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2 hours ago
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Trump goes on $100 million bond-buying spree: Here's what it could signal about future interest rates
President Donald Trump has reportedly put $100 million into bonds since taking office in January, through a mixed bet on the debt of both big companies like Meta and Home Depot as well as municipal governments and public entities. The move is notable because he has not placed his investments in a blind trust, unlike other presidents, but also because, as one expert believes, it signals that he expects interest rates to fall. President Donald Trump has gone on a bond-buying spree since taking office, reportedly sinking more than $100 million into debt issued by big companies and municipal governments alike. Trump put millions of dollars behind his bond strategy in February including between $500,000 and $1 million each into bonds issued by companies such as Home Depot, T-Mobile, and United Healthcare. Another bet of between $250,000 and $500,000 went into debt issued by Meta, based on a CNBC calculation of 690 transactions reported to the Office of Government Ethics since January and published Tuesday. He has also bought debt issued by local U.S. governments, gas districts, water supply districts, hospital authorities, and school boards, according to CNBC. The White House did not immediately respond to Fortune's request for comment. Investors usually turn to bonds because they are less volatile than stocks. A bond is like a loan that pays out interest to an investor, usually semiannually, over a defined period. Once that period ends and the bond reaches maturity, the investor gets their principal investment back. Trump's bond-buying binge stands out because he, unlike other presidents, has not put his investments into a true blind trust. Otherwise, Trump's bond purchases, whether directed by him or the person in charge of his finances, look like the typical bet of a deep-pocketed investor—one who thinks interest rates are set to fall, said Russell Rhoads, a clinical associate professor of financial management at Indiana University. Because bond prices typically rise when interest rates fall, it's possible Trump made the bets hoping he could later sell the bonds at a profit. Rates are likely to drop faster for corporate bonds than for government bonds because they are riskier, said Rhoads. Trump's insistent pressure for the Fed to cut rates could also be akin to him 'talking his book,' added Rhoads. 'You could take the way that he's been pushing so hard for the Fed to cut rates as like a portfolio manager going on CNBC and talking positive about a stock that's a big holding of theirs to try to get other people to buy it,' Rhoads told Fortune. The Fed and interest rates The Fed has held interest rates steady at between 4.25% and 4.5% since late 2024, although some investors are looking to the central bank's September meeting for a possible rate cut. Trump's purchase of municipal bonds, issued by state and local governments, could also be part of the investment strategy, because the interest they yield is generally exempt from federal income taxes. A bond from an investor's home state will generally be exempt from state taxes. With the stock market near all-time highs, a preference for bonds could be wise. 'It's just a logical portfolio management move, as opposed to, you know, something that he knows about rates that the rest of us don't know,' said Rhoads. Trump has maintained ultimate control over his businesses and investments, while delegating responsibility for his business empire to his sons Donald Trump Jr. and Eric Trump. The president and his immediate family have reportedly seen profits of $3.4 billion months into his term, especially from his crypto dealings, The New Yorker reported. The president and vice president are exempt from the main law aimed at preventing conflicts of interest by government officials. This story was originally featured on Sign in to access your portfolio
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4 hours ago
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Meredith Whitney famously called the 2008 financial crisis. Here's the new problem with the U.S. economy, she says
Nearly two decades ago, financial analyst Meredith Whitney was labeled the 'Oracle of Wall Street' for her bearish views on banks ahead of the global financial crisis. Featured in 'The Big Short' book on that crisis, author Michael Lewis likened her to E.F. Hutton at the time — she talked, people listened — though she got no mention in the movie by the same name. Lowe's tops Home Depot with an $8.8 billion buyout deal and an earnings beat 'I can only rely on me': How do I protect myself from my parents' nursing-home bills? The CEO and founder of the Meredith Whitney Advisory Group has been spotting trouble on the horizon again, saying the U.S. faces a 'bifurcated economy' driven by the high-end consumer. In a Tuesday interview with MarketWatch, Whitney stood by a prediction she made earlier this year, that over 50% of U.S. households – many living paycheck to paycheck – faced a second recession of losing jobs, after one in 2022-2023 when stimulus checks ended. 'To me, the weakest portion of the U.S. economy, which employs over 20% of U.S. workers, is hospitality and leisure,' she said. Those jobs generally pay under $60,000 and may see the biggest hits when employment numbers start to worsen and tariffs start to weigh, she added. 'I think employment is going to be a really big pickle,' Whitney said, adding that stagflation — rising jobless numbers and sticky inflation — is a 'real possibility.' That's as college graduates are having an incredibly difficult time in getting first jobs, just as student debt payments resume, which she notes is straining multiple generations. Whitney turned bullish on dollar stores like Dollar General DG and Dollar Tree DLTR late last year, 'thinking the worst was over,' but moved away from that view in May. 'I think the dollar stores are going to be challenged -– we'll see in a couple of weeks when they report -– because their customer base will be the most economically challenged,' she said. She now prefers 'higher-end retailers' like Home Depot HD, Lowe's LOW and Walmart WMT. Those companies 'don't scream 'high end,' but we argue that the fact that more of their customers are homeowners, and homeowners and the high end are the only households with a financial safety net, is significant,' Whitney told clients in a separate note. Whether or not consumers continue to spend comes down to home ownership, according to Whitney, who said homeowners increasingly began to tap into their home equity a little over a year ago, reversing a 17-year cycle of declining equity-home loans. 'So from a peak of around $700 billion, that went down closer to $250 billion to $240 billion and that's now increasing. And home equity is actually the fastest growing loan category of any consumer-loan product,' with credit cards, student and auto loans flat, she said. She's bullish on companies in that space of home equity, personal loans and cash-out refinances. Those include Rocket RKT, SoFi Technologies SOFI and Affirm Holdings AFRM — those stocks have doubled or more this year. Whitney believes the housing market itself is headed for its worst market in decades — in terms of activity — backing up a prediction she made a month ago. 