Latest news with #MichaelO'Rourke
Irish Independent
01-07-2025
- Sport
- Irish Independent
Adamstown catch the eye with derby defeat of Rathgarogue-Cushinstown
Adamstown 4-17 Rathgarogue-Cushinstown 2-13 Wexford People THERE WAS a lot to like about Adamstown as they overwhelmed Rathgarogue-Cushinstown in Group B of the Joyces Expert Intermediate 'A' hurling championship in O'Kennedy Park on Saturday. It's early days, but the John Mullane-coached losers were well off the pace. And to compound matters, key attacker Michael O'Rourke looked to have picked up an ankle injury late on. They can ill afford to be without him.
Yahoo
18-06-2025
- Business
- Yahoo
Broadcom's 340% Rally Has Wall Street Debating If It's Magnificent Seven Material
(Bloomberg) — For more than two years, conversations about the biggest, most important technology companies have revolved around the same seven stocks. Now, some on Wall Street are making the case that Broadcom Inc. should be part of that discussion. Security Concerns Hit Some of the World's 'Most Livable Cities' How E-Scooters Conquered (Most of) Europe JFK AirTrain Cuts Fares 50% This Summer to Lure Riders Off Roads Taser-Maker Axon Triggers a NIMBY Backlash in its Hometown Relentless spending on artificial intelligence computing gear has juiced the chipmaker's revenue and profits, driving a more than 340% rally since the start of 2023 and vaulting it into an elite cohort of stocks with a market value of at least $1 trillion. Meanwhile, Tesla Inc. — one of the original so-called Magnificent Seven stocks — has tumbled 22% this year as Chief Executive Officer Elon Musk's foray into US politics sparked a backlash against the electric vehicle maker. Broadcom, on the other hand, is expected to see its sales jump 22% in fiscal 2025 and 21% in fiscal 2026, according to analyst estimates compiled by Bloomberg. That growth is second only to Nvidia Corp. in the Magnificent Seven, which includes Inc. (AMZN), Microsoft Corp. (MSFT), Meta Platforms Inc. (META) and Alphabet Inc. (GOOG, GOOGL) Tesla's revenue, by contrast, is expected to shrink 1% this year. 'Broadcom (AVGO) would be a fair substitute for Tesla (TSLA),' according to Michael O'Rourke, chief market strategist at Jonestrading, who was among the first to use the Magnificent Seven moniker in early 2023. 'Simultaneously we have witnessed Broadcom's business grow with the AI space while Tesla's core business has been challenged.' The Magnificent Seven caught on as the group powered the S&P 500 higher beginning at the start of 2023. The gains were fueled by the companies' dominant market positions that generated strong revenue and profit growth. However, the stocks have diverged in recent months amid uncertainty brought by US President Donald Trump's tariff policies and other individual concerns. Four of the seven names are down year to date, with Apple the biggest laggard as investors worry about its AI strategy and exposure to China. Broadcom boasts a wide range of businesses, from wifi and bluetooth chips used in iPhones to server virtualization and cybersecurity software following a string of acquisitions orchestrated by Chief Executive Officer Hock Tan over almost two decades. However, it's Broadcom's custom chip design and networking semiconductor businesses that are driving its revenue growth and making the company a big beneficiary of AI spending. Its shares have seen a modest 8% rise in 2025 — after doubling in each of the prior two years — giving it a market capitalization of $1.2 trillion and making the company the seventh most valuable in the S&P 500 Index (^GSPC), topping Tesla and Berkshire Hathaway Inc. (BRK-B, BRK-A) 'Based on future business prospects, based on operating results recently, expectations going forward and returns in the stock over the last couple of years, you could definitely make the case that Broadcom belongs in that group,' said Michael Cuggino, president and portfolio manager of Permanent Portfolio Family of Funds, which holds Broadcom. Of course, that growth comes at a steep cost. Broadcom shares trade at about 33 times forward earnings, a premium to the broader market and most of the Magnificent Seven companies. That may explain why the stock has been under pressure since the company's earnings report earlier this month in which results failed to impress investors after a more than 75% gain from an April low. To be sure, like its predecessor Faang, the Magnificent Seven is simply a catchy way of referring to a group of stocks that are part of a trend. In that spirit, some argue Tesla should still be a part of the conversation. 'If the purpose of looking at the Magnificent Seven is to focus on the companies that are creating significant structural change via AI, then you wouldn't kick out Tesla because they're right in the middle of that as well, especially in terms of robotics,' said Mark Werner, a portfolio manager at Laffer Tengler Investments Inc., which holds both stocks. 