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Yahoo
a day ago
- Business
- Yahoo
Stocks open at record high as investors bet on trade deals, Fed cut
Leading stock market indexes opened in record territory, with investors buoyed by signs of progress on a U.S.-China trade deal. Shortly after the start of trade on Friday, the S&P 500 rose 14 points, or 0.2%, to 6,155 points, surpassing its previous all-time closing high in February of 6,144. The index also briefly edged above its previous record on Thursday in intraday trading. The Nasdaq Composite gained 62 points, or 0.3 %, to 20,227, topping its previous record high of 20,174 on Dec. 16, 2024. The Dow Jones Industrial Average rose 0.4% to 43, 627 but remains below its previous high of 45,014 on Dec. 4, 2024. Markets have made a stunning turnaround since April, when the S&P 500 entered a bear market amid worries over the Trump administration's tariff policies. In recent weeks, investor worries have eased amid calmer rhetoric on tariffs and forecasts that hopes that the Federal Reserve rate will lower interest rates, analysts told CBS MoneyWatch. A sharp rebound in technology stocks have also helped drive the rebound. President Trump said at a White House event Thursday that Washington and Beijing had signed an agreement on trade, although details remain unclear. He added that he expects to have a deal with India soon. David Lefkowitz, head of U.S. equities at UBS Global Wealth Management, thinks investors are pricing in reductions in both trade frictions and geopolitical tensions. "We think the recovery makes sense, considering that most large-cap companies should weather the tariffs reasonably well. In fact, we think the upcoming [second-quarter] earnings season will once again highlight the resilience of corporate profits," he told investors in a note. Despite the renewed optimism, Wall Street analysts warn that financial markets could still face a bumpy road ahead. "We think there's a dangerous amount of complacency on trade/tariffs, a view underscored by the fact markets this morning are celebrating the China 'deal' for a third time," Vital Knowledge analyst Adam Crisafulli said in a report. As the stock market rallied Friday, investors digested new inflation data from the Commerce Department, which indicated that prices rose 2.3% in May compared with a year ago, up from just 2.1% in April. Core inflation — which excludes the more volatile food and energy categories — rose 2.7% from a year earlier, an increase from 2.5% the previous month. Hegseth slams Iran strikes initial assessment that contradicts Trump's take Young Cuban girl asks Trump to lift travel ban stopping her from joining mom in U.S. Jeff Bezos and Lauren Sánchez set for star-studded wedding in Venice 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
CBS News
a day ago
- Business
- CBS News
Stock market opens in record territory as investors bet on trade deals, Fed rate cut
Leading stock market indexes opened in record territory, with investors buoyed by signs of progress on a U.S.-China trade deal. Shortly after the start of trade on Friday, the S&P 500 rose 14 points, or 0.2%, to 6,155 points, surpassing its previous all-time closing high in February of 6,144. The index also briefly edged above its previous record on Thursday in intraday trading. The Nasdaq Composite gained 62 points, or 0.3 %, to 20,227, topping its previous record high of 20,174 on Dec. 16, 2024. The Dow Jones Industrial Average rose 0.4% to 43, 627 but remains below its previous high of 45,014 on Dec. 4, 2024. Markets have made a stunning turnaround since April, when the S&P 500 entered a bear market amid worries over the Trump administration's tariff policies. In recent weeks, investor worries have eased amid calmer rhetoric on tariffs and forecasts that hopes that the Federal Reserve rate will lower interest rates, analysts told CBS MoneyWatch. A sharp rebound in technology stocks have also helped drive the rebound. President Trump said at a White House event Thursday that Washington and Beijing had signed an agreement on trade, although details remain unclear. He added that he expects to have a deal with India soon. Despite the renewed optimism, Wall Street analysts warn that financial markets could still face a bumpy road ahead. "We think there's a dangerous amount of complacency on trade/tariffs, a view underscored by the fact markets this morning are celebrating the China 'deal' for a third time," Vital Knowledge analyst Adam Crisafulli said in a report. As the stock market rallied Friday, investors digested new inflation data from the Commerce Department, which indicated that prices rose 2.3% in May compared with a year ago, up from just 2.1% in April. Core inflation — which excludes the more volatile food and energy categories — rose 2.7% from a year earlier, an increase from 2.5% the previous month. contributed to this report.