'Existing-home sales are tracking under 4 million on an annualized basis and that's the worst in over 25 years. Buyers are looking for steep discounts and sellers are not willing to make those discounts,' she said. The trouble is that an estimated 60% of homes are owned by those over 55, who aren't selling, partly as lower-cost downsizing options are limited, she said. 'So either these folks have no mortgage or a small mortgage and the capital gains that they have to take and the costs that are required to move are prohibitive,' she said, adding that boomers may not be as wealthy as many think. Stuck with limited alternatives, they are tapping tapping into equity in their homes, accounting for 41% of total home equity debt, she said.. That, of course is counterintuitive because individuals tend to get more conservative with money as they age, but are now struggling with increasing costs of owning a home – property insurance has risen well north of 60% over the past five years, she noted. 'Given the fact that 60% of homes are owned by seniors, that is the clear issue with affordable housing, because there's just an inventory lock,' said Whitney. Read: A stablecoin boom will force a return to dollar dominance — but not just yet, this strategist says U.S. stocks SPX DJIA COMP have opened mixed following Tuesday's losses driven by big technology names. Treasury yields BX:TMUBMUSD10Y are inching up and oil CL00 is also positive. Key asset performance Last 5d 1m YTD 1y S&P 500 6411.37 -0.53% 1.61% 9.01% 14.55% Nasdaq Composite 21,314.95 -1.69% 2.02% 10.38% 19.63% 10-year Treasury 4.322 7.70 -6.60 -25.40 51.70 Gold 3361.1 -1.13% -2.41% 27.35% 31.70% Oil 62.04 -1.65% -5.21% -13.68% -15.12% Data: MarketWatch. Treasury yields change expressed in basis points Need to Know starts early and is updated until the opening bell, but to get it delivered once to your email box. The emailed version will be sent out at about 7:30 a.m. Eastern. Target TGT named a new CEO as it beat earnings expectations in the second quarter. Lowe's LOW hiked its full-year guidance and said it was buying Foundation Building Materials for $8.8 billion. Toll Brothers TOL slashed full-year home-deliveries guidance, and shares of the homebuilder are slipping. Hertz shares HTZ are jumping after the car-rental agency reportedly said it will start selling ex-rentals on Amazon AMZN Autos. After weeks of talks between McDonald's MCD and its restaurant chains, the cost of Big Mac meals is reportedly coming down. Minutes of the July Federal Open Market Committee meeting are due at 2 p.m., with an appearance by Fed. Gov. Christopher Waller at 11 a.m. ahead of that. Later, Atlanta Fed President Raphael Bostic will speak. Trump embarks on $104 million bond-buying spree while in office. Elon Musk pledged to start a political party. He is already pumping the brakes. Hotter summers and overcrowding threaten Europe's tourist economies. Tuesday was notable in other ways, such as a burst of energy for value plays, while momentum stocks sagged, as the chart shows. That 'smells a lot like the clean-out in the AI trade we saw last January, when the release of DeepSeek drove a temporary market panic over the outlook in the space,' said analysts at Bespoke Investment Group. These were the top-searched tickers on MarketWatch as of 6 a.m.: Ticker Security name NVDA Nvidia TSLA Tesla PLTR Palantir OPEN Opendoor AMD Advanced Micro Devices INTC Intel TSM Taiwan Semiconductor Manufacturing NIO NIO AMZN Amazon GME GameStop India's poor buy meals with plastic garbage at one cafe. Archaeologists are building a 13th century fortress in France. 'I learned a hard lesson': My ex-husband gambled away our $900,000 life savings. Do I use my 401(k) to buy a home? There's a slow-motion crisis in bonds — and this bearish strategist thinks it will hit stocks 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
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4 hours ago
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Earnings live: Walmart, Workday, and Intuit fall after reporting results, Zoom stock pops
Second quarter earnings season is winding down, and with most of the reports in, the results have been mostly positive. Over 92% of S&P 500 index companies have reported results, and as of Aug. 18, analysts expected S&P 500 companies to report an 11% jump in earnings per share during the second quarter. Companies had lower expectations to clear coming into the quarter — analysts expected S&P 500 earnings to rise 5% in Q2, the slowest pace of earnings growth since Q4 2023 — amid President Trump's tariffs, stocks' lofty valuations, and uncertainty about the health of the US economy. Highly anticipated reports from Walmart (WMT), Target (TGT), Home Depot (HD), and Lowe's (LOW) are being watched for insights into consumer spending. Other major companies reporting this week include BJ's Wholesale (BJ), TJX Companies (TJX), Ross Stores (ROST), Estée Lauder (EL), Intuit (INTU), Zoom Communications (ZM), Workday (WDAY), Xpeng (XPEV), Medtronic (MDT), La-Z-Boy (LZB), Toll Brothers (TOL), Palo Alto Networks (PANW), and Blink Charging (BLNK). Last week, results came in for Applied Materials (AMAT), Circle (CRCL), Lenovo ( AMC (AMC), Cava (CAVA), Cisco (CSCO), CoreWeave (CRWV), Deere (DE), On (ONON), and Oklo (OKLO). Here are the latest updates from corporate America. Zoom stock pops as CEO attributes earnings beat to AI Zoom stock (ZM) popped 5% on Thursday afternoon after the company reported a huge earnings beat. Zoom posted earnings per share of $1.16, compared to Wall Street analyst estimates for $0.72, per S&P Global Market Intelligence. That represents 66% annual earnings growth. The company's founder and CEO, Eric Yuan, noted that the strong quarter comes as artificial intelligence reshapes the way people are working. The company highlighted its paid add-on for custom AI agents that help with meeting prep and call summaries as drivers. Revenue rose 5% to $1.2 billion, bolstered by 7% growth in Enterprise revenue. The company's monthly churn rate remained flat year over year at 2.9%. Zoom also raised its full-year revenue outlook and free cash flow guidance, which is now expected to be in the range of $1.74 billion to $1.78 billion. For the full 2026 fiscal year, total revenue is expected to be between $4.825 billion and $4.835 billion while diluted EPS is expected to be between $5.81 and $5.84. Workday to acquire AI company Paradox, stock falls Workday (WDAY) stock slipped more than 3% in after-hours trading following the company's announcement that it would acquire Paradox for an undisclosed amount. Paradox is an AI company that uses AI chatbots to simplify the job application process. Workday also reported second quarter results that beat expectations. Subscription revenue increased 14%, lifting overall revenue to $2.35 billion in the second quarter. Wall Street was looking for revenue of $2.34 