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UnitedHealth Group and Deckers Outdoor are two of the worst-performing stocks in 2025

UnitedHealth Group and Deckers Outdoor are two of the worst-performing stocks in 2025

USA Today6 days ago
After briefly dipping into bear market territory just three months ago, the S&P 500 (SNPINDEX: ^GSPC) has quickly managed to recover, rising 6.6% year to date (as of this writing). But not all stocks in the index are doing well. If you're hunting for beaten-down bargains, these two laggards should top your watch list.
This healthcare giant is in trouble
Shares of UnitedHealth Group (NYSE: UNH) are down 41% so far in 2025. Over the past few months, United Healthcare has sharply reduced its annual forecast, experienced a rapid rise in claim costs, attracted regulatory scrutiny over potential overbilling, and lost its CEO in an abrupt departure. Several analysts have cut their ratings and price targets on the stock as a result.
Though the company does face near-term uncertainty, the recent sell-off has made UnitedHealth perhaps one of the biggest bargains on the market today with shares trading at just over 12 times earnings. Investors who choose to buy the dip, however, should be prepared to experience continued volatility.
Deckers Outdoor is down roughly 50%
Deckers Outdoor (NYSE: DECK) makes footwear and apparel with a brand portfolio that includes UGG, Hoka, Teva and Koolaburra. With shares cut in half in 2025, Deckers is the worst-performing stock in the S&P 500 year to date. What's going on?
President Trump's new tariff policies forced the company to scrap its entire annual forecast, with management citing unpredictable increases in manufacturing costs as roughly 20% of its products are made in China. Costs are expected to rise by around $150 million in fiscal 2026.
After the drop, shares trade at just 15.5 times trailing earnings with some arguing the stock is now a long-term buy.
Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Deckers Outdoor. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.
The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.
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Trump looms large over a Fed likely to again defy his call for cuts
Trump looms large over a Fed likely to again defy his call for cuts

