Latest news with #DanielaSabinHathorn
Mid East Info
2 days ago
- Business
- Mid East Info
Market Mondays: Tariff Deals, Tech Earnings and Fed Signals
By Daniela Sabin Hathorn, senior market analyst at With a wave of international trade agreements taking shape and key economic data on the horizon, global markets are recalibrating their expectations. While tariff concerns have eased for now, attention has turned to earnings season and the Federal Reserve's next move. Trade Tensions Subside, but Unease Remains Recent trade agreements between the United States and key partners, including the European Union and Japan, have reduced immediate risks for global markets. Although these deals remove some uncertainty, they leave important questions unanswered—particularly around enforcement and long-term viability. Despite agreements to limit tariffs to around 15%—a far cry from the earlier threats of 30% to 50%—concerns linger over the uneven terms of these deals. The EU, for example, has committed to purchasing approximately $750 billion in U.S. energy and making additional investments worth $600 billion. Meanwhile, certain sectors, such as aluminium and steel, remain subject to higher tariffs. Markets initially responded positively, particularly during the Asian open, with European equity futures pointing higher. However, these gains proved short-lived, as investors took a closer look at the underlying terms of the deals. The perception that the U.S. has come out ahead, while others have made larger concessions, may be fuelling scepticism—especially in European markets. Monetary Policy Outlook: No Cut Expected Yet As the dust settles on trade negotiations, attention is turning toward the Federal Reserve and upcoming economic data. The central bank is expected to keep interest rates steady in its upcoming meeting. There is little urgency to cut, especially with inflation still hovering at uncomfortable levels and economic data showing continued resilience. Second-quarter GDP growth is projected to come in around 2.4%, according to forecasts. This would mark a significant rebound from the previous quarter and reinforce the strength of the U.S. economy relative to other developed nations. Meanwhile, consumer inflation has shown modest increases, with some businesses beginning to pass on higher input costs due to tariffs. A key data point—the PCE price index—will help inform the Fed's path forward. Labour market data is also expected to show stable conditions, with only a slight uptick in the unemployment rate anticipated. Markets are currently pricing in one to two rate cuts before the end of the year, but this may prove optimistic unless there is a clear downturn in either inflation or labour market strength. The Federal Reserve appears poised to wait for more conclusive evidence before adjusting its policy stance. Corporate Earnings in Focus: AI, Capex, and Economic Health This week marks a critical phase of earnings season, with tech giants Apple, Amazon, Meta, and Microsoft reporting results. These companies are under close scrutiny for their ability to convert artificial intelligence investments into actual revenue, as well as their discipline on capital expenditure. Last week, Alphabet posted robust results, beating expectations across the board. Although a higher-than-expected capex figure caused brief market jitters, the strength of its earnings helped reinforce investor confidence. The takeaway: markets appear more tolerant of increased spending—so long as there is visible progress on AI monetization and profitability. Apple, in contrast, is seen as more vulnerable due to its limited AI positioning and slowing growth in key markets like China, where domestic competitors are gaining ground. The performance of these tech leaders will likely set the tone for the rest of the quarter. Despite earlier concerns about profit margins, a strong majority—approximately 84%—of S&P 500 companies reporting so far have exceeded earnings expectations. This is the best showing in several years and suggests that corporate America remains resilient. Outlook: Optimism with a Note of Caution Equity markets continue to hover near record highs, supported by strong earnings, easing trade tensions, and solid economic data. However, there are signs of stretched valuations and low implied volatility, leaving room for sharper reactions if future data or earnings disappoint. For now, the prevailing sentiment remains constructive. With major risks seemingly neutralized and economic indicators holding up, the path of least resistance appears to be upward. That said, any unexpected weakness—whether in earnings, inflation, or labour – could introduce volatility in an otherwise optimistic landscape.
Yahoo
7 days ago
- Business
- Yahoo
Krispy Kreme Is Getting Some Meme Investor Love. How Should You Play DNUT Stock Here?
