Want to Know Where the Economy Is Headed? Look at These Banks
In the second quarter, the KBW Nasdaq Bank Index, which tracks the country's largest banks, was up 14%, beating the S&P 500 by about 3 percentage points. That was powered by some megabanks. Shares of Goldman Sachs GS -0.59%decrease; red down pointing triangle, for example, were up almost 30%.
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Bloomberg
23 minutes ago
- Bloomberg
Stock Investors Are Pricing in Little Risk of Hot Inflation Print
Stock traders appear to be shrugging off the possibility of a hotter-than-expected inflation print, leaving them vulnerable if the trade war leaves its mark on US consumer prices. Bets in options markets show traders expect the S&P 500 to swing 0.6% in either direction following data, according to data compiled by Citigroup.
Yahoo
24 minutes ago
- Yahoo
Stock market today: Dow, S&P 500 futures climb after Nvidia boost, with CPI inflation data, big bank earnings on deck
Tech led as US stock futures rose on Tuesday, with a China green-light for Nvidia (NVDA) lifting spirits in the wait for a key consumer inflation print and for big banks to kick off earnings season. S&P 500 futures (ES=F) moved up 0.3%, while contracts on the tech-heavy Nasdaq 100 (NQ=F) climbed 0.5%, buoyed by gains for AI chipmaker Nvidia. But Dow Jones Industrial Average futures (YM=F) slipped, down roughly 0.2% on the heels of closing gains for the major gauges. Nvidia said it hopes to resume sales of its key AI chips to China soon, having received assurances from the US government that it will be granted licences. The dramatic reversal in the Trump administration's earlier stance on export curbs — part of its trade standoff with Beijing — helped lift shares almost 5% in premarket. President Trump's trade policy also looms over the June consumer inflation report, which is expected to show the first real signs of a tariff-driven uptick on prices when it is released at 8:30 a.m. ET. The Consumer Price Index headline reading is forecast to rise 0.3% month over month and 2.4% year over year. Both would represent accelerations from May's data. Read more: The latest on Trump's tariffs Meanwhile, big banks unofficially kick off earnings season Tuesday morning, with JPMorgan (JPM), Citi (C), and Wells Fargo (WFC) all on the docket. The banks will look to assure investors that the tariff-driven turmoil of Q2 is in the rearview mirror and that the wind is at their backs for the second half of this year. Read more: Full earnings coverage in our live blog The backdrop to both events are Trump's escalatory moves on tariffs over the past week. He has spent the last several days threatening key trade partners, most notably Canada, the European Union, and Mexico, with high duties from Aug. 1. The president said Monday that he is open to continue talking but also repeated a recent refrain that the letters he has sent to trade partners "are the deals." The tariffs drama and the inflation and earnings pictures also factor into the Federal Reserve's next move on interest rates, coming in just over two weeks. The vast majority of bets are on a hold this month, followed by a rate cut in September. Of course, Trump has spent the past few weeks pushing for more cuts. He and his allies are beefing up their criticism of Fed Chair Jerome Powell, both on rates and on new fronts, like the Fed's headquarters renovation, with one top contender to replace Powell suggesting it could be grounds for his removal. Nvidia (NVDA) stock is popping in premarket trade after the AI chipmaker got a breakthrough in its China sales logjam. Shares are up 5% after Nvidia said it had secured Trump administration approval to restart deliveries of its China-tailored AI chip. Bloomberg reports: Read more here. Gold (GC=F) prices rebounded from a mild dip Monday as global tariff talks have failed to offer investors a sense of security, bolstering the value of the haven asset. Bloomberg reports: Bullion rose as much as 0.5% after dropping by a similar amount in the previous session. President Donald Trump said he was open to more talks with major economies including the European Union. But that appeared to be at odds with his insistence that letters to governments setting tariff rates are 'the deals' for trade partners. The precious metal has surged by more than a quarter this year, hitting a record above $3,500 an ounce in April, as the US's aggressive and erratic trade policy enhanced its appeal as a store of value in uncertain times. However, the rally has stalled over the last three months as investors wait for more clarity on the eventual contours of the new trade system, and on signs they're hesitant to buy gold at such elevated levels. 'If trade talks deteriorate before August, we could easily see bullion retest or even breach its former highs,' said Fawad Razaqzada, a market analyst at City Index. 'For now, the market seems firmly in wait-and-see mode, keeping the gold forecast leaning cautiously bullish.' Read more here. Nvidia (NVDA) is moving to reestablish its foothold in the Chinese market, announcing late Monday night that it plans to restart sales of its H20 AI chips in the region. The company has also unveiled a new GPU model specifically engineered to align with US export regulations. In a company blog post, Nvidia said it is currently seeking approval from US authorities to resume shipments of the H20, with licensing expected "soon." Once cleared, deliveries could begin in short order. To further strengthen its China strategy, Nvidia announced a "new, fully compliant NVIDIA RTX PRO GPU" that 'is ideal for digital twin AI for smart factories and logistics.' CEO Jensen Huang recently met with both US and Chinese officials, including former President Donald Trump, in efforts to foster international cooperation on AI and