'Why can't we just make it the Magnificent Eight?' Top Tech Stories President Donald Trump is extending for a third time the deadline for Chinese company ByteDance Ltd. to divest the American operations of TikTok, allowing the social media app to keep running in the US while negotiations proceed. Taiwan joined a yearslong US campaign to curtail China's technological ascent when it blacklisted the country's AI and chipmaking champions, an unprecedented step that may signal a resurgent effort to isolate its powerful neighbor's semiconductor sector. The European Union escalated a probe against Alibaba Group Holding Ltd.'s e-commerce service AliExpress, accusing it of failing to tackle the spread of illegal products on its platform. Inc. founder Richard Liu vowed to speed an overseas foray and compete with Meituan in new arenas from food delivery to travel, describing his boldest attempt yet to revive an online retailer that's languished since a 2020 government crackdown. Nintendo Co. shares rallied the most in two months to a fresh record as investors increased their focus on the firm's strong sales growth as a shelter from global volatility. Earnings Due Wednesday No major earnings expected Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros Mark Cuban Has Done Sports, Reality TV and Now Health Care. Why Not US President? How a Tiny Middleman Could Access Two-Factor Login Codes From Tech Giants American Mid: Hampton Inn's Good-Enough Formula for World Domination The Spying Scandal Rocking the World of HR Software ©2025 Bloomberg L.P. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy 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
Gulf Insider
16-06-2025
- Business
- Gulf Insider
Oil And Gold Jump As Israel Targets Iranian Energy
Oil jumped in late Sunday trading with investors focused on escalating geopolitical tensions as Israel and Iran continue to bombard each other with no sign of a pause, amid some speculation the worst-case scenario – a blockade of the straits of Hormuz which could send oil as high as $130 – is increasingly likely (odds rising to 17% according to JPM). Brent crude rose as much as 5.5% to $77.50 – its Thursday night high – in early Asian trading after Israel and Iran continued attacks on one another's territories over the weekend. The price then promptly ease back as shorts who stand to suffer massive losses in case of a squeeze, doubled down by shorting even more in hopes the crises somehow de-escalates. That's a problem because unlike late last week, over the weekend Israel started attacking Iran's energy infrastructure, and on Saturday launched an attack on the giant South Pars gas field in the Persian Gulf, forcing the shut down of a production platform, after air strikes on Iran's nuclear sites and military leadership last equity-index futures pointed to declines in Hong Kong and Sydney, while contracts for US equities initially edged lower before stubborn retail dip buyers promptly emerged again. The dollar saw modest gains against major peers in early trading, while gold rose toward a record on Monday as the conflict drove investors toward haven assets. Last week's biggest market reaction to the conflict was oil, with crude prices surging more than 13% on Friday before paring some of those gains. The biggest concern for the market centers on the Strait of Hormuz and prices could soar further if Iran attempts to block the route. On Saturday, JPMorgan raised its odds of a Hormuz closure to 17%. 'Markets should be prepared for a prolonged period of uncertainty,' said Wolf von Rotberg, an equity strategist at Bank J. Safra Sarasin, quoted by Bloomberg. 'Hedging against potential oil supply-chain disruptions via exposure to the energy market and adding to gold, which may see an acceleration of its structural uptrend, are the best ways to protect a portfolio against a further escalation in the Middle East.' Some investors ended last week choosing to wait to gauge how long the tensions would last, mindful of similar standoffs between the two nations that eventually de-escalated. Still, the extension of the conflict and intensity of the current hostilities is likely to cast a shadow over risk assets on Monday. Already, the MSCI World Index of developed-market equities fell the most since April on Friday following Israel's initial air strikes on Iran. 'This is a significant escalation, to the point where these nations are at war,' said Michael O'Rourke, chief market strategist at JonesTrading. 