Latest news with #JayWoods
The Star
11 hours ago
- Business
- The Star
U.S. stocks close lower ahead of Fed decision
NEW YORK, July 29 (Xinhua) -- U.S. stocks finished lower on Tuesday as investors weighed a mix of corporate earnings reports and fresh economic data one day before the Federal Reserve's monetary decision. The Dow Jones Industrial Average declined 204.57 points, or 0.46 percent, to close at 44,632.99. The S&P 500 fell 18.91 points, or 0.30 percent, to 6,370.86, while the Nasdaq Composite dropped 80.29 points, or 0.38 percent, to 21,098.29. Seven of the 11 major S&P 500 sectors ended the day in negative territory, with industrials and consumer discretionary stocks leading the declines. Real estate and utilities led the gainers by going up 1.70 percent and 1.17 percent, respectively. On the economic front, the U.S. Bureau of Labor Statistics reported that job openings held steady at 7.4 million in June, while hiring figures also showed little change. Earnings played a major role in Tuesday's market moves. Boeing beat expectations with its quarterly results, while lackluster reports from Spotify, Merck, and UnitedHealth dampened sentiment. Shares of UPS plunged 10.57 percent after the company missed earnings estimates and declined to issue forward guidance. On the upside, Corning jumped 11.86 percent, leading gainers in the S&P 500 after strong results. In the tech sector, most mega-cap stocks declined. Tesla and Apple each fell more than 1 percent, while Nvidia and Amazon also traded lower. Alphabet and Broadcom bucked the trend, both rising more than 1 percent. Investors are looking ahead to earnings from Microsoft and Meta, due after Wednesday's closing bell, with Apple and Amazon set to report Thursday. The Federal Reserve began its two-day policy meeting on Tuesday, with markets broadly expecting interest rates to remain unchanged at a range of 4.25 percent to 4.5 percent. "The market has had a strong run and is now in digestion mode. Some technical indicators suggest a pullback may be coming," said Jay Woods, chief global strategist at Freedom Capital Markets. "This is a pause, a period to focus on individual names driven by earnings, while the broader market watches how the Fed's narrative evolves ... Hopefully, we'll get some clarity after Wednesday's press conference."
Business Insider
18 hours ago
- Business
- Business Insider
3 reasons the stock market could be overheating this summer
This summer has been a complicated time for financial markets. Despite constant speculation of turbulence ahead, major indexes have demonstrated an unshakeable ability to push past the noise and reach record highs. For investors, the summer stock market rally is a relief after months of tariff-fueled uncertainty. But it's also raising one uncomfortable question: Is the market getting ahead of itself? "One of the fastest sell-offs thanks to Liberation Day then one of the fastest rebounds," stated Jay Woods, chief global strategist of Freedom Capital Markets. "That rally back wasn't an overheated market, it was a recovery." In the months since the April sell-off and recovery, though, other market experts have raised concerns that stocks are showing signs of overheating. As Tom Bruni, editor-in-chief and VP of community at Stocktwits, said recently, the market has been flashing signs of tougher days ahead. Here are three signals market pros are watching to know how much steam the current rally has left. The market's reaction to tariffs Tariffs have been a key input for investors all summer, but the reaction to positive updates has been relatively tepid compared to the volatile swings seen a few months ago. The market moves in reaction to Trump's deals with Japan and the European Union were tiny, but indexes eked out record highs after the news. However, Dean Smith, chief strategist of FolioBeyond, warns that the market isn't out of the woods when it comes to the trade war. "The trade deals that are being announced are being viewed by many with some relief since 'it could have been worse,'" he told Business Insider. "I contend it will get worse for the real economy, both because deals fall apart, or the agreed-upon tariffs actually start to have an adverse impact." Smith added that it can take longer for supply shocks to cause real economic damage than people expect, but others also say the tepid