billion. Diluted earnings per share of $2.21 beat estimates of $2.12 per share. "Our second quarter results reflect the strength of our platform and our continued progress across several of our growth initiatives," CFO Zane Rowe said. "Following our first half momentum — and also incorporating the acquisition of Paradox — we are increasing our fiscal 2026 subscription revenue guidance to $8.815 billion, representing growth of 14%, and increasing our fiscal 2026 non-GAAP operating margin guidance to approximately 29%." Intuit forecasts first-quarter revenue growth below estimates Shares of Intuit (INTU), the company behind tax-preparation and finance software TurboTax, Credit Karma, and QuickBooks, fell 5% after hours after the company forecast fiscal first quarter revenue growth below analyst estimates. Reuters reports: Intuit's board also approved a new $3.2 billion share buyback plan, raising its total repurchase authorization to $5.3 billion. Read more here. Walmart is still embarrassing Target Walmart (WMT) and Target (TGT) often get compared, especially when they report earnings back-to-back. But the most recent results from the big box stores highlight how the two couldn't be more different. Yahoo Finance's Brian Sozzi dived into the two retailers' quarters: Read more here. Walmart CEO: Tariff impact has been 'gradual,' but we expect costs to increase Walmart (WMT) reassured investors that it's continuing to gain market share and generate healthy sales growth. But even though executives said the company didn't see any "dramatic shifts" with consumer behavior last quarter, they did communicate that keeping costs low could become a greater challenge in the second half of the year as tariff-related price increases work their way through inventory. "With regards to our US pricing decisions, given tariff-related cost pressures, we're doing what we said we would do: We're keeping our prices as low as we can for as long as we can," Walmart CEO Doug McMillon said on Walmart's earnings call. "The way things have played out so far, the impact of tariffs has been gradual enough that any behavioral adjustments by the customer have been somewhat muted," McMillon continued. "But as we replenish inventory at post-tariff price levels, we've continued to see our costs increase each week, which we expect will continue into the third and fourth quarters." Listen to a replay of the earnings call here. Walmart stock falls after earnings miss forecasts as US sales, 2025 outlook rise Retail giant Walmart (WMT) stock slipped 2% on Thursday after missing Wall Street estimates. Yahoo Finance's Brooke DiPalma looks at the retail chains' earnings and how economic challenges may have impacted their results. Read more here. Walmart earnings expected to show US sales growth continued in Q2 as consumers seek value Walmart (WMT) will report quarterly results Thursday morning before the bell, following on the heels of Target (TGT) earnings Wednesday, which sent shares of the retailer 6% lower. But Walmart is expected to highlight another robust quarter, Yahoo Finance's Brooke DiPalma writes, as consumers search for value amid tariff-related uncertainty. Brooke previews what to look for in Walmart's earnings: Read more here. TJX Companies shares rise after earnings beat and raise TJ Maxx parent TJX Companies (TJX) beat sales and profit estimates for the second quarter and raised its annual profit forecast, boosting shares in premarket trading. Reuters reports: Read more here. Lowe's stock rises after same-store sales return to growth Lowe's (LOW) stock popped in premarket trading on Wednesday after the home improvement retailer reported a return to same-store sales growth, earnings beat, and raised its guidance. Yahoo Finance's Brooke DiPalma reports: Read more here. Target beat low earnings expectations as sales continue to fall Target (TGT) released its second quarter results on Wednesday. The results are not as bad as the first quarter but declining sales has the retail giant in a bit of a bind. Shares in target fell 8% before the bell Yahoo Finance's executive editor Brian Sozzi looks at the latest from Target and whether it will ever find its place in this new economic environment. Read more here. Baidu quarterly revenue falls as weak ads offset cloud growth Reuters reports: Read more here. Estee Lauder forecasts annual profit below estimates as tariffs hit Estee Lauder (EL) stock fell 8% before the bell on Wednesday after the beauty group forecast annual profit below Wall Street estimates, as it grapples with persistent weakness in the US and China markets and tariff uncertainty. Reuters reports: Read more here. Toll Brothers beats on earnings, but new orders decline 4% Toll Brothers (TOL) reported another double beat in its fiscal third quarter, but a slowdown in new orders weighed on the stock, which drifted 1.6% lower after hours. The homebuilder posted diluted earnings per share of $3.73 on home sale revenue of $2.88 billion. Wall Street analysts were expecting earnings per share of $3.64 on revenue of $2.85 billion. After a sluggish spring season in the housing market, there have been signs of a resurgence, with housing starts jumping in July. But mortgage rates that have barely budged, ongoing economic uncertainty, and affordability challenges for buyers continue to weigh on the sector. For the quarter, Toll Brothers noted it had 2,388 units under signed contract, a 4% decline from a year ago. Analysts had expected orders growth. "The average sales price of new contracts was $1.0 million, up 4.5% year-over-year," CEO Douglas Yearley said in the earnings release. "Contract dollars were flat despite a 4% decline in units. While affordability pressures and uncertain economic conditions persist, we are pleased with the resilience of our luxury business and more affluent customer base." La-Z-Boy stock drops on soft earnings and guidance La-Z-Boy stock (LZB) dropped 16% in after-hours trading after the company missed earnings estimates and navigated "soft industry demand." Overall, comparable sales dropped 1% to $492 million from a year ago. Sales in the furniture retailer's wholesale segment increased 1%, and retail sales rose 5%, but they were offset by weakness in the Joybird brand, which saw sales decline 14%. La-Z-Boy reported diluted earnings per share of $0.44, compared to $0.61 per share a year ago. The Street was looking for earnings of $0.52 per share. La-Z-Boy's guidance also came in lighter than expected. It expects sales in the range of $510 million to $530 million in the fiscal second quarter. Wall Street was looking for $532 million, according to S&P Global Market Intelligence. Medtronic appoints 2 new board members, posts Q1 beat Irish medical device maker Medtronic (MDT) reported better-than-expected earnings for its fiscal first quarter on Monday. But the bigger story was the company's announcement that it would add two new directors to its board after activist investor Elliott Investment Management became one of its largest shareholders. Veteran med-tech executives John Groetelaars and Bill Jellison were appointed, the company said. Medtronic stock dropped over 3% in premarket trading. For the quarter, the