Latest news with #Arone
CNBC
3 days ago
- Business
- CNBC
Strong start for earnings season creates support for Wall Street's record highs
The opening week of earnings season has given Wall Street bulls plenty to celebrate, helping the S & P 500 hit new highs. Earnings season kicked off with the big banks, which mostly delivered positive results for the quarter. Continuing the strength in financials, Interactive Brokers and Charles Schwab moved higher on Friday after their earnings reports. Even some stocks that were falling after their reports, including Netflix and 3M on Friday, beat Wall Street expectations for the second quarter on the headline metrics. According to FactSet senior earnings analyst John Butters, 12% of S & P 500 companies have already reported their quarterly results. Of those, 83% have beaten Wall Street expectations for earnings per share, which is above the five-year average of 78%. The percentage of companies that have posted a positive revenue surprise is also 83%. Of course, expectations have fallen over the course of the year, so the beats aren't necessarily as impressive as those in some prior quarters. Still, Michael Arone, chief investment strategist at State Street Investment Management, said the story of the first week of earnings season is "so far, so good." That goes for the results themselves, as well as the outlooks and commentary from management. "There is an opportunity here for corporate executives to suggest, 'hey, the outlook's just too murky so we're not going to provide that guidance.' Yet I feel like not only has it been more optimistic than I would have thought — particularly from the big banks — but also a bit more clear. And then I'm surprised at the confidence or the conviction that they're providing with that future guidance," Arone said. .SPX 5D mountain The S & P 500 hit an intraday record on Friday. One thing helping earnings appears to be the weaker U.S. dollar, which can make earnings generated overseas look stronger to domestic investors. PepsiCo and Netflix were among the companies that have highlighted that change this week. Arone said that could continue to boost tech company results in particular as the earnings season progresses. One caveat is that earnings reports tend to be grouped by industry, and the stats and narrative can change as different sectors take their turn in the hot seat. Arone highlighted retailers as a group he is keeping an eye on. "The big retailers, they typically report later on in earnings season, so it will be interesting to see what they're suggesting about consumer trends," such as whether customers are trading down to cheaper goods, Arone said.
Qatar Tribune
02-07-2025
- Business
- Qatar Tribune
S&P 500 touches intraday record on Vietnam deal
Agencies New York The S&P 500 touched an intraday high on Wednesday and the Nasdaq turned positive in afternoon trading, lifted by gains in tech stocks and news of a trade agreement between the US and Vietnam. In light trading volume ahead of Friday's US Fourth of July holiday, investors also bet that weaker payrolls data could prompt the Federal Reserve to consider interest rate cuts. The S&P 500 gained 17.85 points, or 0.29 percent, to 6,215.86 and the Nasdaq Composite gained 158.44 points, or 0.78 percent, to 20,361.33. The Dow Jones Industrial Average fell 72.80 points, or 0.16 percent, to 44,422.14. Investors have been watching whether President Donald Trump's administration continues to make progress on trade, said Michael Arone, chief investment strategist at State Street Global Advisors in Boston. 'There is some relief in regards to progress on trade. The deal with Vietnam was welcomed news,' Arone said. The US and Vietnam struck a trade agreement that sets 20 percent tariffs on many of the Southeast Asian country's exports. The Trump administration has teased that a deal with India is also coming soon, but has said that others may not be ready by July 9. Nasdaq rose in the afternoon, helped by Nvidia, Apple and Tesla. Investors looked ahead to the non-farm payrolls report for clues on how soon the Federal Reserve would lower borrowing costs. Tesla rose 4.8 percent, even as the electric vehicle maker posted a big drop in second-quarter deliveries. Some traders said the numbers were less severe than analysts' bleak forecasts. The stock has shed more than 20 percent this year. Nvidia rose 2.3 percent, while Apple added 1.8 percent, keeping technology shares in the lead. Centene tumbled about 40 percent and was set for its worst day on record, if losses hold, after the health insurer said it had withdrawn its 2025 earnings forecast after data showed a significant drop in expected revenue from its marketplace health insurance plans. Markets opened lower after data showed US private payrolls fell unexpectedly in June and job gains in the prior month were smaller than initially thought. Around 11 am, stocks began to trade up on news about the US-Vietnam trade deal. The focus is on the more comprehensive non-farm payrolls report on Thursday, a day earlier than usual, with markets closed on July 4 for Independence Day. The reading is expected to show US job growth cooled in June and the unemployment rate ticked up to 4.3 percent, according to a Reuters poll of economists. 'Investors are likely expecting this will push the Fed towards cutting rates sooner rather than later,' Arone said. Trump's massive tax-and-spending bill heads to the US House of Representatives for possible final approval after the Senate passed the legislation, which nonpartisan analysts say will add $3.4 trillion to the national debt over the next decade.
