Latest news with #AllspringGlobalInvestments
Bloomberg
2 days ago
- Business
- Bloomberg
Yields Drop on Waller's Call, Inflation Views
Sonali Basak highlights the market-moving news you need to know. Today's guests: Allspring Global Investments Chief Investment Strategist of Fixed Income George Bory, Guggenheim Investments CIO of Fixed Income Steve Brown, BlackRock Head of Macro Credit Research Amanda Lynam, Vanguard Co-Head of Global Taxable Credit Research Colleen Cunniffe (Source: Bloomberg)
Yahoo
07-07-2025
- Business
- Yahoo
Why e.l.f. Beauty (ELF) Shares Are Trading Lower Today
Shares of cosmetics company e.l.f. Beauty (NYSE:ELF) fell 7.1% in the afternoon session after a significant institutional investor, Allspring Global Investments Holdings LLC, reported a massive reduction in its holdings. According to a recent filing with the Securities and Exchange Commission, Allspring Global Investments sold 419,138 shares of e.l.f. Beauty during the first quarter, cutting its position by nearly 90%. This large-scale sell-off by a major institutional holder can often unnerve the market, prompting other investors to sell and adding downward pressure on the stock price. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy e.l.f. Beauty? Access our full analysis report here, it's free. e.l.f. Beauty's shares are extremely volatile and have had 50 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. e.l.f. Beauty is down 0.6% since the beginning of the year, and at $122.05 per share, it is trading 42.1% below its 52-week high of $210.90 from July 2024. Investors who bought $1,000 worth of e.l.f. Beauty's shares 5 years ago would now be looking at an investment worth $6,192. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. 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
Zawya
02-07-2025
- Business
- Zawya
Stocks inch up, dollar struggles under weight of Trump tariffs, Fed uncertainty
SINGAPORE - Global stocks edged higher and the dollar was pinned near a three-year low on Wednesday as investors pondered the prospect of U.S. interest rate cuts and the scramble for trade deals ahead of President Donald Trump's July 9 deadline for tariffs. Trump said he was not considering extending the deadline for countries to negotiate trade deals with the United States, and cast doubts again that an agreement could be reached with Japan, although he expects a deal with India. The European Union's trade chief is also expected to hold negotiations this week in Washington to avert higher U.S. tariffs. Europe's STOXX 600 edged up 0.1%, and Germany's DAX climbed 0.3% in early trading. Across the Atlantic, futures tracking the S&P 500 pointed to a higher open after the benchmark index eased from its record high in the previous session. MSCI's broadest index of Asia-Pacific shares outside Japan witnessed a choppy session earlier in the day and was last up 0.1%. However, trade ambiguities weighed on Japanese stocks that lost 0.5%. "You've seen it with other trade negotiations that they take years if you want to do them properly," said Matthias Scheiber, senior portfolio manager and the head of the multi-asset solutions team at Allspring Global Investments. "It's not something you negotiate within a week. I think that's also what the U.S. is realizing now. If the tariffs get ramped up again and the situation sours, short-term, we can definitely see some volatility." Data on Tuesday showed the U.S. labour market remained resilient with a rise in job openings for May, sharpening the focus on the payrolls report due on Thursday as investors try to gauge when the Federal Reserve is likely to cut rates next. Fed Chair Jerome Powell, under fire from Trump to cut rates immediately, reiterated that the U.S. central bank plans to "wait and learn more" about the impact of tariffs on inflation before lowering interest rates. Traders are pricing in about 64 basis points of cuts this year from the Fed, with the odds of a move in July at 21%. The dollar index, which measures the U.S. currency against six rivals, hovered near its lowest since early 2022 and was last at 96.705. Analysts have said that any signs of labour market weakness could further weigh on the greenback. TRUMP'S BILL Investor focus over the last few days has pivoted to the progress of Trump's massive tax-and-spending bill, which is expected to add $3.3 trillion to the national debt, slash taxes and reduce social safety net programmes. The legislation heads to the House of Representatives for possible final approval after U.S. Senate Republicans passed it by the narrowest of margins. The bill has stoked fiscal worries, but the reaction was relatively muted in bond markets after it passed the Senate. Aninda Mitra, head of Asia macro strategy at BNY Investment Institute, said the legislation solidifies a steady deterioration of the fiscal position and the debt trajectory of the U.S. government. "The near-term impact is mostly in the price, but the uncertainty factor could keep term premia elevated. We don't think long-term yields will fall back materially in the 6-12 month horizon." Uncertainties about the outlook on public finances, trade and interest rates have caused investors to flee U.S. assets and look for alternatives. This was evident in the U.S. dollar's 10% loss, its worst first-half performance since the 1970s. In commodities, spot gold slipped 0.2% to $3,331 per ounce, after surging 1% in the previous session. The yellow metal is up 27% this year on safe-haven flows.
