Latest news with #JoshSchafer
Yahoo
3 hours ago
- Business
- Yahoo
Big Tech earnings surprise, jobs report focus: Market takeaways
Yahoo Finance Markets Reporter Josh Schafer joins Asking for a Trend with Josh Lipton to look at three major takeaways from the trading day: the surprising strength of Big Tech earnings and the anticipation of Friday's jobs report. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend. Stocks closing lower as President Trump's tariff deadline and the July jobs report looms. Yahoo finances Josh Shafer joining us now with the trading day takeaways, Josh. Hey Josh, I looked earlier this morning, we had Nasdaq futures up over 1.3%. You had strong earnings out of meta, Microsoft, and it was, oh boy, here comes that AI tech rally, both the Nasdaq and S&P 500 were trading at records at one point today. That didn't quite actually play out with what ended sort of how the day ended. You mentioned there were some trade updates throughout the day, and that seemed to maybe grab some of the headlines, but I still want to focus on the two big beats, cuz you look at it here, meta up over 11% today. Of course, meta coming out with stronger than expected results, also stronger than expected guidance and boosting their capex. Same with Microsoft, Microsoft was up almost 8%, kind of got caught up in that broader selloff, but I wanted to highlight one chart that I think sort of helps explain what investors are looking at when it comes to these companies. I mean, these companies keep hitting record highs. Why are you still buying them? What's going on here? This was a great chart from Jeffries analyst Brent Thill. He highlights Azure growth or sorry, Azure beating estimates, how much did they beat estimates by for that cloud segment for Microsoft that increased 39% year-over-year. Up over four and a half percent for my surprise factor. Look at this chart Josh, that is abnormal, right? The street had come to expect that Microsoft's cloud segment was great, was going to continue growing. It was hard for Microsoft to surprise. Well, you add in this AI element, the segment gets even better than expected, you get this big beat. That's the kind of chart that an investor's going to like to see, right? That growth story is sort of reigniting when it comes to Microsoft right now. So if viewers are watching this and they're looking at these big tech reports and results and reactions for some of them and they're thinking, I don't know, did I miss my spot? I think right now, what we're hearing from some strategists, we spoke with Omar Aguilar from Charles Schwab earlier today, Julie Hyman and I did, he said no, he said, I'm still looking to get into Big Tech and finding opportunities within Big Tech. What Aguilar highlighted, which was rather interesting, is sort of the different parts of this AI trade, right? So even if we just look at our MAG 7 here, we can sort of highlight it. Amazon, Microsoft, meta, those are sort of and we could throw Alphabet in there too, right? Those are cloud plays. And he's saying he's more interested in cloud service type plays. If you look, if I can get over to our AI board here, I'll highlight to you how some of those stocks have been doing really over the last couple months. There's been a big rally in some of those names off the market lows. Look at a Super Micro Computer, that's involved sort of in that space. You also look at a DataDog, that's in that space, right? Salesforce, which I don't think is on here, had had a rally at one point. And so you're seeing that AI trade broaden out and continuing to hear people talk about services. How do I use AI as a service? Being interested in that space. Of course, chips, but also how do we use the AI, right? Cuz meta and Microsoft are certainly telling that story well. All right, Shafer bullet point number two. Josh, jobs report's coming. It's been a long week, but we have an NFP report tomorrow, the July jobs report. So expectations are for 105,000 payrolls, unemployment rate at 4.2, average hourly earnings essentially flat at 3.8. This would be a move higher from 4.1. And then unemployment, or sorry, that non-farm payroll number would be a little bit lower. Economists and previews, team over at Bank of America essentially saying, this is fine. It's not a red hot labor market by any means, but it's not falling off a cliff and it's Cooling, not crashing. and we're still sort of in that space if we get numbers like this. Cooling, not crashing. What did J. Powell have to say about that? J. Powell called the labor market solid yesterday, Josh, and he said that this, by the way, we should note, this is the number one thing he's watching right now. A very smart reporter over there asked him specifically, when I look at that report, Jay, what should I look at? He said the unemployment rate and the unemployment rate at 4.2 is in or 4.1 is in a good spot. And if that were to keep moving higher, that's when maybe the Fed would cut to sort of help out the labor. All right, we'll see what comes tomorrow. Thank you, Josh. Related Videos F5 CEO breaks down big Q3 earnings beat Coinbase, Reddit, Strategy: After-hours earnings movers Why this analyst gives Amazon's earnings report a B+ Amazon Earnings Are 'Mediocre,' Jefferies' Thill Says 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