Yahoo
2 days ago
- Business
- Yahoo
New study warns that one type of US home foreclosures could surge by staggering 380%: 'Hidden risks'
Weather-related foreclosures across the United States could jump 380% over the next 10 years, reported CBS MoneyWatch. By 2035, weather-driven events could account for up to 30% of all foreclosures, compared with roughly 7% today. The research from First Street, a climate impact analysis firm, shows how rising repair costs and insurance premiums are creating a perfect storm for American homeowners. Weather-driven foreclosures happen when extreme conditions damage homes so badly that owners can't afford the repairs or insurance costs. Unlike traditional foreclosures caused by job loss or financial hardship, these stem directly from floods, hurricanes, wildfires, and other weather disasters. The problem hits families with low and moderate incomes the hardest since most of their wealth is tied up in their homes. When a storm destroys your house and insurance doesn't cover the full cost, foreclosure often becomes the only option. These foreclosures are a concealed financial risk that most lenders don't consider when approving mortgages, per the report. Banks typically look at your income, debt, and credit score but not whether your future home sits in a flood zone or wildfire path. First Street projects lenders will lose $1.2 billion this year alone, with losses climbing to $5.4 billion annually by 2035. For every 1% increase in insurance costs, it estimates foreclosure rates jump by roughly 1% nationwide. "Such losses represent the 'hidden risks' of climate change that lenders often fail to account for in their underwriting practices," CBS MoneyWatch wrote while paraphrasing Jeremy Porter, head of climate implications at First Street. This oversight leaves both homeowners and banks vulnerable when disaster strikes. Florida faces the biggest risk, with eight of the top 10 counties for the highest projected credit losses. Duval County alone could experience $60 million in losses from 900 foreclosures in a severe weather year. Do you think America is in a housing crisis? Definitely Not sure No way Only in some cities Click your choice to see results and speak your mind. However, the impact goes beyond coastal areas. Heavy rainfall and river flooding threaten inland communities too, especially where flood insurance coverage remains spotty. The real problem lies in insurance gaps. The Federal Emergency Management Agency's flood maps cover just under 8 million properties, but First Street estimates nearly 18 million homes face flood risk. That leaves millions of homeowners without proper coverage. "About half the people with significant flood risk aren't mapped into [FEMA's] Special Flood Hazard Area," Porter explained. "So it leads to a state where we have a lot of underinsurance across the country." Properties outside official flood zones saw foreclosure rates 52% higher than those inside protected areas when flooding occurred from 2002 to 2019. "If you don't protect yourselves, then when the event does occur it's completely on you. You end up having to pay out of pocket and you may go into foreclosure," Porter said. When buying a home, ask about flood risk even if you're not in an official flood zone. Consider flood insurance regardless of requirements, and factor potential weather-related costs into your budget. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Yahoo
2 days ago
- Business
- Yahoo
GOP bill could shift wealth from young to older generations, study finds
The Republican budget package aims to make President Donald Trump's tax cuts permanent while offering a host of new financial breaks. Yet the "big, beautiful bill," as the legislation is dubbed, could also effectively transfer wealth from younger generations to older Americans over their lifetimes, a recent study finds. Long-term, the primary beneficiaries of the GOP bill would be older, wealthier Americans, while younger, middle- to low-income people would see fewer benefits, according to the analysis from the Penn Wharton Budget Model, a University of Pennsylvania think tank that studies the fiscal issues. The group's projection assesses the impact of proposed tax cuts under the bill, as well as reductions in federal programs such as Medicaid and the Supplemental Nutrition Assistance Program, or SNAP, better known as food stamps. Penn Wharton also factors in the long-term fiscal impact of the debt the U.S. would likely have to issue to pay for the bill's tax cuts, the group said. "Somebody has to pay" Younger Americans would bear the brunt of the nation's spiraling debt, Kent Smetters, director of the Penn Wharton Budget Model, told CBS MoneyWatch. "Somebody has to pay — nothing is for free. In this case, that's the future generations," he said. "We have finally reached this inflection point where under any reasonable estimation, younger people are going to be worse off in the future" if the current version of the bill is passed. For example, the bill would cost an infant born into a low-income family $14,100 over their lifetime. This loss stems from factors including reduced social safety net benefits and lower wages resulting from slower economic