Peru Holds Key Rate as Copper Tariffs Threaten Top Performer
The central bank held its key rate at 4.5% for a second straight month on Thursday, as forecast by 14 of 16 economists surveyed by Bloomberg. Two analysts expected a quarter-point rate reduction to 4.25%.
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Bloomberg
an hour ago
- Bloomberg
Mexico Sure It Will Strike Deal With US to Skirt Tariffs
By and Kevin Whitelaw Updated on Save Mexico is projecting confidence that it will fend off a new set of 30% tariffs that President Donald Trump threatened Saturday to impose next month, with talks already underway to avert the worst. After Trump went public with his plan by posting on social media, Mexican President Claudia Sheinbaum noted in speeches near the northern border that every country has been getting a letter from Trump as he implements global protectionist policies. Her team had already begun discussions with the US on Friday and she was confident Mexico would get a deal.
Yahoo
an hour ago
- Yahoo
CoreWeave Rules the Unusual Options Activity. But Should It Be in Your Portfolio?
Friday looks to be a volatile day in the markets after Donald Trump rattled his tariff saber on Thursday. The president threatened Canada with 35% tariffs on imports into the U.S. and blanket tariffs of 15%-20% on those countries that have yet to receive a letter from the White House with a specified rate. Creating a 38% 'Dividend' on SOFI Stock Using Options Wednesday's Unusual Options Activity Reveals 3 Standout Long Straddle Plays Teva Pharmaceutical (TEVA) Just Flashed a Statistically Viable Signal for Bullish Traders Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! It continues to amaze me how little regard investors are paying to tariffs at the moment. It's as if the early April swan dive — from April 2's close to the April 8th close (4 trading days), the S&P 500 lost 12% — was decades ago. I'm not a technical analyst, so I'm not going to spend any more time questioning the sanity of investors. Still, I have to say, the mere fact that CoreWeave (CRWV) had 10 of the top 20 unusually active options--defined as Volume-to-Open-Interest ratios of 1.24 or higher and expiring in seven days or longer--speaks volumes about where investors' heads are at. The AI-focused company may be ideally situated for the boom in artificial intelligence, so I get the heightened options volume--711,765 on Thursday, about 75% higher than the 30-day average--I'm not sure the average retail investor should be buying CRWV for the long haul. Have an excellent weekend. As the S&P 500 P/E multiple moves higher in 2025, it gets closer to hitting a 10-year high. Right now, it's around 30x, the same level as March 2021, down from the 10-year high of 38.20x in December 2020. Source: While I understand that investors are willing to pay more for AI-related businesses, it seems that they're eager to do so for almost every company in every industry. How long can this carry on? That is the million-dollar question. At present, CoreWeave loses an exceptional amount of money, so I'll focus on its EV/TTM revenue multiple instead. It's currently 28.9x, up from 14.7x when it went public at $40 in March. It's up 246% in the three months since its IPO. CoreWeave generates over 70% of its revenue from Microsoft (MSFT). The tech giant's enterprise value of $3.75 trillion is 13.9x its trailing 12-month revenue. Back in March, it was 10.8x, much cheaper than CoreWeave. Which begs the question? Why not buy MSFT stock for the long term, significantly reducing your risk exposure, while likely delivering above-average returns over the long haul? In Microsoft's Q3 2025 quarter, its operating income was $32.o billion. CoreWeave's operating loss was $ 27.0 million, according to S&P Global Market Intelligence. In 2024, CoreWeave's net loss was $937.8 million, up from $593.7 million a year earlier. Its adjusted net loss was a more palatable $64.9 million, with an adjusted operating profit of $355.8 million, up substantially from $703,000 in 2023. You could make the case that the adjusted numbers show that it can make money on a non-GAAP basis, which suggests its P/E multiple isn't as outrageous as it might seem. However, the net debt should be something to watch closely. At the end of December, it was $10.62 billion, or 16% of its $67.49 billion market cap. That would be a reasonable percentage for a typical industrial business, but for a tech company? Microsoft's net debt of $25.4 billion is 0.7% of its $3.73 trillion market cap. Again, why not invest in MSFT stock and call it a day? One more thing. In the 12 months ended March 31, the company's interest expense was $584.0 million. That's $4.64 of sales for every $1 in interest. At the end of December, it was $5.31 in sales for every $1 in interest. I doubt that's sustainable. I guess we'll find out soon enough. When you examine the company's financials, it's easy to see why options are popular for CoreWeave stock. It's a lower-risk way to play the fast-growing business without losing your shirt. As mentioned, there were 10 unusually active options in the top 20 yesterday (see below). Not