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Fast Company
23-07-2025
- Business
- Fast Company
Stocks rise to more records after U.S. strikes trade deal with Japan
BY U.S. stocks are rising toward more records on Wednesday following a trade deal between the world's No. 1 and No. 4 economies, one that would lower proposed tariffs on Japanese imports coming to the United States. The S&P 500 was 0.7% higher, coming off its latest all-time high. The Dow Jones Industrial Average was up 469 points, or 1.1%, with a little less than an hour remaining in trading, and the Nasdaq composite was 0.5% higher and heading for its own record. Stocks jumped even more in Tokyo, where the Nikkei 225 rallied 3.5% after President Donald Trump announced a trade framework that would place a 15% tax on imports coming from Japan. That's lower than the 25% rate that Trump had earlier said would kick in on Aug. 1. 'It's a sign of the times that markets would cheer 15% tariffs,' said Brian Jacobsen, chief economist at Annex Wealth Management. 'A year ago, that level of tariffs would be shocking. Today, we breathe a sigh of relief.' Trump has proposed stiff taxes on imports from around the world, which carry the double-edged risk of driving up inflation for U.S. households while slowing the economy. But many of Trump's tariffs are currently on pause, giving time to reach deals with other countries that could lower the tax rates. Trump also announced a trade agreement with the Philippines on Tuesday. So far, the U.S. economy has seemed to hold up OK despite the pressures on it. And tariffs already in place may be having less of an effect than expected, at least when it comes to the prices that U.S. households are paying at the moment. 'The main lesson about tariffs so far is that passthrough to consumer prices is tracking somewhat lower than in 2019,' according to Goldman Sachs economist David Mericle. Tariffs are certainly having an effect, to be sure, as big U.S. companies across industries have been demonstrating through their profit updates in recent days. Hasbro took a $1 billion, non-cash hit to its results for the spring to write down the value of some of its assets following a review triggered by the implementation of tariffs. It said tariffs have had no impact yet on how much profit it's making from each $1 of its sales, but it expects to see costs ramp during the current quarter. Hasbro's stock fell 0.8% even though it reported a stronger profit for the latest quarter than analysts expected, when not including the $1 billion charge. Like the toymaker, Texas Instruments' stock also fell despite delivering results for the latest quarter that were above analysts' expectations. It gave a forecasted range for profit in the current quarter whose midpoint fell a bit shy of Wall Street's. Analysts pointed to some cautious commentary from Texas Instruments executives about how the uncertainty created by tariffs could slow demand. Its stock sank 13.4%. Most of the stocks on Wall Street nevertheless rose, including a 14.2% jump for GE Vernova's stock. The energy company not only delivered a stronger profit than analysts expected, it also raised its forecasts for revenue from its power and electrification businesses. GE Vernova said that the inflation it's expecting to see as a result of tariffs may be trending toward the lower end of $300 million to $400 million, net of mitigating actions. Lamb Weston rallied 15.3% after the supplier of French fries and other potato products delivered better results for the latest quarter than analysts expected and said it expects customers will continue to eat fries even with an uncertain economy. It also announced a plan to cut at least $250 million in costs by cutting about 4% of its workforce and making other moves. Elsewhere on Wall Street, several stocks jumped as traders search for the next 'meme stock' that could ride a wave of online enthusiasm to high prices, regardless of what the company's profits are doing. Krispy Kreme, which came into the day with a 58.4% loss for the year so far, jumped nearly 39% shortly after trading began. It gave back most of those gains as the day continued and was up 4.6% in afternoon trading. GoPro gained 12.4%. That's even as other potential meme stocks lost their momentum. Opendoor Technologies, which had more than tripled between the last two Mondays, fell 17%. In stock markets abroad, indexes rose across Asia and Europe following Trump's announcements of trade deals. Japan's market was the big winner, where a series of automakers gave no public reaction as their stock prices rallied. Japanese companies tend to be cautious about their public reactions, and some business officials have privately remarked in off-record comments that they hesitate to say anything because Trump keeps changing his mind. Elsewhere, Hong Kong's Hang Seng rose 1.6%, and France's CAC 40 gained 1.4% for two of the world's bigger moves. In the bond market, Treasury yields ticked higher. The yield on the 10-year Treasury rose to 4.38% from 4.35% late Tuesday. —Stan Choe, AP business writer AP Business Writer Yuri Kageyama contributed. The super-early-rate deadline for Fast Company's Most Innovative Companies Awards is this Friday, July 25, at 11:59 p.m. PT. Apply today.