3 hours ago
- Business
- Yahoo
Big Tech earnings surprise, jobs report focus: Market takeaways
Yahoo Finance Markets Reporter Josh Schafer joins Asking for a Trend with Josh Lipton to look at three major takeaways from the trading day: the surprising strength of Big Tech earnings and the anticipation of Friday's jobs report. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend. Related videos Britain's gas imports surge as Miliband abandons North Sea Why Danes may have hit their limit on retirement age Is this thrillingly cheap FTSE growth share about to fulfil its massive potential? Bank of England set to split again in face of inflation, job risks Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
12 hours ago
- Business
- Yahoo
Fed's preferred inflation gauge shows prices increased more than expected in June
The latest reading of the Federal Reserve's preferred inflation gauge showed price increases accelerated in June more than expected as inflation remained above the Fed's 2% target. The "core" Personal Consumption Expenditures (PCE) index, which strips out food and energy costs and is closely watched by the central bank, rose 2.8% on an annual basis, above the 2.7% economists had expected and higher than the 2.7% seen in May. Core prices rose 0.3% from the prior month, in line with the 0.3% economists had expected and above the 0.2% increase seen in May. The release comes just one day after the Fed opted to hold interest rates steady at its July meeting with Fed Chair Jerome Powell stressing its still the "early days" of any tariff impact on inflation and there is still "a long way to go" before the full effects will be clear. Elsewhere in the release, data showed mixed signs of slowing economic growth activity. Real personal spending, which adjusts for inflation, rose 0.3%, below estimates for a 0.4% increase. Real personal spending decreased 0.3% in May. Meanwhile, personal income rose 0.3% after falling 0.4% the month prior. Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.
Yahoo
12 hours ago
- Business
- Yahoo
Fed's preferred inflation gauge shows price increases accelerated in June amid tariff uncertainty
The latest reading of the Federal Reserve's preferred inflation gauge showed price increases accelerated in June as inflation remained above the Fed's 2% target. The "core" Personal Consumption Expenditures (PCE) index, which strips out food and energy costs and is closely watched by the central bank, rose 0.3% from the prior month, in line with the 0.3% economists had expected and above the 0.2% increase seen in May. On an annual basis, core prices rose 2.8%, above the 2.7% economists had expected and in line with May's reading. May's 2.8% reading was revised higher from an initially reported 2.7% increase. The release comes just one day after the Fed opted to hold interest rates steady at its July meeting, with Fed Chair Jerome Powell stressing that it's still the "early days" of any tariff impact on inflation and that there is still "a long way to go" before the full effects will be clear. Read more: How the Fed rate decision affects your bank accounts, loans, credit cards, and investments Elsewhere in the release, data showed mixed signs of slowing economic growth activity. Real personal spending, which adjusts for inflation, rose 0.3%, below estimates for a 0.4% increase. Real personal spending decreased 0.3% in May. Meanwhile, personal income rose 0.3% after falling 0.4% the month prior. Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.
Yahoo
12 hours ago
- Business
- Yahoo
Fed's preferred inflation gauge shows prices increases accelerated in June amid tariff uncertainty
The latest reading of the Federal Reserve's preferred inflation gauge showed price increases accelerated in June as inflation remained above the Fed's 2% target. The "core" Personal Consumption Expenditures (PCE) index, which strips out food and energy costs and is closely watched by the central bank, rose 2.8% on an annual basis, above the 2.7% economists had expected and higher than the 2.7% seen in May. Core prices rose 0.3% from the prior month, in line with the 0.3% economists had expected and above the 0.2% increase seen in May. The release comes just one day after the Fed opted to hold interest rates steady at its July meeting with Fed Chair Jerome Powell stressing its still the "early days" of any tariff impact on inflation and there is still "a long way to go" before the full effects will be clear. Elsewhere in the release, data showed mixed signs of slowing economic growth activity. Real personal spending, which adjusts for inflation, rose 0.3%, below estimates for a 0.4% increase. Real personal spending decreased 0.3% in May. Meanwhile, personal income rose 0.3% after falling 0.4% the month prior. Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.
