Latest news with #RobHaworth
Bloomberg
04-07-2025
- Business
- Bloomberg
Bloomberg Daybreak Asia: US Jobs Report Buoys Sentiment; Treasury Secretary Scott Bessent
Asian equities were set to climb Friday following fresh highs for US stocks as strong jobs data eased concerns the economy slowing down. Treasuries fell and the dollar rose Thursday in a sign traders see less pressure on the Federal Reserve to cut interest rates after US jobs growth exceeded expectations in June. Swap traders saw almost no chance of a July Fed cut, compared with a roughly 25% probability seen before the data. The chance of a move in September ebbed to about 70%. We get reaction from Rob Haworth, Senior Vice President and Senior Investment Strategy Director at U.S. Bank Asset Management Group. Plus - US markets closed prior to the House passing President Donald Trump's tax bill that had weeks earlier sparked concerns over rising deficits. Separately, Trump also said his administration may begin sending out letters to trading partners as soon as Friday setting unilateral tariff rates ahead of a July 9 deadline for negotiations. Before the vote, we heard from Treasury Secretary Scott Bessent. He spoke with Bloomberg's Romaine Bostick and Matt Miller.
Yahoo
01-07-2025
- Business
- Yahoo
Why the market is still ‘glass half full' despite risks
Markets (^GSPC, ^IXIC, ^DJI) may still climb the wall of worry, but risks remain. US Bank wealth management senior investment strategist Rob Haworth joins Market Domination Overtime to explain why he sees a 'glass half full' outlook and what could pressure S&P 500 earnings. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. So you say here, Rob, we remain glass half full with our investment outlook. Why, why half full, Rob, walk us through it. Yeah, great to be with you, Josh. I think the the challenge is negative half a percent GDP growth in the first quarter of the year. A lot of that was uh imports. But the challenge is, the consumer is softening a bit and there's some challenges, especially in the lower income cohort that we have to be careful for. So we think this is a market that can still climb this wall of worry, but it's not as robust as it was, right? So we we think we're in middling sort of economic growth scenarios, 1 to 2%, and then you take a look at what that means for S&P 500 S&P 500 earnings, right now consensus is around 7% for full year 2025, 13% for 2026. That may be a little too robust when we think about the economic backdrop that we're facing where the market is really being driven, as we as as was pointed out, there's a a recovery in place. There is a lot of uh hope for more artificial intelligence spending growth, and I think that's been helping to drive the market. There's okay news for the consumer, but but we we think that there are some risks out there that we have to watch and adapt to as we move forward. But we, you know, it's still half full. So we still think this is a constructive environment, just not one that is robust and has many risks. Broadly, Rob, how would you characterize valuations? I'm guessing given what you're telling me here, you you'd say they're a bit stretched. No, definitely within the S&P 500, you're at uh what we sometimes call the high end of fair, right? You're you're on that rich side of valuation and the challenge, I think is uh things need to go exactly right for the market to continue to press ahead. Now, they probably they can, they certainly can. We continue to see good news on artificial intelligence spending, certainly the broadening of this rally into industrials, into financials, into other sectors outside of technology and communication services is extremely constructive. So we think this is a market that can continue. But interestingly, you look around the world, global diversification may pay off just as well. You have cheaper valuations. It's a little maybe easier for them to overcome uh that that downbeat uh current pricing that you have outside the US. So global diversification probably becomes important as we look into the back half of the year. 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
Mint
14-06-2025
- Business
- Mint
War upends the oil trade. How it could play out.
Israel's attack on Iran early Friday sent shock waves through the oil market, which relies on the region for one-third of global supplies. The reverberations won't go away soon. Oil prices spiked 14% in the immediate aftermath of the attacks, before giving back some of those gains. Brent crude, the international benchmark oil price, rose 7% on Friday to $74.23 per barrel. Based on recent history, oil's rise might seem fleeting. For most of the past three years—since the early days of the Russia-Ukraine war—geopolitical events haven't had a lasting impact on oil prices. The Israel-Hamas war and continuing violence in Ukraine have barely impacted the oil market, because they didn't dramatically affect supply and demand. But the price shock from the Israel-Iran conflict could last weeks because major oil infrastructure could be in the line of fire. 