Latest news with #stocks
Zawya
21 minutes ago
- Business
- Zawya
Stocks drift before tech earnings as Fed drama confounds
SINGAPORE: Asian stocks dithered on Thursday ahead of earnings from heavyweight technology companies and as market anxiety lingered over the uncertain tenure of Federal Reserve chief Jerome Powell. TSMC, the world's main producer of advanced AI chips, is expected to post a jump in second-quarter profit to record levels, though U.S. tariffs and a strong Taiwan dollar could weigh on its outlook. Profits for streaming giant Netflix , due later on Thursday, are also on investors' radar. "With Netflix having outperformed the S&P 500 year-to-date by a sizeable 33 percentage points, and the street fully subscribed to the bullish investment case, Netflix will need to blow the lights out with a solid beat and raise," said Chris Weston, head of research at Pepperstone. MSCI's broadest index of Asia-Pacific shares outside Japan was up just 0.06% and the Nikkei slipped 0.24%. Canadian retailer Alimentation Couche-Tard said on Wednesday it was withdrawing its $47 billion takeover bid for Seven & i Holdings, citing a lack of constructive engagement by the Japanese retailer. Shares of Seven & i Holdings fell 9%. European futures jumped as EUROSTOXX 50 futures rose 0.56% and FTSE and DAX futures added about 0.4% each. Nasdaq futures and S&P 500 futures fell 0.1% each. Also dominating the market mood was confusion over Fed Chair Powell's future at the central bank, after initial news that U.S. President Donald Trump was likely to fire Powell soon sent stocks and the dollar sliding. Trump was quick to deny the reports, restoring some calm to volatile markets, but he kept the door open to the possibility and renewed his criticism of the central bank chief for not lowering interest rates. "I think the most likely outcome is for Powell to stay on until the end of his term next year. Having said that, this is not the first time, so there are going to be episodes of volatility in the dollar as a result of political noise," said Carlos Casanova, UBP's senior economist for Asia. The dollar was on a fragile footing on Thursday, after having lost ground overnight on worries that the Fed's independence could come under threat. The euro was last down 0.17% at $1.1620 while sterling eased 0.13% to $1.3400 after both currencies made gains in the previous session. The dollar was little changed at 98.49 against a basket of currencies, having lost 0.33% overnight. U.S. Treasury yields also steadied after falling on Wednesday, due to expectations that Powell's removal could lead to quicker and deeper rate cuts, with the two-year yield last at 3.9022%. The benchmark 10-year yield was little changed at 4.4673%. In Japan, yields on government bonds rose on Thursday as investors extended a selloff driven by fiscal concerns ahead of a closely watched upper house election on Sunday. Bond yields move inversely to prices. "Regardless of the outcome of the election, we are going to see additional fiscal spending coming out of Japan," said UBP's Casanova. Elsewhere, oil prices rose on Thursday, with Brent crude futures up 0.47% at $68.84 a barrel. U.S. crude futures gained 0.62% to $66.79. Spot gold dipped 0.15% to $3,341.29 an ounce. (Reporting by Rae Wee; Editing by Jacqueline Wong)
Zawya
21 minutes ago
- Business
- Zawya
Trump says he's not planning to fire Fed's Powell
WASHINGTON: U.S. President Donald Trump said Wednesday he is not planning to fire Federal Reserve Chair Jerome Powell, but he kept the door open to the possibility and renewed his criticism of the central bank chief for not lowering interest rates. A Bloomberg report earlier Wednesday saying that Trump was likely to fire Powell soon sparked a drop in stocks and the dollar, and a rise in Treasury yields. Trump, who has been criticizing Powell on an almost daily basis for being "TOO LATE" to cut interest rates, said the report wasn't true. But Trump confirmed he had floated the idea with Republican lawmakers on Tuesday evening, marking the latest chapter in an escalating campaign by Trump against the independent central bank and its embattled chief. "I don't rule out anything, but I think it's highly unlikely unless he has to leave for fraud," Trump said, a reference to recent White House and Republican lawmaker criticism of cost overruns in the $2.5 billion renovation of the Fed's historic headquarters in Washington. There has been no evidence of fraud, and the Fed has pushed back on criticism of its handling of the project. Powell, who was nominated by Trump during his first term in late 2017 to lead