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Business Standard
02-07-2025
- Business
- Business Standard
Asian stocks waver, dollar sags under weight of US tariffs, Fed uncertainty
Asian stocks stumbled on Wednesday and the dollar languished near 3-1/2-year lows as investors pondered the prospect of US interest rate cuts and the scramble for trade deals ahead of President Donald Trump's July 9 deadline for tariffs. Trump said he was not considering extending the July 9 deadline for countries to negotiate trade deals with the United States, and cast doubts again that an agreement could be reached with Japan, although he expects a deal with India. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.23 per cent in early trading, inching away from the November 2021 top it touched last week. Japan's Nikkei fell 0.78 per cent, dragged by tech stocks. Tech-heavy Taiwan stocks and South Korea's Kospi Index also fell after US tech firms were hit hard following a strong rally in June. "You've seen it with other trade negotiations that they take years if you want to do them properly," said Matthias Scheiber, senior portfolio manager and the head of the multi-asset solutions team at Allspring Global Investments. "It's not something you negotiate within a week. I think that's also what the US is realizing now. If the tariffs get ramped up again and the situation sours, short term, we can definitely see some volatility." Data on Tuesday showed the US labour market remained resilient with a rise in job openings for May, sharpening the focus on the payrolls report due on Thursday as investors try to gauge when the Federal Reserve is likely to cut rates next. Fed Chair Jerome Powell, under fire from Trump to cut rates immediately, reiterated that the US central bank plans to "wait and learn more" about the impact of tariffs on inflation before lowering interest rates. Traders are pricing in 64 basis points of cuts this year from the Fed with the odds of a move in July at 21 per cent. That maintained a bearish bias on the dollar. The euro last bought $1.1799, just below the 3-1/2-year high it touched on Tuesday. The yen was steady at 143.52 per dollar. "Any disappointing economic data can prompt further dovish repricing of FOMC rate cuts and another round of USD selling," said Carol Kong, a currency strategist at Commonwealth Bank of Australia. "The 'One Big Beautiful Bill' Act (OBBBA) and trade developments also have the potential to further weaken the USD if they undermine investor confidence about the U.S. economy." Investor focus over the last few days has pivoted to the progress of Trump's massive tax-and-spending bill, which is expected to add $3.3 trillion to the national debt. The legislation heads to the House of Representatives for possible final approval after US Senate Republicans passed it by the narrowest of margins. The bill has stoked fiscal worries but the reaction was relatively muted after it passed the Senate. The benchmark US 10-year yields were steady at 4.245 per cent having touched a two-month low in the previous session. Aninda Mitra, head of Asia macro strategy at BNY Investment Institute, said the legislation solidifies a steady deterioration of the fiscal position and the debt trajectory of the U.S. government. "The near-term impact is mostly in the price, but the uncertainty factor could keep term premia elevated. We don't think long-term yields will fall back materially in the 6-12 month horizon." The fiscal worries, trade uncertainties and the US rate path trajectory have all led investors to flee US assets and look for alternatives. Investors worry that Trump's chaotic trade policies could hit U.S. economic growth. That has left the dollar unloved, with the greenback down over 10 per cent for the year in its worst first half performance since the 1970s. The dollar index, which measures the US currency against six rivals, was at 96.649, near its lowest since March 2022. In commodities, spot gold eased to $3,332.19 per ounce, after surging 1 per cent in the previous session. The yellow metal is up 27 per cent this year on safe-haven flows.
