All Posts in "Equities"

Is Apple Inc. (NASDAQ:AAPL) the Best Tech Stock to Buy For Long-Term Investment?

We recently published a list of 12 Best Tech Stocks to Buy For Long-Term Investment. In this article, we are going to take a look at where Apple Inc. (NASDAQ:AAPL) stands against other tech stocks to buy for long-term investment.

On April 1, Chris Verrone, chief market strategist at Strategas Research Partners, appeared on CNBC’s ‘Closing Bell’ to talk about his outlook on the tech sector. Verrone believes that most of the current market’s negative sentiment has already been factored into recent stock prices. He highlighted that even after the market’s decline, the VIX, and the currency and bond volatility are lower than they were during the mid-March stress period. Plus, fewer stocks are hitting new lows. He thinks that market lows are formed during periods of bad news, and the market will rally from its current level with an anticipated range of 5,900 to 5,950.

Verrone believes that the current downturn is more than a typical 10% correction so it will take some time to figure out the market’s true direction. He emphasized the importance of monitoring market breadth, new highs, and credit conditions in the upcoming weeks and months. He also acknowledged the shift in investor sentiment, with more bears than bulls. As the conversation touched on the impact of the Fed and politics in a market, Verrone stated that he pays more attention to what the 2-year Treasury yield tells him instead of listening to what Fed officials have to say. He noted that the 2-year yield’s decline from 3.83% to 3.85% suggests a shift in the market expectations for the Fed’s actions. He highlighted the resilience of financials during the correction and contrasted it with the weakness of tech. He thinks that, unlike financials that entered the correction as leaders, the tech sector might not be able to regain the leadership role.

While Verrone’s stance acknowledges the current weakness in tech, it’s important to note that the tech sector remains one of the more innovative markets in the long run. For instance, MAG7 continues to be a driving force for this market.

Our Methodology

We first sifted through financial media reports to compile a list of the top tech stocks that are being touted as long term investment plays. We then selected the 12 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.

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 (see more details here).

A wide view of an Apple store, showing the range of products the company offers.

Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 166

Apple Inc. (NASDAQ:AAPL) designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories. Its popular products include the iPhone, Mac, and iPad lines. It’s also known for its AirPods, Apple TV, Apple Watch, Beats products, and HomePod. The company provides AppleCare support and cloud services; and operates platforms like the App Store.

In the December quarter, the company’s Services segment made record revenue of $26.3 billion, which marked a 14% year-over-year increase. The company generated around $100 billion in services revenue in the past year. This growth was driven by an installed base of active devices which reached a record of more than 2.35 billion. The company has also seen all-time highs in transacting and paid accounts because of improved customer engagement. Notably, paid subscriptions have exceeded 1 billion.

The offerings in this segment include a range of categories, such as entertainment, productivity, and financial services. Apple TV+ is one instance, which attracts viewers through its original content. Another example includes the Find My services, which can help track luggage among other things. On March 25, UBS affirmed a Neutral rating on the company with a $236 price target.

The stock has been facing pressure due to the lack of an AI-driven iPhone upgrade cycle. However, Columbia Seligman Global Technology Fund is optimistic about the company due to iPhone 17’s AI potential. It stated the following regarding Apple Inc. (NASDAQ:AAPL) in its Q4 2024 investor letter:

“The fund maintained a position in Apple Inc. (NASDAQ:AAPL) throughout the quarter through the release of the company’s new iPhone 16 in September. Company leaders were excited about the release of the new model, as this is the first model that will feature enhanced AI capabilities through the Apple Intelligence features. Sales for the first few weeks in October and November trailed behind year over year sales from the iPhone 15, as availability of Apple Intelligence was not compatible with all iPhone models. Apple announced a partnership with OpenAI that has allowed the integration of ChatGPT into the Apple ecosystem, separate from the core Apple Intelligence features. This partnership highlights continued progress from Apple to introduce AI capabilities into its products and we expect the iPhone 17 to have even more expansive AI capabilities, increasing potential demand for the new model that is on track to be released in 2025.”