reinforce Nvidia's role in open-source AI research. As of Monday's close, Nvidia shares were down 0.5% at $164.07. However, the stock saw a rebound in after-hours trading, gaining 4.2% to $170.78. Nvidia (NVDA) stock is popping in premarket trade after the AI chipmaker got a breakthrough in its China sales logjam. Shares are up 5% after Nvidia said it had secured Trump administration approval to restart deliveries of its China-tailored AI chip. Bloomberg reports: Read more here. Gold (GC=F) prices rebounded from a mild dip Monday as global tariff talks have failed to offer investors a sense of security, bolstering the value of the haven asset. Bloomberg reports: Bullion rose as much as 0.5% after dropping by a similar amount in the previous session. President Donald Trump said he was open to more talks with major economies including the European Union. But that appeared to be at odds with his insistence that letters to governments setting tariff rates are 'the deals' for trade partners. The precious metal has surged by more than a quarter this year, hitting a record above $3,500 an ounce in April, as the US's aggressive and erratic trade policy enhanced its appeal as a store of value in uncertain times. However, the rally has stalled over the last three months as investors wait for more clarity on the eventual contours of the new trade system, and on signs they're hesitant to buy gold at such elevated levels. 'If trade talks deteriorate before August, we could easily see bullion retest or even breach its former highs,' said Fawad Razaqzada, a market analyst at City Index. 'For now, the market seems firmly in wait-and-see mode, keeping the gold forecast leaning cautiously bullish.' Read more here. Nvidia (NVDA) is moving to reestablish its foothold in the Chinese market, announcing late Monday night that it plans to restart sales of its H20 AI chips in the region. The company has also unveiled a new GPU model specifically engineered to align with US export regulations. In a company blog post, Nvidia said it is currently seeking approval from US authorities to resume shipments of the H20, with licensing expected "soon." Once cleared, deliveries could begin in short order. To further strengthen its China strategy, Nvidia announced a "new, fully compliant NVIDIA RTX PRO GPU" that 'is ideal for digital twin AI for smart factories and logistics.' CEO Jensen Huang recently met with both US and Chinese officials, including former President Donald Trump, in efforts to foster international cooperation on AI and reinforce Nvidia's role in open-source AI research. As of Monday's close, Nvidia shares were down 0.5% at $164.07. However, the stock saw a rebound in after-hours trading, gaining 4.2% to $170.78.
Yahoo
25 minutes ago
- Yahoo
Why these analysts think it's time for a new Apple CEO
Two research analysts made waves last week when they called for a major shakeup at tech giant Apple. The analysts weren't suggesting a logo or product redesign. Instead, they called for the replacement of Tim Cook, the CEO who directly succeeded Steve Jobs in 2011 and helped catapult the company to its $3 trillion valuation. Walter Piecyk and Joe Galone of LightShed Partners, a New York-based technology, media and telecommunications research firm, are questioning whether Cook is still the right person to lead one of the world's most valuable companies amid concerns that it's fallen behind in AI — a technology that's already disrupting work, education and other facets of everyday life. Apple has already faced pressure to come up with a new hit product as sales of smartphones, Apple's biggest revenue driver, have slowed across the industry. 'Apple now needs a product-focused CEO, not one centered on logistics,' the pair wrote on July 9. Replacing Cook would be a high-stakes move for Apple; the company is already undergoing leadership changes elsewhere in the C-suite, and changing CEOs could further pull focus away from running Apple's core business. Cook is also widely supported by Apple's board and has 'staying power akin to other captains of industry' such as Disney's Bob Iger and JPMorgan Chase's Jamie Dimon, reports Bloomberg's Mark Gurman, who has long tracked Apple's business strategy. There's no evidence to indicate Cook is going anywhere soon. Shares of Apple (AAPL) have skyrocketed under Cook's tenure, during which he's also built other lucrative products after the iPhone's success — such as smartwatches, earbuds and digital services. To be sure, the LightShed note is just one take in a crowded field of analysts and researchers who follow Apple's business. But it is perhaps an indication that Apple's AI setbacks are bigger than a standard product delay — to some, they're shaking confidence in Apple's ability to innovate. And Piecyk and Galone aren't the only ones questioning whether Apple needs fresh leadership. 'He's a supply chain guy. They need a tech visionary,' said Ted Mortonson, managing director and technology sector strategist at financial services company Baird. 