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Yahoo
5 days ago
- Business
- Yahoo
Trump's Fed visit: What to expect from FOMC next week
Consumers are cautious as some companies report mixed sales results amid ongoing economic uncertainty. CFRA Research chief investment strategist Sam Stovall and Yahoo Finance Senior Reporters Brooke DiPalma and Ines Ferré discuss what the latest earnings say about the market and the Federal Reserve's next moves. To watch more expert insights and analysis on the latest market action, check out more Opening Bid here. ever seen that type of exchange between a Fed chair uh and a sitting president? Uh it just extraordinary stuff. And then what's the read through to markets if there's any? Well, no. I have never seen that kind of an exchange before. Uh so it certainly does make for interesting headlines. I'm not necessarily sure it's going to be affecting bottom lines because I think Fed chair Powell is going to stick with the timetable that is based upon the data. So when they meet next week, I think the outcome is likely to be that uh that they are happy with the trajectory of inflation, uh that the economy remains resilient along with employment trends that uh the trade agreements are coming through. Uh but they're not going to be cutting rates until they feel that they need to. And we think that will probably happen first in September and then again sometime in the fourth quarter. Sam, I mean the the Fed chair got embarrassed again now on a very public exchange. Um do you think I mean he's still human of course. But do you think this digs him in even more? I mean, how could he come out next week and cut rates? But then how could he also even signal that rate cuts may happen next year or even at the end of this year? Well, I think like I said, he's basically trying to block out uh outside interference and focus on the data. So we don't think that they're going to be cutting rates next week, but we would not be surprised if there were a bit more dovish statements acknowledgement of the two members who are encouraging a rate cut to take place at the July meeting. Um but we feel that the focus will be on the data uh because Powell's term does end uh in the first half of 2026. And as a result, I think he would like to go out looking good rather than simply responding to what others are requesting. And as I never thought I would see a Fed chair uh wearing a hard hat. Um I go back to when I first started, it was Alan Greenspan. I know for damn sure he would never be putting on a hard hat. Um but I think one thing to watch next week is in the Fed meeting is who dissents against pal? For sure. And look, can we say just awkward because it was an awkward scene? It was to the point almost ridiculous comical when you were watching them together there with those two hard hats because you could tell that Powell did not want to be there. He would have been anywhere else but next to Trump in that scene. But look, I think that this underscores two things. One of them, this highlights that the government is desperate. I mean, Trump is desperate for these interest rates to come down. Interest expenses are sky high and he wants those rates lower. The other one is, I think that there is a perception that Fed independence is eroding before our very own eyes because there seems to be a shadow fed emerging here. And this is signaling to the markets that the next person that is sitting in that in Jerome Powell's seat will do what Trump wants them to do or will do what the government wants him to do and it puts that person in an awkward situation. So whether or not even Powell sits out the rest of the term, which he's expected to, that is almost irrelevant because it's almost like you're watching this erosion of Federal Reserve independence. Well said and as Brook, uh you were running through the results out of Decker's. Uh Uggs, I believe up double digit sales, Hoka up double digit sales. And this is not If the economy was falling apart and in badly need of a rate cut, I don't think you get these results out of a out of a brand or a company. I really don't need a lot more of what they How many more pairs of Uggs do we need in our closet? How many more pairs of Uggs? I mean, I certainly I could have tons. I love wearing them. But but when you really hear this story, it's an ongoing environment of what we've seen over this past quarter really play out. The consumer needs to be convinced to buy. Now, keep in mind, here in domestic here in the US, we did see a same store sales decline of 2.8%. And they're really alluding that to this ongoing volatile environment. And this is largely what we've seen play out over the course of this past earnings week. We've heard from Chipotle cite an ongoing volatile consumer environment that led to their second consecutive quarter of sales decline. And so it's really this this lean into this idea that certain companies are winning in this environment and certain companies are not performing as well because they're not really catering to the company. Chipotle even saying that they lost their value proposition. On the other hand, Decker's saying that overseas, they saw their international sales rise. And so certainly they're able to lend themselves to this consumer that is willing to spend up if they're convinced to. 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Globe and Mail
7 days ago
- Business
- Globe and Mail
Google parent Alphabet beats Wall Street's quarterly revenue estimates
to view this content. Tickers mentioned in this story Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 23/07/25 4:00pm EDT.
