(Bloomberg) - Wall Street traders are cautiously adding fuel to stock rebounds, with high-risk bets that U.S. companies will lower their gains in economic growth and tariff-driven damages.
Most of them come from Bloomberg
Investors' past consumer confidence and labor data were weaker, boosting the S&P 500 by 0.6%. The spec racer has reached its best six-day run since March 2022, at about 8% spanning. The Nasdaq 100 is about to eliminate all its losses since President Donald Trump announced the trade offensive on April 2. Treasury bonds extended April yields, with 10-year yields falling below 4.2%. The dollar rose against most major currencies.
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Even if Trump’s tariff turmoil does not show daytime economic tolls, a bunch of stocks makes a comeback in stocks. One theory says investors are afraid to miss out in the early stages of market rebounds, which is our long history of rebounding.
The Fed will lower interest rates to prevent a recession and may establish venture capital cases, added.
However, after the world's largest economy gradually cruising comfortably in early 2025 for much of last year, the trade deficit surged in the tariff-related import battle as consumers were tired.
In the latest hub in Trump's trade strategy, the president will sign an executive order to mitigate the impact of its automatic tariffs, prevent responsibilities on foreign-made vehicles from piled up on other taxes, and reduce the costs of parts used to make cars in the United States.
"Many people are still calling for recession, even lower equity levels, but we think 'Trump input' is real for stocks, and 'Feder rights are real for the economy," said Andrew Brenner of Natalliance Securities. "While the tops and bottoms are hard to recognize when they happen, we think the worst moments are behind us."
In Corporate News, Amazon.com Inc. said it will not show the U.S. costs for products after the White House blasted the move. Commerce Secretary Howard Lutnick told CNBC that Apple wants to build an iPhone in the United States. General Motors Co. and Jetblue Airways Corp. do their best. United Parcel Service Inc. expects to lay off 20,000 jobs this year.
After the end, Starbucks reported sales were slightly higher than expected. Visa Inc. earnings estimates. Snap Inc. declined to release sales forecasts during the current period, saying it is browsing the macroeconomic "headwind" for its advertising business. The preliminary results of Super Micro Computer Inc. have no analyst forecasts.
“Looking forward, we believe the worst possible situation of policy change could happen,” said Lauren Goodwin of New York Life Investment. “However, as uncertainty remains high in key areas of the market (such as business costs and revenues) and as the recent market bottom has raised valuations, market volatility is likely to continue.”
At HSBC Holdings Plc, a group of strategists cut their year-end S&P 500 target from 6,700 to 5,600, saying tariffs and exceeding expectations of U.S. economic growth will put pressure on corporate earnings.
"We expect the market narrative to flip between recession and scatter until tariff turmoil subsides and the Fed begins to ease and/or inflationary pressures cannot accumulate," wrote a comment to clients, a strategist, including Nicole Inui.
Raymond James' Larry Adam noted that while he kept the S&P 500 at the end of the year, there was a long time between here and there.
"I'll be more cautious during this period because I do think you'll see more obvious evidence that this economy is slowing down," he said in an interview with Bloomberg headquarters in New York.
Citigroup Inc. strategists led by Chris Montagu said the robust revenue season strengthened the position momentum of U.S. stocks, bringing exposure levels closer to neutrality.
Meanwhile, with the tariff headlines whip market whiplines still reluctant to put any major bets hedge fund managers with one big exception: shorting U.S. stocks.
According to data provided by Bob Elliott, the so-called market belief is hedge funds’ confidence in adopting a specific investment strategy, which is recovering after falling to its lowest level in decades in decades, according to data provided by Bob Elliott, Bridgewater Associates Ltd.
“On the positive side, the so-called Trump throwing has become increasingly obvious despite the volatility caused by the Trump administration, and recently talked about off-road and trade deals,” HSBC strategists Alastair Pinder and Dmitriy Leskin said. “On the other hand, the recession is getting bigger and bigger – while some of it has been reflected in prices, we think it can really limit the upside.”
Company Highlights:
Honeywell International Inc. has proposed full-year earnings per share guidance, saying it will offset about $500 million in tariff exposure and protect its bottom line as price changes and other actions.
Royal Caribbean Cruises Ltd. has boosted profit outlook for the year as cruising demand continues to defy the growing situation of the wider travel market.
Hilton Worldwide Holdings Inc. lowered earnings forecasts for 2025 as uncertainty over the U.S. economy’s demand for future travel is growing.
Kraft Heinz Co. adjusts its annual sales and profit outlook with worsening consumer sentiment and tariff charges.
Paypal Holdings Inc. has a full-year forecast of first-quarter expected earnings that are stronger than analysts expected, citing "uncertainty in the global macro environment."
NXP Semiconductor NV sunk after the company announced its new CEO as part of its quarterly earnings report, warning that the tariff threat created a "very uncertain environment."
Spotify Technology SA provided a slight outlook for profit and subscriber growth in the quarter.
Pfizer Inc. expects to replenish its pipeline this year after its closely watched obesity pill failure.
Hims & Hers Health Inc. said in Novo Nordisk A/S it will sell its popular weight loss pill Wegovy at a significantly reduced price on several telemedicine platforms.
Altria Group Inc. reiterated its full-year profit guidance, even as Marlboro manufacturers wrestled with weaker cigarette and oral tobacco products sold.
S&P Global said it is expected to bring in less revenue than originally forecasted this year, as increasing tariffs stimulate market momentum and leads companies to delay debt sales.
Some major moves in the market:
stock
As of 4 p.m. NY time, the S&P 500 rose 0.6%
Nasdaq 100 grew 0.6%
Dow Jones Industrial Average Up 0.7%
MSCI World Index rises 0.5%
Bloomberg 7 Total Return Index Rises 0.6%
Russell 2000 rose 0.6%
currency
Bloomberg Market Cap Index Up 0.2%
Euro fell 0.3% to $1.1382
Pound slid 0.3% to $1.3404
The yen fell 0.2% to $142.32
Cryptocurrency
Bitcoin rose 0.9% to $95,358.61
Ether rose 2.1% to $1,823.72
Bonds
The yield on the 10-year treasury fell by 4 basis points to 4.17%
Germany's 10-year yield fell by two basis points to 2.50%
UK's 10-year yield fell by 3 basis points to 4.48%
commodity
West Texas Intermediate crude oil fell 2.9% to $60.28 a barrel
Spotted gold fell 0.7% to $3,320.75
Most of them come from Bloomberg Business Weekly
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