Krispy Kreme (DNUT) shares opened roughly 40% higher today as meme stock enthusiasts shifted focus from the likes of Opendoor (OPEN) and Kohl's (KSS) to the doughnut company. According to multiple sources, more than 30% of DNUT's float is currently sold short, making it a prime candidate for a short squeeze. More News from Barchart Nvidia Stock Warning: This NVDA Challenger Just Scored a Major Customer Dear Microsoft Stock Fans, Mark Your Calendars for July 30 Dear QuantumScape Stock Fans, Mark Your Calendars for July 23 Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. While Krispy Kreme stock has pared back some of its intraday gains in recent hours, at one point, it was seen trading well over 100% up versus its year-to-date low set in late June. Why Is It Risky to Chase the Meme Stock Rally in Krispy Kreme Stock? The meme stock frenzy in DNUT shares offered lucrative returns to investors this morning, but chasing that momentum now may prove a textbook case of trying to catch a falling knife, according to Daniela Sabin Hathorn – a analyst. 'The risks are just as stark as the rewards,' she write in a research note today, adding retail driven rallies like the one in Krispy Kreme stock on Wednesday are often 'disconnected from fundamentals' and, therefore, run the risk of reversing just as quickly. In short, Hathorn recommends accepting the ship has already sailed instead of initiating a position in the food company on the pullback – hoping another short squeeze may materialize in it in the coming days. Sinking Revenue Remains an Overhang for DNUT Shares Investors should practice caution in owning Krispy Kreme shares amid ongoing speculation also because the company's financials remain deeply challenged. In its latest reported quarter, the Charlotte-headquartered firm generated roughly $375 million in revenue, down a more-than-expected 15% on a year-over-year basis. Additionally, Krispy Kreme continued to burn cash, losing about $0.05 on a per-share basis in its fiscal Q1. Krispy Kreme Is Trading Well Below the Street's Mean Target Despite thin financials and risks related to the company's newly earned meme stock status, Wall Street analysts believe DNUT shares have significant room to the upside from current levels. While the consensus rating on Krispy Kreme stock sits at 'Hold' only, the mean target of roughly $6.33 indicates potential upside of more than 45% from here. On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
7 days ago
- Business
- Yahoo
Why Shares of Krispy Kreme Are Surging Today
Key Points Krispy Kreme appears to have been chosen as one of the next meme stocks. Short interest in the stock was very high not too long ago. The company has been struggling. 10 stocks we like better than Krispy Kreme › Shares of iconic donut brand Krispy Kreme (NASDAQ: DNUT) traded over 11% higher, as of 11:16 a.m. ET today. The stock had been up close to 39% in pre-market trading and had a big day yesterday as well. It's clear that meme stock investors have added Krispy Kreme to their list. The return of meme stocks While meme stocks never went away, interest has clearly been rejuvenated as the stock market has significantly rebounded from lows in April. Other meme stocks like Opendoor and Kohl's have also blasted higher. "First, retail trading forums and social platforms have once again become engines of crowd momentum," senior market analyst Daniela Sabin Hathorn wrote in a research note, according to MarketWatch. "Second, these stocks are all heavily shorted, setting the stage for violent short squeezes when buying pressure ramps up." Short interest in Krispy Kreme had been as high as roughly 28%, according to MarketWatch. In the first quarter of 2025, Krispy Kreme reported a net loss of over $33 million, while revenue decline about 15% year over year. Invest at your own risk As many retail investors hopefully know by now, investing in meme stocks is incredibly risky, as evidenced already by today's move, because these stocks no longer trade on fundamentals. Many reach dizzying highs, but eventually come down over time. It's not a good sign to see a company reporting higher losses on declining revenue. I would recommend staying away from Krispy Kreme, but if you find investing in meme stocks is a fun kind of thrill, only invest what you can afford to lose. Do the experts think Krispy Kreme is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Krispy Kreme make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,034% vs. just 180% for the S&P — that is beating the market by 853.75%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $641,800!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,023,813!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Shares of Krispy Kreme Are Surging Today was originally published by The Motley Fool