USA Today
02-07-2025
- Business
- USA Today
S&P 500 and Nasdaq rise amid US, Vietnam trade deal
NEW YORK, July 2 (Reuters) - The S&P 500 and Nasdaq closed up on Wednesday, lifted by gains in tech stocks and news of a trade agreement between the U.S. and Vietnam that helped ease concerns about an extended trade war. Nasdaq rose, boosted by Nvidia, Apple and Tesla. Investors will look ahead to the non-farm payrolls report on Thursday for clues on how soon the Federal Reserve could lower borrowing costs. Trump's massive tax-and-spending bill headed to the U.S. House of Representatives for possible final approval after the Senate passed the legislation. Nonpartisan analysts say it will add $3.4 trillion to the national debt over the next decade. Markets opened lower after data showed U.S. private payrolls fell unexpectedly in June and job gains in the prior month were smaller than initially thought. A weakening economy "is a very mixed bag", said Jim Awad, senior managing director at Clearstead Advisors LLC in New York. "Employment softening and inducing the Fed to lower rates would be a positive. But if it softens too much, that would be a negative for growth and profits." Trade deal sparks relief Investors have been watching whether President Donald Trump's administration continues to make progress on trade, said Michael Arone, chief investment strategist at State Street Global Advisors in Boston. "There is some relief in regards to progress on trade. The deal with Vietnam was welcomed news," Arone said. According to preliminary data, the S&P 500 gained 29.28 points, or 0.47%, to end at 6,227.29 points, while the Nasdaq Composite gained 190.24 points, or 0.94%, to 20,393.13. The Dow Jones Industrial Average fell 8.70 points, or 0.02%, to 44,486.24. The U.S. and Vietnam struck a trade agreement that sets 20% tariffs on many of the Southeast Asian country's exports. The Trump administration has teased that a deal with India is also coming soon, but has said others may not be ready by July 9. Tesla stocks rebound Tesla rose, bouncing after a drop early this week, even as the electric vehicle maker posted a big drop in second-quarter deliveries. Some traders said the numbers were less severe than analysts' bleak forecasts. The stock has shed more than 20% this year. Centene tumbled after the health insurer said it had withdrawn its 2025 earnings forecast after data showed a significant drop in expected revenue from its marketplace health insurance plans. The focus is on the more comprehensive non-farm payrolls report on Thursday, a day earlier than usual, with markets closed on July 4 for Independence Day. The reading is expected to show U.S. job growth cooled in June and the unemployment rate ticked up to 4.3%, according to a Reuters poll of economists. "Investors are likely expecting this will push the Fed towards cutting rates sooner rather than later," Arone said. Reporting by Sabrina Valle in New York; Sruthi Shankar and Nikhil Sharma in Bengaluru; Editing by Devika Syamnath, Pooja Desai and David Gregorio
CNBC
10-06-2025
- Business
- CNBC
Uncertainty looms as 2025 nears the halfway mark. How to make sure your portfolio is prepared
Stocks have made a recovered from this year's lows, but uncertainty remains a key theme as the second half of the year approaches – and investors can prepare for it. President Donald Trump's rollout of sharply higher tariffs in April sent stocks on a wild ride, with the S & P 500 at one point dipping more than 20% from its all-time high. Traders' hopes for progress in trade negotiations, along with solid first-quarter earnings, helped the market recover since then, however. The S & P 500 is now less than 2% below its its all-time high. Don't just kick back and wait for a continued recovery, though. "Our little tagline here is 'diversifying for resilience,'" said Michael Arone, SPDR chief investment strategist at State Street Global Advisors. "The thought behind the theme for the second half, is that markets are in suspense," he said. Some of the issues for investors to cinsider now include trade policy, soft economic data and the chance that the Federal Reserve holds off on rate cuts for too long, Arone added. Here's how to get your portfolio ready for the remainder of the year Review and rebalance Ignoring your portfolio's asset allocation, particularly at a time when markets are strong, can result in lopsided positions. For starters, think about how large-cap tech stocks in the U.S. were responsible for the market's surge last year. Failure to prune some of those big positions now, and add to underweight sectors, could result in a portfolio that doesn't reflect your goals and risk appetite. This year, investors who shied away from international markets may have found themselves missing out on sizable appreciation. Consider that the Vanguard FTSE All-World ex-US ETF (VEU) has returned 16% in 2025, while the S & P 500's return over the same period is a little more than 2%. VEU .SPX YTD mountain The Vanguard FTSE All-World ex-US ETF (VEU) versus the S & P 500 in 2025 "If we look through a stock lens, U.S. allocation peaked at 67%, and today it's at 64%," said Arone. "I can tell you there are very few investors I meet with who have 36% of their portfolio invested outside of the U.S. from a stock standpoint." Diversifying into international funds also helps investors gain exposure to sectors outside of Big Tech, said Christine Benz, director of personal finance and retirement planning for Morningstar. "The U.S. is still very tech dominated and growth leaning, but broad non-U.S. indexes are dominated by financials and health care. It's a different set of market components relative to the U.S." Benz likes the idea of investors using a broad global stock benchmark