Overall, AAPL ranks 8th on our list of the best tech stocks to buy for long-term investment. While we acknowledge the growth potential of AAPL, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AAPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

George by — April 13, 2025 By George in Equities
Is Microsoft Corp. (NASDAQ:MSFT) a NASDAQ Stock with the Highest Upside Potential?

We recently published a list of the 13 NASDAQ Stocks with the Highest Upside Potential. In this article, we are going to take a look at where Microsoft Corp. (NASDAQ:MSFT) stands against other NASDAQ stocks with high upside potential.

On April 7, Dan Ives of Wedbush Securities joined CNBC’s ‘Squawk on the Street’ to discuss how the current tariff environment could impact tech supply chains. Musk’s actions and Trump’s tariffs have contributed to broad economic uncertainty, which Ives also referred to as the economic Armageddon for US tech in an earlier conversation. He expressed concern about the structural supply chain challenges posed by recent tariffs and geopolitical tensions. Ives highlighted that the US tech sector has historically maintained an edge over China but this could be wiped out if manufacturing were relocated to the US. The logistical hurdles of building manufacturing plants in the US are not negligible and it would take 4 to 5 years to establish facilities capable of sustaining production levels comparable to those in Asia.

He also acknowledged that he hasn’t downgraded major stocks like the ones in MAG7 but remains cautious. If these previously highlighted issues persist for months, Ives anticipates drastic cuts in earnings. This uncertainty surrounding tariffs could lead to lower demand for emerging technologies like AI and cybersecurity. He explained that this situation could severely impact the US tech companies and lead to broader cuts across the tech sector — potentially up to 25% in earnings. He also criticized Elon Musk’s political involvement, which he believes has caused permanent damage to his brand and customer base. He estimated a 20% demand destruction in Europe and 10% in the US.

Our Methodology

We used the Finviz stock screener to select the 13 stocks with the highest analysts’ upside potential (at least 35%) as of April 8. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q4 2024, which was sourced from Insider Monkey’s database.

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 (see more details here).

A development team working together to create the next version of Windows.

Microsoft Corp. (NASDAQ:MSFT)

Average Upside Potential as of April 8: 39.72%

Number of Hedge Fund Holders: 317

Microsoft Corp. (NASDAQ:MSFT) develops and supports software, services, devices and solutions worldwide. These are mainly offered through its Productivity and Business Processes segment, the Intelligent Cloud, and the More Personal Computing segment. It sells its products through OEMs, distributors, and resellers, and also directly through digital marketplaces, online, and retail stores.

On April 8, Jefferies lowered the price target on Microsoft from $500 to $475, while acknowledging the macroeconomic pressures that slightly reduced their fiscal year estimates by 1% to 2% for the software and internet sectors. However, the firm maintained a Buy rating on the stock because of the company’s position in AI-driven cloud, productivity, and business solutions.

In FQ2 2025, the company’s AI revenue surged by 175% year-over-year, which represented a $13 billion annual run rate. While Azure’s growth recently slowed down a bit, this performance excluded the impact of AI in this segment. Azure AI services grew by 157% in FQ2, which was 13 points of the segment’s overall growth. Over 200,000 monthly users are already on Azure AI Foundry, and Azure OpenAI app usage has doubled. Azure cloud revenue grew 31%. Microsoft Corp. (NASDAQ:MSFT) now expects 31% to 32% Azure growth in FQ3.

Generation Global Equity Strategy expressed optimism about the company due to its AI leadership potential. It stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q4 2024 investor letter:

“Microsoft Corporation (NASDAQ:MSFT), the world’s largest software company, has been in the portfolio for over a decade. We like the firm because its products align closely with society’s evolving needs. As the world digitises, demand for Microsoft’s tools will continue to grow. The company enjoys a wide economic moat – built on its unique market position, deep customer understanding and extensive global footprint.