company posted adjusted earnings of $1.26 per share, beating analysts' estimates for $1.23, according to S&P Global Market Intelligence. Revenue came in at $8.6 billion, above Wall Street's forecast of $8.4 billion. Read more here. Home Depot slightly misses Wall Street's mark in Q2 earnings, reiterates guidance Home Depot (HD) released its second-quarter earnings on Tuesday. Yahoo Finance's senior reporter Brooke DiPalma looks at the latest from the retail giant and how the US housing slump has impacted its bottom line. Read more here. China's Xpeng expects quarterly revenue to double on strong demand for its EVs Chinese electric vehicle maker Xpeng (XPEV) on Tuesday forecast third-quarter revenue would double. The company is betting on surging deliveries of its cars despite challenging economic conditions. The group's stock rose 0.6% in premarket trading on Tuesday. Reuters reports: Read more here. Xiaomi's revenue rises 31% after second EV fires up consumers Bloomberg News reports: Read more here. Palo Alto Networks stock pops on healthy earnings growth, guidance Palo Alto Networks (PANW) stock shot up 6% after hours after the company reported solid earnings and margin growth in its fiscal fourth quarter. The cybersecurity firm reported $2.54 billion in revenue in its fiscal fourth quarter (a 16% increase) and earnings per share of $0.95. Wall Street analysts expected revenue of $2.50 billion and earnings of $0.89 per share, according to S&P Global Market Intelligence. Shares of Palo Alto Networks are off by 10% over the past month due to a drawdown following the company's $25 billion acquisition of identity security solutions provider CyberArk. But guidance for full-year adjusted EPS of $3.75 to $3.85 also came in above expectations amid the deal. "Cybersecurity is a clear 2nd/3rd derivative play on the AI Revolution with PANW in the driver's seat to gain market/mind share in the cybersecurity landscape," Wedbush analyst Dan Ives wrote in a note ahead of earnings. Ives added, "the continued shift to the cloud [is] putting the company in a strong position to accelerate deal flow as more strategic enterprise AI projects take hold over the coming year." Goldman's Kostin says S&P 500 earnings surge past expectations Bloomberg reports: Read more here. Zoom stock (ZM) popped 5% on Thursday afternoon after the company reported a huge earnings beat. Zoom posted earnings per share of $1.16, compared to Wall Street analyst estimates for $0.72, per S&P Global Market Intelligence. That represents 66% annual earnings growth. The company's founder and CEO, Eric Yuan, noted that the strong quarter comes as artificial intelligence reshapes the way people are working. The company highlighted its paid add-on for custom AI agents that help with meeting prep and call summaries as drivers. Revenue rose 5% to $1.2 billion, bolstered by 7% growth in Enterprise revenue. The company's monthly churn rate remained flat year over year at 2.9%. Zoom also raised its full-year revenue outlook and free cash flow guidance, which is now expected to be in the range of $1.74 billion to $1.78 billion. For the full 2026 fiscal year, total revenue is expected to be between $4.825 billion and $4.835 billion while diluted EPS is expected to be between $5.81 and $5.84. Workday to acquire AI company Paradox, stock falls Workday (WDAY) stock slipped more than 3% in after-hours trading following the company's announcement that it would acquire Paradox for an undisclosed amount. Paradox is an AI company that uses AI chatbots to simplify the job application process. Workday also reported second quarter results that beat expectations. Subscription revenue increased 14%, lifting overall revenue to $2.35 billion in the second quarter. Wall Street was looking for revenue of $2.34 billion. Diluted earnings per share of $2.21 beat estimates of $2.12 per share. "Our second quarter results reflect the strength of our platform and our continued progress across several of our growth initiatives," CFO Zane Rowe said. "Following our first half momentum — and also incorporating the acquisition of Paradox — we are increasing our fiscal 2026 subscription revenue guidance to $8.815 billion, representing growth of 14%, and increasing our fiscal 2026 non-GAAP operating margin guidance to approximately 29%." Workday (WDAY) stock slipped more than 3% in after-hours trading following the company's announcement that it would acquire Paradox for an undisclosed amount. Paradox is an AI company that uses AI chatbots to simplify the job application process. Workday also reported second quarter results that beat expectations. Subscription revenue increased 14%, lifting overall revenue to $2.35 billion in the second quarter. Wall Street was looking for revenue of $2.34 billion. Diluted earnings per share of $2.21 beat estimates of $2.12 per share. "Our second quarter results reflect the strength of our platform and our continued progress across several of our growth initiatives," CFO Zane Rowe said. "Following our first half momentum — and also incorporating the acquisition of Paradox — we are increasing our fiscal 2026 subscription revenue guidance to $8.815 billion, representing growth of 14%, and increasing our fiscal 2026 non-GAAP operating margin guidance to approximately 29%." Intuit forecasts first-quarter revenue growth below estimates Shares of Intuit (INTU), the company behind tax-preparation and finance software TurboTax, Credit Karma, and QuickBooks, fell 5% after hours after the company forecast fiscal first quarter revenue growth below analyst estimates. Reuters reports: Intuit's board also approved a new $3.2 billion share buyback plan, raising its total repurchase authorization to $5.3 billion. Read more here. Shares of Intuit (INTU), the company behind tax-preparation and finance software TurboTax, Credit Karma, and QuickBooks, fell 5% after hours after the company forecast fiscal first quarter revenue growth below analyst estimates. Reuters reports: Intuit's board also approved a new $3.2 billion share buyback plan, raising its total repurchase authorization to $5.3 billion. Read more here. Walmart is still embarrassing Target Walmart (WMT) and Target (TGT) often get compared, especially when they report earnings back-to-back. But the most recent results from the big box stores highlight how the two couldn't be more different. Yahoo Finance's Brian Sozzi dived into the two retailers' quarters: Read more here. Walmart (WMT) and Target (TGT) often get compared, especially when they report earnings back-to-back. But the most recent results from the big box stores highlight how the two couldn't be more different. Yahoo Finance's Brian Sozzi dived into the two retailers' quarters: Read more here. Walmart CEO: Tariff impact has been 'gradual,' but we expect costs to increase Walmart (WMT) reassured investors that it's continuing to gain market share and generate healthy sales growth. But even though executives said the company didn't see any "dramatic shifts" with consumer behavior last quarter, they did communicate that keeping costs low could become a greater challenge in the second half of the year as tariff-related price increases work their way