'The ramifications will be larger and last longer,' with weakness in equity markets likely, especially after recent gains, he said. While the drop in US stock futures was modest, most Middle East stock indexes suffered bigger losses on Sunday. Egypt's main gauge was the worst performer, seeing the biggest losses in more than a year on concern that a halt in Israeli gas production will cause fuel shortages. In Saudi Arabia, the Tadawul gauge's declines were limited by Aramco, which gained on higher oil prices. Israel's benchmark ended higher as military supplier Elbit Systems Ltd. rallied. Still, judging by the recent dip-buying euphoria, one can see why some are confident that this too will blow over quickly. 'Unless oil stays elevated and drives inflation higher, this is more likely a pause than a panic as other narratives are driving the market,' said Dave Mazza, chief executive officer, Roundhill Investments. 'It may present a buying opportunity, but with markets having rallied sharply off recent lows, gains from here will be harder to come by.' Traders are weighing the fresh geopolitical risks at a time when they are also grappling with destabilized global trade relationships, the prospect of new tariffs from Donald Trump, economic cross-currents, the ongoing conflict between Russia and Ukraine and rising political tensions in the US amid protests. Also read: Israel Attack Targets Refinery At Iran's Giant South Pars Gas Field
Time of India
22-05-2025
- Business
- Time of India
Asian shares drop after US selloff, treasuries dip
Asian shares fell and Treasuries continued their slide at the open Thursday following losses in Wall Street on concerns about the US's ballooning deficit . A regional stock gauge dropped for the first time in three days on weaker openings in Australia, Japan and South Korea. The dollar edged down for a fourth consecutive session. US equity-index futures were steady after the S&P 500 index closed down 1.6% on Wednesday, its sharpest slide in a month. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Semua yang Perlu Anda Ketahui Tentang Limfoma Limfoma Pelajari Undo Treasuries fell across the curve Wednesday with long-term debt bearing the brunt as the 30-year yield rose 12 basis points. Tepid demand for a $16 billion sale of 20-year bonds rekindled fears over US government borrowing and budget deficit. That sapped sentiment after a sharp rebound in risk assets over the past month and revealed structural concerns in the bond market. 'The soft 20-year auction fueled additional weakness,' said Michael O'Rourke, chief market strategist at JonesTrading. 'It has been a theme all week starting with the Moody's downgrade. Additionally, there is the deficit/budget debate being fought in the background of this environment.' In Asia, investors will be monitoring the Korean won after the currency jumped to a six-month high. Local media had reported that the US believes a relatively weak won is a fundamental cause of South Korea's trade surplus. The currency weakened 0.4% in early Asian trade. Live Events Elsewhere, Baidu Inc. posted a surprise rise in revenue after the Chinese internet search leader fended off intensifying competition in AI and benefited from demand for computing in the post-DeepSeek Chinese AI development boom. Traders have been piling into bets that long-term bond yields would surge on concerns over the US's swelling debt and deficits, with Moody's Ratings on Friday lowering the nation's credit score below the top triple-A level. For many, the message was: Unless America gets its finances in order, the perceived risks of lending to the government will rise. The White House ramped up the pressure on Republicans on Wednesday urging lawmakers to quickly approve President Donald Trump's signature tax bill, adding that a failure to do so would be the 'ultimate betrayal.' Former Treasury Secretary Steven Mnuchin said he's more alarmed by the country's growing budget deficit than its trade imbalances, and urged Washington to prioritize fiscal repair. 'The budget deficit is a larger concern to me than the trade deficit,' he said during a panel discussion at the Qatar Economic Forum on Wednesday. 'I hope we do get more spending cuts.' The murky economic outlook has fueled hedging activity in Treasury options, with investors targeting higher rates on longer-dated bonds by the end of the year. Those wagers echo sentiment on Wall Street, where strategists from Goldman Sachs Group Inc. to JPMorgan Chase & Co. are lifting their forecasts for yields. 'These higher yields make it much tougher to justify today's very high valuation levels,' said Matt Maley at Miller Tabak. 'So, it's something that will likely create some renewed headwinds for stocks.' In commodities, gold rose for a fourth session Thursday. Oil extended its drop as higher US crude stockpiles reinforced worries about an oversupplied market, with geopolitical concerns also in focus. Bitcoin hit an all-time high.
Yahoo
16-05-2025
- Business
- Yahoo
Has the stock market's epic rebound come too far, too fast? What investors chasing the rally should keep in mind.
