Latest news with #JulieHyman
Yahoo
2 days ago
- Business
- Yahoo
Consumers are focused on value right now: What earnings tell us
This earnings season has revealed a big trend in consumer behavior: searching for lower prices. Yahoo Finance Senior Reporter Brooke DiPalma joins Market Catalysts with Julie Hyman to discuss the details. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts. One theme emerging this earnings season from companies selling everything from appliances to cleaning products, consumers are looking for lower prices. Yahoo Finance senior reporter Brooke DiPalma joins me now. Brooke, of course, you closely watch these companies. So what are they telling us about the state of the consumer? Julie, consumers are extremely price conscious nowadays, as they think about and navigate this uncertainty within the environment when it comes to tariffs, those elevated interest rates, they're looking ultimately for the best deal wherever they can. And that's what we heard as well from Kraft Heinz out this morning, where we did see a volume decline, but they did say that they're leaning into this idea of that value conscious consumer. They also said that they're being mindful about the current consumer situation when they do have to take pricing in order to offset tariffs. But this is not something new from Kraft Heinz that we heard this morning. We've been hearing this over the course of these quarterly results from Q2, as well, from food and beverage giants like Coca-Cola, as well as PepsiCo. Coca-Cola's CFO told me last week that the lower income consumer remains under pressure, but he went on to say that part of what they continue to be very focused on is ensuring that they offer even more affordable options as they keep this consumer environment in mind. PepsiCo also saying with their earnings call that better entry points and value has been successful for the company in order to offset this fear, this worry that consumers have, and then mindfulness that consumers have heading into the grocery store. But let's move away from pantry. It's not just that. If you go into your cleaning closet as well, chances are you might have grabbed a cheaper alternative, and that's exactly what we heard from PNG CEO, John Moller, on Tuesday. Take a listen. We are seeing modest trade down within our branded portfolio. Uh so within uh the different tide offerings, there are some that are are more premium than others, and we are seeing some trade down there. We're also seeing some trade down to brands uh that you mentioned like Gain. We are not seeing any trade down as of yet to uh private label. So maybe we're putting aside those tide pods and we're going for the regular Gain detergent instead. But when you think about the households at large, of course, it's not just these small goods that we're grabbing in the grocery store. American consumers are also being mindful when they have to replace certain items, like say, their KitchenAid mixer, or their Whirlpool Whirlpool kitchen appliances, their Maytag kitchen appliances. We heard from Whirlpool as well behind all those big ticket appliances that consumers there are being mindful. The CEO there, Mark Bitzer, saying, we continue to see consumers choosing to mix into lower end products. And so, all in all, Julie, we continue to hear from these executives that consumers are being extremely price conscious. They're really looking for the best deal here. And that's what we really heard going into this season. That's certainly playing out, but all eyes will be on how this is playing out for those big box retailers that we'll hear from in mid-August. Yeah, that's the next shoe, I guess. Brooke, thank you so much.
Yahoo
3 days ago
- Business
- Yahoo
AstraZeneca CFO talks tariffs & shifting focus to US market
AstraZeneca's (AZN) revenue hit a record high in the second quarter, driven by cancer drug sales and growth in the US market. AstraZeneca CFO Aradhana Sarin sits down with Market Catalysts host Julie Hyman and Yahoo Finance Senior Healthcare Reporter Anjalee Khemlani to discuss the company's strategy to focus on the US and the impact of tariffs. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here. I wonder on the Obviously, the company is celebrating the fact that you hit the largest revenues reported for the quarter. That's really good news, especially as the stated goal is to grow by 2030, and half of that to be part of the US. Talk to me about that and the shift to being a quote-unquote American company now, rather than a sort of UK-based one that we've thought of all these years. Uh, so we, you know, last May, we set this ambition of achieving 80 billion in revenues by 2030, which was almost, you know, doubling our revenues from a 2023 base. Um, and, uh, the US is our our fastest growing market. Uh, when we stack, we don't stack very highly right now, uh, in the US when when you compare pharma revenues because a lot of the pharma companies in the US have much bigger sort of revenue base, but we're growing very fast and our hope is that we'll come, you know, in in in the top five and have half of our revenue. We also set an ambition to have 20 new medicines by 2030. And, um, we already have nine of them and, uh, we announced results for another five of them. So