Latest news with #marketvolatility
Yahoo
8 hours ago
- Business
- Yahoo
US exchanges set to reap windfall as market volatility fuels trading rush
By Pritam Biswas and Arasu Kannagi Basil (Reuters) -Major U.S. stock exchanges are expected to report higher second-quarter profits, driven by increased fee collection from record-breaking trading volumes as investors rushed to reposition portfolios hit by tariff-related volatility. Periods of heightened market volatility usually drive up trading volumes, and with it, transaction and clearing fees, which translate into better earnings for exchanges. In the second quarter, uncertainty sparked by U.S. President Donald Trump's sweeping tariffs triggered volatility, exacerbated by tensions in the Middle East. The prolonged period of macroeconomic uncertainties has supported strong performance in average daily volumes, RBC analysts said. Trading was elevated across asset classes, including rates, energy, equities, as well as futures and options. Average daily volume (ADV) jumped 16% to a quarterly record of 30.2 million contracts at CME Group. At New York Stock Exchange-owner Intercontinental Exchange, ADV surged 26% to record 10 million contracts. Trading in Cboe Global Markets' S&P 500 index options hit a quarterly record of 3.7 million contracts. Nasdaq also saw robust gains in U.S. equities and options trading. Retail engagement also remained resilient as investors continued to "buy the dip" even through the tariff saga and the rebound in risk assets, brokerage Morgan Stanley said in a note. Some exchanges are also dabbling in crypto offerings like bitcoin index futures as digital assets get increasingly meshed with traditional finance. Cryptocurrency ADV jumped 136% at CME in the quarter, underpinned by record growth of ether futures. Looking ahead, trading volumes are set to moderate as uncertainty eases. Still, volatility in expectations on the magnitude of future interest rate cuts is anticipated to support rates trading. An improving capital markets backdrop also benefits exchanges. IPO market activity ground to a halt in the first half of the second quarter, with several companies postponing plans amid the volatility. However, progress on trade talks have revitalized the market, with companies such as digital bank Chime and stablecoin issuer Circle debuting in June. The total deal value of U.S.-listed IPOs on Nasdaq in the second quarter nearly tripled to $13.2 billion versus a year earlier, according to data by Dealogic. The number of new U.S.-listings also almost doubled in the quarter. CME starts the earnings season for U.S. exchanges on Wednesday, while Nasdaq reports on Thursday. Cboe and Intercontinental Exchange report results next week. Exchange stocks have outperformed the S&P 500 so far this year. For the first six months, CME and Cboe gained nearly 19% each while Intercontinental Exchange and Nasdaq rose 23% and 16% respectively, versus a 5.5% gain in the S&P 500 index. Exchange Q2 EPS estimates CME Group $2.91 Nasdaq $0.81 Intercontin $1.77 ental Exchange Cboe Global $2.42 Source: LSEG 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
a day ago
- Business
- Yahoo
Verizon Communications (VZ) Reports US$34 Billion Revenue In Q2 With US$5 Billion Net Income
Verizon Communications recently reported solid financial growth for the second quarter of 2025 with increased revenues and earnings per share. Despite these strong results, Verizon's share price moved 1.78% last week amidst a broader market that reached new highs, with indices like the S&P 500 and Nasdaq advancing. This decline might seem counterintuitive given the optimism surrounding its earnings report, but it aligns with market volatility and investor reactions in a week filled with economic events and trade talks. Verizon's continued advancements, like new partnerships within its Frontline program, support its long-term growth prospects. We've discovered 2 risks for Verizon Communications that you should be aware of before investing here. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Verizon's recent financial growth, highlighted by increased revenues and earnings per share, coincides with a 1.78% movement in its share price last week against market highs. This contrast aligns with broader market volatility and investor sentiment driven by economic events. Over the past three years, Verizon's total shareholder return, including share price and dividends, was 11.61%. However, when examined against the US Telecom industry, which returned 19% over the past year, Verizon underperformed, reflecting challenges in capturing the full market momentum. The ongoing focus on network convergence and consumer retention, as outlined in the narrative, suggests potential positive impacts on both revenue and earnings forecasts. Analysts expect Verizon's earnings to grow annually, projecting earnings of US$21.7 billion by 2028 from the current US$17.78 billion. With a current PE ratio of 10.5x, these forecasts, if realized, reinforce the analysts' consensus price target of US$48.07. Presently, the share price of US$40.84 represents a discount of approximately 18.6% to the target, indicating the market might be pricing in perceived risks, such as regulatory challenges and competitive pressures. Nonetheless, the focus on network convergence and new revenue streams could alleviate some of these concerns in the longer term. In light of our recent valuation report, it seems possible that Verizon Communications is trading behind its estimated value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include VZ. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ 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