CTV News
23-07-2025
- Business
- CTV News
U.S. stocks tick toward another record following a U.S.-Japan trade deal
Specialist Alex Weitzman works at his post on the floor of the New York Stock Exchange, Monday, July 21, 2025. (AP Photo/Richard Drew) NEW YORK — U.S. stocks are ticking toward another record on Wednesday following a trade deal between the world's No. 1 and No. 4 economies, one that would lower proposed tariffs on Japanese imports coming to the United States. The S&P 500 was 0.4 per cent higher in early trading, coming off its latest all-time high. The Dow Jones Industrial Average was up 232 points, or 0.5 per cent, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.3 per cent higher. Stocks jumped even more in Tokyo, where the Nikkei 225 rallied 3.5 per cent after U.S. President Donald Trump announced a trade framework that would place a 15 per cent tax on imports coming from Japan. That's lower than the 25 per cent rate that Trump had earlier said would kick in on Aug. 1. 'It's a sign of the times that markets would cheer 15 per cent tariffs,' said Brian Jacobsen, chief economist at Annex Wealth Management. 'A year ago, that level of tariffs would be shocking. Today, we breathe a sigh of relief.' Trump has proposed stiff taxes on imports from around the world, which carry the double-edged risk of driving up inflation for U.S. households while slowing the economy. But many of Trump's tariffs are currently on pause, giving time to reach deals with other countries that could lower the tax rates. Trump also announced a trade agreement with the Philippines on Tuesday. So far, the U.S. economy has seemed to hold up OK despite the pressures on it. And tariffs in place may be having less of an effect than expected, at least when it comes to the prices that U.S. households are paying at the moment. 'The main lesson about tariffs so far is that passthrough to consumer prices is tracking somewhat lower than in 2019,' according to Goldman Sachs economist David Mericle. Tariffs are certainly having an effect, to be sure, as big U.S. companies across industries have been showing through their profit updates in recent days. Hasbro took a US$1 billion, non-cash hit to its results for the spring to write down the value of some of its assets following a review triggered by the implementation of tariffs. It said tariffs have had no impact yet on how much profit it's making from each $1 of its sales, but it expects to see costs ramp during the current quarter. Hasbro's stock fell three per cent even though it reported a stronger profit for the latest quarter than analysts expected, when not including the $1 billion charge. Like the toymaker, Texas Instruments' stock also fell despite delivering results for the latest quarter that were above analysts' expectations. It gave a forecasted range for profit in the current quarter whose midpoint fell a bit shy of Wall Street's. Analysts pointed to some cautious commentary from Texas Instruments executives about how the uncertainty created by tariffs could slow demand. Its stock sank 11.3 per cent. Helping to offset that was a 10.5 per cent jump for GE Vernova. The energy company not only delivered a stronger profit than analysts expected, it also raised its forecasts for revenue from its power and electrification businesses. GE Vernova also said that the inflation it's expecting to see as a result of tariffs may be trending toward the lower end of $300 million to $400 million, net of mitigating actions. Elsewhere on Wall Street, several stocks leaped as traders search for the next 'meme stock' that could ride a wave of online enthusiasm to high prices, regardless of what the company's profits are doing. Krispy Kreme, which came into the day with a 58.4 per cent loss for the year so far, jumped 25.4 per cent. GoPro soared 51.1 per cent. That's even as some other potential meme stocks lost their momentum. Opendoor Technologies, which had more than tripled between the last two Mondays, fell 16.6 per cent. In stock markets abroad, indexes rose across Asia and Europe following Trump's announcements of trade deals. Japan's market was the big winner, where a series of automakers gave no public reaction as their stock prices rallied. Japanese companies tend to be cautious about their public reactions, and some business officials have privately remarked in off-record comments that they hesitate to say anything because Trump keeps changing his mind. Elsewhere, Hong Kong's Hang Seng rose 1.6 per cent, and France's CAC 40 gained 1.2 per cent for two of the world's bigger moves. In the bond market, Treasury yields ticked higher. The yield on the 10-year Treasury rose to 4.37 per cent from 4.35 per cent late Tuesday. ___ AP business writer Yuri Kageyama contributed. By Stan Choe
Yahoo
18-07-2025
- Business
- Yahoo
July preliminary consumer sentiment: What it means for the Fed
Preliminary consumer sentiment ticked up in July, beating expectations with a reading of 61.8, according to data from the University of Michigan. Brian Jacobsen, chief economist and strategist at Annex Wealth Management, explains how this shift in sentiment could influence the Federal Reserve. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here. Brian, we did just get some numbers on consumer confidence from the University of Michigan. This was the July preliminary numbers. So the the first look here at July and it came in a little stronger than economists had forecast and stronger than June. 61.8 was the reading here. Um so seeing and seeing the sort of expectations for inflation ticking a little bit lower than they had been, what do you make of of that consumer sentiment? We also, of course, had retail sales this week. So what's that picture looking like? Sure. So if you think about the June data for industrial production and retail sales, stronger than expected, but some of that was just a bounce back. Now, the sentiment data, I think is really important, especially the inflation expectations component, because I think that's one of the things that Chair Powell has been hanging his hat on in terms of justifying a pause, is that inflation expectations had been moving up, they're kind of high, and he wants to fight against that. And so if those are now drifting lower, uh really the argument for the Fed staying on pause kind of goes to the side and maybe they should get to more of a neutral stance instead of a restrictive stance. And it's understandable why sentiment would have improved because really, I think we've become a little numb to the tariff talk, realizing that this is going to play out. Maybe it's not going to be as bad as what it was originally presented back on April 2nd in the Rose Garden. If we settle somewhere between 10 and 15%, it's not great, but it could be worse. So Brian, as you look at all of these various elements, what do you think is the the biggest risk for the market right now? Yeah, well, I think that the biggest risk right now is the valuations. When we look at the fundamentals, think that those will be improving, but how much are you paying for those fundamentals? So, as we go through earning season, I expect that we're going to be seeing a lot of volatility in terms of the companies that are meeting expectations, probably fine, but the misses are probably going to get punished a lot more than usual. I don't think investors have the patience to really deal with companies that are missing with any of those estimates. Um, really interesting. Good to watch if companies are are missing and what happens then. Brian, good to see you. Thanks so much. Thank you. Related Videos US Consumer Sentiment Rises to a Five-Month High Netflix Q2 earnings are 'really solid' but not 'spectacular' Waller Explains Why Fed Should Cut Rates Now Markets signal that firing Powell is one line Trump can't cross 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