the Fed and then nominated for a second term by Democratic President Joe Biden four years later, has repeatedly said he intends to serve out his term, which runs through May 15, 2026. A recent Supreme Court opinion has solidified a long-standing interpretation of the law that the Fed chair cannot be fired over policy differences but only "for cause." In an interview aired later on Wednesday, Trump was again asked if he was thinking of removing Powell. "I'd love it if he wants to resign, that would be up to him," Trump told the Real America's Voice. "They say it would disrupt the market if I did." Treasury yields pared declines and stocks ended the day higher after Trump's comments, which included the familiar complaint that Powell is a "terrible" chair for keeping the Fed's short-term policy rate in the 4.25%-4.50% range since December while the central bank assesses the impact of sharply higher tariffs on inflation. Trump blames the Fed for higher long-term rates that increase the cost of U.S. government borrowing. His attacks on Powell have continued since his signing on July 4 of the "Big Beautiful Bill," the tax and spending bill that independent analysts say will add trillions of dollars to the U.S. deficit. "A HUGE MISTAKE" Republican Senator Thom Tillis of North Carolina, who opposed the tax bill and has since said he won't run for reelection, on Wednesday delivered a spirited defense of an independent Fed, which economists say is the linchpin of U.S. financial and price stability. "There's been some talk about potentially firing the Fed chair," said Tillis, a member of the Senate Banking Committee, which oversees the Fed and confirms presidential nominations to its Board. Subjecting the Fed to direct presidential control would be a "huge mistake," he said. "The consequences of firing a Fed chair, just because political people don't agree with that economic decision, will be to undermine the credibility of the United States going forward, and I would argue if it happens you are going to see a pretty immediate response, and we've got to avoid that," said Tillis. Other Republicans downplayed the possibility of Trump's firing Powell. Asked if it would be a problem for Trump to fire Powell, Senate Majority Leader John Thune told reporters: 'My understanding is he doesn't have any intention of doing that.' "President Trump's own analysis and that of his Treasury secretary is that he cannot fire Jay Powell," House Financial Services Committee Chair French Hill told CNBC earlier on Wednesday. RENOVATIONS AT THE FED Last week, the White House appeared to try to lay the groundwork for firing Powell for cause when the director of the Office of Management and Budget, Russell Vought, sent Powell a letter saying that Trump was "extremely troubled" by the renovations of two Fed buildings. Powell responded by asking the U.S. central bank's inspector general to review the project. The central bank also posted a "frequently asked questions" fact sheet, which rebutted some of Vought's assertions about VIP dining rooms and elevators that he said added to the costs. "Nobody is fooled by President Trump and Republicans' sudden interest in building renovations — it's clear pretext to fire Fed Chair Powell," Elizabeth Warren, the top Democrat on the Senate Banking Committee and herself a longtime critic of Powell, posted on X. Warren was the committee's only member to vote against Powell's renomination as chair in 2022, saying he had not done enough on regulation. Fed policymakers are worried that, with 40-year-high inflation only recently in the rear-view mirror, any bump up in inflation coupled with a too-early cut to short-term borrowing costs could ignite expectations that inflation is back, a potentially self-fulfilling prophecy that could weaken the economy and undermine progress on price stability. Analysts said they feared the pressure campaign on Powell would continue -- with deleterious effects on the Fed's ability to do its congressionally mandated job of both keeping prices stable and maximizing employment. "Any reduction in the independence of the Fed would likely add upside risks to an inflation outlook that is already subject to upward pressures from tariffs and somewhat elevated inflation expectations," wrote JP Morgan chief U.S. economist Michael Feroli, who said he doubts the "saga" of the president's repeated threats to remove Powell is over. Feroli and others noted that continued pressure on Powell would likely push up longer-term interest rates as investors demand more protection from the risk of higher inflation -- making U.S. government borrowing more, not less, expensive. The "formal process" for identifying a successor to Powell is under way, Treasury Secretary Scott Bessent has said. Bessent is one candidate for the job, along with White House economic adviser Kevin Hassett, former Fed Governor Kevin Warsh and Fed Governor Christopher Waller. (Reporting by Ryan Patrick Jones in Toronto, David Morgan, Trevor Hunnicutt, Andrea Shalal, Howard Schneider, Jasper Ward and Kanishka Singh in Washington; writing by Ann Saphir; editing by Rami Ayyub, Nick Zieminski and Leslie Adler)