'It is something that seems like prices could remain elevated for some time," says Rob Haworth, who oversees investment strategy for U.S. Bank Asset Management Group. If the conflict grows substantially, analysts have predicted oil prices could surge over $100 per barrel, and perhaps as high as $120. The extent of the price-move depends on how the war escalates. Israel didn't directly strike Iran's oil infrastructure on Friday, but some analysts expect Israel to hit those facilities if the war continues. Iran, for its part, is in a position to disrupt oil shipments in the region, which could cause prices to spike even more. Iran produces about 3.2 million barrels of oil a day, and exports between 1.5 million and two million barrels of it. That is a significant piece of the 103 million barrels of global oil production, but not enough to completely disrupt the market. Israel isn't a major player, historically pumping less than 10,000 barrels a day. Israel could disrupt production if it hits Kharg Island in the Persian Gulf, which houses much of Iran's oil export infrastructure. Iran, in turn, has plenty of ways to respond that could affect the oil market even more. Iran and the military groups it supports, including the Houthis in Yemen, could create much wider disarray. After the Israel-Hamas war began in 2023, the Houthis attacked ships in the Red Sea—some of those carried energy products—causing a brief spike in the price of oil. But the Red Sea doesn't transport that much oil. The most important waterway is the Persian Gulf, which sits between Iran and Saudi Arabia. Iran and its proxies could block the Strait of Hormuz, a narrow waterway that connects the Persian Gulf to the Gulf of Oman and which offers access to markets all over the world. Thirty percent of the world's seaborne oil trade flows through it. China, which buys more of Iran's oil than any other country, is particularly dependent on supplies that come through the strait. Financial firm Lazard thinks oil prices would surge above $120 if the strait is blocked, and the U.S. would probably have to get involved to unblock it. Lazard thinks a short disruption to the strait is possible but considers an extended blockade 'highly unlikely due to catastrophic internal and international consequences and the ability of the U.S. Navy to intervene to open up the strait." Given its location and military capabilities, Iran could impact the market in other ways. Two Saudi Arabian oil facilities were damaged in military strikes in 2019, severely curtailing oil production, and Iran was believed to be behind the attacks. Tensions between Saudi Arabia and Iran have eased since then, but Iran could widen the conflict again by hitting Saudi facilities. J.P. Morgan analyst Natasha Kaneva thinks a wider Middle East conflict would cause an oil shock that could take prices over $120. Based on how oil traders reacted to the latest escalation of the war, she thinks the market is implying a 17% chance of a much more severe impact. Such a dramatic price spike feels like a long shot. The overall oil supply-demand picture is still bearish, with global oil supply set to outpace demand this year because of expected production hikes from members of OPEC. 'We expect, absent a wider war, today's rise in prices will likely prove to be a sell-the-news event," wrote Morningstar analyst Allen Good. The conflict, and its higher oil prices, isn't a reason for investors to pile into energy stocks, but it's a reminder of why they can be important pieces of a portfolio. Oil stocks jumped on Friday, even as the broader market and some Big Tech names fell. Exxon Mobil was up 2.2%, and Occidental Petroleum rose 3.8%. 'When tech stalls out, there's a natural rotation to energy companies," says Jay Hatfield, portfolio manager of the Infrastructure Capital Equity Income exchange-traded fund. 'They're actually pretty good hedges." Hatfield's fund owns Exxon and Chevron, which he thinks offer investors exposure to the industry without as much risk as smaller names. Oil's gains may well fizzle out eventually. But this war appears to be far from over, and oil is right in the middle of it. Write to Avi Salzman at
Yahoo
28-05-2025
- Business
- Yahoo
US stocks end lower, focus now on Nvidia results
STORY: U.S stocks finished lower Wednesday with the Dow, S&P 500 and Nasdaq all losing about half of one percent each. Shares of chipmakers including Cadence Design Systems and Synopsys fell in late trading. The Financial Times reported that the Trump administration has ordered U.S. firms that offer software used to design semiconductors to stop selling their services to Chinese groups. Other chip companies are dealing with U.S. government controls on their work, too. Nvidia said after the market close that it expects an $8 billion hit to sales from tighter U.S. curbs on exports of its AI chips to China, a key semiconductor market. Nvidia did beat quarterly sales expectations and its shares, which closed down half of one percent in regular trading, were up after-hours. Rob Haworth, senior investment strategy director with U.S. Bank Asset Management Group, says Nvidia's results are hugely important for the market. "Nvidia's significance to the market is still fairly large. They're no longer the largest company in the S&P 500, but they really sit at the center of artificial intelligence demand and supply at this point and so I think that's going to have a significant impact around it on the companies around it, right, the ecosystem around it. Particularly, it will tell us a lot about how other companies are doing." Meanwhile, Investors also assessed the minutes of the Federal Reserve's May meeting. U.S. central bank officials acknowledged they could face "difficult tradeoffs" in coming months in the form of rising inflation alongside rising unemployment.