Yahoo

time28 minutes ago

  • Yahoo

Trump looms large over a Fed likely to again defy his call for cuts

President Trump will loom large over the Federal Reserve's policy meeting this week, even if the central bank does what the market expects and keeps interest rates on hold. Trump and other top White House officials have been hammering Fed Chair Jerome Powell for months over his wait-and-see rate stance and his insistence that more time is needed to assess how the president's tariffs will affect the path of inflation. The president took that message directly to the Fed last Thursday as he toured a $2.5 billion renovation of the central bank's headquarters and confronted Powell in person while the two argued in front of reporters over the true costs of the project. "I just want to see one thing happen, very simple: Interest rates have to come down," the president told reporters. Traders widely expect the Fed's Federal Open Market Committee to defy Trump and once again keep rates unchanged this Wednesday, as they have for every other meeting so far in 2025. The market expects the first cut of 2025 to happen on Sept. 17, the third-to-last meeting of the year. But at least two of Powell's colleagues are warming to Trump's near-term rate cut call, which could produce some disagreement this week behind closed doors in Washington. One Fed governor, Christoper Waller, has already hinted that he may publicly dissent Wednesday if his colleagues vote to keep rates unchanged. His opinion is that any inflation from Trump's tariffs will prove to be temporary, and he's concerned that the labor market may soon worsen. But many other Fed officials have backed Powell in his view that more time is needed to assess the impact of Trump's tariffs on inflation. They also note that the labor market is holding up, removing any urgency to act in the way that Trump wants. Read more: How the Fed rate decision affects your bank accounts, loans, credit cards, and investments "This is a campaign of undermining the chairman's credibility and really trying to undermine his public support in the face of what I think is the real objective, and that is to get a lower rate environment in place," former Kansas City Fed president Esther George said. A Powell press conference following the meeting on Wednesday gives the Fed chair a new chance to respond to the White House's escalating pressure campaign and mounting questions about the $2.5 billion renovation of two Fed buildings along the National Mall. Trump considered firing Powell in recent weeks but has now appeared to back away from doing so, telling reporters this past week that "he is going to be out pretty soon anyway" — a reference to the fact that Powell's term as chair is up in May. While touring the Fed's construction site on Thursday, Trump said of firing Powell: "To do that is a big move, and I just don't think it's necessary." Read more: How much control does the president have over the Fed and interest rates? New headaches But that doesn't mean the White House is going to let up on Powell. Treasury Secretary Scott Bessent this past week called for a review of the central bank's $2.5 billion project and an "exhaustive internal review' of its non-monetary policy operations. He argued that "significant mission creep and institutional growth have taken the Fed into areas that potentially jeopardize the independence of its core monetary policy mission." The Fed also got another new headache last week when a money manager — and Trump ally who recently served as an adviser to the Department of Government Efficiency — filed a lawsuit arguing that the central bank is violating a 1976 federal law by keeping its policy meetings behind closed doors. That money manager, Azoria Capital, is asking for a Washington, D.C., federal court to issue a temporary restraining order compelling the FOMC to open its deliberations to the public this week. Some on Capitol Hill are also getting louder about more scrutiny of the Fed. Rep. Dan Meuser of Pennsylvania, a subcommittee chair on the House Financial Services Committee, is reportedly moving forward with a congressional investigation of the Fed, according to PunchBowl News, even as many of his Senate colleagues have shied away from that idea. Rep. Anna Paulina Luna of Florida, another Trump ally, formally requested that the DOJ investigate Powell for perjury over June comments about the renovations, although that is seen as a long shot at best. House Speaker Mike Johnson said in an interview with Bloomberg reporters and editors last week that he is "disenchanted" with Powell and is even open to modifying the 1913 act that created the Fed. That would be a major change, but it is not expected to come before Congress in the near term, as the House of Representatives went home Wednesday evening for a recess that is scheduled to last for the rest of the summer. Powell has repeatedly stated that he does not intend to leave as chair until his term is up, that his removal is "not permitted by law," and that he was honest and transparent about the Fed's construction project while testifying before Senate lawmakers on June 25. In a July 17 letter to White House budget director Russ Vought, Powell wrote that "we take seriously the responsibility to be good stewards of public resources" and offered a point-by-point response to Vought's concerns about cost overruns and certain design elements. Read more: What experts say about the possibility of additional rate cuts 'I do think it's damaging' Trump and his allies have taken to several new lines of attack against Powell, even beyond the building renovation, as they argue for rates to be as many as three percentage points lower. They cite what they predict will be savings on US debt if the rate is lower, as well as how a lower rate would make borrowing for a home less expensive in the US. Trump has even hinted that he has more than just Powell to blame for the fact that rates have remained unchanged since he took office. "The Board should act, but they don't have the Courage to do so!" Trump wrote on his social media platform this past week, referring to the larger Fed Board of Governors on which Powell serves. StoneX senior adviser Jon Hilsenrath told Yahoo Finance that he expects Trump's attacks to eventually extend to the regional Fed presidents based around the country. They have rotating positions on the Fed body that makes the final call on rates. The president does not appoint the regional Fed bosses, who are instead chosen by banks in those Fed districts. One of them, Chicago Fed president Austan Goolsbee, defended Powell in a July 18 interview with Yahoo Finance, calling the Fed chair a "totally honorable guy." He also expressed concerns about Fed independence. "It pains me to hear people actively discussing whether the central bank should be independent. There's nothing good can come of discussion like that." George, the former Kansas City Fed president, said of the president's pressure campaign targeting building renovations: "I do think it's damaging." "It's when we undermine institutions and create suspicion in the public that something is wrong here, I think credibility suffers," she said. "This is a time when the Fed needs its independence," George added. "It is a time when, yes, lower rates would help the federal government, but we know countries that have gone down that path, and we know in this country going down that path does not produce good outcomes in the long term." Last Thursday, though, Trump sounded confident during his tour of the Fed's headquarters that Powell would see things his way. "I think he's going to do the right thing,' the president said. "Everybody knows what the right thing is.' Click here for in-depth analysis of the latest stock market news and events moving stock prices

Nvidia CEO says Trump gives America an advantage. Hear that, progressives?
Nvidia CEO says Trump gives America an advantage. Hear that, progressives?

USA Today

time30 minutes ago

  • USA Today

Nvidia CEO says Trump gives America an advantage. Hear that, progressives?