Yahoo
7 days ago
- Business
- Yahoo
S&P 500 sector breakdown: Cyclical vs. defensive
Yahoo Finance Markets and Data Editor Jared Blikre, who also hosts of Yahoo Finance's Stocks in Translation podcast, outlines what investors need to know about cyclical and defensive sectors. Catch more Stocks in Translation here, with new episodes every Tuesday and Thursday. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here. The industrial sector is up over 30% off of those April 8th lows, while healthcare has barely budged. On today's episode of Stocks in Translation, we are taking a look at cyclicals versus defensive sectors. And first, let's define cyclical sectors. It is those sectors or industries whose sales and profits swell in economic expansions and shrink in recessions, making their stocks swing more than the broader market. And a few examples here. We have consumer discretionary, that's the stuff that you want to buy as opposed to the stuff that you have to buy. We have industrials, materials, financials, so think the big banks there, tech, and I'll come back to that in a second, communication services, which is kind of an odd category, and real estate. So let's get back to tech there. Some have argued that tech should be in a class of its own. And also with the push towards recurring revenues, a lot of its profits and sales are a lot more steady than they used to be. But especially at the upper end of the scale where you have the mega caps, a lot of those have become quasi-defensive in nature. So it's kind of, uh, there's some gray area there. And then communication services, well, that houses Alphabet, Meta, Verizon, Netflix. And sometimes there's some of those, uh, telecommunication stocks, those are defensive as well. So let's get into the defensive sector definition. These are industries whose demand stays steady in booms or busts so that earnings and share prices move less with the economy. So they're a little bit more stable there. So we're, instead of consumer discretionary, we have consumer staples. That's the stuff that you need to buy, healthcare, utilities, and energy. Energy is an interesting one because it's almost countercyclical, but it is defensive in nature. It tends to outperform when the Fed is doing certain things in the business cycle. Beyond the scope of this conversation, but for here we're going to classify it as defensive. This leads to the next chart, which is really jaw-dropping. This comes from Todd Sohn over at Strategas ETF Research. I call him the ETF whisperer. And this shows you all the defensive sectors combined versus two stocks, Nvidia plus Microsoft, how much they are taking up in the S&P 500. So let's do, uh, the defensive. I'm going to trace these sectors out first. They started at 40% in 1990, and then since the early 2000s, they have just drifted down. They are only at 20% today. Then you take the Microsoft and Nvidia combo, and Nvidia only came to market in the late 1990s. And it was kind of steady down here, but really took off in the teen in the teens in the area of the fangs and all that. And we have seen that climb to 15%. So two stocks are now approaching the entire value of all the defensive sectors. And it just shows you how much investors have come to really rely on those cyclical names. Now, I'm going to show you a chart since the April 8th lows. This shows you ETF flows into cyclicals versus defensives. And in white here, we have cyclicals, and then in green, it's defensives. And what I want to show you, first, both of these went down. Now, the April 8th low was a low. So stock prices were heading up from there, but ETF buyers across the spectrum did not buy that. And then in terms of the defensive, we saw a little bit of a bounce, but then they resumed their downward trend. And we can see that they have shown, or have not gotten really a lot of love since those April 8th lows. Now, you contrast that with consumer cyclicals, and they found a bottom into the end of April, and they have now climbed all the way up here, sitting at about $2 billion versus about four or five billion dollars of outflows for those defensives. So a pretty stark contrast that we're seeing there. Now, I want to show you the S&P 500 in white here versus something I call relative, well, that's called relative strength. It is consumer discretionary divided by consumer staples. So XLY, I'm using as a proxy for, uh, consumer discretionary, and then XLP is a proxy for consumer staples. You can see the S&P in white there, but I'm going to trace out what happened in this ratio of XLY to XLP, and you can see it got really interesting as of late. Let me just show you. The area before the pandemic, we had that ratio consolidating. Meanwhile, the S&P 500 was hitting record highs, but then a precipitous drop, and then we saw a huge, huge rebound in cyclicals. And then after the bear market of 2022 right here, we got a rebound to massively new highs in the S&P 500, but the ratio XLY to XLP was only able to get to that prior peak right here. And I'm going to clear the annotations and show you that even though