Yahoo
29 minutes ago
- Business
- Yahoo
Fox Corporation Earnings Preview: What to Expect
Fox Corporation (FOX), with a market cap of $22.9 billion, is a leading New York-based media company known for producing and distributing engaging news, sports, and entertainment content. Its portfolio includes prominent brands such as FOX News, FOX Sports, the FOX Network, and FOX Television Stations. The company is slated to report its fiscal Q4 earnings on Tuesday. Aug. 5. Ahead of this event, analysts expect this communication services company to report a profit of $1.03 per share, up 14.4% from $0.90 per share in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in each of the last four quarters. More News from Barchart Dear Nvidia Stock Fans, Mark Your Calendars for July 16 Dear Google Stock Fans, Mark Your Calendars for July 23 Retirement Ready: 3 Dividend Stocks to Set and Forget Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! For fiscal 2025, analysts expect FOX to report a profit of $4.53 per share, up 32.1% from $3.43 in fiscal 2024. FOX has rallied 49.3% over the past 52 weeks, considerably outpacing both the S&P 500 Index's ($SPX) 10.5% gain and the Communication Services Select Sector SPDR Fund's (XLC) 22.4% rise over the same time frame. FOX shares rose 4.3% following the release of its Q3 earnings on May 12. Total revenue surged 26.8% year-over-year to $4.4 billion, fueled by solid growth across affiliate fees, advertising, and other revenue streams, exceeding Wall Street expectations. Adjusted earnings rose slightly to $1.09, topping consensus estimates by 14.6%. Despite the top-line strength, adjusted EBITDA declined 3.9% to $856 million, as increased expenses, driven by higher sports programming rights amortization, Super Bowl LIX production costs, and elevated digital content and marketing spend, weighed on profitability. Wall Street analysts are moderately optimistic about FOX's stock, with a "Moderate Buy" rating overall. Among 13 analysts covering the stock, six recommend "Strong Buy," and seven indicate 'Hold.' The mean price target for FOX is $56.25, which indicates a 10.1% potential upside from the current levels. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
an hour ago
- Business
- Yahoo
Emerging Opportunities in Middle Eastern Small Caps
As Middle Eastern markets navigate the complexities of U.S. inflation concerns and rate uncertainties, small-cap stocks in the region present unique opportunities amidst broader market fluctuations. In this environment, a good stock is often characterized by its resilience to external economic pressures and its ability to capitalize on regional growth drivers, making it an intriguing prospect for investors seeking emerging opportunities. Top 10 Undiscovered Gems With Strong Fundamentals In The Middle East Name Debt To Equity Revenue Growth Earnings Growth Health Rating Baazeem Trading 8.48% -2.02% -2.70% ★★★★★★ MOBI Industry 6.50% 5.60% 24.00% ★★★★★★ Sure Global Tech NA 11.95% 18.65% ★★★★★★ Nofoth Food Products NA 15.75% 27.63% ★★★★★★ Etihad Atheeb Telecommunication 1.05% 36.24% 62.25% ★★★★★★ Najran Cement 14.20% -2.87% -22.60% ★★★★★★ National General Insurance (P.J.S.C.) NA 14.55% 29.05% ★★★★★☆ National Corporation for Tourism and Hotels 19.25% 0.67% 4.89% ★★★★☆☆ National Environmental Recycling 69.43% 43.47% 32.77% ★★★★☆☆ Saudi Chemical Holding 79.49% 16.57% 44.01% ★★★★☆☆ Click here to see the full list of 223 stocks from our Middle Eastern Undiscovered Gems With Strong Fundamentals screener. Here's a peek at a few of the choices from the screener. Amanat Holdings PJSC Simply Wall St Value Rating: ★★★★★☆ Overview: Amanat Holdings PJSC is an investment company focusing on the education and healthcare sectors in the UAE and internationally, with a market capitalization of AED2.79 billion. Operations: Amanat Holdings PJSC generates revenue primarily from its investments in the education sector, contributing AED460.94 million, and the healthcare sector, adding AED362.38 million. The company's net profit margin is a key financial metric to consider