Latest news with #AnthonySaglimbene
Yahoo
11 hours ago
- Business
- Yahoo
Wall Street on Edge: Big Tech's $11 Trillion Earnings Could Ignite--or Derail--the Market Rally
Investors are staring down one of the most pivotal earnings stretches of the year. Four of the market's biggest playersMicrosoft (NASDAQ:MSFT), Meta (NASDAQ:META), Apple (NASDAQ:AAPL), and Amazon (NASDAQ:AMZN)are set to report results in the next two days, collectively representing $11.3 trillion in market cap. These companies, along with Nvidia (NVDA), Alphabet (NASDAQ:GOOG), and Tesla (NASDAQ:TSLA), make up the Magnificent Sevennames that now account for roughly 20% of the S&P 500. With the index sitting near record highs, expectations are running hot. But this time, it's not just about beating numbersit's about convincing investors the growth story still has legs. Warning! GuruFocus has detected 7 Warning Sign with MSFT. So far, corporate earnings have held up. About a third of S&P 500 (SPY) companies have reported, and roughly 82% have topped profit estimates, according to Bloomberg Intelligence. But those beats came after months of trimmed forecasts, especially in Big Tech, where estimates were pulled back following President Donald Trump's tariff announcements. Even with the revisions, the group is still expected to post 16% year-over-year profit growth in Q2, down from 19% in March. The broader index is pacing toward 4.5% growth, also a downgrade from earlier projections. That leaves little room for error. They're likely going to have to say that the rest of the year or the next quarter looks positive, said Ameriprise's Anthony Saglimbene. Investors may be forgiving on Q2but they'll want optimistic guidance to stay bullish. Under the hood, not all tech giants are riding the same wave. Meta, Microsoft, and Nvidia have been responsible for nearly half of the index's gains this year, driven largely by aggressive AI investments. Otherslike Apple and Teslahave struggled to keep pace. Alphabet's solid quarter last week gave a glimpse of what investors want: accelerating growth and clear AI momentum. But Tesla's weak EV outlook reminded the market how quickly sentiment can turn. Capital spending is also in focus. Microsoft, Alphabet, Meta, and Amazon are expected to spend $317 billion on AI infrastructure this year alone, rising to $350 billion by 2026. As JPMorgan's Gabriela Santos put it: At these levels, especially for large-cap tech, we need to see monetization rather than a promise of monetization. This article first appeared on GuruFocus. Sign in to access your portfolio
Reuters
17-07-2025
- Business
- Reuters
S&P 500, Nasdaq end at fresh record highs as data, earnings point to consumer strength
July 17 (Reuters) - The S&P 500 (.SPX), opens new tab stock index and the Nasdaq Composite (.IXIC), opens new tab both finished at record highs on Thursday, as investors embraced strong economic data and earnings reports that showed American consumers remained willing to spend. The Nasdaq has ended at a record high in six of the previous seven sessions, and the S&P 500 has had six best finishes since June 27. The Nasdaq Composite (.IXIC), opens new tab gained 153.78 points, or 0.74%, to 20,884.27, and the S&P 500 (.SPX), opens new tab increased 33.66 points, or 0.54%, to 6,297.36. The Dow Jones Industrial Average (.DJI), opens new tab also ended up, rising 229.71 points, or 0.52%, to 44,484.49. Wall Street has had a strong run since tumbling after President Donald Trump's Liberation Day tariff announcements in early April and then recovering. This week was seen as a proving ground for these gains though, with a number of key economic reports and the start of second-quarter earnings season. Economic data and corporate earnings reports "are showing that the economic backdrop is still pretty solid, and so markets have been able to grind higher this week with some data to support where we are going," said Anthony Saglimbene, chief market strategist at Ameriprise Financial. U.S. retail sales bounced back sharply in June, data showed on Thursday. Investors saw renewed economic momentum and confidence among consumers, after mixed inflation data which showed stalled producer prices and a spike in consumer inflation in the same month. Investors have been watching for signs of whether Trump's tariff policies are starting to permeate the U.S. economy. The Federal Reserve has indicated it will hold off on interest rate cuts until it can see the inflationary impact of higher import taxes. This was reiterated on Thursday by Fed Governor Adriana Kugler, who said rate cuts are on hold for now, as Trump's tariffs begin to push up consumer prices. Traders now peg the odds of a September rate cut at around 54%, with a July move nearly ruled out, according to CME's FedWatch tool. Accompanying strong retail sales was upbeat commentary from consumer-facing American companies. PepsiCo (PEP.O), opens new tab jumped 7.5% after forecasting upbeat results, fueled by demand for energy drinks and healthier sodas, helping offset concerns about a dip in annual core profit. United Airlines (UAL.O), opens new tab gained 3.1% after the carrier projected stronger demand since early July, offering a rare bright spot for an industry strained by Trump's budget cuts and trade tensions. Rivals Delta (DAL.N), opens new tab and American Airlines (AAL.O), opens new tab also climbed more than 1.4%. Technology stocks were also buoyed, in particular U.S. chipmakers, after TSMC ( opens new tab, the world's main producer of advanced AI chips, posted a record quarterly profit, saying demand for artificial intelligence was getting stronger. U.S.-listed shares of TSMC gained 3.4%, as Marvell (MRVL.O), opens new tab rose 1.6% and Nvidia (NVDA.O), opens new tab increased 1%. Ameriprise's Saglimbene said the blowout TSMC earnings bode well for chipmakers and the wider technology sector. "Before we get all the Big Tech earnings in the next week or two, you're seeing the single source of production of those (AI) chips saying their demand is very strong. So the set-up for Big Tech is pretty positive, which is why technology is leading on the day today," he added. Both the technology (.SPLRCT), opens new tab and industrials (.SPLRCI), opens new tab indexes finished at record highs on Thursday, although the leading sector of the nine which ended in positive territory was financials (.SPSY), opens new tab, with a 0.9% advance. Netflix climbed 1.9%. After the bell, it reported earnings above forecasts, aided by the final season of global phenomenon "Squid Game".