a day ago
- Business
- Yahoo
Adtalem Global Education (ATGE) Surged on Student Enrollment Growth and Raise in Guidance
Ariel Investments, an investment management company, released its 'Ariel Fund' second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter was a volatile period. Stocks fell sharply in early April following the 'Liberation Day' tariff announcement, pushing the market close to bear market territory. Later, the pause in plans led to a strong recovery. Excitement for artificial intelligence (AI) stocks reignited, with positive economic data and strong corporate earnings driving U.S. indices to new all-time highs. Growth stocks outperformed value stocks, and large caps continued to outperform their small-cap counterparts. Against this backdrop, Ariel Fund returned 6.96% in the quarter, lagging behind both the Russell 2500 Value Index's +7.29% return and exceeding the Russell 2000 Value Index's +4.97% gain. For more information on the fund's top picks in 2025, please check its top five holdings. In its second quarter 2025 investor letter, Ariel Fund highlighted stocks such as Adtalem Global Education Inc. (NYSE:ATGE). Adtalem Global Education Inc. (NYSE:ATGE) offers workforce solutions that operate through Chamberlain, Walden, and Medical and Veterinary segments. The one-month return of Adtalem Global Education Inc. (NYSE:ATGE) was -8.55%, and its shares gained 49.57% of their value over the last 52 weeks. On July 18, 2025, Adtalem Global Education Inc. (NYSE:ATGE) stock closed at $117.08 per share, with a market capitalization of $4.206 billion. Ariel Fund stated the following regarding Adtalem Global Education Inc. (NYSE:ATGE) in its second quarter 2025 investor letter: "Shares of global leader in for-profit education, Adtalem Global Education Inc. (NYSE:ATGE), also jumped following a top- and bottom-line quarterly earnings beat driven by accelerating new student enrollment growth and a subsequent raise to fiscal year 2025 guidance. Revenue per student and margins at Chamberlain and Walden also came in significantly better than expected. Meanwhile, we remain encouraged by management's solid execution of remediation initiatives at the medical and veterinary schools, where revenue growth outperformed and total enrollment trends are improving. Although regulatory uncertainty within the U.S education landscape remains, we view ATGE as well insulated, if not a beneficiary of potentially less onerous government scrutiny. Longer term, we believe ATGE's strong fundamentals, quality programs, free cash flow generation and sturdy balance sheet are attractive. As the number one grantor of nursing degrees in the U.S. and the largest producer of African American MDs, PhDs and nurses in the country, we remain confident ATGE will benefit from the healthcare worker shortage in the U.S." A group of students in a lecture hall, with a professor lecturing to them in the forefront. Adtalem Global Education Inc. (NYSE:ATGE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held Adtalem Global Education Inc. (NYSE:ATGE) at the end of the first quarter, compared to 32 in the previous quarter. Adtalem Global Education Inc.'s (NYSE:ATGE) fiscal third quarter revenue increased 13% to $466 million. While we acknowledge the potential of Adtalem Global Education Inc. (NYSE:ATGE) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Adtalem Global Education Inc. (NYSE:ATGE) and shared Ariel Fund's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey. 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
Wall Street Journal
a day ago
- Business
- Wall Street Journal
Stock Market Today: Dow Futures Rise; Europe Readies for Trade Fight
This week, earnings season will ramp up, with results from the Magnificent Seven kicking off with Alphabet and Tesla on Wednesday. Verizon is among the big names on today's reporting slate. So far, earnings have proved largely positive, with tariff-driven market volatility boosting profits at banks and brokerages. Of the S&P 500 companies that have reported, an above-average 83% have posted higher-than-expected earnings per share, according to FactSet. Last week's earnings helped drive the S&P 500 and Nasdaq Composite to new highs. Stock futures ticked higher early Monday, suggesting another upbeat day could be in the offing. Meanwhile, Wall Street is looking ahead to the Aug. 1 tariff-pause expiration. The European Union is getting ready to push back after the Trump administration pressed the bloc to accept levies in the range of 15% or more, The Wall Street Journal reported.
Bloomberg
2 days ago
- Business
- Bloomberg
Bank of England Urged to Hold Back Long-Dated Bonds From Market
The Bank of England is facing pressure to hold onto more than a quarter of its bond holdings, potentially for decades, after recent market turmoil highlighted the fragility of demand for long-dated UK government debt. Forecasters including Oxford Economics and HSBC Holdings Plc expect the central bank to limit sales of its remaining £163 billion ($219 billion) of gilts with a term of over 20 years, or even stop the disposals altogether, in a shift to the way it is reducing its crisis-era balance sheet.