hopefully, uh, that shows that we're on track to to achieve that goal. Well, talk to me about why the US is growing that much far faster. Is it because the dynamics of the healthcare system help boost revenues with more prescribing the the way the PBM system is set up? What are the factors that are helping you grow and are helping you stay confident about achieving that goal? So, there are a bunch of different factors. Um, I think the US is still probably the the best market in the world that rewards innovation. Uh, and we are an innovation-driven company. And so, when new therapies come, you know, we we had a product for breast cancer in her two. Uh, we announced data for another breast cancer product. But as soon as new therapy comes, um, the US market is almost the first to provide access to patients for that new therapy. Uh, secondly, physicians are really, um, you know, we go to Congresses like ASCO where there's, you know, tens of thousands of oncology physicians. They're really into, um, looking at the data and making data-driven decisions. So, again, the, you know, the physicians want the best for their patients and patients are able to get access to medicines very quickly once, you know, drug is approved and so forth in the in the innovative space. In many other markets in the world, that whole process to get approval and then get access and reimbursement just takes a very long time. So that's one reason. Um, the second reason, uh, I think particularly beneficial for oncology medicines, uh, is the part D reform. Uh, so on one hand, the part D reform that was enacted hurts us because we are responsible for paying 20% in the catastrophic phase. But from a patient standpoint, if you're a patient, um, you know, in Medicare, your out of pocket is capped at $2,000. So you can get the best therapy and have no more to pay out of pocket, right? So being in that patient population and getting the best access to medicines and the best care and have your out of pocket limited, uh, is is also great for patients. Um, so I think it's it's where physicians and patients and innovation is rewarded. And that's why it's growing faster given our portfolio is all innovative medicines. So, so let's turn then to the manufacturing base rate and the investment that you're making in the US. And I have to ask about tariffs because we even as we discussed it this morning, this new EU sort of framework agreement, it's still sort of unclear. Are pharmaceuticals coming from the EU exempt? Are they not exempt? It seems a little unclear. So how under what assumption are you operating and how do you operate in that kind of environment? Um, yeah, so you know, I would say this is not a tariff is obviously new, but how we've been thinking about our strategic manufacturing, um, is probably goes back three, four years. So post COVID, we made a strategic decision because we're such a global company that we needed to have segregated supply chains. Um, so for example, uh, in in China and in the emerging markets, we supply a lot of that product from China. Um, in the US, majority of the product is supplied from the US and and so forth in Europe. There is, uh, you know, small minority of product, handful of products actually that we still import from Europe into the US. But we do have excess capacity in the US to manufacture those products. Uh, so what we're, you know, we have 11 manufacturing sites in in the US. So our intention once the tariffs, etc. were were announced and there was talks of tariffs, uh, in the short term was just manage through inventory, so build more inventory in in the US. Um, but we've also started tech transfers for those products which we do import and that those tech transfers would be completed, you know, within a within a year or so, so that we can be fully, you know, not just have the majority, but 100% of it being manufactured in in the US. Um, this new facility that we announced, uh, was part of the plan anyway, but that's a separate has nothing to do with tariffs. It's actually based on the demand that we see potentially for our cardiovascular for new cardiovascular medicine. So, um, but you know, you're right, I think there is a little bit of confusion on when the tariffs are going to be implemented. Um, there is from what I've heard, it is a 15%, but there's also talk that that's the cap. Uh, and, uh, the administration is sort of going to wait for the 232 investigation to actually put them into effect or decide. So, uh, in either case, I think we're very well prepared and and we probably have less exposure than than many companies. Related Videos Market's 'fuel' for further P/E expansion is 'nearing empty' Nvidia's TSMC order, Eli Lilly & Novo Nordisk sink, JPMorgan & Apple card Royal Caribbean, Merck, FuboTV: Trending Tickers Why Spotify stock is sinking double digits on Q2 earnings Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Nvidia's TSMC order, Eli Lilly & Novo Nordisk sink, JPMorgan & Apple card