the S&P 500 has reached record highs recently, XLY to XLP has, uh, kind of stayed there below its, uh, recent highs. And I think this kind of ties into the argument that we have seen narrow breadth in this S&P 500 rally, which is not a sell sign, but it is a yellow warning flag, uh, going forward. So wrapping it up here, tune into Stocks and Translation podcast for more jargon-busting deep dives, new episodes. You can find them on Tuesdays and Thursdays on Yahoo Finance's website or wherever you find your podcasts. Related Videos Stocks rise, Texas Instruments falls, Alphabet & Tesla earnings Hilton's upbeat Q2 earnings: Why this analyst is still Neutral US equities lead 2025 ETF flows: A closer look at global trends Hasbro Q2 beat, MARA to raise $850M, Otis issues weak guidance 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
18-07-2025
- Business
- Yahoo
American Express & 3M post Q2 results that top estimates
American Express (AXP) beat second quarter earnings estimates and reaffirmed full-year EPS guidance, as consumer spending remains steady. Meanwhile, 3M (MMM) raised its full-year EPS outlook and reported quarterly adjusted earnings of $2.16 per share, beating estimates alongside better-than-expected sales. To watch more expert insights and analysis on the latest market action, check out more Morning Brief: Market Sunrise here. We're looking at some key market movers this morning. Now, in American Express and 3M, both reporting quarterly results ahead of the open. First up, let's start with American Express. Shares moving higher, a little bit to the downside at one point. The bank reaffirming full year guidance and reporting Q2 earnings per share of $4.08. That's versus estimates of $3.87 and revenue of $17.86 billion. That was above the street estimate of $17.71 billion. So, I do want to get you a few more numbers from this release, of course, of the major credit card holder American Express. Maintaining its full year EPS guidance. That's in a range of $15 per share to $15.50 per share. American Express still seeing full year revenue increasing year over year in a range of 8% to 10%. Of course, when you think about a company like American Express, a large part of their business depends on how much American consumers are spending, right? There's sort of continuing a trend we've been bringing you really all week here, thinking about big banks have come out and been very positive overall on the consumer, on consumer spending. We had Netflix last night, which we just mentioned a little bit earlier. Netflix asked specifically about the macro environment, their executives saying that they're still seeing spending. Things are still going well there, and even on the economic data front, not company specific, you had retail sales come out yesterday for the month of June increasing 0.6%. And so overall, you're getting a picture of a strong US consumer that is continuing to hold on here, and you're going to hear that in our next company here too. We also have 3M shares. 3M shares are rising after raising its full year outlook. The parent of Scotch tape and posted notes sees adjusted earnings per share for the full year at $7.75 to $8. That range is higher than the previously seen $7.60 to $7.90. They also sees total sales for the year growing 2.5% versus prior guidance of 0.5% to 1.5%. 3M also reporting a beat on the top and bottom line for the current quarter, adjusted earnings per share clocking in at $2.16 versus $2.01 expected, and net sales coming in at $6.3 billion. That was versus $6.1 billion. So again, another consumer company here. We mentioned off the top there, 3M. That's the company that can bring you something like Scotch tape, posted notes, a lot of those kinds of items, continuing to see strength here. That stock is up over 23% this year, had been up over 50% over the past year, past 12 months. So, you're seeing strength again from the consumer sort of broadly here, and a lot of earnings beats this week. These are some of the last major companies to report to Dow Jones components, and I think we're leaving this first major week of second quarter earnings where you're going to see earnings projections for this quarter for the S&P 500 move higher. That's a good sign for the broader market as we head into some more big tech earnings that will be coming over the next few weeks, which, of course, we'll be breaking down here at Yahoo Finance. Related Videos Waller calls for rate cut, GENIUS Act, Netflix earnings: 3 Things Retail sector playbook: Best & worst stock picks Rate Cuts Ahead? Fed Voices Weigh In as Stocks Hit Record High Buy the Dips, Longview Economics 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
16-07-2025
- Business
- Yahoo
Deep Yellow Leads The Charge On ASX With 2 Other Penny Stocks
