Bloomberg Daybreak Asia: US, Japan Reach Trade Deal; Mag Seven in Focus
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Bloomberg
28 minutes ago
- Bloomberg
US and China Are Expected to Extend Trade Truce by 90 Days, SCMP Says
US and China are expected to extend their tariff truce by another three months, the South China Morning Post reported, citing unnamed sources. The two countries will not impose additional tariffs on each other during the extension, one of the sources told the newspaper. The current pause was to end Aug. 12.
Yahoo
an hour ago
- Yahoo
'Haves and have-nots': The stock market thinks more consumers are reaching a breaking point
Consumer stocks are falling out of favor with US investors. While the benchmark S&P 500 (^GSPC) is trading at record highs and up nearly 10% year to date, the Consumer Discretionary (XLY) sector, often viewed as a bellwether for household health, is trailing far behind. The sector is up a modest 0.3% this year, making it second-worst-performing sector in the S&P 500 this year, ahead of only Health Care (XLV). High interest rates, shifting spending patterns, and economic uncertainty have weighed heavily on the group, which houses recognizable names like Nike (NKE), Target (TGT), and Home Depot (HD), as well as Magnificent Seven giants Tesla (TSLA) and Amazon (AMZN). "I still think that we have a bit of a K-shaped economy," Charles Schwab's Liz Ann Sonders told Yahoo Finance on Wednesday, pointing to the growing disparity between high- and low-income households. "You're seeing it in a lot of the travel-related stocks with concerns particularly around lower-end income consumers. ... It's the haves and have-nots, both at the consumer level and the stock level." This week's earnings added fresh weight to that thesis. Chipotle (CMG) shares sank double digits after the company reported a larger-than-expected drop in same-store sales and traffic, slashing its full-year outlook. Hilton (HLT) also fell after reporting a decline in US room revenue that weighed on sentiment, and Hasbro (HAS) slid after warning of continued promotional pressure and delaying product rollouts due to consumer price sensitivity. Eric Freedman, chief investment officer at US Bank Asset Management Group, said the recent moves reflect a bifurcated consumer landscape and that companies catering to more price-sensitive shoppers will need to work harder to capture demand. "This is a hyper-promotional environment to get people, especially lower-income and lower-middle-income consumers, to spend money," he told Yahoo Finance. "You have to be out with deals." Airlines, which are housed in the Industrials sector but have significant consumer exposure, have also suggested a softer spending environment in recent reports. American Airlines (AAL) stock fell after CEO Robert Isom echoed the weakness seen by peer Southwest (LUV), citing softer domestic travel demand last quarter. "Let's face it, the domestic network has been under stress because of the uncertainty in the economy and the reluctance of domestic passengers to get in the game," Isom said on Thursday. Meanwhile, companies catering to wealthier consumers have held up far better. JPMorgan (JPM) and American Express (AXP) both pointed to continued strength in consumer spending, particularly among higher-income households. Notably, their stocks, along with the broader Financials (XLF) sector, have outperformed since the April bottom. Bank of America data shows Industrials and Financials drew the largest inflows last week, underscoring investor appetite for cyclical names with strong earnings momentum. Consumer Discretionary, meanwhile, saw the biggest outflows. Still, with risk-on sentiment rippling through markets, from surging crypto bets to the return of the meme trade, even some of 2025's laggards could be poised for a second look. In a note to clients on Tuesday, Bespoke Investment Group flagged 21 S&P 500 stocks — including Consumer Discretionary names Tesla (TSLA), D.R. Horton (DHI), Caesars Entertainment (CZR), and Mohawk Industries (MHK) — that are down 30% or more from their 52-week highs, yet are trading above rising 50-day moving averages. That signals some beaten-down names may be starting to build short-term momentum, even as longer-term pressures persist. The outlook for consumers, however, remains fragile. "Consumer spending is down but not out," Oxford Economics deputy chief US economist Michael Pearce wrote following June's stronger-than-expected retail sales report last week. "The first half of the year was one to forget for most consumer-facing firms, and we expect there is a bit more pain to come before conditions begin to improve heading into 2026." Allie Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at Sign in to access your portfolio
Yahoo
an hour ago
- Yahoo
Labcorp Holdings Second Quarter 2025 Earnings: Revenues Beat Expectations, EPS Lags
Labcorp Holdings (NYSE:LH) Second Quarter 2025 Results Key Financial Results Revenue: US$3.53b (up 9.5% from 2Q 2024). Net income: US$237.9m (up 16% from 2Q 2024). Profit margin: 6.7% (up from 6.4% in 2Q 2024). The increase in margin was driven by higher revenue. EPS: US$2.85 (up from US$2.44 in 2Q 2024). Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. All figures shown in the chart above are for the trailing 12 month (TTM) period Labcorp Holdings Revenues Beat Expectations, EPS Falls Short Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) missed analyst estimates by 12%. Looking ahead, revenue is forecast to grow 4.5% p.a. on average during the next 3 years, compared to a 6.3% growth forecast for the Healthcare industry in the US. Performance of the American Healthcare industry. The company's shares are up 8.7% from a week ago. Risk Analysis You should learn about the 2 warning signs we've spotted with Labcorp Holdings. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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.