when evaluating its profitability. Amanat Holdings, a notable player in the Middle East's financial landscape, has demonstrated robust earnings growth of 166.2% over the past year, outpacing its industry peers. With a debt to equity ratio rising from 2.3% to 11.3% in five years, it still holds more cash than total debt, indicating sound financial health. The company reported AED 240.73 million in sales for Q1 2025, up from AED 213.5 million last year; however, net income dipped slightly to AED 37.67 million from AED 40.64 million previously, suggesting some operational challenges amidst strong revenue growth. Click here to discover the nuances of Amanat Holdings PJSC with our detailed analytical health report. Understand Amanat Holdings PJSC's track record by examining our Past report. Al Hassan Ghazi Ibrahim Shaker Simply Wall St Value Rating: ★★★★★★ Overview: Al Hassan Ghazi Ibrahim Shaker Company operates in the trading, wholesale, and maintenance sectors for spare parts, electronic equipment, household equipment, and air-conditioners across Saudi Arabia and Jordan with a market cap of SAR1.58 billion. Operations: Shaker generates revenue primarily from its Home Appliances and Heating, Ventilation, and Air-Conditioning Solutions (HVAC) segments, with HVAC contributing SAR1.06 billion. The company's financial performance is characterized by a net profit margin trend that reflects its operational efficiency in these sectors. In the dynamic landscape of Middle Eastern stocks, Shaker stands out with a notable 45% annual earnings growth over the past five years. The company has effectively reduced its debt to equity ratio from 54% to 36%, showcasing financial prudence. Despite not outpacing industry growth last year, its net debt to equity remains satisfactory at 27%. With a P/E ratio of 20.8x, it's attractively valued against the SA market's average of 21.2x. Recent board elections and dividend affirmations indicate active governance and shareholder engagement, enhancing its appeal as a promising investment in this region's market. Click to explore a detailed breakdown of our findings in Al Hassan Ghazi Ibrahim Shaker's health report. Review our historical performance report to gain insights into Al Hassan Ghazi Ibrahim Shaker's's past performance. Alf Meem Yaa for Medical Supplies and Equipment Simply Wall St Value Rating: ★★★★★★ Overview: Alf Meem Yaa for Medical Supplies and Equipment Company operates in the wholesale and retail trade of medical supplies for the aesthetic market in Saudi Arabia, with a market capitalization of SAR964.60 million. Operations: The company's revenue is primarily derived from its wholesale segment, specifically in medical equipment, amounting to SAR248.35 million. Alf Meem Yaa stands out with its impressive earnings growth of 35.5% over the past year, outpacing the healthcare industry average of 11.3%. Trading at a significant discount, it's valued at 68.8% below its estimated fair value, suggesting potential upside for investors. Despite experiencing share price volatility recently, this debt-free company has shown resilience and high-quality non-cash earnings. Recent board decisions include a dividend distribution of SR 2 per share totaling SR 14 million, indicating strong shareholder returns and confidence in future profitability amidst forecasted revenue growth of 37.08% annually. Delve into the full analysis health report here for a deeper understanding of Alf Meem Yaa for Medical Supplies and Equipment. Gain insights into Alf Meem Yaa for Medical Supplies and Equipment's historical performance by reviewing our past performance report. Key Takeaways Get an in-depth perspective on all 223 Middle Eastern Undiscovered Gems With Strong Fundamentals by using our screener here. Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive. Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world. Seeking Other Investments? Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair 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 DFM:AMANAT SASE:1214 and SASE:9527. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
an hour ago
- Business
- Yahoo
ASML cuts outlook, Palantir & ARM upgraded: Trending Tickers