through inventory. "With regards to our US pricing decisions, given tariff-related cost pressures, we're doing what we said we would do: We're keeping our prices as low as we can for as long as we can," Walmart CEO Doug McMillon said on Walmart's earnings call. "The way things have played out so far, the impact of tariffs has been gradual enough that any behavioral adjustments by the customer have been somewhat muted," McMillon continued. "But as we replenish inventory at post-tariff price levels, we've continued to see our costs increase each week, which we expect will continue into the third and fourth quarters." Listen to a replay of the earnings call here. Walmart (WMT) reassured investors that it's continuing to gain market share and generate healthy sales growth. But even though executives said the company didn't see any "dramatic shifts" with consumer behavior last quarter, they did communicate that keeping costs low could become a greater challenge in the second half of the year as tariff-related price increases work their way through inventory. "With regards to our US pricing decisions, given tariff-related cost pressures, we're doing what we said we would do: We're keeping our prices as low as we can for as long as we can," Walmart CEO Doug McMillon said on Walmart's earnings call. "The way things have played out so far, the impact of tariffs has been gradual enough that any behavioral adjustments by the customer have been somewhat muted," McMillon continued. "But as we replenish inventory at post-tariff price levels, we've continued to see our costs increase each week, which we expect will continue into the third and fourth quarters." Listen to a replay of the earnings call here. Walmart stock falls after earnings miss forecasts as US sales, 2025 outlook rise Retail giant Walmart (WMT) stock slipped 2% on Thursday after missing Wall Street estimates. Yahoo Finance's Brooke DiPalma looks at the retail chains' earnings and how economic challenges may have impacted their results. Read more here. Retail giant Walmart (WMT) stock slipped 2% on Thursday after missing Wall Street estimates. Yahoo Finance's Brooke DiPalma looks at the retail chains' earnings and how economic challenges may have impacted their results. Read more here. Walmart earnings expected to show US sales growth continued in Q2 as consumers seek value Walmart (WMT) will report quarterly results Thursday morning before the bell, following on the heels of Target (TGT) earnings Wednesday, which sent shares of the retailer 6% lower. But Walmart is expected to highlight another robust quarter, Yahoo Finance's Brooke DiPalma writes, as consumers search for value amid tariff-related uncertainty. Brooke previews what to look for in Walmart's earnings: Read more here. Walmart (WMT) will report quarterly results Thursday morning before the bell, following on the heels of Target (TGT) earnings Wednesday, which sent shares of the retailer 6% lower. But Walmart is expected to highlight another robust quarter, Yahoo Finance's Brooke DiPalma writes, as consumers search for value amid tariff-related uncertainty. Brooke previews what to look for in Walmart's earnings: Read more here. TJX Companies shares rise after earnings beat and raise TJ Maxx parent TJX Companies (TJX) beat sales and profit estimates for the second quarter and raised its annual profit forecast, boosting shares in premarket trading. Reuters reports: Read more here. TJ Maxx parent TJX Companies (TJX) beat sales and profit estimates for the second quarter and raised its annual profit forecast, boosting shares in premarket trading. Reuters reports: Read more here. Lowe's stock rises after same-store sales return to growth Lowe's (LOW) stock popped in premarket trading on Wednesday after the home improvement retailer reported a return to same-store sales growth, earnings beat, and raised its guidance. Yahoo Finance's Brooke DiPalma reports: Read more here. Lowe's (LOW) stock popped in premarket trading on Wednesday after the home improvement retailer reported a return to same-store sales growth, earnings beat, and raised its guidance. Yahoo Finance's Brooke DiPalma reports: Read more here. Target beat low earnings expectations as sales continue to fall Target (TGT) released its second quarter results on Wednesday. The results are not as bad as the first quarter but declining sales has the retail giant in a bit of a bind. Shares in target fell 8% before the bell Yahoo Finance's executive editor Brian Sozzi looks at the latest from Target and whether it will ever find its place in this new economic environment. Read more here. Target (TGT) released its second quarter results on Wednesday. The results are not as bad as the first quarter but declining sales has the retail giant in a bit of a bind. Shares in target fell 8% before the bell Yahoo Finance's executive editor Brian Sozzi looks at the latest from Target and whether it will ever find its place in this new economic environment. Read more here. Baidu quarterly revenue falls as weak ads offset cloud growth Reuters reports: Read more here. Reuters reports: Read more here. Estee Lauder forecasts annual profit below estimates as tariffs hit Estee Lauder (EL) stock fell 8% before the bell on Wednesday after the beauty group forecast annual profit below Wall Street estimates, as it grapples with persistent weakness in the US and China markets and tariff uncertainty. Reuters reports: Read more here. Estee Lauder (EL) stock fell 8% before the bell on Wednesday after the beauty group forecast annual profit below Wall Street estimates, as it grapples with persistent weakness in the US and China markets and tariff uncertainty. Reuters reports: Read more here. Toll Brothers beats on earnings, but new orders decline 4% Toll Brothers (TOL) reported another double beat in its fiscal third quarter, but a slowdown in new orders weighed on the stock, which drifted 1.6% lower after hours. The homebuilder posted diluted earnings per share of $3.73 on home sale revenue of $2.88 billion. Wall Street analysts were expecting earnings per share of $3.64 on revenue of $2.85 billion. After a sluggish spring season in the housing market, there have been signs of a resurgence, with housing starts jumping in July. But mortgage rates that have barely budged, ongoing economic uncertainty, and affordability challenges for buyers continue to weigh on the sector. For the quarter, Toll Brothers noted it had 2,388 units under signed contract, a 4% decline from a year ago. Analysts had expected orders growth. "The average sales price of new contracts was $1.0 million, up 4.5% year-over-year," CEO Douglas Yearley said in the earnings release. "Contract dollars were flat despite a 4% decline in units. While affordability pressures and uncertain economic conditions persist, we are pleased with the resilience of our luxury business and more affluent customer base." Toll Brothers (TOL) reported another double beat in its fiscal third quarter, but a slowdown in new orders weighed on the stock, which drifted 1.6% lower after hours. The homebuilder posted diluted earnings per share of $3.73 on home sale revenue of $2.88 billion. Wall Street analysts were expecting