Overall, MSFT ranks 11th on our list of NASDAQ stocks with the highest upside potential. While we acknowledge the growth potential of MSFT, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MSFT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

George by — April 13, 2025 By George in Equities
Morgan Stanley earnings boosted by record equity trading, but stock dips on fear it may not be sustained

Morgan Stanley’s stock fell 1% Friday in morning trading, after the bank’s first-quarter earnings topped consensus estimates thanks to a record performance in stock trading that some analysts fear may not be sustained.

The stock, like those of its big bank peers, has been volatile in recent sessions as President Donald Trump’s tariffs have created unprecedented U.S. market turmoil. The stock has fallen 16% in 2025, while the S&P 500
SPX +1.81% has fallen 10%.

Brian Mulberry, client portfolio manager at Zacks Investment Management with $20.4 billion of assets under management, said the 45% increase in equities trading to a record $4.1 billion was much higher than expected.

Combined with net new assets in wealth management of $94 billion, which helped drive revenue comfortably above consensus.

However, “The recent market volatility could impact both these segments in the short term as markets have lost 15-20% of value amid uncertainty in trade, tariffs and taxes,” Mulberry said in emailed comments.

“There is still time to recover in the current quarter, but we will be paying close attention to see if the asset flows and trading volumes continue to add growth in this difficult time.”

Morgan Stanley

MS +1.44% posted net income of $4.3 billion, or $2.60 a share, for the quarter, up from $3.4 billion, or $2.02 a share, in the year-earlier period. Revenue rose to $17.7 billion from $15.1 billion a year ago.

The FactSet consensus was for EPS of $2.21 and revenue of $16.5 billion.

“Institutional Securities strong performance was led by our Markets business,” Chief Executive Ted Pick said in prepared remarks.

Revenue at the institutional securities business rose to $8.9 billion from $7 billion a year ago, ahead of the $7.8 billion FactSet consensus. Equity trading rose from $2.8 billion a year ago, boosted by strength in Asia.

Fixed-income net revenue rose to $2.6 billion from $2.5 billion a year ago, boosted by foreign-exchange gains in a more volatile trading environment.

Investment-banking revenue rose to $1.6 billion from $1.4 billion a year ago, matching the FactSet consensus. Revenue was boosted by strong fixed-income underwriting that offset a decline in equity underwriting owing to a dearth of deals.

In wealth management, revenue rose to $7.3 billion from $6.9 billion a year ago, reflecting strength in asset management and higher levels of client activity. The FactSet consensus was for revenue of $7.4 billion.

The business added $94 billion in net new assets, while fee-based asset flows rose to $29.8 billion from $26.2 billion a year ago.

In investment management, revenue rose to $1.6 billion from $1.4 billion, ahead of the $1.5 billion FactSet consensus, as average assets under management rose to $1.7 trillion from $1.5 trillion a year ago.

The bank set aside $135 million in loan-loss reserves after a drawdown of $6 million a year ago.

On a call with analysts, Pick acknowledged the “less predictable” outlook in the current “adjustment period.” Other bank chiefs have also addressed Trump’s tariffs and trade wars in their earnings Friday, which they agree have introduced deep uncertainty to markets and the economy.

The stock, bond and currency markets are exhibiting the kind of overnight and intraday volatility that reflect rapidly changing probability assessments of different policy outcomes,” Pick said, according to a FactSet transcript.

The simple truth is: “we do not yet know where trade policy will settle, nor do we know what the actual transmission effects will be on the real economy,” he said.

As a result, some of the bank’s clients are “deferring strategic activity” while others are pushing ahead, he said.

Overall, Pick is not expecting the economy to go into recession, and believes clients have hit the pause button, but not the delete button, he said.

Chief Financial Officer Sharon Yeshaya said the company’s pipelines have not meaningfully changed since the start of the year and remain robust.

But the timing of deal execution “remains sensitive to market conditions,” while demand for strategic advice and capital raising is still there.

