Latest news with #DakotaWealth
Business Recorder
21-05-2025
- Business
- Business Recorder
S&P 500 set to snap six-day winning streak
NEW YORK: Wall Street's main indexes fell on Tuesday, with the benchmark S&P 500 on track to end its six-day winning streak as investors awaited commentary from central bank officials to gauge the impact of US tariffs on the Federal Reserve's policy path. The Nasdaq Composite was set to follow the benchmark index to record its first loss in three sessions, if declines held. At least seven Fed officials including St. Louis Fed President Alberto Musalem are scheduled to speak through the day. 'With a market that has rallied so much in a pretty short amount of time on very little news that's substantial, it's just trying to digest it all and figure out what the next catalyst is,' said Robert Pavlik, senior portfolio manager at Dakota Wealth. US stocks have had a solid month so far, with the S&P 500 now more than 17% higher than its April lows, when US President Donald Trump's reciprocal tariffs roiled global markets. A pause in the tariffs, a temporary trade truce between the US and China and tame inflation data pushed equities higher, although the S&P 500 is still about 3% from its record highs. Earlier in the week, Fed officials flagged the ramifications of the latest downgrade of the US government's sovereign credit rating and uneasy market conditions. Traders currently expect at least two 25-basis-point rate cuts from the US Federal Reserve by the end of 2025, with the first one expected in September, according to data compiled by LSEG. Retailer Home Depot pared earlier gains but was still slightly up after beating Wall Street estimates for first-quarter sales. Most megacap and growth stocks fell, though Tesla was an outlier with a 1.8% rise after Elon Musk said at an economic forum in Qatar that he was still committed to being the company's CEO in five years. Nine of the 11 S&P sub-sectors traded lower, with information technology, which was down nearly 0.7%, being the worst hit. At 11:49 a.m. ET, the Dow Jones Industrial Average fell 106.45 points, or 0.25%, to 42,684.69, the S&P 500 lost 20.96 points, or 0.35%, to 5,942.64, and the Nasdaq Composite lost 77.89 points, or 0.40%, to 19,137.57. The S&P 500 ended flat on Monday as investors assessed the implications of Moody's downgrading the US sovereign credit rating to 'Aa1' from a pristine 'Aaa', citing the government's $36-trillion outstanding debt and interest.
Globe and Mail
14-02-2025
- Business
- Globe and Mail
Walmart to shed light on U.S. consumer health as inflation bites, tariffs swirl
Walmart's (WMT-N) quarterly report in the coming week will give investors fresh insight into the health of U.S. consumers, who are facing stronger inflation and uncertainty over whether President Donald Trump's tariffs will push up prices. The benchmark S&P 500 stock index was up about 1% for the week, with stocks showing resilience despite a hot report on consumer prices that led investors to push back expectations of further interest rate cuts this year. Wall Street closely watches trends in consumer spending, which accounts for more than two-thirds of U.S. economic activity. The extent to which inflation is weighing on shopping behavior could become more evident with Thursday's earnings report from retailer Walmart. 'Walmart is sort of a canary in the coal mine as far as consumer spending and consumer health is concerned,' said Robert Pavlik, senior portfolio manager at Dakota Wealth. Walmart's report could show 'how much of higher food prices and higher gasoline or energy prices is digging into the discretionary spending of consumers,' Pavlik said. The S&P 500 has climbed more than 3% this year, with broad gains among sectors. Investors have digested a flurry of policy announcements from the Trump administration, including on tariffs and federal government cost cuts, and more recently, discouraging data on inflation. Stocks sold off modestly on Wednesday after a report showed consumer prices in January jumped by the most in nearly 1-1/2 years, with Americans facing higher costs for a range of goods and services. The CPI data came on the heels of a survey that revealed U.S. consumer sentiment sank in February to a seven-month low as inflation expectations soared. Households feared it may be too late to avoid the negative effects from Trump's threatened tariffs, according to the survey's director. Company executives are grappling with the potential fallout from tariffs. Since the beginning of the year, nearly 430 companies in the S&P 1500 have either mentioned tariffs or responded to a question about tariffs on earnings calls or at investor events, according to LSEG data. Walmart, as the most important consumer company in the country along with Amazon (AMZN-Q), will be closely watched for its commentary, said Matt Maley, chief market strategist at Miller Tabak. 'It's not just what their numbers are and their guidance, but what they say about the consumer,' Maley said. Walmart's comments could help address whether people are 'so worried about tariffs that they're starting to question some of their spending,' Maley said. A Walmart spokesperson declined to comment, saying the company was in a quiet period ahead of its earnings report. Walmart's report will be followed by results in the next few weeks from a range of consumer companies, including home improvement company Home Depot (HD-N), off-price retailer TJX Cos (TJX-N) and Target (TGT-N), that will also wind down fourth-quarter reporting season for corporate America. With nearly three-fourths of index companies having reported, S&P 500 earnings are on track to have climbed 15.2% from the year-earlier period, its strongest pace in three years, according to LSEG IBES data. Still, expectations for S&P 500 profits in 2025 have moderated since the start of the year, which some investors said has undercut optimism from the fourth-quarter reports. The potential impact from import tariffs - which are expected to weigh on profits and drive up inflation - is poised to remain prominent on Wall Street's radar in the coming week. Trump has announced a 10% tariff on China and a broad duty on steel and aluminum imports, while delaying tariffs on Mexico and Canada. 'No one's quite sure what's a negotiation and what's the policy,' said Rick Meckler, partner at Cherry Lane Investments. Hedge funds and other large investors, he said, 'don't want to be caught short only to see a reversal in policy that causes the market to come right back.' Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.