response is itself a sign that markets are feeling fatigued after the latest rally to all-time highs. "News is not what's important; it's the market's reaction to the news that tells the real story. And right now, investors are saying that the recent 'good news' isn't good enough to keep prices moving higher after a record rally off the Liberation Day lows," Bruni said. Margin debt is rising Smith also pointed to record levels of margin debt among investors. The trend of investors borrowing money to buy stocks is often considered a sign of an over-extended market rally or a speculative bubble. According to data from Finra, margin debt has topped $1 trillion, an increase of 9.4% in the last month, and a jump of 25% in the last year. "Much of the new credit is to younger investors with fewer reserves," Smith said. "Any sort of hiccup could trigger a wave of selling due to margin calls. Leverage amplifies moves in both directions." This is likely partially fueled by the recent meme stock rally, which already seems to be running out of steam. Stocks like Opendoor, Krispy Kreme and Rocket Companies, which surged last week on retail-driven momentum, are already back in the red. "The broader meme stock rally will only be sustained if the market can maintain sideways trading or upward momentum," he stated. "If the broader equity and cryptocurrency markets begin to decline, it will be a significant headwind for meme stocks that thrive on risk-taking and retail speculation." The AI factor The artificial intelligence boom may have helped fuel the market rally in recent years, but Smith said that he sees it as an "uncontrolled experiment" that has the power to upend recent market momentum. "The role of fundamental investors in the market is rapidly declining in favor of fully automated quantitative strategies. AI is pushing that envelope, and is doing so with lightning speed, and zero regulatory guardrails." As Business Insider reported, quantitative hedge funds have indeed been struggling since June 2025 and are struggling to find answers. This growing reliance on AI is a pressing concern for Smith. "No one truly knows how these AI models will work in an environment of financial stress," he stated. "And no one knows what could set them off."
Axios
22-07-2025
- Business
- Axios
Kohl's shares briefly double, as meme stock mania makes a comeback
Shares in department store chain Kohl's surged as much as 105% Tuesday in what appeared to be a social media-driven short squeeze. Why it matters: It may mark the return of meme stock mania —but also another potential sign that this market rally may be getting out of hand. By the numbers: Kohl's shares closed at $10.42 Monday and peaked at $21.39 at the open Tuesday. They were still up more than 30% at mid-morning. The rally comes as Kohl's is facing significant short interest, meaning investors have been betting against the success of the company. 49% of the stock's float is sold short, which means nearly half of the shares in the company that are available for trading are being bet against. Trading was halted due to volatility. What they're saying:"Meme stocks are back," Jay Woods, chief global strategist at Freedom Capital Markets, tells Axios — especially given that there's no apparent reason for the stock price to have surged this much. On a fundamental basis, the retailer has struggled to increase profits, closing stores and cutting staff amid a broader department store downtrend. The majority of Wall Street analysts have hold or sell ratings on the stock. Catch up quick: Today it's Kohl's. Yesterday, it was OpenDoor. OpenDoor Technologies, a real estate tech startup, saw its shares up by over 70% on Monday thanks to what appears to be retail demand. The stock is now up over 180% over the last 5 days. Be smart: Meme stock investing activity hasn't rebounded to its peak 2021 levels. That's when stimulus checks, combined with time at home to trade and monitor Reddit threads, led to a boom in retail trading activity. Since then, retail sentiment has gained more legitimacy, particularly following the April tariff-driven volatility, which saw hedge funds flee the market and retail traders stay invested. The bottom line: The recent market rally could be fueling a return to riskier trading activity, including potential short squeezes like the one Kohl's may be experiencing.