surprisingly, they're all calls. CoreWeave's P/C (Put/Call) volume ratio yesterday was 0.26, which means there were 3.85 calls for every put. That's very bullish. Meanwhile, the P/C OI ratio was 1.46, which means there are 1.46 puts open for every call, a bearish long-term indicator. Now, there are plenty of esoteric options strategies you could play here, but I'm going to assume you're relatively risk-neutral and do like the long-term potential of its stock. With that being the case, I'd probably go with the Jan. 16/2026 $100 call with an ask price of $40.15, or 29% of its share price. With a DTE (days to expiration) of 191, it gives you a decent amount of time for the shares to appreciate further. About 28% ITM (in the money) and a breakeven of $140.15, if you believe it will move higher over the next 191 days, your profit probability is high. If you're a little more adventurous, you could sell a Jan. 16/2026 $100 put for an annual return of $43.9%. Of course, if the share price falls below $100, you could be asked to buy the shares at expiration at $100, above where the shares trade for a paper loss. CoreWeave is a stock that I would neither own nor use options for, but that doesn't mean you shouldn't. On the date of publication, Will Ashworth did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
an hour ago
- Yahoo
Here's how a $1,000 ‘Trump account' could swell to $100,000 by age 21—and $2 million by 60—even with modest contributions from families
The One Big Beautiful Bill that was signed into law last week includes a provision for so-called Trump accounts that provide a one-time contribution of $1,000 from the federal government for U.S. babies born from 2025 to 2028. Depending on how much is invested and how well the stock market performs, the accounts could grow substantially over time. Parents are getting a new option to build wealth for their kids under the new tax-and-spending law signed by President Donald Trump last week. The so-called Trump accounts, which are expected to be available next July, are open to babies who are U.S. citizens born from 2025 through 2028 and have Social Security numbers. The federal government will make a one-time contribution of $1,000. Families can also contribute up to $5,000 a year, with employers allowed to chip in up to $2,500 of that amount. The money must sit in low-cost stock mutual funds or ETFs tracking a U.S. stock index, such as the S&P 500. Key details have yet to be spelled out as federal agencies must begin the rule-writing process to implement the program. But the investment community is already touting the potential benefits. 'It can help Americans build financial security earlier and more confidently and, over time, ease the pressure on both the safety net and the federal budget,' Russell Investments Chairman and CEO Zach Buchwald wrote in the Washington Post on Thursday. 'This kind of long-term investment in people addresses a deep, persistent challenge: Most Americans don't save or invest nearly enough during their working years.' The ability for employers to make contributions, which wouldn't count as taxable income, is key because it can allow the accounts to grow significantly, even with modest sums from families, he added. Buchwald laid out a hypothetical scenario where a family contributes just $20 a week into a Trump account, or about $1,000 a year, with an employer adding another $2,500 a year. Assuming a 7% rate of return, the account could top $100,000 by the time the child turns 21, he estimated. It's a relatively conservative figure considering the S&P 500's annual return has averaged above 10% since 1957, albeit with some big swings in the process. If contributions keep rolling in, the magic of compounding could swell the Trump account to more than $2 million by the time the holder is 60, Buchwald added. 'That early start doesn't just help with paying for college or buying a first home—it sets the foundation for lifelong financial security through to retirement,' he said. Of course, more aggressive contributions and a stronger stock market would result in fatter accounts. A family that maxes out the $5,000 annual contribution limit could see the account jump to more than $190,000 after 18 years and an 8% annual return. Trump accounts represent another investment tool for families looking to establish some financial resources for their children. Parents can already open Roth IRAs and 529 education accounts for their kids. But they can only start IRAs when their kids are earning income, and withdrawals for 529s are largely limited to education-related expenses (though unused funds can be rolled into a Roth IRA with certain limits). In addition, other families may not have the financial means to set up IRAs, while many Americans don't open their own retirement accounts until they've landed their first jobs in their 20s, or later. A key advantage of Trump accounts is that contributions can start very early in a child's life, allowing for more years to build wealth. 'To me, it's a supercharged IRA,' Cheryl Costa, a financial adviser in Framingham, Mass., told the New York Times. This story was originally featured on
