Less selection, higher prices: How tariffs are shaping the holiday shopping season
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Globe and Mail
2 hours ago
- Globe and Mail
Alphabet and AI stocks nudge Wall Street to more records
NEW YORK (AP) — Wall Street inched to more records on Thursday as gains for Alphabet and artificial-intelligence stocks helped make up for Tesla 's steep tumble. The S&P 500 added 0.1% to its all-time high set the day before. The Dow Jones Industrial Average fell 316 points, or 0.7%, while the Nasdaq composite rose 0.2% to its own record. Alphabet climbed 1% after the company behind Google and YouTube delivered a fatter profit for the latest quarter than analysts expected. It's leaning more into artificial-intelligence technology and said it's increasing its budget to spend on AI chips and other investments this year by $10 billion to $85 billion. That helped push up other stocks in the AI industry, including a 1.7% rise for Nvidia. The chip company was the strongest single force lifting the S&P 500 because it's the largest on Wall Street in terms of value. But an 8.2% drop for Tesla kept the market in check. Elon Musk's electric-vehicle company reported results for the spring that were roughly in line with or above analysts' expectations, and Musk is trying to highlight Tesla's moves into AI and robotaxis. The focus, though, remains on how Musk's foray into politics is turning off potential customers, and he said several rough quarters may be ahead as 'we're in this weird transition period where we'll lose a lot of incentives in the U.S.' Stocks have broadly been rallying for weeks on hopes that President Donald Trump will reach trade deals with other countries that will lower his stiff proposed tariffs, along with the risk that they could cause a recession and drive up inflation. The record-setting gains have been so strong that criticism is rising about how expensive stock prices have become. That in turn puts pressure on companies to deliver solid growth in profits in order to justify their gains. Chipotle Mexican Grill also helped weigh on the market despite delivering a profit for the spring that topped analysts' expectations. The restaurant chain's growth in revenue came up short of expectations, and its stock fell 13.3%. IBM dropped 7.6% even though it likewise reported a stronger profit than expected. Analysts pointed to slowing growth in its software business, among other things underneath the surface. American Airlines lost 9.6% despite reporting a stronger profit than expected. The company said it expects to report a loss for the summer quarter. It also gave a forecast for full-year results that had a wide range: between a loss of 20 cents per share and a profit of 80 cents per share, depending on how the economy performs. Reactions in the stock market have generally been stronger than usual when companies beat or miss their profit targets by a wide margin, according to Julian Emanuel at Evercore. Other extreme moves have also been roaring underneath the market's surface, including huge swings for 'meme stocks.' Those are stocks where traders are looking to jump in amid online cheerleading and ride it higher, before a halt in momentum leaves some investors holding the bag. Opendoor Technologies rose 5.7% following a manic stretch where it swung by at least 10%, up or down, in 10 straight days. Such swings, though, haven't been showing up in overall market indexes, which have been gliding recently. The S&P 500 hasn't had a day where it moved by at least 1% in a month. All told, the S&P 500 rose 4.44 points to 6,363.35. The Dow Jones Industrial Average fell 316.38 to 44,693.91, and the Nasdaq composite rose 37.94 to 21,057.96. In the bond market, Treasury yields held relatively steady following the latest signals that the U.S. economy seems to be holding up OK despite pressures from tariffs and elsewhere. One report said that fewer U.S. workers applied for unemployment benefits last week, a potential signal of easing layoffs. A separate report from S&P Global suggested growth in U.S. business activity accelerated in July, and the preliminary results easily topped economists' expectations. That helped solidify expectations on Wall Street that the Federal Reserve will hold interest rates steady at its next meeting next week, even though Trump has been agitating angrily for cuts. The European Central Bank, which had earlier been cutting its rates, also held steady on Thursday as it waits to see how Trump's tariffs affect the economy. The yield on the 10-year U.S. Treasury note briefly approached 4.44% in the morning before pulling back to 4.40%, where it was late Wednesday. In stock markets abroad, indexes rose across much of Asia and Europe. Tokyo's jump of 1.6% and London's rise of 0.8% were two of the bigger gains.
Toronto Star
2 hours ago
- Toronto Star
Lula says the US has ignored Brazil's attempts to negotiate Trump's announced tariff
SAO PAULO (AP) — Brazilian President Luiz Inácio Lula da Silva said Thursday that his government has not been successful in trying to negotiate the 50% tariff on Brazilian imports that U.S. President Donald Trump has threatened to impose. Washington has ignored Brazil's attempts to negotiate ahead of the measure's expected implementation on Aug. 1., the Brazilian leader said.
Winnipeg Free Press
2 hours ago
- Winnipeg Free Press
Lula says the US has ignored Brazil's attempts to negotiate Trump's announced tariff
SAO PAULO (AP) — Brazilian President Luiz Inácio Lula da Silva said Thursday that his government has not been successful in trying to negotiate the 50% tariff on Brazilian imports that U.S. President Donald Trump has threatened to impose. Washington has ignored Brazil's attempts to negotiate ahead of the measure's expected implementation on Aug. 1., the Brazilian leader said. 'Brazil is used to negotiating,' Lula said. 'We had already 10 meetings with the United States. On May 16, we sent them a letter asking for clarification on the proposals we had made.' 'They didn't respond. They responded through a website,' Lula added, referring to Trump's post on his social media platform Truth Social on July 9, announcing the tariff. Trump directly linked the import tax to the trial underway in Brazil of his ally, the country's former President Jair Bolsonaro, which he called a 'witch hunt.' Rather than backing down, Brazil's Supreme Court escalated the case, worsening Bolsonaro's legal troubles. Federal police has raided Bolsonaro's home and political office, ordered him to wear an ankle monitor, banned him from using social media and levelled other restrictions. Lula spoke Thursday in Vale do Jequitinhonha, one of Brazil's poorest regions in the state of Minas Gerais, repeating his mantra of needing to 'defend' Brazil's resources — a message he has adopted since the trade dispute escalated. In related developments, Brazil's Vice President Geraldo Alckmin told reporters in the capital, Brasilia, that he had a 50-minute phone call last Saturday with U.S. Commerce Secretary Howard Lutnick. Alckmin, who also serves as Brazil's minister of Commerce, Industry and Trade, declined to share details of the conversation, saying it was confidential. 'I reiterated Brazil's willingness to negotiate — that's our position,' Alckmin, said. 'Brazil never left the table. We didn't create this problem, but we want to solve it.' Separately, Brazil raised concerns on Wednesday at a World Trade Organization meeting, arguing that arbitrary tariffs violate the organization's core principles but making no mention of Trump or the United States, 'Arbitrary tariffs, chaotically announced and implemented, are disrupting global value chains and risk throwing the world economy into a spiral of high prices and stagnation,' Brazil's Ambassador Philip Fox-Drummond Gough said. WTO member states are witnessing 'an extremely dangerous shift toward the use of tariffs as a tool to interfere in the domestic affairs of third countries,' he added. ___ Follow AP's coverage of Latin America and the Caribbean at