Yahoo
01-07-2025
- Business
- Yahoo
Netflix's Lofty Valuation Has Even Bullish Investors Nervous
(Bloomberg) -- Netflix Inc. investors face a dilemma: Continue to bet on a stock that has delivered best-in-class returns over the past year or reconsider shares that increasingly look like they're priced for perfection. Struggling Downtowns Are Looking to Lure New Crowds Philadelphia Transit System Votes to Cut Service by 45%, Hike Fares Squeezed by Crowds, the Roads of Central Park Are Being Reimagined Sao Paulo Pushes Out Favela Residents, Drug Users to Revive Its City Center Sprawl Is Still Not the Answer The streaming giant's stock price has nearly doubled over the last 12 months amid growth from advertising sales, subscription price increases and limited exposure to tariffs. While that makes it one of the best performing S&P 500 members over that span, it's also boosted its valuation to 46 times expected earnings for the next year. In comparison, Nvidia Corp. is priced at 32 times while the Nasdaq 100 is at 27 times. Such a premium valuation, Netflix's highest since 2021 — when its growth was being supercharged by the pandemic — is making even bullish investors wary of a potential sell off. Second-quarter earnings are due on July 17. 'I feel really good about its fundamentals, in terms of its pricing power, ad business and move into live events, but expectations have gotten to the point that any disappointment would be a risk,' said Michael Smith, senior portfolio manager and head of growth equity at Allspring Global Investments. After tumbling in 2022 amid slumping subscriber growth, Netflix shares have roared back as the company cracked down on password sharing and turned to advertising to boost revenue. Meanwhile, live events like WWE Raw are helping attract new subscribers. Netflix is the fourth best-performing stock in the Nasdaq 100 this year and now boasts a market value of $570 billion, bigger than Mastercard Inc. and Exxon Mobil Corp. Netflix's revenue is expected to rise 14% in 2025, down from 16% growth in 2024, according to the average of analyst estimates compiled by Bloomberg. While that's a vast improvement from 2022, when revenue rose by about 6.5%, it pales in comparison to 2020 and 2021, when Netflix's sales jumped 24% and 19%, respectively, as pandemic era lockdowns sent subscriber growth soaring. Still, most analysts on Wall Street remain bullish on the stock with a slate of programming this year that includes NFL games, boxing and new seasons of the popular shows Squid Game and Stranger Things. Last month, Oppenheimer & Co. described Netflix's outlook as 'ironclad' and raised the price target on the stock, one of many to do so in June. However, the shares have risen faster than analysts have upped their projections, leaving Netflix trading roughly 10% above the average price target of $1,217, suggesting limited upside potential over the coming months. Plenty of investors are undeterred by Netflix's valuation. Ken Mahoney, chief executive officer of Mahoney Asset Management, acknowledges it's a steep price to pay but believes Netflix's market dominance justifies the premium. 'People often miss great companies because they worry about valuation, and I don't have a problem spending up for what Netflix offers,' Mahoney said. Netflix is 'doing all the right things and is like a snowball getting bigger as it rolls downhill.' Another factor that's helped power Netflix's rally is that the stock has become much more widely owned. According to Bank of America data published at the end of May, Netflix was owned by 49% of long-only funds, making it the ninth-most-widely-held technology stock. About 14% of such funds held the stock in early 2016. Despite all of the tailwinds in Netflix's favor, Allspring Global's Smith questions what will be the next driver of Netflix's rally given the high valuation. 'There is a lot of fundamental momentum at Netflix, but the valuation backdrop has changed, and it is hard to say that this kind of multiple expansion is repeatable,' Smith said. Tech Chart of the Day Chinese automakers continued to expand their European foothold in May, capturing the highest share ever of hybrid-car sales and the biggest slice of the electric-vehicle market in 10 months. Manufacturers led by BYD Co. and SAIC Motor Corp.'s MG surpassed 9% share in both of those categories, based on figures from industry researcher Dataforce. Including combustion-engine models, European registrations of Chinese-branded cars topped 5% for the first time. Top Tech News Apple Inc. is considering using artificial intelligence technology from Anthropic PBC or OpenAI to power a new version of Siri, sidelining its own in-house models in a potentially blockbuster move aimed at turning around its flailing AI effort. Meta Platforms Inc. Chief Executive Officer Mark Zuckerberg announced a major restructuring of the company's artificial intelligence group, including a commitment to developing AI 'superintelligence,' or systems that can complete tasks as well as or even better than humans. The prospective buyer of TikTok's American operations cited by President Donald Trump is the same investor consortium including Oracle Corp., Blackstone Inc. and venture capital firm Andreessen Horowitz, whose bid for the app had stalled amid US-China trade tensions, according to a person familiar with the matter. Nintendo Co. pulled its products from Inc.'s US site after a disagreement over unauthorized sales, meaning the e-commerce company missed out on the recent debut of Nintendo's Switch 2 — the biggest game console launch of all time. Microsoft Corp.'s top sales executive is planning to take a two-month sabbatical, a move that coincides with an expected wave of terminations targeting his organization. Wolfspeed Inc., a chipmaker caught in President Donald Trump's push to reshape Biden-era tech subsidies, filed bankruptcy to enact a creditor-backed plan to slash $4.6 billion in debt. Earnings Due Tuesday No major earnings expected --With assistance from Rob Golum and Anthony Palazzo. America's Top Consumer-Sentiment Economist Is Worried How to Steal a House SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate China's Homegrown Jewelry Superstar ©2025 Bloomberg L.P. 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