Reuters
14-02-2025
- Business
- Reuters
Wall St Week Ahead Walmart to shed light on consumer health as inflation bites, tariffs swirl
NEW YORK, Feb 14 (Reuters) - Walmart's quarterly report in the coming week will give investors fresh insight into the health of U.S. consumers, who are facing stronger inflation and uncertainty over whether President Donald Trump's tariffs will push up prices. The benchmark S&P 500 stock index (.SPX), opens new tab was up about 1% for the week, with stocks showing resilience despite a hot report on consumer prices that led investors to push back expectations of further interest rate cuts this year. Wall Street closely watches trends in consumer spending, which accounts for more than two-thirds of U.S. economic activity. The extent to which inflation is weighing on shopping behavior could become more evident with Thursday's earnings report from retailer Walmart (WMT.N), opens new tab. "Walmart is sort of a canary in the coal mine as far as consumer spending and consumer health is concerned," said Robert Pavlik, senior portfolio manager at Dakota Wealth. Walmart's report could show "how much of higher food prices and higher gasoline or energy prices is digging into the discretionary spending of consumers," Pavlik said. The S&P 500 has climbed more than 3% this year, with broad gains among sectors. Investors have digested a flurry of policy announcements from the Trump administration, including on tariffs and federal government cost cuts, and more recently, discouraging data on inflation. Stocks sold off modestly on Wednesday after a report showed consumer prices in January jumped by the most in nearly 1-1/2 years, with Americans facing higher costs for a range of goods and services. The CPI data came on the heels of a survey that revealed U.S. consumer sentiment sank in February to a seven-month low as inflation expectations soared. Households feared it may be too late to avoid the negative effects from Trump's threatened tariffs, according to the survey's director. Company executives are grappling with the potential fallout from tariffs. Since the beginning of the year, nearly 430 companies in the S&P 1500 have either mentioned tariffs or responded to a question about tariffs on earnings calls or at investor events, according to LSEG data. WALMART IN FOCUS Walmart, as the most important consumer company in the country along with Amazon (AMZN.O), opens new tab, will be closely watched for its commentary, said Matt Maley, chief market strategist at Miller Tabak. "It's not just what their numbers are and their guidance, but what they say about the consumer," Maley said. Walmart's comments could help address whether people are "so worried about tariffs that they're starting to question some of their spending," Maley said. A Walmart spokesperson declined to comment, saying the company was in a quiet period ahead of its earnings report. Walmart's report will be followed by results in the next few weeks from a range of consumer companies, including home improvement company Home Depot (HD.N), opens new tab, off-price retailer TJX Cos (TJX.N), opens new tab and Target (TGT.N), opens new tab, that will also wind down fourth-quarter reporting season for corporate America. With nearly three-fourths of index companies having reported, S&P 500 earnings are on track to have climbed 15.2% from the year-earlier period, its strongest pace in three years, according to LSEG IBES data. Still, expectations for S&P 500 profits in 2025 have moderated since the start of the year, which some investors said has undercut optimism from the fourth-quarter reports. The potential impact from import tariffs - which are expected to weigh on profits and drive up inflation - is poised to remain prominent on Wall Street's radar in the coming week. Trump has announced a 10% tariff on China and a broad duty on steel and aluminum imports, while delaying tariffs on Mexico and Canada. "No one's quite sure what's a negotiation and what's the policy," said Rick Meckler, partner at Cherry Lane Investments. Hedge funds and other large investors, he said, "don't want to be caught short only to see a reversal in policy that causes the market to come right back." Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here.