as a guide to determine how much to invest overseas, noting that the split is generally about 60% toward the U.S. and 40% non-U.S. Reassess your goals and risk appetite The market's slide in April might have been a good chance for investors to do a gut check of whether their asset allocation reflects the risk they are willing to take. "My big [issue] is the value of derisking for people who are getting close to retirement," said Benz. "It might not have felt like a great idea to derisk in the throes of tariff-related market losses, but now stocks have clawed their way back into positive territory." Investors who are nearing retirement might want to consider adding safer assets to their portfolios to take advantage of today's higher yields, she added. "Consider taking advantage of the fact that yields are decent today and it will translate to better returns for fixed income versus when yields were very low," said Benz. For savers in retirement plans, this can also mean reviewing where you're directing your contributions. "Let's say you're not ready to retire, but retirement is in the next five to 10 years," said Marguerita Cheng, CFP and chief executive officer of Blue Ocean Global Wealth in Gaithersburg, Md. "You can have some of your existing dollars in something a little more conservative, and when you dollar-cost average you can be a little more growth oriented," she said. Dollar-cost averaging refers to making incremental investments into a certain asset at fixed intervals, say every two weeks, every month or every quarter. By spreading out these investments, you're buying into stocks at different prices over time, instead of trying to wait for the "right" time. Tax-loss harvesting Tax-loss harvesting opportunities may await investors who have taxable brokerage accounts. This involves selling losing positions and using the realized losses to offset gains elsewhere in the portfolio. Be sure to avoid violating the wash-sale rule, which involves selling an asset at a loss and then buying a "substantially identical" security within 30 days before or after the transaction. In such cases, the IRS can block you from taking the loss. Lagging stock sectors this year include energy, health care and consumer discretionary, which might all be solid contenders for tax-loss sales. "Investors with individual stocks, sector funds or ETFs might have an opportunity to take a tax loss in those areas," said Benz.
Yahoo
10-06-2025
- Business
- Yahoo
Advisors Go Risk-On Heading Into 2H
Advisors are feeling frisky heading into the back half of 2025. The vast majority of financial advisors — along with some prominent analysts — are calling for a significant market runup in the remaining two quarters of the year. More than two-thirds of advisors said they expect the S&P 500 to advance 10% or more by year-end compared with May lows, according to an InspereX survey of 829 financial advisors released last week. While a quarter of those advisors expected the index to finish flat, just 8% are expecting a pullback. FactSet analysts are now projecting S&P 500 companies will grow earnings by 9% this year, and while that is significantly lower than the 15% projected back in January, it will probably be enough to ward off a bear market, said Michael Arone, chief investment strategist at State Street Global Advisors. 'The uncertainty that roiled markets complicates decision-making,' Arone told Advisor Upside. 'But the increased volatility in the first half of the year has created an opportunity for investors to make adjustments to better position portfolios.' READ ALSO: Morgan Stanley, American Funds Earn Top Rankings From Financial Advisors and Retirement Contributions Hit All-Time High, Fidelity Says Sure, tariffs wreaked havoc in the first quarter, but the Trump administration's pivot has been a boon for the market since, and helped the sky-high valuations of mega-cap tech companies come back to reality. Another plus could be the Fed resuming its rate-cutting cycle later this summer, Arone said. 'After a challenging first quarter for stock market performance, valuations are in a much better place,' he said. 'Investors are in the uncomfortable position of waiting and seeing across multiple dimensions over the next few quarters.' Then, there's the fun fact that Barack Obama, Trump 1.0, and Joe Biden also suffered early volatility in their first 100 days in office, ahead of significant rallies. Historically, the first year of the presidential cycle is the strongest, Arone said. 'All of this supports financial advisors' belief that the S&P 500 will be up by 10% at the end of the year,' he said. The InspereX survey found advisors may be leaning toward risk-on investments: Nearly half (49%) of advisors said equities will be the best performers of 2025, followed by gold in a distant second place, then cryptocurrencies. The most volatile assets through yearend are expected to be equities (44%) and, of course, crypto (36%). Don't Chase AI. For advisors looking to reinforce portfolios, Arone suggested high-quality companies with stable earnings, balance sheets and dividends. They may also want to revisit portfolio allocations to international and emerging markets stocks — especially if they haven't owned them in a while. But, while the tried-and-true AI companies were all the rage in recent quarters, their massive technology investments probably won't benefit clients that invest in them today. 'Look towards tech companies that will benefit from AI capex spending at better valuations,' he said. This post first appeared on The Daily Upside. To receive financial advisor news, market insights, and practice management essentials, subscribe to our free Advisor Upside newsletter. 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