George by — April 12, 2025 By George in Equities
Indonesia’s $48 billion social security fund eyes doubling equities exposure

JAKARTA, April 11 (Reuters) – Indonesia’s $48 billion social security fund BPJS Ketenagakerjaan, the country’s largest institutional investor, aims to raise the share of local equities in its portfolio to up to 20% within three years, a top official told Reuters on Friday.

Asked about this week’s local stock market (.JKSE), opens new tab tumble following the global turmoil caused by U.S. tariffs, Edwin Ridwan, the agency’s director of investment development, said it had created room for the fund to invest in undervalued shares.

The state-owned fund has been increasing its investment gradually in stocks with big market capitalisation, he said, in sectors such as banking, telecommunications, commodities and consumer goods.
“These are the conditions where people are selling, if we look at history … whenever the market overshoots, people are selling, it’s the best time to buy,” he said in an interview, referring to the financial crises of 1998 and 2008 and the COVID-19 pandemic.
“The window has started to open up for us to increase our exposure to equities, because we need volume, we need liquidity, and with everybody
selling, that liquidity is being provided.”
Edwin added that the fund was targeting a 13% year-on-year increase in returns in 2025.
BPJS Ketenagakerjaan’s current exposure to equities was at around 10% or equivalent to $4.8 billion, either directly in the stock market or through mutual funds, it said, adding that its target is to expand that to between 15% and 20% within three years. The largest portion is invested in bonds, and the rest is in deposits and other instruments.
Indonesia’s stock market tanked when it reopened on Tuesday after an extended holiday break, triggering a 30-minute trading halt in response to the global turmoil over U.S. President Donald Trump’s tariffs announcement days earlier. The market has since regained some of its losses.
President Prabowo Subianto is looking to increase the state’s role in achieving its 8% growth target, including via the setting up of a new sovereign wealth fund managing more than $900 billion in assets as well as a state firm to run confiscated palm plantations.
Since the global turmoil hit Indonesian markets, the country has also eased buyback rules for publicly listed companies, including state-run firms, and Bank Indonesia intervened “aggressively” to support a plummeting rupiah.
Asked whether there was any order from the government for BPJS to support the falling stock market, Edwin said the agency was “quite independent.”

‘TOO BIG FOR THE MARKET’

The agency has been trying for years to get government approval to invest in overseas financial markets, especially equity markets, Edwin said, citing its need to have more options for its large funds.
“Basically we have a very limited universe…so we can’t get in and out easily and we can’t buy when other people buy,” he said, referring to the risk of crowding out the market.
The agency’s assets under management have been expanding at a rate of 13% to 14% per year, and it receives up to 10 trillion rupiah ($595 million) per month from premiums paid by members, Edwin said, explaining why it needs to find more investment instruments.
Possible pressure on the rupiah has been one consideration against overseas investment, Edwin said, but he added that foreign exchange supply could be improved via return repatriation.
($1 = 16,790.0000 rupiah)
George by — April 12, 2025 By George in Equities
U.S. stock futures fall after sharp rally on Trump tariff reversal

NEW YORK, April 10 (Reuters) – Wall Street stocks tumbled on Thursday on mounting worries over the economic impact of U.S. President Donald Trump’s multi-front tariff war.

All three major U.S. stock indexes suffered steep losses, forfeiting much of the previous session’s gains as growing concerns over the escalating Washington-Beijing trade face-off dampened optimism over upbeat economic data and U.S.-Europe trade negotiations.

After Trump announced a 90-day tariff reprieve on Wednesday, the S&P 500 surged 9.5%, the largest one-day percentage jump since October 2008. The tech-heavy Nasdaq soared 12.2%, notching its second-biggest daily gain on record.