Julie Hyman outlines some of the top market stories as part of today's Market Minute. Nvidia (NVDA) reportedly placed an order for 300,000 H20 chipsets with Taiwan Semiconductor Manufacturing Company (TSM) in preparation to sell in China, according to reporting from Reuters. Eli Lilly (LLY) shares fall as Novo Nordisk (NVO) stock plummets amid fears about the weight-loss drug boom slowing. JPMorgan (JPM) is reportedly in talks with Apple (AAPL) to take over the iPhone maker's credit card business from Goldman Sachs (GS), according to a report from The Wall Street Journal. Stay up to date on the latest market action, minute-by-minute, with Yahoo Finance's Market Minute. It's time for Yahoo! Finance's Market Minute. Stocks are falling as earnings from a slew of names failed to impress the street, and focus turns to tomorrow's Fed decision. Nvidia sales in China seem poised to ramp up. The chip giant placing an order with TSMC for 300,000 H20 chips, adding to its existing stock pile of up to 700,000 chips as Nvidia looks to meet strong demand in China. That's according to Reuters. Those shares, though, edging lower. Eli Lilly shares sinking, along with its competitor, Novo Nordisk, after the latter cut its guidance, fueling investor fears that the weight loss bubble could be bursting. This comes as CVS Caremark is restricting coverage of Lilly's debt-bound drug due to its higher price tag. And JP Morgan Chase is close to a deal to take over Apple's credit card program from Goldman Sachs. That's according to The Wall Street Journal. The deal has not yet been signed, and could reportedly fall through due to a number of issues with Apple's program. If closed, it would be one of the biggest credit card deals ever. And that's your Yahoo! Finance Market Minute. Related Videos Market's 'fuel' for further P/E expansion is 'nearing empty' AstraZeneca CFO talks tariffs & shifting focus to US market Royal Caribbean, Merck, FuboTV: Trending Tickers Why Spotify stock is sinking double digits on Q2 earnings Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Why diversifying risk management is 'key' right now
Vest co-founder and president Jeff Chang joins Market Catalysts with Julie Hyman to discuss investor strategy amid the current bull market, target buffer exchange-traded funds (ETFs), and how to hedge your portfolio against future volatility. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here. We've been having this sort of discussion and debate about the under the surface signs. What do you see? Yeah. I mean, if you look, like, you know, the stock market's at all time highs and a lot of it is, and if you think about overall risks in the market, right? Like, you see anything from, um, you know, are the AI mega cap stocks overvalued at current PE levels. And you think about a lot of consensus is a lot of the earnings growth associated with AI and the mega caps have already been priced in, right? Are we at that level that we're already there? And then on top of that, you have a lot of other risks that are there. Geopolitical risks, like if you think about, um, you know, Israel, Iran, 20% of the oil comes through the Strait of Hormuz, which borders Iran. Uh, what are those impacts and how does that affect the overall economy? And then tariffs, right? Um, I know a lot of people are largely, the market has has anticipated that there were going to be some resolution. I mean we we'd have seen, uh, you know, kind of like you explained today, the Japan deal that that occurs. That gives a little bit of hope, but that's still fundamental risk in the market and we're at all time highs. So this is where, you know, we've seen a lot of our clients saying that, "Hey, um, what are, where do we position our portfolio at all time highs?" And so a lot of times I say, uh, you know, when is the best time to buy protection or hedge yourself? Is it when the markets are at all time highs or when they've already dropped, let's say a 15, 20% pullback? It's like, it's like buying insurance. You don't buy flood insurance after the flood, right? And this is why we've seen an explosion and a really, uh, increase in interest in like, let's say, buffer type products or hedge type products and investments because of the way the market is shaping up. Because it is kind of the moment in which you actually want to hedge because, um, you know, there is a still a lot of fundamental risk within the within the market. And so, um, how then does this give them exposure, but try and limit the downside? So, in most buffer strategies, they, you get exposure to, you know, like, let's say a broader index or any, any type of underlying, but in most cases it would be like, let's say something like S&P. And if it were to pull back, let's say 10, 15%, uh, these strategies would protect, let's say the, uh, the first 15% or first 10%. Um, the reason that is is is that, you know, the most likely drawdowns in the overall broader markets are between, you know, 10 and 15% when you historically look at market drawdowns. Now, um, the way, uh, in exchange for that downside protection, you're giving up some upside. So let's say, Well, that's what I was going to say. I mean, stocks, these, all of these obstacles that you mentioned, Yep. they've been around now for a few months and the stock market keeps making new records. Yep. So you give up a little bit of that upside if you go, you know, if you put, but you're not, I assume you would not recommend to somebody that they put everything into No, not at all. Yeah, absolutely not. this kind of. No, not at all. Yeah, absolute, absolutely