growth driven by increased national debt and deficits. On the other hand, a high-income 70-year-old stands to gain $120,000 over his remaining years due to the proposed legislation's tax cuts and other benefits, the analysis found. The House narrowly passed the legislation in May. Senate lawmakers are pressing to vote on the measure by the end of the week. The White House took issue with Penn Wharton's analysis. "So-called 'experts' panning the One, Big, Beautiful Bill without a smidge of humility should remember that they made these same exact gloomy predictions about President Trump's tax cuts during his first term – tax cuts that helped usher in historic job, wage, investment and economic growth along with the first decline in wealth inequality in decades," White House spokesman Kush Desai told CBS MoneyWatch. Biggest winners Like Penn Wharton, other researchers have said the Republican bill is likely to benefit wealthy Americans at the expense of people lower down the ladder. The measure would likely reduce the financial resources available to the lowest-earning 10% of U.S. households by $1,600 per year, or almost 4% of their annual income, according to a report published earlier this month by the nonpartisan Congressional Budget Office. White House officials have previously questioned the CBO's scoring of the bill. But the highest-earning 10% of households would see a gain of $12,000 per year in resources, while middle-income households would see a gain of $500 to $1,000, the CBO projected. Its analysis is based on the bill's tax breaks, as well as reductions for federal programs and reductions in state funds for safety net programs such as Medicaid and food stamps. In considering the impact of higher U.S. debt on future generations, the cost would come in the form of lower wages and higher costs, such as more expensive mortgages, Smetters said. Already, the U.S. is spending more than $1 trillion a year to service its debt — almost double the amount it was paying five years ago, according to Federal Reserve Bank of St. Louis data. That's more than the nation currently spends on defense, data from the Stockholm International Peace Research Institute shows. Clock ticking Taking on more debt to pay for the GOP bill could make it tougher for the federal government to pay for programs like Social Security as more of its budget is eaten up by interest payments. Higher debt would also likely result in higher interest rates, as well as slowing economic growth, the Yale Budget Lab projects. Elements of the bill are still under debate on Capitol Hill, with congressional Republicans racing to meet a self-imposed July 4 deadline to send the package to President Trump for his signature. The last scheduled day in session for both the House and Senate before they leave town for the holiday is Friday, leaving little time to reach a deal. Some Republicans are at loggerheads over certain provisions, such as the state and local tax deduction, known as SALT, with House lawmakers pushing for a bigger deduction than in the Senate. If the bill moves ahead, the long-term combination of benefit reductions and swelling federal debt could outweigh the benefits of tax cuts for younger Americans, the Penn Wharton analysis said. "Sometimes people say, 'If I'm in 40th-60th [percentile of income], I won't get SNAP or Medicaid,' but actually there is a chance that you could still," Smetters said. "There is a chance anybody could be unemployed or be on food stamps." Young Cuban girl asks Trump to lift travel ban stopping her from joining mom in U.S. Hegseth gets heated over reporting on Iran strikes initial assessments Supreme Court allows South Carolina to block Medicaid funds from Planned Parenthood
Yahoo
21-06-2025
- Business
- Yahoo
Kroger says it will close 60 stores over the next 18 months
Kroger said it plans to close 60 of its supermarkets across the U.S. over the next 18 months. The planned store closures represent about 5% of the Cincinnati-based company's 1,239 Kroger-branded grocery stores across 16 states. The grocery retailer did not specify which store locations it plans to cease operating, and told CBS MoneyWatch that it will not be releasing a list of the affected stores. The grocery chain announced the planned reduction of its footprint as it reported its first-quarter earnings Friday. Sales dropped slightly to $45.1 billion compared to $45.3 billion for the same period a year earlier. Kroger said that it expects the 60 store closures to buoy the company financially, according to a regulatory filing. "In the first quarter, Kroger recognized an impairment charge of $100 million related to the planned closing of approximately 60 stores over the next 18 months. As a result of these store closures, Kroger expects a modest financial benefit," the company said. Kroger said the resulting savings will be invested in customer experience initiatives. Kroger also said that all employees at affected stores will be offered roles at other Kroger store locations. SpaceX Starship upper stage blows up Hurricane Erick approaches Mexico with destructive winds, major storm surge "Jaws" premiered 50 years ago, but it's a wonder it got made at all Sign in to access your portfolio