earnings per share of $3.64 on revenue of $2.85 billion. After a sluggish spring season in the housing market, there have been signs of a resurgence, with housing starts jumping in July. But mortgage rates that have barely budged, ongoing economic uncertainty, and affordability challenges for buyers continue to weigh on the sector. For the quarter, Toll Brothers noted it had 2,388 units under signed contract, a 4% decline from a year ago. Analysts had expected orders growth. "The average sales price of new contracts was $1.0 million, up 4.5% year-over-year," CEO Douglas Yearley said in the earnings release. "Contract dollars were flat despite a 4% decline in units. While affordability pressures and uncertain economic conditions persist, we are pleased with the resilience of our luxury business and more affluent customer base." La-Z-Boy stock drops on soft earnings and guidance La-Z-Boy stock (LZB) dropped 16% in after-hours trading after the company missed earnings estimates and navigated "soft industry demand." Overall, comparable sales dropped 1% to $492 million from a year ago. Sales in the furniture retailer's wholesale segment increased 1%, and retail sales rose 5%, but they were offset by weakness in the Joybird brand, which saw sales decline 14%. La-Z-Boy reported diluted earnings per share of $0.44, compared to $0.61 per share a year ago. The Street was looking for earnings of $0.52 per share. La-Z-Boy's guidance also came in lighter than expected. It expects sales in the range of $510 million to $530 million in the fiscal second quarter. Wall Street was looking for $532 million, according to S&P Global Market Intelligence. La-Z-Boy stock (LZB) dropped 16% in after-hours trading after the company missed earnings estimates and navigated "soft industry demand." Overall, comparable sales dropped 1% to $492 million from a year ago. Sales in the furniture retailer's wholesale segment increased 1%, and retail sales rose 5%, but they were offset by weakness in the Joybird brand, which saw sales decline 14%. La-Z-Boy reported diluted earnings per share of $0.44, compared to $0.61 per share a year ago. The Street was looking for earnings of $0.52 per share. La-Z-Boy's guidance also came in lighter than expected. It expects sales in the range of $510 million to $530 million in the fiscal second quarter. Wall Street was looking for $532 million, according to S&P Global Market Intelligence. Medtronic appoints 2 new board members, posts Q1 beat Irish medical device maker Medtronic (MDT) reported better-than-expected earnings for its fiscal first quarter on Monday. But the bigger story was the company's announcement that it would add two new directors to its board after activist investor Elliott Investment Management became one of its largest shareholders. Veteran med-tech executives John Groetelaars and Bill Jellison were appointed, the company said. Medtronic stock dropped over 3% in premarket trading. For the quarter, the company posted adjusted earnings of $1.26 per share, beating analysts' estimates for $1.23, according to S&P Global Market Intelligence. Revenue came in at $8.6 billion, above Wall Street's forecast of $8.4 billion. Read more here. Irish medical device maker Medtronic (MDT) reported better-than-expected earnings for its fiscal first quarter on Monday. But the bigger story was the company's announcement that it would add two new directors to its board after activist investor Elliott Investment Management became one of its largest shareholders. Veteran med-tech executives John Groetelaars and Bill Jellison were appointed, the company said. Medtronic stock dropped over 3% in premarket trading. For the quarter, the company posted adjusted earnings of $1.26 per share, beating analysts' estimates for $1.23, according to S&P Global Market Intelligence. Revenue came in at $8.6 billion, above Wall Street's forecast of $8.4 billion. Read more here. Home Depot slightly misses Wall Street's mark in Q2 earnings, reiterates guidance Home Depot (HD) released its second-quarter earnings on Tuesday. Yahoo Finance's senior reporter Brooke DiPalma looks at the latest from the retail giant and how the US housing slump has impacted its bottom line. Read more here. Home Depot (HD) released its second-quarter earnings on Tuesday. Yahoo Finance's senior reporter Brooke DiPalma looks at the latest from the retail giant and how the US housing slump has impacted its bottom line. Read more here. China's Xpeng expects quarterly revenue to double on strong demand for its EVs Chinese electric vehicle maker Xpeng (XPEV) on Tuesday forecast third-quarter revenue would double. The company is betting on surging deliveries of its cars despite challenging economic conditions. The group's stock rose 0.6% in premarket trading on Tuesday. Reuters reports: Read more here. Chinese electric vehicle maker Xpeng (XPEV) on Tuesday forecast third-quarter revenue would double. The company is betting on surging deliveries of its cars despite challenging economic conditions. The group's stock rose 0.6% in premarket trading on Tuesday. Reuters reports: Read more here. Xiaomi's revenue rises 31% after second EV fires up consumers Bloomberg News reports: Read more here. Bloomberg News reports: Read more here. Palo Alto Networks stock pops on healthy earnings growth, guidance Palo Alto Networks (PANW) stock shot up 6% after hours after the company reported solid earnings and margin growth in its fiscal fourth quarter. The cybersecurity firm reported $2.54 billion in revenue in its fiscal fourth quarter (a 16% increase) and earnings per share of $0.95. Wall Street analysts expected revenue of $2.50 billion and earnings of $0.89 per share, according to S&P Global Market Intelligence. Shares of Palo Alto Networks are off by 10% over the past month due to a drawdown following the company's $25 billion acquisition of identity security solutions provider CyberArk. But guidance for full-year adjusted EPS of $3.75 to $3.85 also came in above expectations amid the deal. "Cybersecurity is a clear 2nd/3rd derivative play on the AI Revolution with PANW in the driver's seat to gain market/mind share in the cybersecurity landscape," Wedbush analyst Dan Ives wrote in a note ahead of earnings. Ives added, "the continued shift to the cloud [is] putting the company in a strong position to accelerate deal flow as more strategic enterprise AI projects take hold over the coming year." Palo Alto Networks (PANW) stock shot up 6% after hours after the company reported solid earnings and margin growth in its fiscal fourth quarter. The cybersecurity firm reported $2.54 billion in revenue in its fiscal fourth quarter (a 16% increase) and earnings per share of $0.95. Wall Street analysts expected revenue of $2.50 billion and earnings of $0.89 per share, according to S&P Global Market Intelligence. Shares of Palo Alto Networks are off by 10% over the past month due to a drawdown following the company's $25 billion acquisition of identity security solutions provider CyberArk. But guidance for full-year adjusted EPS of $3.75 to $3.85 also came in above expectations amid the deal. "Cybersecurity is a clear 2nd/3rd derivative play on the AI Revolution with PANW in the driver's seat to gain market/mind share in the cybersecurity landscape," Wedbush analyst Dan Ives wrote in a note ahead of earnings. Ives added, "the continued shift to the cloud [is] putting the company in a strong position to accelerate deal flow as more strategic enterprise AI projects take hold over the coming year." Goldman's Kostin says S&P 500 earnings surge past expectations Bloomberg reports: Read more here. Bloomberg reports: Read more here. Erreur lors de la récupération des données Connectez-vous pour accéder à votre portefeuille Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données
