Latest news with #marketrally
Yahoo
2 days ago
- Business
- Yahoo
Wall Street bull calls for 11% rally in S&P 500 to end 2025 as trade 'uncertainty' subsides
The high water mark for Wall Street's S&P 500 (^GSPC) targets has moved up amid the market rally. Oppenheimer chief market strategist John Stoltzfus boosted his year-end target to 7,100 from 5,950 in a note to clients on Sunday night as "progress on trade negotiations removes an uncertainty that had weighed on our market outlook." The new target is now the highest on Wall Street and calls for another 11% rally in the S&P. Should the S&P 500 close out 2025 above 7,100, the benchmark index will have rallied more than 20% for a third-straight year. Stoltzfus is one of several Wall Street strategists that has now reverted back to their initial year-end forecasts after previously slashing their target during April's near-20% tariff-driven market drawdown. Stolzfus' update came just hours after President Trump announced a deal with the European Union that includes a baseline 15% tariff rate on EU goods imported to the US. "We believe that enough 'tariff hurdles' have been overcome for now to reinstate our original price target for the S&P 500 of 7100 by year-end," Stoltzfus wrote. Stoltzfus reached his year-end target by projecting S&P 500 earnings per share at $275 for 2025 and the market trading at a forward twelve-month price to earnings ratio of 25.8. The S&P 500 is now valued at 22.4 times next year's earnings, above the five- and 10-year averages of 19.9 and 18.4, per FactSet data. This already has some wondering if the market rally has become overstretched. But strategists like Stoltzfus have recently been pointing out that corporate profits are proving more resilient than initially feared following Trump's initial April tariff announcements. With 34% of the S&P 500 having reported results, earnings in the second quarter are on pace to grow 6.4%, up from the 5% expected on June 27, per FactSet data. Estimates for year-over-year earnings growth in the final two quarters of 2025 and for the full year 2026 have been moving higher. As of July 25, FactSet data showed analysts expect the S&P 500 to grow earnings by 13.9% in 2026, slightly higher than the 13.8% that had been expected a month ago. In a Sunday note to clients, Citi head of US equity strategy Stuart Kaiser pointed out that earnings guidance for future quarters has been increased more than the prior reporting period in April. Kaiser points out that thus far, 41% of companies have raised their full-year guidance, up from 10% seen in April. Kaiser noted this is an added "tailwind" for US stocks. Morgan Stanley Chief Investment Officer Mike Wilson agrees. Data Wilson shared with Yahoo Finance shows that earnings revisions breadth — or the ratio of companies raising forecasts to those cutting forecasts — has rebounded as dramatically as the S&P 500 itself. "We are currently experiencing one of the strongest V-shaped recoveries in history, rivaling the Covid rebound in 2020, the last time we were so out of consensus on the market," Wilson told Yahoo Finance via email. "Many market participants do not appreciate how strong this very fundamental driver has been over the past several months, which helps to not only justify the rally to date, but also why we remain bullish on the next 6-12 months." Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer. 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
4 days ago
- Business
- Yahoo
Eric Trump Takes Victory Lap Over Memed Ethereum Call As ETH Eyes $4K
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Eric Trump is having a field day dunking on his detractors. Trump has been ridiculed in cryptocurrency circles in the past few months for a February post advising followers to buy an Ethereum price dip that ended up being followed by an additional 40% decline. But his fortunes have changed with the recent market rally and he is relishing the opportunity to gloat. 'How am I doing now?' he asked prominent cryptocurrency influencer Ted Pillows on Tuesday on X. At the beginning of April, Pillows had been one of many to highlight that ETH was down 40% since Trump's post. 'Embrace volatility,' Trump told another. 