Yahoo
03-04-2025
- Business
- Yahoo
Danaher Corporation (DHR): One of the Best Healthcare Stocks to Buy According to Billionaires
We recently published a list of 10 Best Healthcare Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Danaher Corporation (NYSE:DHR) stands against other best healthcare stocks to invest in. Healthcare stocks experienced a challenging year in 2024, lagging behind high-growth sectors like tech and AI. Market uncertainties and policy challenges also created obstacles for certain segments within the industry. In the first half of the year, investors focused on technology and communication services, drawing attention away from healthcare. While the sector showed some improvement in the latter half as the market rally expanded, certain segments continued to struggle with supply and demand imbalances caused by the pandemic. One major factor was the increased demand for delayed medical procedures, as patients sought treatments they had postponed. This benefited healthcare facilities and medical device manufacturers but put financial pressure on managed-care insurers. Additionally, companies specializing in life sciences tools and services faced lower demand, as COVID-19 testing declined and pandemic-related inventory levels were still being reduced. Policy concerns also weighed on the sector, particularly for insurers offering Medicare Advantage plans, as reimbursement rates fell short. Uncertainty surrounding upcoming elections further contributed to the healthcare sector's struggles. On a positive note, innovation remained strong, as the biotech industry saw promising clinical developments, and advancements in treatments for conditions like obesity and diabetes fueled significant growth in the pharmaceutical sector. In the first quarter of 2025, healthcare stocks were among the strongest performers in the S&P index, outpacing the broader market. This marks a sharp contrast to their struggles in recent years. In 2024, the healthcare sector saw a modest gain of 2.06%, trailing the market's 25.02% return. A similar pattern was seen in 2023, with healthcare stocks rising just 2% while the overall market climbed 26%. Despite these challenges, healthcare remains a vital part of the economy, driven by increasing demand for medical products and services as the population ages. It is the fourth largest sector in the market, following technology, financials, and consumer discretionary. In the Russell MidCap Index, which tracks about 800 companies, healthcare ranks fifth, while in the small-cap Russell Index, it holds the third spot behind industrials and financials. Rob Haworth, senior investment strategy director for US Bank Asset Management, said: 'Investors can gain exposure to the healthcare sector by owning the S&P 500 through a passively managed index fund or ETF. Investors may also want to take a more selective approach, as the record demonstrates there can be varied performance within the healthcare sector.' Investors are taking a cautious approach as they assess potential policy shifts under the new administration. With a change in leadership at the Department of Health and Human Services, major healthcare companies could face greater scrutiny and may need to adjust to evolving policies. As the Trump administration's policies come into focus, concerns are emerging over potential budget cuts that could directly affect healthcare organizations. With the Department of Government Efficiency tasked with cutting $1 trillion from a $6 trillion budget, reductions in healthcare spending appear likely. On January 17, the House Ways and Means Committee released a list of possible cuts to support the extension of the 2017 Tax Cuts and Jobs Act. Among the proposals are eliminating the tax-exempt status of municipal bonds and potentially revoking the nonprofit status of hospitals and health systems. At the same time, hospital mergers and acquisitions have been steadily rebounding from pandemic-era lows, despite strict federal antitrust policies. However, it remains to be seen how future changes in regulatory leadership might influence M&A activity. Despite policy concerns, some billionaire investors remain confident in the healthcare sector's future. Carl Cook, with an estimated net worth of $10.3 billion, is among the wealthiest figures in the healthcare industry. He took over as CEO of his family's medical device company in 2011 following his father's death. In 2017, the company sold one of its subsidiaries to a drug delivery technology firm for $950 million. Cook also serves as president of a life sciences division focused on developing a cell therapy for urinary incontinence. Another billionaire investor in the healthcare sector is Ronda Stryker, with a net worth of $8.4 billion. Known for her contributions to medical technology and philanthropy, she has played a major role in advancing healthcare innovation. As the granddaughter of Dr. Homer Stryker, founder of a medical technology firm, she is committed to improving lives through medical advancements and social initiatives. A healthcare professional in a lab coat holding a microscope and looking at a slide under the lens. To collect data for this article, we scanned Insider Monkey's database of billionaires' stock holdings and picked the top 10 companies operating in the healthcare sector with the highest number of billionaire investors in Q4 of 2024. The stocks are ranked in ascending order based on the number of billionaire investors. We have also mentioned the value of billionaire holdings for further insight. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Number of Billionaire Investors: 18 Value of Billionaire Holdings: $3.8 billion Danaher Corporation (NYSE:DHR) develops, produces, and sells professional, industrial, medical, and research products and services across the US, China, and other markets. The company operates through its Biotechnology, Life Sciences, and Diagnostics segments. On February 20, the company's board of directors approved a quarterly dividend of $0.32 per share. It is to be paid on April 25, to shareholders on record as of March 28. This represents an 18.5% increase from the prior dividend of $0.27 per share. Danaher has consistently paid dividends for at least 30 years, placing it among the best healthcare stocks. For the fourth quarter of 2024, Danaher Corporation (NYSE:DHR)'s sales amounted to $6.5 billion, reflecting 1% core revenue growth driven by strong demand for consumables used in commercialized therapies. The adjusted operating profit margin improved by 90 basis points to 29.6% due to cost-saving measures. Adjusted diluted earnings per share increased by 2.4% year-over-year to $2.14, with free cash flow reaching $1.5 billion for the quarter. Over the full year, Danaher generated $5.3 billion in free cash flow, achieving a free cash flow to net income conversion ratio of approximately 135%. On January 9, Danaher Diagnostics LLC and Danaher Ventures LLC, both subsidiaries of Danaher Corporation (NYSE:DHR), announced a partnership with healthcare AI company Innovaccer Inc. As part of this investment collaboration, Danaher, Innovaccer, and its network of healthcare systems aim to enhance the use of precision diagnostics among clinicians and population health teams, promoting value-based care. Overall, DHR ranks 5th on our list of the best healthcare stocks to buy according to billionaires. While we acknowledge the potential of DHR to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DHR but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