The top executive of the world's most valuable company doesn't have to flatter anyone, even the president of the United States. I'm worried about artificial intelligence. It feels like it's invasive, increasingly ubiquitous and coming for my job. I'm not alone. More than 30% of Americans think AI will do more harm than good. But on July 24, the Trump administration unveiled a bold plan to ensure that the U.S. dominates the world when it comes to AI. It's eased my mind a bit. President Donald Trump's plan sounds smart and promising. Global tech leaders support it, too, including the chief executive of the world's most valuable company. "America's unique advantage that no country could possibly have is President Trump," Nvidia CEO Jensen Huang said on the "All-In" podcast. Trump says US will win the AI race Trump, speaking at the Winning the AI Race summit for "All In," declared that the U.S. will outpace foreign competitors in developing artificial intelligence. That's important because tech leaders have noted that the country that achieves certain AI milestones may well develop an insurmountable lead in unleashing the most revolutionary technology of our lifetimes. Opinion newsletter: Sign up for our newsletter on conservative values, family and religion from columnist Nicole Russell. Get it delivered to your inbox. The Trump administration is taking a hands-off approach to regulating AI at this point. The president even signed executive orders to reduce regulations on constructing data centers and block states from regulating AI on their own. Opinion: Trump wins again. Columbia's $200 million fine will reshape higher education. Tech industry giants embrace Trump's AI plan The shift in the tech industry from critics to partners of Trump has been remarkable. OpenAI CEO Sam Altman was one of those critics. Now he supports the president. Meta founder Mark Zuckerberg also has made an obvious shift toward Trump. And, of course, SpaceX and Tesla CEO Elon Musk famously supported Trump before their very public and nasty falling out this year. Opinion: We're creating AI that could surveil US citizens. And the government is in on it. The tech leaders admittedly have their own interests in mind in praising Trump these days. But those interests also include America's economic, technological and national defense priorities. Our nation's strength and the prosperity and well-being of Americans may well depend on whether we win the AI race in the years ahead. It's Huang's support that impresses me the most. The top executive of the world's most valuable company doesn't have to flatter anyone, even the president of the United States. Nvidia is leading the global race to the future, and this leader among leaders now says having Trump in the White House is an advantage for America. Perhaps even progressives should listen. Nicole Russell is a columnist at USA TODAY and a mother of four who lives in Texas. Contact her at nrussell@ and follow her on X, formerly Twitter: @russell_nm. Sign up for her weekly newsletter, The Right Track, here. You can read diverse opinions from our USA TODAY columnists and other writers on the Opinion front page, on X, formerly Twitter, @usatodayopinion and in our Opinion newsletter.

Mortgage Rates Dip Down: Mortgage Rates on July 28, 2025
Mortgage Rates Dip Down: Mortgage Rates on July 28, 2025