Any investor who was bold enough to buy the dip in stocks last month has been quickly rewarded. But has the stock market's comeback been too much, too fast? Some on Wall Street think so. I have $50,000 in credit-card debt after my divorce, but received $30,000 after a car wreck. Do I buy a used Lexus? My second wife says her 2 kids should inherit our estate, but I also have 2 kids. Is that fair? My husband and I spend more money on our daughter and her family than on my single son. Do we compensate him? These $5,000 bonds can help you fix a stock-heavy portfolio 'I am scared to death that I'll run out of money': My wife and I are in our 50s and have $4.4 million. Can we retire early? 'I think what we're seeing now is emotion and people chasing the rally, and this fear of missing out,' said Michael O'Rourke, chief market strategist at Jones Trading, during an interview with MarketWatch. Since its closing low on April 8, the S&P 500 SPX has risen by more than 17% through Tuesday's close, a pace rarely seen over the past 75 years. Analysts at Birinyi Associates have found six examples since 1950 where short-term returns for the S&P 500 were on par with what investors have seen over the past six weeks. Following each example, returns 12 months later were almost universally strong. The strongest example followed the COVID-19-inspired meltdown in early 2020: Following the market's initial comeback, the S&P 500 continued to climb, ultimately tacking on a 46% return 12 months later. But a lot can happen in a year, and there are still plenty of investors out there who expect stocks could head lower once again in the interim. Even Wall Street luminaries like Paul Tudor Jones have said that they expect the market will revisit its April lows later this year as the economic damage from Trump's tariffs is finally felt. See: Paul Tudor Jones says U.S. stocks will fall to new lows — even if Trump dramatically dials back China tariffs Mark Hackett, chief market strategist at Nationwide, pointed out that U.S. stocks are still expensive compared with companies' expected earnings over the next 12 months. 'The market has raced from oversold to overbought in record time, with the S&P 500 now trading at 21x forward earnings,' Hackett said in emailed commentary. The relative strength index for the S&P 500, a popular stock-market momentum gauge, was sitting north of 70 on Wednesday, putting the index squarely in overbought territory. It had fallen below 30 as recently as April 4, before Trump announced his initial 90-day pause on global tariffs. To be sure, investors inclined to keep on buying have plenty of grist to support their thesis. Trump has walked back many of his most economically damaging tariffs, and few expect the administration will bring them back — at least not at the levels announced on April 2. At the same time, many hedge funds and other institutional investors who either sold stocks in April or sat things out are likely facing pressure to chase the rally. Trade deals with the U.K. and China have shown that the White House is serious about finding an off-ramp. After unveiling the 90-day pause followed by a dramatic de-escalation of its China tariffs this week, the U.S. effective tariff rate has fallen to 14.4%, compared with nearly 24% just before, according to data from J.P. Morgan. To be sure, even 14.4% is higher than where tariffs stood at the beginning of 2025. Adding to the sense of optimism, much of the hard economic data released so far have shown little indication that the tariffs, and the attendant surge in policy uncertainty caused by their chaotic rollout, have caused any deeper damage to the American labor market or consumers' willingness to spend. But plenty of data from April has yet to be released, and some expect the full extent of the economic blowback could take longer to play out. 'There has likely been damage done, especially to smaller businesses, that it will be difficult to recover from, at least in the short term,' said Melissa Brown, managing director of investment-decision research at SimCorp. There are still plenty of unanswered questions surrounding the White House's tariff agenda that could upend stocks. After rampant speculation about whether the 'Trump put' was still in play, the administration has shown once again that it is responsive to pressure from the financial markets, be it stocks or bonds. See: Stock-market recovery suggests equities must fall this far to spark a 'Trump put' or pivot Trump's plans for national-security tariffs on semiconductors and pharmaceuticals remain a key unanswered question for investors. The administration has been largely quiet regarding its plans lately, although the Commerce Department was asked to begin a formal investigation at the beginning of April, Jones Trading's O'Rourke noted. If the White House follows through with substantial levies intended to encourage the reshoring of production related to sensitive goods, it could send stocks reeling once again. The confusion here helps underscore a key risk for stocks: The fact that with one Truth Social post, Trump could send investors scrambling out of equities once again. O'Rourke, however, said he is beginning to suspect that last month's market chaos may have caused the president to lose his nerve on his tariff agenda. 'Did the president get so spooked on the reaction to his China tariffs that he doesn't follow through here?' O'Rourke wondered. Then there's the question of the bond market. The yield on the 10-year Treasury note BX:TMUBMUSD10Y quietly crept back above 4.50% on Wednesday, returning to levels seen last month that spooked fears of a bond-market meltdown and helped encourage Trump to announce the 90-day pause on many of his 'liberation day' levies. Bond prices move inversely to bond yields, falling as yields rise. 'Yields on the long end are rising, that's going to be our ultimate battle now,' said George Cipolloni, a portfolio manager at Penn Mutual Asset Management. U.S. stocks traded mostly higher on Wednesday, with the S&P 500 up marginally while the Nasdaq Composite COMP ended on solid gains. The Dow Jones Industrial Average DJIA and the Russell 2000 RUT both closed lower. Wall Street's biggest bull held his nerve throughout this year's selloff. What he's saying now. 'I'm flabbergasted': My friend wants to borrow $5,800 to save his home from foreclosure. What should I do? Has the stock market's epic rebound come too far, too fast? What investors chasing the rally should keep in mind. 'We live modestly': My wife and I have $900K in stocks and $380K in savings and CDs. Are we holding too much cash? Wall Street's fear gauge just dropped with striking speed. What historically comes next for stocks?