Reuters
17-07-2025
- Business
- Reuters
S&P 500, Nasdaq end at record highs as data, earnings point to consumer strength
July 17 (Reuters) - The S&P 500 (.SPX), opens new tab stock index and the Nasdaq Composite (.IXIC), opens new tab both closed at record highs on Thursday, as investors embraced strong economic data and earnings reports that showed American consumers remained willing to spend. The Nasdaq has ended at a record high in six of the previous seven sessions, and the S&P 500 has had six best finishes since June 27. According to preliminary data, the S&P 500 (.SPX), opens new tab gained 35.32 points, or 0.56%, to end at 6,299.02 points, while the Nasdaq Composite (.IXIC), opens new tab gained 157.25 points, or 0.76%, to 20,887.74. The Dow Jones Industrial Average (.DJI), opens new tab rose 247.64 points, or 0.56%, to 44,502.42. Wall Street has had a strong run since tumbling after President Donald Trump's Liberation Day tariff announcements in early April and then recovering. This week was seen as a proving ground for these gains though, with a number of key economic reports and the start of second-quarter earnings season. Economic data and corporate earnings reports "are showing that the economic backdrop is still pretty solid, and so markets have been able to grind higher this week with some data to support where we are going," said Anthony Saglimbene, chief market strategist at Ameriprise Financial. U.S. retail sales bounced back sharply in June, data showed on Thursday. Investors saw renewed economic momentum and confidence among consumers, after mixed inflation data which showed stalled producer prices and a spike in consumer inflation in the same month. Investors have been watching for signs of whether Trump's tariff policies are starting to permeate the U.S. economy. The Federal Reserve has indicated it will hold off on interest rate cuts until it can see the inflationary impact of higher import taxes. This was reiterated on Thursday by Fed Governor Adriana Kugler, who said rate cuts are on hold for now, as Trump's tariffs begin to push up consumer prices. Traders now peg the odds of a September rate cut at just over 54%, with a July move nearly ruled out, according to CME's FedWatch tool. Accompanying strong retail sales was upbeat commentary from consumer-facing American companies. PepsiCo jumped after forecasting upbeat results, fueled by demand for energy drinks and healthier sodas, helping offset concerns about a dip in annual core profit. United Airlines (UAL.O), opens new tab gained after the carrier projected stronger demand since early July, offering a rare bright spot for an industry strained by Trump's budget cuts and trade tensions. Rivals Delta (DAL.N), opens new tab and American Airlines (AAL.O), opens new tab also climbed. Technology stocks were also buoyed, in particular U.S. chipmakers, after TSMC ( opens new tab, the world's main producer of advanced AI chips, posted a record quarterly profit, saying demand for artificial intelligence was getting stronger. U.S.-listed shares of TSMC gained, as did Marvell (MRVL.O), opens new tab and Nvidia (NVDA.O), opens new tab. Ameriprise's Saglimbene said the blowout TSMC earnings bode well for chipmakers and the wider technology sector. "Before we get all the Big Tech earnings in the next week or two, you're seeing the single source of production of those (AI) chips saying their demand is very strong. So the set-up for Big Tech is pretty positive, which is why technology is leading on the day today," he added.
Bloomberg
20-06-2025
- Business
- Bloomberg
S&P 500 Trading Volume Spikes at Wall Street Close
Bloomberg Television brings you the latest news and analysis leading up to the final minutes and seconds before and after the closing bell on Wall Street. Today's guests are Anthony Saglimbene, Ameriprise Financial, Chris O'Cull, Stifel Financial, Jacob DeWitte, Oklo, Ray Takeyh, Council on Foreign Relations, Cole Smead, Smead Capital Management, Que Nguyen, Research Affiliates, Sonali Theisen, Bank of America, Joe Mathieu, Bloomberg News, Kim Wallace, 22V Research, Ice Cube, Big3, Jennifer Openshaw, Girls With Impact. (Source: Bloomberg)
Yahoo
28-05-2025
- Business
- Yahoo
S&P 500 Forecast Cut to 5,900 Over Trade Worries
The S&P 500 is set to tread water around 5,900 by year-end, Reuters' poll of 51 equity strategists shows, as tariff jitters and debt worries clip upside. Conducted May 1528, the survey points to a median 2025 target of 5,900a 9.2% cut from February's 6,500 estimatedespite the index trading in the mid-5,900s today. Tariff uncertainty tops the list of headwinds, joined by concerns over the U.S. debt balance and Moody's recent downgrade of U.S. debt. Ameriprise's Anthony Saglimbene warns, It's very difficult to forecast given the tariff uncertainty and the changing dynamics that seem to happen daily. Strategists' sliced targets underscore how policy risk can trump earnings momentum: S&P 500 companies are still on track for mid-teens profit growth next year, but escalating trade frictions could erode that edge. Investors should care because a flat-to-down market in 2025 may force portfolio shifts away from growthier sectorsand heighten the value of defensive allocations. With Fed meetings and tariff talks heating up in H2, markets will watch for any signs of de-escalation or fresh levies that could reposition year-end levels. This article first appeared on GuruFocus. Sign in to access your portfolio