Following the whipsaw of Wednesday’s bounce and Thursday’s selloff, the S&P 500 remained 7.1% below where it was just before the reciprocal tariffs were announced last week.
“Investors are still uncomfortable with it, because they don’t know what the end game is,” said Paul Nolte, senior wealth advisor at Murphy & Sylvest in Elmhurst, Illinois. “I think what we’re seeing, still, is investor concern about tariffs and that is pretty much front and center for everything.”
The Labor Department’s Consumer Price Index report showed the prices consumers pay for a basket of goods unexpectedly edged lower in March, with core price growth cooling down 2.8% year-on-year, coming within one percentage point of the Federal Reserve’s 2% inflation target.
Inflation gauges
Inflation gauges
But the Fed’s path forward, in light of ongoing trade negotiations, is less clear.
Fed Governor Michelle Bowman said on Thursday that while the U.S. economy remains strong, the effects of Trump’s trade policies are unclear, while Chicago Fed President Austan Goolsbee said rate cuts could resume once the uncertainties surrounding trade policy is resolved.
In response to Trump’s 90-day tariff pause, the European Union will delay retaliatory levies on American goods as countries within the bloc scramble to reach trade deals with Washington, said European Commission chief Ursula von der Leyen.
But the trade war with Beijing persists, with China vowing to “follow through to the end” if the U.S. does not let up.
The CBOE Market Volatility Index (.VIX), opens new tab, often called the “fear index,” remained elevated, but closed off the session high of 40.86.
“It’s hard for investors to feel comfortable about buying stocks with volatility so high,” Nolte added.
The Dow Jones Industrial Average (.DJI), opens new tab fell 1,014.79 points, or 2.50%, to 39,593.66. The S&P 500 (.SPX), opens new tab lost 188.85 points, or 3.46%, at 5,268.05 and the Nasdaq Composite (.IXIC), opens new tab dropped 737.66 points, or 4.31%, to 16,387.31.
Among the 11 major sectors in the S&P 500, all but consumer staples (.SPLRCS), opens new tab ended in negative territory, with energy (.SPNY), opens new tab and tech (.SPLRCT), opens new tab suffering the largest percentage drops.
Big Tech came under pressure once again, with each of the so-called Magnificent Seven group of artificial intelligence-related momentum stocks down between 2.3% and 7.3%.
CarMax (KMX.N), opens new tab slid 17.0% after the used-car retailer missed fourth-quarter profit expectations.
First-quarter earnings season kicks off on Friday with big banks, including JPMorgan Chase (JPM.N), opens new tab, Morgan Stanley (MS.N), opens new tab and Wells Fargo (WFC.N), opens new tab due to report.
Declining issues outnumbered advancers by a 4.81-to-1 ratio on the NYSE. There were 39 new highs and 224 new lows on the NYSE.
On the Nasdaq, 867 stocks rose and 3,588 fell as declining issues outnumbered advancers by a 4.14-to-1 ratio.
The S&P 500 posted no new 52-week highs and nine new lows while the Nasdaq Composite recorded 13 new highs and 166 new lows.
Volume on U.S. exchanges was 23.65 billion shares, compared with the 18.50 billion average for the full session over the last 20 trading days.
George by — April 11, 2025 By George in Equities
Is Broadcom Inc. (AVGO) the Best Stock for 15 Years?

We recently published a list of Long-Term Stock Portfolio: 15 Best Stocks for 15 Years. In this article, we are going to take a look at where Broadcom Inc. (NASDAQ:AVGO) stands against other best stocks for 15 years.
Russell Investments believes that 3 features are defining the market outlook for 2025. These include the elevated level of the S&P 500 forward P/E ratio, the potential for further US dollar strength, as well as the direction of the US 10-year Treasury yield. The active equity managers have been challenged by the severe market concentration. The firm opines that a flattening out of such trends— which can be seen due to policy shifts or change in sentiments related to earnings growth and valuations for mega caps — can support active manager outperformance.

Russell Investments remains focused on sectors in which AI adoption has been ramping up, including industrials, healthcare, and consumer goods. As per the firm, companies that leverage AI for productivity improvements remain well-placed to gain a lasting competitive edge and provide healthy returns. Therefore, skilled active managers are required to look for such companies, primarily those that are in less-covered segments of the market.

