a barrel and Brent fell to $63.22 per barrel, down 1.6% on the day. Gold prices dipped in opposition to the dollar. Spot gold fell 0.39% to $3,302.72 an ounce. U.S. gold futures fell 0.66% to $3,297.00 an ounce.
Yahoo
09-04-2025
- Business
- Yahoo
Microsoft's Capex Wiggle Room May Ease AI Spending Cut Fears, Says KeyBanc
KeyBanc Capital Markets believes Microsoft (NASDAQ:MSFT) retains considerable discretion over its capital expenditures, despite recent speculation that it may be scaling back some artificial intelligence-related investments. Warning! GuruFocus has detected 1 Warning Sign with MSFT. In a client note, analyst Jackson Ader pointed out that the company's expense commitments are largely influenced by data center construction and procurement contracts. These are categorized in Microsoft's disclosures as commitments primarily related to datacenters, including open purchase orders and take-or-pay agreements, rather than traditional construction obligations. According to Ader, who maintains an Overweight rating on the stock with a $575 price target, these agreements account for a significant share of Microsoft's short-term financial obligations. Specifically, for fiscal 2025, they represent 61.8% of non-debt commitments, in contrast to 27.1% for the same period last year. He noted that since a large portion of the company's upcoming spending is tied to such flexible arrangements, the company is not locked into rigid long-term commitments. Ader views Microsoft's ability to adjust its capex strategy as a supportive factor for shareholders. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
18-02-2025
- Business
- Yahoo
Chinese Convertible Bonds Entice Investors Extending AI Bets
(Bloomberg) -- Chinese investors' zeal for artificial intelligence-related assets fanned by DeepSeek has spread to convertible bonds, sending a benchmark index to its highest in more than two years. Why Barcelona Bought the Building That Symbolizes Its Housing Crisis Progressive Portland Plots a Comeback Por qué Barcelona compró el edificio que simboliza su crisis inmobiliaria A Filmmaker's Surreal Journey Into His Own Private Winnipeg How to Build a Neurodiverse City The CSI Convertible Bond Index has risen 3.3% this year, hitting its highest since August 2022 on Tuesday and tracking gains in the stock benchmark gauge. Shanghai Runda Medical Technology Co. and Thalys Medical Technology Group, two of the companies expected to benefit from AI integration, have seen their convertibles soar more than 22% and 16%, respectively, this year. The gains add to the rally convertible bonds have seen since Beijing announced a slew of stimulus measures for economic growth in September. While CBs' lukewarm start to the year portended a stall in the rally, Chinese startup DeepSeek's potential ignited a tech frenzy in late January and changed the landscape on AI bets in China. 'China convertible bonds are still lucrative even with a rebound in recent months,' Liu Yang, a fund manager at HSBC Jintrust Fund Management Co. said, citing 'reasonable' pricing, low government bond yields and AI's impact on the economy that will be sustained. More anticipated government policy support that may spur a recovery will also propel them higher, he said. A rosier outlook for convertible bonds has rendered something of a haven for fixed-income investors scouring for decent returns in a market with historically low sovereign yields and tepid growth. Mitigated Risk The auspicious start to the year follows a string of messy developments for CBs in 2024, including the first-ever default in the onshore debt market and payment warnings. The CSI CB index hit a three-year low in September, while the years-long property crisis in China also loomed over the broader credit market. But Beijing's stimulus blitz in mid-September that helped revive the stock market also jumpstarted convertibles' rebound that has largely kept up. The CSI CB index ended 2024 about 6% higher, thanks to a rally late in the year. Some convertibles with riskier ratings also may be looking more attractive given the pool of options for high-yield chasers is narrowing in China. Two issuers rated junk last year — D&O Home Collection Group Co. and Zhangjiagang Guangda Special Material Co. — have seen their bonds nearly double from midyear months in 2024. 'China high yield space has shrunk materially in the past few years,' said Christopher Li, head of Asia credit trading desk analysts at BNP Paribas. A limited supply of new issues could also help sustain the CB market momentum, Lv Pin, chief fixed income analyst at Topsperity Securities Co., said. Issuance slumped to 38.4 billion yuan ($5.3 billion) in 2024, the lowest in eight years, as authorities began cracking down on who's qualified to issue such debt. 'Credit risk, which triggered a previous selloff across the board, has been mitigated gradually,' Lv said. The Undocumented Workers Who Helped Build Elon Musk's Texas Gigafactory The Unicorn Boom Is Over, and Startups Are Getting Desperate Japan Perfected 7-Eleven. Why Can't the US Get It Right? The NBA Has Fallen Into an Efficiency Trap How Silicon Valley Swung From Obama to Trump ©2025 Bloomberg L.P.
Bloomberg
18-02-2025
- Business
- Bloomberg
Chinese Convertible Bonds Entice Investors Extending AI Bets
Chinese investors' zeal for artificial intelligence-related assets fanned by DeepSeek has spread to convertible bonds, sending a benchmark index to its highest in more than two years. The CSI Convertible Bond Index has risen 3.3% this year, hitting its highest since August 2022 on Tuesday and tracking gains in the stock benchmark gauge. Shanghai Runda Medical Technology Co. and Thalys Medical Technology Group, two of the companies expected to benefit from AI integration, have seen their convertibles soar more than 22% and 16%, respectively, this year.
