Consumers Shrug Off Geopolitical Conflict to Send Sentiment Higher
Consumer expectations improved by more than 20% amid higher optimism over personal finances and business conditions, while inflation expectations also improved.
The reading is still lower than the post-election bump in December as worries over the impacts of tariffs persist.The economic effects of the conflict in the Middle East didn't weigh on consumers' minds in June as sentiment continued to inch higher and inflation concerns faded.
The Michigan Consumer Sentiment Index improved in June to 60.7, a tick higher than its preliminary reading and 8.5 points higher than the prior month. It was the first improvement of the closely followed survey results in six months. The reading comes after a similar survey ticked lower this month.
Consumers were still worried about tariffs but were more optimistic about personal finances and business conditions. The survey that ended on Monday also showed that the U.S. airstrikes on Iran didn't impact consumers' feelings about the economy.
'It's not that consumers don't recognize the risks that are present; they do. Instead, they appear to be adapting to the new reality of geopolitical instability and fluid policy, and the sense that developments can change the narrative—and the resulting outlook—meaningfully and with little warning,' wrote Jim Baird, chief investment officer with Plante Moran Financial Advisors.
Sentiment is still about 18% lower than the December 2024 post-election surge.
Pessimism about the labor market and worries that tariffs will raise prices have faded but still persist. Inflation expectations improved, as consumers predicted prices would increase by 5% over the next year, lower than May's expectation of 6.6%.
'Consumers feel they have some breathing room given that the historically high tariffs announced earlier this year have not been sustained, and the worst-case scenarios for the economy have not come to fruition,' said Survey Director Joanne Hsu.
Read the original article on Investopedia
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
a day ago
- Yahoo
Lockheed Martin Stock Stumbles as Defense Contractor Cuts Forecast
NurPhoto / Getty Images Lockheed Martin recognized $950 million in pre-tax losses tied to a classified aeronautics program Lockheed Martin (LMT) stock tumbled Tuesday as the defense contractor reported $1.6 billion in losses across a range of programs and slashed its full-year profit forecast. Shares of Lockheed were down 8% in recent trading. The stock is down about 12% this year. A classified program in Lockheed's aeronautics program that faced "design, integration, and test challenges" led to recognize $950 million in pre-tax losses, the company said. The company reported another $570 million losses on an international helicopter program. The losses, CEO Jim Chaiclet said, "are a necessary step as we continue to take action to improve program execution." The company now expects full-year earnings per share of $21.70 to $22, down from a prior estimate of $27 to $27.30. Lockheed maintained its sales outlook of $73.75 billion to $74.75 billion, which is in line with the Visible Alpha analyst consensus. In the second quarter, Lockheed reported revenue of $18.16 billion, up less than 1% year-over-year and short of the analyst consensus. The company's net income fell to $342 million, or $1.46 per share, from $1.6 billion, or $6.85 per share, largely due to the program losses. Read the original article on Investopedia
Yahoo
2 days ago
- Yahoo
Zacks.com featured highlights Carnival, Levi Strauss, Vodafone and Invesco
For Immediate Release Chicago, IL – July 21, 2025 – The stocks in this week's article are Carnival Corp. CCL, Levi Strauss & Co. LEVI, Vodafone Group VOD and Invesco IVZ. 4 Finest PEG-Rated GARP Stocks to Boost Your Portfolio Now In the equity market, investments need to be prudently hedged to overcome uncertainties and limit losses related to external shocks. A question that arises often is whether one should resort to a value strategy that seeks discounted stocks or opt for growth investing in times of extreme market instability. The investing track of the Oracle of Omaha over the past few decades and his gradual shift from being a pure-play value investor to a GARP (growth at a reasonable price) investor might give us all the answers. Per the GARP theory, the strategic mingling of growth and value-investing principles gives us a hybrid strategy, offering an ideal investment by utilizing the best features of both. What GARPers look for is whether or not the stocks are somewhat undervalued and have solid, sustainable growth potential (Investopedia). Several stocks that have surged significantly in recent years have demonstrated the overwhelming success of this hybrid investing strategy over pure-play value and growth investments. Here, we will discuss the success of four such stocks. These include Carnival Corp., Levi Strauss & Co., Vodafone Group and Invesco. A Few More Words on GARP GARP investing gives priority to one of the popular value metrics — the price/earnings growth (PEG) ratio. Although it is categorized under value investing, this strategy follows the principles of both growth and value investing. The PEG ratio is defined as (Price/ Earnings)/Earnings Growth Rate It relates the stocks' P/E ratio with the future earnings growth rates. While P/E alone gives an idea of stocks that are trading at a discount, PEG, while adding the growth element to it, helps identify stocks with solid future potential. A lower PEG ratio, preferably less than 1, is always better for GARP investors. Say for example, if a stock's P/E ratio is 10 and the expected long-term growth rate is 15%, the company's PEG will come down to 0.66, a ratio indicating both undervaluation and future growth potential. Unfortunately, this ratio is often neglected due to investors' limitations in calculating the future earnings growth rate of a stock. There are some drawbacks to using the PEG ratio though. It does not consider the very common situation of changing growth rates, such as the forecast of the first three years at a very high growth rate, followed by a sustainable but lower growth rate over the long term. Hence, PEG-based investing can be even more rewarding if some other relevant parameters are also taken into consideration. Here are four out of the 11 stocks that qualified the screening: Carnival: Headquartered in Miami, FL, Carnival operates as a cruise and vacation company. As a single economic entity, Carnival Corporation & Carnival plc forms the largest cruise operator in the world. It is the world's leading leisure travel firm and carries nearly half of the global cruise guests. The company operates in North America, Australia, Europe and Asia. Carnival