CNET

time30 minutes ago

  • CNET

Mortgage Rates Dip Down: Mortgage Rates on July 28, 2025

Check out CNET Money's weekly mortgage rate forecast for a more in-depth look at what's next for Fed rate cuts, labor data and inflation. The average for a 30-year fixed mortgage is 6.77% today, a decrease of -0.04% since one week ago. The average rate for a 15-year fixed mortgage is 5.96%, which is a decrease of -0.07% compared to a week ago. To secure a lower mortgage interest rate, consider increasing your down payment, improving your credit score or purchasing mortgage points. What's behind high rates these days? Concerns about persistent inflation, threats of a global trade war and policy turbulence have created an uncertain economic outlook. In response, the Federal Reserve has adopted a wait-and-see approach and left interest rates unchanged this year. Financial markets largely expect the Fed to resume lowering rates in September, particularly if President Trump eases some of his aggressive tariff measures or if the labor market continues to deteriorate. Prospective homebuyers shouldn't expect mortgage rates to become affordable overnight. While cheaper borrowing costs gradually trickle down to the housing market, the Fed doesn't directly set lenders' mortgage rates. In today's unaffordable housing market, mortgage rates are just one piece of the puzzle. High home prices and skyrocketing homeownership expenses, like insurance and property taxes, are further compounding the pressure on prospective buyers. The possibility of a job-loss recession is also pushing many households to tighten their budgets and take on less financial risk. When mortgage rates start to fall, be ready to take advantage. Experts recommend shopping around and comparing multiple offers to get the lowest rate. Enter your information here to get a custom quote from one of CNET's partner lenders. About these rates: Bankrate's tool features rates from partner lenders that you can use when comparing multiple mortgage rates. What's behind today's high mortgage rates? The average 30-year fixed rate has hovered just below 7% for the last several months, resulting in cost-prohibitive monthly payments. Mortgage rates primarily take their cues from the 10-year Treasury yield, which reflects investors' collective expectations regarding inflation, labor market health, upcoming monetary policy shifts and the impact of global factors like tariffs. If investors anticipate persistently high inflation or significant government borrowing, they'll demand higher returns on their bonds, which in turn keeps mortgage rates elevated. "Rates could fall if inflation keeps cooling and the labor market softens," said Jeb Smith, licensed real estate agent and member of CNET Money's expert review board. "On the other hand, tariffs could create new inflation pressure. Add in government deficits and increased bond supply, and that puts upward pressure on rates." Even as the Fed eventually starts to reduce borrowing rates, experts caution that significant market volatility is likely. As a result, homebuyers are adopting a more patient and strategic approach to financing, comparing various loan types and planning ahead. "Some are waiting, others are getting pre-approved now so they're ready to act if rates fall," said Smith. For a look at mortgage rate movement in recent years, see the chart below. Mortgage rate forecast for 2025 While the housing market was expected to rebound in 2025, it has remained stagnant due to ongoing economic and political uncertainties. Median family income has not kept pace with the surge in housing costs, requiring many households to earn double or triple their salary to afford a modest home in some cities. Mortgage rates would have to drop significantly, close to 6% or below, to drum up significant homebuying demand. According to Smith, though, the more likely scenario is that interest rates will take modest and gradual steps down over the coming months. A return to the record-low rates, around 2-3%, we saw during the pandemic would only happen if the economy tipped into a severe recession. Fannie Mae now predicts rates around 6.5% by the end of 2025 and 6.1% by the end of 2026. Ongoing uncertainty could cause rates to stay high, or increase further. For instance, if tariffs cause inflation to reignite, which most experts and Fed officials expect, it could result in higher bond yields and fewer interest rate cuts by the central bank. Both would be bad for mortgage rates. What is a good mortgage type and term? Each mortgage has a loan term, or payment schedule. The most common mortgage terms are 15 and 30 years, although 10-, 20- and 40-year mortgages also exist. With a fixed-rate mortgage, the interest rate is set for the duration of the loan, offering stability. With an adjustable-rate mortgage, the interest rate is only fixed for a certain amount of time (commonly five, seven or 10 years), after which the rate adjusts annually based on the market. Fixed-rate mortgages are a better option if you plan to live in a home in the long term, but adjustable-rate mortgages may offer lower interest rates upfront. 30-year fixed-rate mortgages The average interest rate for a standard 30-year fixed mortgage is 6.77% today. A 30-year fixed mortgage is the most common loan term. It will often have a higher interest rate than a 15-year mortgage, but you'll have a lower monthly payment. 15-year fixed-rate mortgages Today, the average rate for a 15-year, fixed mortgage is 5.96%. Though you'll have a bigger monthly payment than a 30-year fixed mortgage, a 15-year loan usually comes with a lower interest rate, allowing you to pay less interest in the long run and pay off your mortgage sooner. 5/1 adjustable-rate mortgages A 5/1 adjustable-rate mortgage has an average rate of 6.03% today. You'll typically get a lower introductory interest rate with a 5/1 ARM in the first five years of the mortgage. But you could pay more after that period, depending on how the rate adjusts annually. If you plan to sell or refinance your house within five years, an ARM could be a good option. Calculate your monthly mortgage payment Getting a mortgage should always depend on your financial situation and long-term goals. The most important thing is to make a budget and try to stay within your means. CNET's mortgage calculator below can help homebuyers prepare for monthly mortgage payments. Where can I find the best mortgage rates? Though mortgage rates and home prices are high, the housing market won't be unaffordable forever. It's always a good time to save for a down payment and improve your credit score to help you secure a competitive mortgage rate when the time is right. Save for a bigger down payment: Though a 20% down payment isn't required, a larger upfront payment means taking out a smaller mortgage, which will help you save in interest. Boost your credit score: You can qualify for a conventional mortgage with a 620 credit score, but a higher score of at least 740 will get you better rates. Pay off debt: Experts recommend a debt-to-income ratio of 36% or less to help you qualify for the best rates. Not carrying other debt will put you in a better position to handle your monthly payments. Research loans and assistance: Government-sponsored loans have more flexible borrowing requirements than conventional loans. Some government-sponsored or private programs can also help with your down payment and closing costs. Shop around for lenders: Researching and comparing multiple loan offers from different lenders can help you secure the lowest mortgage rate for your situation.

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