not. I think what's key here is the ability to, for an investor to diversify their risk management. Because traditionally, when you think about it, you have your traditional 60, 40 portfolio, right? Where the thought process is, "Hey, you know what? Put some of my wealth in stocks and bonds." But here's the challenge right now. Unless you were managing money 40 years ago, you were not managing money during times of inflation. What we saw in 2022 is as interest rates go up, both stocks and bonds fell in 2022, right? You could have mixed your stocks and bonds any way you wanted in 2022, you were down. This caught a lot of people by surprise. So the question then becomes is, what in your portfolio will save you if inflation rears its head again? And if you think about what is the risk of inflation, we're already starting to see some of the trickle effects of tariffs into, you know, the inflation numbers. Uh, and then also what about wage growth? That's been really pushing upwards into inflation numbers. And then like I said, geopolitical risk, right? If, you know, 20% of oil is coming through the Strait of Hormuz, if oil prices and you know, oil goes to 90 a barrel, you're going to see headline numbers, like headline CPI really spike. Then the Fed has to act. And the market, while they baked in, let's say a 75 basis point cut later this year, then that starts to come into question that could really affect equity markets. Not only equities, but also bonds as well. And this is why we think hedging, which has a, the great thing about hedging is it's perfectly negatively correlated to whatever you're hedging as opposed to relying on the negative correlation between stocks and bonds where traditionally, uh, you know, when stocks go down, you have this hope that bonds go up, right? That starts to break down in certain environments, especially when you start to have inflation. Yes. Well, on the flip side, those things might not have, right? In other words, it looks less likely now than it did a month ago that the Strait of Hormuz is going to be interrupted. And, you know, even if you see inflation, I mean, and then what role does gold play in a portfolio also if you're trying to hedge against inflation? Yeah. And I would say not just gold, but also like things such as like Bitcoin and so on and so forth. They're all really interesting things. Um, and it's not, not to say it will happen. It's saying that if it does, what do you have in place to defend against that? And that's what's great about, you know, let's say, just even taking buffer strategies as an example. You're still participating in the market, right? That's the thing is that like getting people to stay invested is one of the most important things. And we find that, you know, downside hedging can be a really big benefit to, you know, everyday investors as far as keeping them invested, especially with these types of risks on the horizon and we're at all time highs. Yes. Related Videos Trading day takeaways: Nvidia record, US dollar moves, oil pops Investors in the housing market: What you need to know Boeing Q2 earnings preview: Tariffs & Air India crash in focus Pimco's Forgash: High-Yield Market at Highest Quality in Years Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
4 days ago
- Business
- Yahoo
AMD stock jumps on 3 catalysts, Boeing faces potential strike
Market Catalysts host Julie Hyman tracks today's top moving stocks and biggest market stories in this Market Minute. Advanced Micro Devices (AMD) stock is climbing on a price target boost from UBS, reports of raised artificial intelligence (AI) chip prices, and a pause on export restrictions to China. Boeing (BA) faces potential strike action as over 3,000 union workers reject a new labor deal, with no new talks scheduled ahead of an August 4th deadline. Stay up to date on the latest market action, minute-by-minute, with Yahoo Finance's Market Minute. It's time for your Yahoo! Finance's Market Minute. Stocks are mostly higher as the tariff landscape gains a bit more clarity. The U.S. and EU agreed to a 15% tariff. President Trump also saying the global baseline tariff will be 15 to 20%. That's an increase from the 10% announced in April. AMD shares higher on a few potential catalysts. First, a price target bump from UBS ahead of earnings on August 5th. Secondly, reports that it has raised prices on its advanced AI chip, and third, an FT report that the U.S. has paused export controls that stopped the company from shipping its AI chips to China. And Boeing could face another major labor strike. Over 3,000 workers at three fighter jet plants rejected a contract that included a 20% wage increase over four years. The union saying the deal quote, "fell short of addressing the priorities and sacrifices." There's a cooling-off period that would keep a strike from beginning until August 4th, but there are currently no talks scheduled. Boeing reports its second quarter results on Tuesday. And that's your Yahoo! Finance Market Minute. Related Videos Chip stocks slide, NXP weak outlook, Coinbase inks PNC deal Samsung to Make Tesla AI Chips in $16.5 Billion Deal Citi's Africa Head on Economic Outlook, Trump Tariffs 'Pretty Neutral' on Stocks to End of the Year: RBC's Calvasina Sign in to access your portfolio