Mid East Info
22-07-2025
- Business
- Mid East Info
ECB PREVIEW: rates unchanged as tariff deadline approaches
By Daniela Sabin Hathorn, senior market analyst at As the European Central Bank ECB prepares for its upcoming policy meeting on Thursday, expectations are low for any fresh policy action. Having led its global peers in the early stages of the rate-cutting cycle, the ECB now appears ready to pause, adopting a more cautious, data-dependent stance amid global uncertainty and fragile growth dynamics. Early Mover, Now Steady Hand: The ECB has shown confidence in front-running rate cuts compared to other major central banks like the Federal Reserve and the Bank of England. That decisiveness appears to have paid off. Inflation in the eurozone, though fluctuating slightly in recent months, remains broadly stable around the 2% target. Meanwhile, the bloc has managed to bounce back from a string of disappointing growth prints last year, signalling that policy support has helped stabilize the region's recovery. With the deposit rate currently at 2%, ECB policymakers have repeatedly signalled they are in a comfortable place. There is little urgency to deliver additional cuts unless a new shock materializes. As President Christine Lagarde has suggested in recent remarks, the central bank is in 'wait and see' mode—a sentiment expected to dominate Thursday's meeting. Tariff Risks Loom Large: If there is one external risk that could prompt a policy rethink, it's the growing threat of a trade standoff between the U.S. and EU. As the August 1st deadline for a decision on new tariffs approaches, speculation is mounting that the U.S. may impose 30% levies on certain European goods—well above the 20% worst-case scenario previously modelled by the ECB. While such a move is still not a given, it would be a significant escalation in trade tensions and could deliver a sizable hit to eurozone growth. In that scenario, further monetary easing might be back on the table. However, with the ECB meeting set before the tariff deadline and no substantial progress in negotiations yet, policymakers are unlikely to pre-emptively react. This points to a muted, possibly uneventful meeting, with no change in policy but a reiteration of the ECB's readiness to act if conditions deteriorate. Inflation Watch and Communication Strategy: Even with subdued expectations, markets will parse every word from Lagarde carefully. The ECB will likely reaffirm its dual commitment: supporting the recovery while remaining vigilant against inflationary risks. That balancing act is increasingly important, especially if tariffs start pushing up prices through supply chain disruptions and cost pass-through effects. The message is likely to be measured—acknowledging risks without sounding alarmist. For markets, that may come across as a 'boring' meeting, but in the current climate of uncertainty, predictability could be just what investors need. EUR/USD Outlook: Seeking Direction From a market perspective, the euro has struggled in recent days amid renewed U.S. dollar strength. However, technical indicators suggest a potential base is forming. Support appears to be building around key moving averages, and with the dollar showing signs of fatigue, this week's ECB meeting could mark a turning point for euro bulls—assuming the central bank sticks to its current supportive stance and no new surprises arise. A sustained move above 1.18 in EUR/USD would confirm the bullish trend that has been in place since early 2025. Conversely, a drop below the 1.16 level would undermine the upward momentum and raise questions about market conviction. However, unless the ECB introduces new dovish elements, the bias remains for consolidation or mild upside, especially if global risk sentiment stabilizes. EUR/USD daily chart: Past performance is not a reliable indicator of future results. Conclusion: A Pause with a Watchful Eye This week's ECB meeting is unlikely to deliver fireworks. But in a macro environment clouded by trade threats and lingering inflation concerns, stability might be the central bank's most powerful message. Barring a major tariff shock, the ECB is poised to hold rates steady, reinforce its 'wait and see' stance, and leave the door open for action—if and only if the data demands it.