CNBC
4 hours ago
- Business
- CNBC
How this week's market upended what Fed rate cuts mean for tech stocks
Friday is Fed Day. That's when Federal Reserve Chairman Jerome Powell will address the central bank's annual economic symposium in Jackson Hole, Wyoming. Investors will be listening carefully to Powell for hints on whether central bankers might cut interest rates as many three times before the end of the year, as the market thought was possible a week ago, or whether they will, at best, cut only twice, as the market thinks now after the rather hawkish minutes of the Fed's July meeting were released Wednesday afternoon. According to the CME FedWatch tool, the base case for the year remains at two rate cuts, where it has been for a while. The wild card? The odds of only one or up to three. The market this week has signaled which stocks might do better under each of those extremes. In the acute rotation that began on Tuesday, when the up-to-three rate cuts by year-end scenario was on the table, we saw investors book profits in momentum stocks and high-growth year-to-date winners and buy value-oriented and lower multiple names that can actually benefit from more cuts via upward earnings revisions. Stocks like Palantir , for which three or one rate cuts mean nothing in the face of their ties to artificial intelligence and other secular trends, were sold heavily Tuesday and into Wednesday's session. Names like Club stock Home Depot , which needs lower policy rates to spur cheaper mortgages, were bought. Investors looked past Home Depot's quarterly earnings and revenue misses to signs of a better back half of the year. When the Fed minutes came out Wednesday afternoon, the market rotation eased. Palantir bottomed and closed off its lows on Wednesday and made it into the green Thursday. Home Depot, on the other hand, came off Wednesday's session highs and closed lower. The stock was lower again Thursday. Again, fewer rate cuts means earnings revisions won't be upwardly revised as much as we may have thought to start the week. If Home Depot, or any other rate beneficiary, was priced for two cuts, but we could see three, investors had reason to believe the earnings estimates were too low. That thesis doesn't hold up, though, if the odds of that third rate cut diminish or go to one. The reason all this attention is on the Fed is that low rates are generally considered to be positive for stock valuations. Whether you want to value a stock via the lens of a discounted cash flow model or a multiples-based price-to-earnings ratio , lower rates tend to result in a higher present value for stocks. That's especially true for the high flyers that don't have much profit, if any, in the present but are expected to see robust earnings grow in the future. The reason? Future earnings have a higher present value at a lower rate because they are discounted back at a lower rate. That textbook school of thought, however, does appear to conflict with the real-world market action of the past couple of days, with premium-valuation stocks getting hit as investors started to price-in a more dovish Fed, only for the rotation to let up as soon as the Fed minutes dropped and pointed to central bankers, perhaps, maintaining more of a hawkish stance after all. Historically, it's been the other way around. It comes down to relative year-to-date performance and which companies need low rates to win. While lower rates do result in a higher present value being ascribed to future earnings, the current growth names, largely tied to the AI investment trade, have proven their ability to grow regardless of the interest rate environment. Low rates may help momentum stocks' valuation, but they don't do much in terms of upward revisions to earnings estimates over the next three to six months — again, many don't even have real earnings to begin with. More cyclical names, on the other hand, stand to see earnings estimates revised higher as they generate money here and now. Lower rates can also catalyze business investments among a host of others. Palantir probably isn't going to make more money in the third and fourth quarters because the Fed lowers the overnight bank lending rate 75 basis points instead of 50 basis points. Home Depot, on the other hand, absolutely stands to make more money should rates on a 30-year fixed-rate mortgage finally dip under 6.5%, a historically important level that has led to increased housing activity. In 2022, when the Fed was hiking rates from the Covid-era level of near 0%, the market move was out of the growth names and into more mature names that were making money. Back then, our mantra for the year was to only invest in companies with real earnings. "We do not want companies that only grow sales but lose boatloads of money," Jim Cramer told Club members then, adding that 2022 was the year that "you want to own companies that make stuff, that do tangible things, that innovate." The focus then was on what rates meant for valuation. When the cost of money is cheap or non-existent, as was the case during the pandemic, some investors could rationalize speculating on a flying car company's potential earnings 10 years out, but if the cost to borrow rises, then the more traditional view is it's better to own a real car company whose valuation is based on its current financial profile. The focus now is less on valuation dynamics and more on earnings revisions. Helping that move is also the simple fact that so much money has been made this year in the high-flyers that investors are ready to jump on any reason they can to book profits there and rotate into year-to-date underperformers such health care, which is the third worst performing sector in the S & P 500 year-to-date but leading to the upside this week. Bottom line So, as we await Powell's Jackson Hole speech, be mindful of this dynamic and understand that while a dovish tone has traditionally been supportive of the high-flying growth stocks due to valuation dynamics, that may not be the case this time around. Wall Street is more focused on near-term earnings revisions than valuation model dynamics. If dovish talk is, as it should be, taken to mean lower mortgage rates and more infrastructure investments, it will be the economically sensitive, cyclical names that benefit, more so than the secular growth names that are tied to themes like AI that couldn't care less about 25, 50, or even 75 basis point changes in the federal funds rate. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
CNN
5 hours ago
- Business
- CNN
Power tools, patio sets and more are up to 50% off during Home Depot's Labor Day sale