'If you were smart you would have also bought the dips (as I said to do).' Don't Miss: — no wallets, just price speculation and free paper trading to practice different strategies. Grow your IRA or 401(k) with Crypto – . Trump also quoted his infamous February post with a minion mic drop GIF from 'Despicable Me.' Trump's victory lap comes as ETH has rebounded nearly 180% from its April lows of $1,400 to trade within touching distance of $3,900. Investors who bought ETH and held it when Trump said to buy should be up a respectable 39% in five months, as the asset was trading around $2800 at the time. The gains will likely be even more impressive for investors who employed a dollar cost-averaging strategy. But the recent market rally is hardly any proof of superior market insight or genius from Trump, despite his best efforts to frame it that way. If anything, it merely highlights the volatile nature of the cryptocurrency market. ETH's rally, in particular, follows a significant vibe shift in the Ethereum community with the rise of the tokenization narrative on Wall Street. Trending: New to crypto? on Coinbase. ETH proponents believe that the multi-trillion-dollar global markets would eventually be tokenized, and stablecoins would become a mainstay in payments. These are sectors dominated by Ethereum, which could mean demand for the asset is set to surge and price along with it. Beyond the tokenization narrative, the emergence of corporate ETH treasuries such as Sharplink Gaming (NASDAQ:SBET) and Bitmine Immersion Technologies (NYSE:BMNR) with more aggressive accumulation strategies and culturally relevant leaders in Ethereum co-founder Joseph Lubin and Fundstrat investment chief Tom Lee has helped stoke excitement. All Eyes On $4K Following ETH's recent rally, all eyes are on the $4,000 price point, which has proven to be a significant hurdle in the past. The last time the asset hit that price was in December; a 66% retreat followed. Before that was May 2024, the surge was followed by a 48% correction. And before May 2024, the asset surged to $4,000 in March 2024, only to be followed by a 30% ETH stalls around this level again, analysts are split on what comes next. 'Probably we'll have some consolidation here, and there's still a violent correction to come,' MN Fund founder Michael van de Poppe said on Tuesday. Meanwhile, prominent trader 'IncomeSharks' said they expect ETH to 'snap back higher' in a move above $4,000. 'Highly advise against shorting unless you want to be part of the round of liquidation tweets,' they said, setting a short-term target of $4,800 for the asset. In the long term, most analysts agree that ETH has the potential to go much higher in the current market cycle, with most calls converging between $10,000 and $15,000. Read Next: 7,000+ investors have joined Timeplast's mission to eliminate microplastics— Image: Shutterstock This article Eric Trump Takes Victory Lap Over Memed Ethereum Call As ETH Eyes $4K originally appeared on
Yahoo
4 days ago
- Business
- Yahoo
Veteran fund manager points to glaring problem with stocks after rally
Veteran fund manager points to glaring problem with stocks after rally originally appeared on TheStreet. Stock market rally defies gravity, leaves many behind The S&P 500's seemingly unrelenting climb from early April into July 2025 has left many investors shaking their heads. This spring, the stock market lost nearly 20% of its value amid a flurry of newly announced tariffs. Worry that tariff-induced inflation would derail the economy, causing stagflation or recession, was rampant. That worry remains, given that tariffs remain much higher than one year ago and economic data show that the U.S. economy is slowing. Yet stocks have brushed aside concerns since April 9, when President Donald Trump paused many reciprocal tariffs, clearing the way for trade a result, many investors expecting a reckoning have been left stuck on the sidelines, wondering if it's too late to buy. Veteran hedge fund manager Doug Kass understands the feeling. Kass has been professionally managing money since the 1970s, and his long career includes a stint as the research director for Leon Cooperman's Omega Advisors, one of the most famous hedge funds ever. This week, Kass discussed the recent stock market rally and its causes and delivered a stern message on risks every investor should consider after the S&P 500's record-setting run. The stock market's gains have been driven by animal spirits, speculation, and computer algos It used to be that humans on major exchanges, like the New York Stock Exchange, executed trades for other humans. Quaint, right? Now, the stock market's inevitable pops and drops are at the whim of computer programmers who have designed programs to exploit every tick higher or lower, and products developed by money-hungry Wall Street firms, like short-term options, that are designed to capitalize best on greed and fear."In the steel cage match since the market's lows in April, the bulls have been virtually unbeatable — like