The Australian market is poised for a cautious start, with shares expected to open 0.7% lower as traders react to rising U.S. consumer prices and potential impacts from global economic policies. In such fluctuating conditions, investors often look for opportunities that balance affordability with growth potential, making penny stocks an intriguing option despite their somewhat outdated label. These stocks typically represent smaller or newer companies and can offer significant upside when supported by strong financials and solid business fundamentals. Name Share Price Market Cap Financial Health Rating Alfabs Australia (ASX:AAL) A$0.38 A$108.9M ★★★★☆☆ EZZ Life Science Holdings (ASX:EZZ) A$2.17 A$102.37M ★★★★★★ GTN (ASX:GTN) A$0.61 A$116.31M ★★★★★★ IVE Group (ASX:IGL) A$3.01 A$464.09M ★★★★★☆ West African Resources (ASX:WAF) A$2.39 A$2.72B ★★★★★★ Southern Cross Electrical Engineering (ASX:SXE) A$1.75 A$462.72M ★★★★★★ Regal Partners (ASX:RPL) A$2.62 A$880.91M ★★★★★★ Sugar Terminals (NSX:SUG) A$0.99 A$360M ★★★★★★ Navigator Global Investments (ASX:NGI) A$1.70 A$833.14M ★★★★★☆ CTI Logistics (ASX:CLX) A$1.84 A$148.2M ★★★★☆☆ Click here to see the full list of 458 stocks from our ASX Penny Stocks screener. Let's dive into some prime choices out of the screener. Simply Wall St Financial Health Rating: ★★★★★☆ Overview: Deep Yellow Limited is a uranium exploration company operating in Namibia and Australia, with a market cap of A$1.72 billion. Operations: Deep Yellow Limited does not have any reported revenue segments. Market Cap: A$1.72B Deep Yellow Limited, with a market cap of A$1.72 billion, is a pre-revenue uranium exploration company operating in Namibia and Australia. Despite being unprofitable and having earnings forecasted to decline by an average of 37.7% annually over the next three years, it trades at 79.8% below its estimated fair value. The company maintains a robust financial position with A$246.1 million in short-term assets covering both short and long-term liabilities, while being debt-free for the past five years. Additionally, Deep Yellow has sufficient cash runway for more than three years based on current free cash flow levels without significant shareholder dilution recently noted. Dive into the specifics of Deep Yellow here with our thorough balance sheet health report. Gain insights into Deep Yellow's future direction by reviewing our growth report. Simply Wall St Financial Health Rating: ★★★★★☆ Overview: IPD Group Limited is an Australian company that distributes electrical infrastructure, with a market cap of A$368.11 million. Operations: The company generates revenue through its Products Division, contributing A$325.32 million, and its Services Division, which brings in A$21.30 million. Market Cap: A$368.11M IPD Group Limited, with a market cap of A$368.11 million, demonstrates solid financial health and growth potential in the penny stock landscape. The company has shown impressive earnings growth of 48.7% over the past year, surpassing industry averages. Its net profit margin slightly improved to 7.5%, and its debt is well covered by operating cash flow at 125%. IPD's short-term assets comfortably cover both short-term (A$71.9M) and long-term liabilities (A$47.3M). Furthermore, the management team is experienced with an average tenure of 2.5 years, contributing to stable operations amidst low weekly volatility of 6%. Click to explore a detailed breakdown of our findings in IPD Group's financial health report. Examine IPD Group's earnings growth report to understand how analysts expect it to perform. Simply Wall St Financial Health Rating: ★★★★★★ Overview: Southern Cross Electrical Engineering Limited offers electrical, instrumentation, communications, security, and maintenance services to the resources, commercial, and infrastructure sectors in Australia with a market cap of A$462.72 million. Operations: The company generates revenue of A$693.73 million from its electrical services segment. Market Cap: A$462.72M Southern Cross Electrical Engineering Limited, with a market cap of A$462.72 million, presents a stable financial profile in the penny stock segment. The company is debt-free, mitigating interest payment concerns and enhancing its financial flexibility. With earnings growth of 42.3% over the past year, it surpasses both its historical average and industry benchmarks. Despite slightly declining net profit margins from 4.3% to 4.1%, short-term assets (A$240.7M) exceed liabilities comfortably, supporting liquidity strength. Its experienced management team and board contribute to steady operations while trading at a discount to estimated fair value suggests potential upside according to analysts' consensus estimates. Get an in-depth perspective on Southern Cross Electrical Engineering's performance by reading our balance sheet health report here. Gain insights into Southern Cross Electrical Engineering's outlook and expected performance with our report on the company's earnings estimates. Navigate through the entire inventory of 458 ASX Penny Stocks here. Looking For Alternative Opportunities? We've found 18 US stocks that are forecast to pay a dividend yeild of over 6% next year. See the full list for free. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include ASX:DYL ASX:IPG and ASX:SXE. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ 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