Home Depot's annual Labor Day sale just began today, and we're already getting a taste of what the remainder of summer hosting will look like. More importantly, what to snag ahead of the long holiday weekend come September. Grills don't have to be a summer thing, nor does outdoor furniture — the fall is the time to enjoy al fresco dinners while you still can and toast marshmallows around a fire pit. For DIYers, tons of power tools to help with indoor and outdoor projects are deeply discounted, and for the tailgaters, coolers, lawn chairs, camping tents and more are dipping in price. I've been scanning the site and pitting Home Depot's pieces against competitors to ensure you're truly getting the best price possible. Look ahead for my 16 favorite picks to purchase before the event ends Sept. 3. Traeger Ironwood 885 Wi-Fi Pellet Grill and Smoker If grilling has become a part of your personality, it might be time to upgrade to a Trager. This mega grill and smoker combo is equipped with Wi-Fi to precisely monitor your meats and is a sweet $200 off ahead of fall barbecue season. Read our review Napoleon Pro18 Kettle Charcoal Grill For those looking for something lightweight and on wheels, this affordable charcoal grill is ready for your next collegiate tailgate. It can easily be thrown into the flatbed of a truck for easy transport and is matching its price from the 4th of July. Razor 1-Burner Portable LP Gas Griddle Razor's compact griddle typically doesn't stray from its $130 retail price, but now the portable, pre-seasoned cooking companion is $30 off. Take it camping to effortlessly whip up a warm meal or even to parking lot tailgates to grill hot dogs for you and a few others. Weber Traveler Griddle Apartment dwellers will appreciate the compact size and dual control on this Weber griddle. It has over 350 square inches of cooking space and is perfect for those mornings when you want to make eggs, pancakes and all the fixings for guests. LG Side-By-Side Refrigerator With Instaview Glass in Stainless Steel After spotting this variation of dreamy fridge, Amina Lake Patel tested last year, I thought it would be worth covering since it has tons of space for meal prep containers, features a sleek glass door to display beverages and has a fingerprint-resistant finish to keep the doors smudge-free. It's also $100 less than our last spotting at the beginning of the summer. KitchenAid 24-Inch PrintShield Stainless Steel Dishwasher This 24-inch dishwasher is a tad bigger than the typical 18-inch build that you'd see in studio apartments, but if you have a bit more square footage, it's worth splurging on this model from KitchenAid. You'll save an additional $50 if you pass on buying it during their last sale, and it has over 30 jets to ensure dishes come out sparkling. Samsung 5-Burner Element Smart Freestanding Double Oven Electric Range This double oven with an electric range is $100 lower than its price drop over Memorial Day weekend. Those who cook at home can simultaneously cook separate dishes in its split design and can even use it to air fry. Folks with a gluten-free family member can even save one oven for them to maximally avoid cross-contamination. GE Water Level Control Top Load Washer Choose your preferred amount of water per load with GE's innovative top loader. It has a preset to save your favorite cycle and others that help conserve energy usage and the like. This 40% off machine is available in a matte-like black or crisp white. Nuu Garden Brown 3-Piece Steel Outdoor Patio Bar Set with High Swivel Bistro Chairs Outdoor dinners don't have to end come fall, and now you can make your date nights even more special with this 40% off high top patio set. It comes with two oversized chairs and a glass table to rest drinks and food atop, and it's steel is weather resistant for year-round use. Costway 4-Piece Wicker Patio Conversation Set Swap out the included table for a fire pit if you're one to roast marshmallows or live in a cooler climate that requires additional warmth. Costway's set can comfortably seat four to five people and is hundreds off in this neutral beige color. Noble House Valentina Aluminum Outdoor Patio Sectional Set in Dark Grey Folks with a large patio or outdoor space should consider investing in this large sectional now that it's sub $1,000. Luckily, this deal is only available in the go-with-anything dark grey color and comes with a matching table for charcuterie boards, wine and other hosting essentials. Westin Outdoor Mason Adirondack Side Table Perhaps you have a group of Adirondack chairs on your porch without a side table or loungers around the pool with no place to put your belongings. Well, Westin Outdoor's Mason table is weatherproof, is up to 25% off in 14 colors and is easy to wipe clean when an inevitable spill happens. DeWalt 20-Volt Max XR Hammer Drill and Impact Driver Kit Last Labor Day, our senior deals editor, Rikka Altland, spotted a deal on this two-tool combo set from DeWalt. Currently, it's $20 cheaper this time around and will be great to have on hand for last-minute tasks around the house or a bit of outdoor improvement before the big holiday weekend. Milwaukee 45-Piece Shockwave Impact Duty Screwdriver Bit Set Refresh your tool kit on a budget with Milwaukee's 26% off bit set. It's used by Altland and is compatible with a cordless drill or screwdriver. Handy folks and those just getting into assembling furniture or doing work around the home can take advantage of this low price. Anker 1,800-Watt Solix C1000X Solar Generator With Solar Panel Having a portable power station on hand is a necessity, especially ahead of an emergency situation like the current hurricane sweeping the East Coast right now. Usually, it costs almost $1,500 for the generator and panel set, but now it's deeply discounted by nearly 50%. Ryobi Cold Water Electric Pressure Washer With Surface Cleaner When I lived in a house versus an apartment, my mom and I would power wash the cement driveway and siding when September rolled around. If that's a tradition in your family, Ryobi's typically $129 washer that comes with a soap applicator and surface cleaner is down by $30. With Memorial Day, the 4th of July and other holidays in the background, we're quickly approaching the fall hosting season. Many of the deals above were actually cheaper than they were previously at the beginning of the season, and it's an opportune time to buy since lots of people are starting to prepare for the long weekend, sending their kids back to school and getting home improvement projects done this fall. Home Depot's Labor Day sale started today and will end on Sept. 3. At CNN Underscored, our deals team, consisting of Rikka Altland, Jacqueline Saguin and Elena Matarazzo, has over a decade of combined commerce journalism experience. Every morning, we search for the best deals of the day and curate retailer-specific product roundups on our favorite pieces, as well as one-offs on standout markdowns. Searching everything from Labor Day deals to coveted pieces from REI, the team works across a wide variety of categories to ensure we're finding the best buys for our readers.