Muhammad Ali and Hulk Hogan," wrote Doug Kass in a post on TheStreet Pro. "But, as we all know, all the WWF matches were fixed — a feeling that the bears have developed over the last three months as retail, zero days to expiration option traders, and volatility-controlled funds have aggressively bought every dip, contributing to the generation of animal spirits and fear of missing out." The combination has led to momentum fueling momentum for momentum's sake. Computers trading with computers and speculators looking for quick gains from the options market have created a self-fulfilling cycle of upside, creating massive fear of missing out, or FOMO, for those who sold during the downturn or held off on new investments, hoping for a better entry point. The gains have been particularly eye-popping for risky stocks, particularly within emerging industries like crypto, artificial intelligence, space, and quantum computing. Circle Internet () , a stablecoin cryptocurrency player, has gained 132% since its June IPO. CoreWeave () , an AI cloud computing company, is up 165% since April 8. Rocket Lab () , which sends light payloads into low orbit, has gained 188% since its early April lows. And Quantum Computing () is up 278% since its bottom in March. What's one thing those companies share in common? None has turned a profit yet. Problems with U.S. economy may not be ignored forever The S&P 500's 24% gain in 2024 was built on the back of surging spending on artificial intelligence, the promise of earnings growth associated with using AI to streamline business practices and procedures, and the prospect of lower interest rates, thanks to the Federal Reserve shifting from hawkish to dovish monetary policy. So far, the Fed has yet to cut rates in 2025, despite lowering rates by 1% into the end of 2024, creating a headwind. AI spending remains robust, given that Alphabet recently increased its capital expenditure outlook this year to $85 billion from $75 billion. Still, cracks have appeared in the economy that didn't exist last year: Layoffs totaled 247,256 in Q2, according to Challenger, Gray, & Christmas, the most since the Covid pandemic closed businesses in 2020. The unemployment rate is 4.1%, up from 3.4% in 2023. The World Bank estimates U.S. GDP growth will be just 1.4% in 2025, down from 2.8% last year. And let's not forget tariffs, which, while likely to be less than feared in April, still represent a massive tax hike. That economic backdrop is problematic for stocks, especially following their big move higher. "The level of delusion (that tariffs will have no inflationary impact) is now beyond the pale. It simply seems the administration is following the Roy Cohen strategy on inflation and tariffs — in that if you repeat 'The Big Lie' enough (that tariffs aren't raising prices), people will come to believe it," opined Kass. Stock market valuation could create a headwind for stocks So far, markets have ignored the inflationary threat, assuming trade deals will soften the blow and corporations can make up any margin hit either by benefiting from a weaker US Dollar on currency conversion or by cutting costs. Indeed, those betting the U.S. economy will sidestep the worst-case scenario — slow growth with inflation or even recession — have profited valuations on many stocks have surged, and as a result, the S&P 500's forward one-year price to earnings ratio is 22.4, according to FactSet. A P/E ratio that high has historically depressed forward stock market returns. Absent a significant uptick in earnings estimates, now largely expected, stocks could take a breather. "My recent complete sales of numerous longs (in housing, financials, private equity and selected technology) have resulted in an expanded cash war chest, which I want in the time ahead," noted Kass on July 23. "I see about 5x more risk than reward, and I see no "margin of safety." Of course, stocks can go higher and lower than many believe possible, which is why, as John Maynard Keynes said, "The market can remain irrational longer than you can remain solvent." Sitting in cash hasn't been a winning strategy lately, something Kass concedes. "I am often wrong and always in doubt," wrote Kass. Nevertheless, he says, "The fact is, though many in the business media say the opposite, earnings estimates are dropping and not increasing — as equities climb." If so, having some cash to take advantage of any weakness may pan out fund manager points to glaring problem with stocks after rally first appeared on TheStreet on Jul 26, 2025 This story was originally reported by TheStreet on Jul 26, 2025, where it first appeared.