Mid East Info
21-07-2025
- Business
- Mid East Info
Market Mondays: August Tariff Deadline, Central Bank Uncertainty and Earnings Test
By Daniela Sabin Hathorn, senior market analyst at As the August 1st deadline looms, global markets are caught in a balancing act between geopolitical tension, central bank caution, and investor expectations during a critical earnings season. The potential imposition of new tariffs and retaliatory measures, particularly between the U.S. and the EU, has created a complex backdrop that could trigger significant volatility across assets. Tariff Tensions Escalate: The Countdown to August 1st With only days to go before the August 1st trade deadline, the rhetoric around tariffs is intensifying. European leaders have signalled their intent to respond with retaliatory tariffs if negotiations fail, with proposed duties reaching as high as 30% in some sectors—substantially worse than earlier ECB forecasts based on 20% reciprocal tariffs. Such measures could deliver a heavier-than-expected blow to the European economy. Markets, however, appear complacent. While some optimism persists, the risks remain asymmetric. A failure to reach a resolution could blindside investors, potentially triggering sharp market reactions. Central banks, for their part, remain on the sidelines, constrained by the lack of clarity. Central Banks: Caught in a 'Wait and See' Mode Amid the tariff uncertainty, central banks across the globe are hesitant to take action. The ECB is widely expected to hold rates steady in its upcoming meeting, having already led the rate-cutting cycle earlier this year. Despite some inflationary upticks and modest economic improvement, the ECB appears comfortable with its current policy stance unless trade disruptions escalate drastically. The U.S. Federal Reserve, too, finds itself in a bind. Inflation, while showing signs of easing, remains above target. The reappearance of price pressures—partly due to early signs of tariff pass-through in goods pricing—has constrained the Fed's ability to cut rates. Markets are still pricing in multiple rate cuts by year-end, but that assumption may prove fragile if inflation trends upward again. Amidst economic uncertainties, concerns have surfaced over the Fed's independence. Recent rumours about political interference—including discussions around removing Chair Jerome Powell—sparked volatility in the U.S. dollar. Though these claims were quickly dismissed, they added another layer of uncertainty. While Powell's tenure is nearing its end and any real threat to his position seems remote, the situation underscores the fragile political-economic climate. Tesla and Tech Earnings in the Spotlight: As earnings season unfolds, Tesla's report stands out. With both revenue and earnings expected to decline, the electric vehicle maker becomes a litmus test for investor sentiment. While Tesla's fundamentals face challenges—from cost pressures to reputational hits in key markets like Europe—technical charts suggest a constructive setup. If the company manages even a modest beat, a relief rally could follow. More broadly, the tech-heavy 'Magnificent 6' (excluding Tesla) continue to dominate market performance. Their ability to beat earnings estimates, sustain strong guidance, and announce share buybacks has underpinned the Nasdaq and S&P 500's strength. Last earnings season saw EPS growth among these giants surge to around 27%, far exceeding expectations. Despite global friction, U.S. equities have outperformed peers in Europe and Asia. Indices like the S&P 500 and Nasdaq continue to notch record highs, fuelled by resilient corporate earnings and investor confidence in tech's growth story. Even as RSI indicators hint at overbought conditions, buyers remain engaged, supporting the bullish trend. Investors now face the question: what could reverse this momentum? For now, U.S. resilience seems unmatched, but cracks could appear if earnings disappoint or if trade tensions erupt. Conclusion: Walking the Tightrope With the August 1st deadline rapidly approaching, markets are treading cautiously. Tariffs, inflation, political risk, and earnings all converge to shape a potentially volatile landscape. Investors will need to keep a close eye on central bank decisions, inflation data, and corporate performance—especially from key players like Tesla and the tech elite. Whether markets continue to climb the 'wall of worry' or get blindsided by geopolitical shocks will depend heavily on developments in the coming weeks. For now, the message from policymakers and markets alike is clear: watch, wait, and prepare.