'I think they're in a lot more trouble than some people think.' Apple did not respond to CNN's request for comment. Apple has grappled with a litany of challenges so far in 2025, among them: President Donald Trump's tariff threats; fresh restrictions from the European Union on how it runs its valuable App Store; and a federal judge allowing an antitrust lawsuit alleging it has monopolized the smartphone market to proceed. But concerns about the iPhone maker's slow progress in AI have been front and center. The company in March said it's delaying a long-awaited update to Siri that would have enabled it to answer more complex questions with personalized answers and handle tasks on a user's behalf. That type of change would bring Siri closer to more modern AI agents like OpenAI's ChatGPT and Google's Gemini. The company hasn't said much about when the revamped Siri will arrive aside from needing 'more time to reach our high-quality bar,' Craig Federighi, Apple's senior vice president of software engineering, said in June at the company's Worldwide Developers Conference. The concern is broader than Siri alone, it's that Apple doesn't seem to have much to show for its AI efforts so far, Creative Strategies CEO and principal analyst Ben Bajarin told CNN earlier this year. Apple has shaken up its AI leadership in an effort to accelerate its efforts in the space, according to Bloomberg. Apple Intelligence, which arrived in 2024 following the iPhone 16's September launch, includes tools that can summarize notifications, transcribe phone calls, erase objects in photos, and use an iPhone's camera to search Google or prompt ChatGPT and create images. Although Apple delayed the Siri update, it did announce a batch of new AI features coming this fall, including live-language translation, AI-generated workout insights for the Apple Watch and enhancements to existing features. But many of these upgrades are Apple playing catch-up to tools already offered by other tech companies, and may not be enough to position Apple as a leader. '(Cook) has done a great job of getting Apple to where it is, but the environment certainly has changed,' said Thomas Martin, partner and senior portfolio manager at investment firm Globalt. 'They are really struggling on the AI front. It's a different animal, because AI is software, and Apple is traditionally almost exclusively hardware.' Under Cook's watch, other high-profile products or projects have fallen short of expectations in recent years. Last year, Apple launched the $3,500 Vision Pro headset, heralding it as the future of computing. But more than a year on, it remains a niche, novelty device as some of Apple's competitors are moving ahead with more stylish and practical augmented reality glasses. Also in 2024, Apple reportedly ended a decade-long effort to build an electric car, known internally as Project Titan, pulling the plug on what was believed to be an ambitious, expensive endeavor. Apple has made other significant changes to its leadership. Chief Financial Officer Luca Maestri was replaced at the start of 2025, although he remains vice president of corporate services according to Apple's website. And the company announced that longtime Chief Operating Officer Jeff Williams will leave the post this month and retire this year. Cook, 64, has been Apple's CEO for nearly 14 years and is widely respected for his operational acumen. He stepped out of the shadow of one of America's most iconic CEOs, Steve Jobs, and built a global supply chain and ecosystem of products and services that maintained Apple's place as one of the world's most valuable companies. He also carved out an important role for Apple in the digital health space with the Apple Watch, which was introduced in 2014 and was the first major new product launched under Cook's tenure. Apple is now a market leader in wearable technology, which includes both the Apple Watch and other devices like its AirPods — it claimed nearly a quarter of the global market for wearables as of the fourth quarter of 2024, according to market research firm the International Data Corporation. Under Cook's leadership, Apple's market cap went from just over $342 billion in August 2011 to roughly $3 trillion today. Even the two LightShed Partners analysts have acknowledged that Cook has done 'a great job.' 'To be clear, Tim Cook was the right CEO at the time of his appointment and unquestionably has done a great job,' the analysts wrote. And further change to Apple's executive ranks might hinder their efforts to expand in AI. unknown content item - 'I think the last thing you want to do is further rock the boat by putting Tim Cook's job on the line,' said CFRA Research analyst Angelo Zino. 'I don't think Apple would even consider doing that.' He added that while it's clear Apple isn't moving fast enough in AI, 'getting rid of Tim Cook' may not be the answer. Instead, the company could address its AI challenges with an acquisition — the company has reportedly discussed buying AI startup Perplexity — or by deepening its partnership with OpenAI, or following in Meta's footsteps by investing more heavily in top talent, Zino said. It's rare for any company to keep a CEO for more than 10 years, says William Klepper, academic director in executive education at Columbia Business School and author of the book 'The CEO's Boss: Tough Love in the Boardroom.' 'Organizations go up and down, right? It's just this nature of what we call the cycle of business,' he said. 'And where they are now is in what I would call kind of a static state.' Keppler notes that the 10-year time frame isn't random. It usually coincides with a major disruptor that alters a company's business model, which in this case is AI. During those periods of change, companies like Apple need to support their core business while simultaneously adapting to what is coming next. 'From my research and my model, you need a change agent … because you got to start a second wave,' he said. 'You can't stay in an executive leadership role when you're at a point of inflection and need to change.' Companies usually install new CEOs for three reasons: in response to a scandal, to fix a crisis or over a loss of trust and competence, says Sandra Sucher, professor of management practice at Harvard Business School. None of those scenarios apply to Cook or Apple. But one thing's clear: Pressure is mounting on Apple to figure it out –— and fast. 'Do we have an Intel-ing of Apple?' said Martin, referring to the once-leading American chipmaker that fell far behind rivals like Nvidia and AMD after missing several major technology waves. 'That would be so sad.'