Yahoo
6 days ago
- Business
- Yahoo
Ameriprise Financial's quarterly profit rises on higher fee income
(Reuters) -Asset and wealth manager Ameriprise Financial reported a 28% rise in its second-quarter profit on Thursday, as a late-quarter market rally boosted the value of its fee-generating assets to a record high. After a turbulent start to the quarter because of U.S. President Donald Trump's shifting tariffs, the markets regained poise on hopes of a softer trade policy and positive macroeconomic data. Ameriprise's assets under management, administration and advisement came in at $1.58 trillion during the three months ended June 30, up 9% from a year ago. "While markets were volatile in the quarter, client activity remained strong," chairman and CEO Jim Cracchiolo said in a statement. Assets under management and the fees earned by managers depend on two factors - money flowing in and out of the funds and the performance of investments. Ameriprise's management and financial advice fees rose 6% to $2.6 billion during the second quarter, while its net investment income dropped 3% to $891 million. Total client assets at its advice and wealth management business, which primarily targets high net-worth households with $500,000 to $5 million in investable assets, grew to $1.08 billion from $972 million a year earlier. However, the unit posted a 35% fall in quarterly net flows. Rival BlackRock also reported a fall in long-term net inflows last week, after a major Asian institutional client pulled money from an index strategy. Ameriprise's second-quarter profit rose to $1.06 billion, or $10.73 per share, compared with $829 million, or $8.02, a year earlier. 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
7 days ago
- Business
- Yahoo
G-III, Tecnoglass, MYR Group, Jabil, and Dentsply Sirona Shares Are Soaring, What You Need To Know
What Happened? A number of stocks jumped in the afternoon session after a new trade agreement between the United States and Japan spurred a broad market rally. The positive sentiment swept across markets after it was announced the U.S. and Japan had reached a new trade deal. The agreement included a 15% tariff on Japanese goods imported into the U.S. and a commitment from Japan to invest $550 billion in the U.S. and open its markets to American cars and agricultural products. This development boosted investor confidence and contributed to a widespread rally, lifting stocks across many sectors. The Dow Jones Industrial Average and the S&P 500 both posted gains, creating a favorable environment that likely benefited individual stocks. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Among others, the following stocks were impacted: Apparel and Accessories company G-III (NASDAQ:GIII) jumped 3.4%. Is now the time to buy G-III? Access our full analysis report here, it's free. Building Materials company Tecnoglass (NYSE:TGLS) jumped 3.2%. Is now the time to buy Tecnoglass? Access our full analysis report here, it's free. Construction and Maintenance Services company MYR Group (NASDAQ:MYRG) jumped 3.1%. Is now the time to buy MYR Group? Access our full analysis report here, it's free. Electronic Components & Manufacturing company Jabil (NYSE:JBL) jumped 3.3%. Is now the time to buy Jabil? Access our full analysis report here, it's free. Dental Equipment & Technology company Dentsply Sirona (NASDAQ:XRAY) jumped 3.2%. Is now the time to buy Dentsply Sirona? Access our full analysis report here, it's free. Zooming In On G-III (GIII) G-III's shares are quite volatile and have had 15 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 6 days ago when the stock gained 3.2% on the news that the second quarter (2025) earnings season got off to a strong start. Quarterly earnings reports released during the week exceeded Wall Street's expectations, fueling investor confidence. Around 50 S&P 500 components reported, with 88% of those exceeding analysts' expectations, FactSet data revealed. Investors were also encouraged by several positive reports that painted a picture of a resilient consumer. One key report revealed that shoppers increased their spending at U.S. retailers more than economists had anticipated. Precisely, retail sales increased 0.6% from May, surpassing the 0.2% estimate. This robust consumer spending is a crucial pillar supporting the economy. Adding to the positive sentiment, the latest data on unemployment claims showed a decrease in the number of workers applying for benefits, signaling that layoffs remain limited and the job market is steady. This combination of strong earnings reports, retail sales, and a solid labor market suggests the economy is navigating challenges successfully. G-III is down 24.2% since the beginning of the year, and at $24.28 per share, it is trading 32.7% below its 52-week high of $36.10 from December 2024. Investors who bought $1,000 worth of G-III's shares 5 years ago would now be looking at an investment worth $2,051. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