Yahoo
16-07-2025
- Business
- Yahoo
J&J second quarter earnings beat Wall Street estimates, stock up on increased 2025 guidance
Johnson & Johnson's JNJ) second quarter earnings beat Wall Street's estimates Wednesday, and the company raised its outlook for the year, giving the stock a boost in pre-market trading. The pharma giant reported revenues of $23.7 billion, versus expectations of $22.8 billion. Earnings per share came in at $2.77, compared to Street estimates of $2.66. The stock was up more than 2% in early trading. The company raised guidance at the midpoint by $2 billion dollars to 5.4% and full year earnings per share guidance by $0.25 to $10.85. CEO Joaquin Duato said in a statement the company is looking to make up first half softness in the second half of the year. "Our portfolio and pipeline position us for elevated growth in the second half of the year, with game-changing approvals and submissions anticipated in areas like lung and bladder cancer, major depressive disorder, psoriasis, surgery and cardiovascular, which will extend and improve lives in transformative ways," he said. Jay Woods, Freedom Capital Markets chief global strategist, recently told Yahoo Finance that the stock has been stuck "in a neutral pattern" for some time. It's a great long-term play, consistent returns and dividends, but there isn't much that is exciting about the stock. J&J, like other big pharma peers, faces patent expiry of some of its biggest drugs in the coming years. How it will fill that gap remains to be seen, once the drugs' market share are lost to generic competition. J&J saw its first drug face generic competition this year with Stelara, which the company attributed to some of the loss in the second quarter. "Growth was partially offset by an approximate (1,170) basis points impact from Stelara in Immunology, and an approximate (130) basis points impact from COVID-19 in Infectious Diseases," the earnings statement said. In addition, that drug had been embroiled in Medicare's drug pricing negotiations, as part of the Inflation Reduction Act signed by the prior administration. Those factors, plus the medtech sector facing pressure from tariffs, and the ongoing overhang of the talc litigations, are reasons why investors may have a cooler tone about the stock. "The quarter we believe will be defined by two main items on the fundamental side (new drug launches and pipeline which we believe Street views remain more skeptical than not) and whether JNJ's Medtech business can turn the corner and grow closer towards a 5% rate. We expect the analyst community to focus on both equally and also attempt to push management to talk more openly about its M&A strategy," wrote Jared Holz, Mizuho's healthcare sector expert, in a note to clients Tuesday. Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, provider services, digital health, PBMs, and health policy and politics. That includes GLP-1s, of course. Follow Anjalee as AnjKhem on social media platforms X, LinkedIn, and Bluesky @AnjKhem. Click here for in-depth analysis of the latest health industry news and events impacting stock prices 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
Yahoo
16-07-2025
- Business
- Yahoo
J&J second quarter earnings beat Wall Street estimates, stock up on increased 2025 guidance
Johnson & Johnson's (JNJ) second quarter earnings beat Wall Street's estimates Wednesday, and the company raised its outlook for the year, giving the stock a boost in pre-market trading. The pharma giant reported revenues of $23.7 billion, versus expectations of $22.8 billion. Earnings per share came in at $2.77, compared to Street estimates of $2.66. The stock was up more than 2% in early trading. The company raised guidance at the midpoint by $2 billion dollars to 5.4% and full year earnings per share guidance by $0.25 to $10.85. CEO Joaquin Duato said in a statement the company is looking to make up first half softness in the second half of the year. "Our portfolio and pipeline position us for elevated growth in the second half of the year, with game-changing approvals and submissions anticipated in areas like lung and bladder cancer, major depressive disorder, psoriasis, surgery and cardiovascular, which will extend and improve lives in transformative ways," he said. Jay Woods, Freedom Capital Markets chief global strategist, recently told Yahoo Finance that the stock has been stuck "in a neutral pattern" for some time. It's a great long-term play, consistent returns and dividends, but there isn't much that is exciting about the stock. J&J, like other big pharma peers, faces patent expiry of some of its biggest drugs in the coming years. How it will fill that gap remains to be seen, once the drugs' market share are lost to generic competition. J&J saw its first drug face generic competition this year with Stelara, which the company attributed to some of the loss in the second quarter. "Growth was partially offset by an approximate (1,170) basis points impact from Stelara in Immunology, and an approximate (130) basis points impact from COVID-19 in Infectious Diseases," the statement said. In addition, that drug had been embroiled in Medicare's drug pricing negotiations, as part of the Inflation Reduction Act signed by the prior administration. Those factors, plus the medtech sector facing pressure from tariffs, and the ongoing overhang of the talc litigations, are reasons why investors may have a cooler tone about the stock. "The quarter we believe will be defined by two main items on the fundamental side (new drug launches and pipeline which we believe Street views remain more skeptical than not) and whether JNJ's Medtech business can turn the corner and grow closer towards a 5% rate. We expect the analyst community to focus on both equally and also attempt to push management to talk more openly about its M&A strategy," wrote Jared Holz, Mizuho's healthcare sector expert, in a note to clients Tuesday. Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, provider services, digital health, PBMs, and health policy and politics. That includes GLP-1s, of course. Follow Anjalee as AnjKhem on social media platforms X, LinkedIn, and Bluesky @AnjKhem. Click here for in-depth analysis of the latest health industry news and events impacting stock prices