Here are some of the stocks on the move on Wednesday, July 16. ASML (ASML) stock is under pressure after the company narrowed its 2025 guidance, citing rising tariff uncertainty and geopolitical tensions. Palantir (PLTR) stock is in focus after Mizuho upgraded the company to Neutral, noting increased enterprise activity and strong artificial intelligence (AI) adoption. ARM Holdings (ARM) is rising following an upgrade to Outperform from Neutral by BNP Paribas, which sees upside potential from the company's expansion into ASIC chips and data centers. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Now time for some of today's trending tickers. Gonna start with ASML, that company narrowing its guidance for the remainder of 2025 amid tariff uncertainty. So this one was interesting, Chris. Uh, it sounds like we have a company kind of walking back the forecast here. That sales will grow next year. They're walking that back. They seem like they're pinning it on trade disputes in part. CEO saying we continue to see increasing uncertainty driven by macroeconomic and geopolitical developments. While we still prepare for growth in 2026, we cannot confirm it at this stage. I think you're going to hear a lot more about that as we go through the earnings season. You know, not to harp on it 'cause we were just talked about tariffs and trade deals and that uncertainty, but it's kind of a cover if you want to think about it, right? If If you're a company and you're planning whether it's your capital spending budget, or your outlook for how what consumers are going to do, whether or not others will be, you know, taking your products, you don't really know the landscape. You can see the data, but this tariff uncertainty is just amping up questions that you just don't have the answers to right now. And I've been thinking that this earnings season, more companies than not are likely to guide more conservatively because we don't know that. I'm a little concerned about where the S&P 500 is, right? Earnings expectations come down. That either means the market comes down or the multiple goes higher. And at what point do people start to question the market valuation? To your point, the CFO of the company saying customers, I thought this was interesting. So, customers are more more concerned about the tariff discussion today than they were three months ago. Countries are in full battle mode again when it comes to tariffs. 100%. I mean, you know, again, Trump has kind of pushed it down, and we've got now 30%, 35%, potentially higher. How do you plan in that environment if you don't? Because you don't know if that's going to be it. Could it be something else? Could it be even higher, you know? If something happens and Trump says, "Ah, we're gonna do this." So it's a very uncertain time, hard to plan for. All right, let's turn to another one. Now with Palantir, that stock getting a lift at Mizuho, the firm highlighting a bright spot for revenue growth. So Mizuho upgrades this one, they go to neutral, right? And here's what they say, Chris, they say, "While checks on Palantir's business are very limited, we heard we heard that enterprise inbound activity rose materially. We anticipate ongoing strong AI adoption in the US." We believe Palantir has a legitimate chance, they say, to accelerate total revenue growth for growth for a fifth consecutive quarter. Yeah, that's why That's why we own the stock in the pro portfolio at the street. That's why we bought it in, you know, around 70, 75 on that pullback earlier in the year. What confounds me, though, is an upgrade to a neutral with a price target that is lower than where the stock is. Doesn't seem to make sense. Uh, if I were to sift through it, put my buy-side hat on, sounds like you missed it, and he's kind of trying to catch up. Uh they They acknowledge they call it a sky-high valuation, is how they put it, Chris. But the robo robust growth story appears intact. Their target looks like 135. To your point, the stock has been of course a monster. Yeah, it has. It has. I I honestly think, Josh, that you're saying, "Wow, we see big growth out there, but we're concerned about the value." You're talking out of both sides of your mouth. Which one is it? Got a call. All right, lastly, Arm Holdings is getting an upgrade at BNP Paribas, citing potential upside from ASIC chips. Uh so they upgrade this one to outperform, their target's 120. What do you make of that one, Chris? Uh again, little late to the party on this one. Big move off the IPO, though. Oh, oh, yeah. Yeah. But I mean, you know, look, we're going into the seasonally strongest part of the year for their key end markets. Um they are trying to move more into data centers. So it does make sense that, you know, you want to be where the growth is going into the second half of the year. Personally, I prefer Nvidia, Marvell, and Qualcomm over this, but that's just me. To your point, the analyst does say here, there are still significant upside to be had. That's what they're telling clients.