can also be an impressive GARP investment pick with its Zacks Rank #2 and a Value Score of A. Apart from a discounted PEG and P/E, the stock has an impressive long-term historical growth rate of 28.5%. You can see the complete list of today's Zacks #1 Rank stocks here. Levi: It designs, markets and sells apparel and accessories for men, women, and children globally. Its offerings include jeans, pants, tops, jackets, footwear, and more under the Levi's, Dockers, Signature by Levi Strauss & Co., Denizen, and Beyond Yoga brands. LEVI also licenses its trademarks for products like belts, bags, outerwear and kidswear. Levi stock can also be an impressive GARP investment pick with its Zacks Rank #1 and a Value Score of B. Apart from a discounted PEG and P/E, LEVI has a solid long-term historical growth rate of 9.5%. Vodafone: The company provides telecom services across Germany, the UK, Europe, Turkey and South Africa. It offers mobile, fixed and connectivity solutions, including IoT, cloud, edge computing and digital services. Vodafone also operates M-PESA, a mobile money platform in Africa, and provides international voice, roaming and infrastructure services. Vodafone stock can be an impressive value investment pick with its Zacks Rank #1 and a Value Score of A. Apart from a discounted PEG and P/E, VOD also has an impressive long-term historical growth rate of 11.8%. Invesco: Headquartered in Atlanta, GA, Invesco Ltd. is an independent investment manager with $1.84 trillion in AUM as of March 31, 2025. The company operates in over 20 countries and offers a wide range of investment products, including ETFs, fixed income, equities, private markets, multi-asset solutions and QQQ. Invesco can also be an impressive value investment pick with its Zacks Rank #1 and a Value Score of B. Apart from a discounted PEG and P/E, the stock also has a solid long-term expected growth rate of 6.3%. You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge. The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out. Click here to sign up for a free trial to the Research Wizard today. For the rest of this Screen of the Week article please visit at: Follow us on Twitter: Join us on Facebook: Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Contact: Jim Giaquinto Company: Phone: 312-265-9268 Email: pr@ Visit: provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Carnival Corporation (CCL) : Free Stock Analysis Report Vodafone Group PLC (VOD) : Free Stock Analysis Report Invesco Ltd. (IVZ) : Free Stock Analysis Report Levi Strauss & Co. (LEVI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Yahoo
Consumer sentiment edges up on expectations inflation will cool
This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. Dive Brief: Consumer sentiment in July edged up to the highest level in five months as pessimism for the short-term business outlook eased and expectations for inflation in a year fell to 4.4% from 5%, the University of Michigan said Friday. At the same time, household expectations for personal finances declined last month and sentiment persists well below both the level in December and the historical average, the university found in a monthly survey. 'Consumers are unlikely to regain their confidence in the economy unless they feel assured that inflation is unlikely to worsen, for example if trade policy stabilizes for the foreseeable future,' Joanne Hsu, director of the university's consumer surveys, said in a statement. Dive Insight: Recent stability in consumer sentiment coincides with mixed economic signals, along with widening opinions among Federal Reserve officials on the outlook for jobs and inflation, and whether to cut borrowing costs as soon as this month. Retail sales rose 0.6% in June after a two-month slump. Ten out of 13 retail categories recorded sales gains, including motor vehicles, food and beverages, and building materials, the Census Bureau reported Thursday. Unemployment eased last month to 4.1% from 4.2% in May as U.S. payrolls expanded by 147,000, a healthy clip. Yet state and local government, rather than the private sector, accounted for roughly half of the hiring. Also, the consumer price index increased at a 2.7% annual rate in June compared with 2.4% the prior month, the Bureau of Labor Statistics said Tuesday. Imported goods led the price gains, indicating that tariffs have to a degree fueled inflation. The price for apparel, household furnishings and appliances rose 0.4%, 1% and 1.9%, respectively, the BLS said. Prospects for inflation, employment and economic growth hinge to a big degree on whether tariff-induced inflation eases after a few months or persists into next year. Several Fed officials in recent weeks have warned that import prices may provoke a sustained rise in prices. They have favored holding off on a reduction in the main interest rate until gaining greater clarity on price pressures. 'I see upward pressure on inflation from trade policies, and I expect additional price increases later in the year,' Fed Governor Adriana Kugler said Thursday. 'Given the stability in the employment side of our mandate, with the unemployment rate still at historically low levels, elevated short-run inflation expectations and goods inflation rising due to the upward pressure from tariffs, I find it appropriate to hold our policy rate at the current level for some time,' Kugler said in a speech. Import duties will probably push up inflation by about 1 percentage point during the second half of this year 'and the first part of next year,' New York Fed President John Williams said Wednesday. Holding the federal funds rate at its 'modestly restrictive' level from 4.25% to 4.5% 'is entirely appropriate to achieve our maximum employment and price stability goals,' Williams said in a speech. Fed Governor Christopher Waller disagrees. On Thursday he called on his fellow policymakers to cut the federal funds rate by 0.25 percentage point at their meeting this month. 'Tariffs are a one-off increase in the price level and do not cause inflation beyond a temporary surge,' he said in a speech. Also, 'while the labor market looks fine on the surface, once we account for expected data revisions, private-sector payroll growth is near stall speed and other data suggest that the downside risks to the labor market have increased,' Waller said. 'With inflation near target and the upside risks to inflation limited, we should not wait until the labor market deteriorates before we cut the policy rate,' he said. Over time, the central bank should aim to trim the benchmark rate to 3%, a 'neutral' level that Fed officials believe would neither slow nor spur economic growth, Waller said. Recommended Reading Jobless claims edge up, amplifying Fed signals for rate cut Sign in to access your portfolio