Sectors Providing Investment Opportunities

With respect to real assets, Russell Investments sees attractive investment opportunities in real estate and infrastructure, mainly sectors that can benefit from the stabilization of long-term interest rates and favorable relative valuations in comparison to other growth assets. The application of AI in real estate, like data centers and healthcare facilities, continues to emerge as a critical growth area. Furthermore, the infrastructure investments continue to gain momentum from energy utilities and pipeline exposures, given the US administration’s emphasis on expanding LNG (liquified natural gas) production.

The firm also believes that an early focus on deregulation and tax cuts would likely be well-received by equity investors. Overall, an expected US soft landing, together with anticipated policy moderation on trade and immigration, creates specific opportunities for well-positioned portfolios, says Russell Investments.

Our Methodology

We sifted through the holdings of iShares Core S&P 500 ETF and shortlisted the companies that have 10-year revenue growth of over ~10%. Next, we selected stocks that were the most popular among elite hedge funds. We have ranked the stocks in ascending order of hedge fund sentiment.

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 (see more details here).

A technician working at a magnified microscope, developing a new integrated circuit.

Broadcom Inc. (NASDAQ:AVGO)

10-year Revenue Growth: ~26.5%

Number of Hedge Fund Holders: 161

Broadcom Inc. (NASDAQ:AVGO) is engaged in the designing, developing, and supplying of various semiconductor devices. Morningstar believes that the company’s primary valuation drivers revolve around the growth of its AI chip business as well as its capability to extract growth and operating leverage from VMware. The firm also expects continued inorganic growth over the long term. It expects high AI sales to fuel supernormal growth for Broadcom Inc. (NASDAQ:AVGO) over the next 5 years.

Broadcom Inc. (NASDAQ:AVGO)’s strength in both chips and software enables it to earn terrific accounting and economic profits, and Morningstar believes that its competitive positioning will continue to allow it to do so for the upcoming 20 years. As per the firm, Broadcom Inc. (NASDAQ:AVGO) will focus on healthy cash generation. Over the long term, Morningstar expects that the emphasis will be on improving its dividend and bolting on more acquisitions, which can help drive its cash flow. The company is expected to be a significant beneficiary of rising AI spending, which can spur strong growth for its networking semiconductor sales.

Carillon Tower Advisers, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“Broadcom Inc. (NASDAQ:AVGO) had a strong quarter, mostly from the two days that followed its earnings release announcing a significant expansion in the addressable market for its custom AI silicon offerings. As a leader in data center connectivity and custom silicon, the company is now considered to be one of the biggest beneficiaries from the growth in AI spending.”

Overall, AVGO ranks 6th on our list of best stocks for 15 years. While we acknowledge the potential of AVGO as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than AVGO but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

George by — April 11, 2025 By George in Equities
Investors react as stocks jump on Trump’s tariff pause

Wall Street surged after U.S. President Donald Trump announced a 90-day pause in tariffs unveiled last week that roiled markets and erased trillions of dollars from global stock markets.

The policy changes also include a lowered overall tariff of 10% during that 90-day period, and an increase in tariffs on Chinese imports to 125%, from the 104% that went into effect overnight.

TREASURIES: U.S. Treasury benchmark yields pared gains after the tariff announcement, following a government auction of $39 billion 10-year notes that suggested good demand. The auction came amid a bond market rout that was sparked by the U.S. tariffs and prompted forced selling and a dash for cash.
CURRENCIES: The U.S. dollar — which had been lower earlier in the day — strengthened against the yen and other currencies.
COMMENTS:

TOM BRUCE, MACRO INVESTMENT STRATEGIST, TANGLEWOOD WEALTH MANAGEMENT, HOUSTON

“It has been great news for the market… to see U.S. bonds sell off has been very strange, amid a broader emphasis on taking risk off in portfolios. Seeing stress build in the credit market was really worrying. So today was a great relief.
“But we’re still not clear what it all means yet, for the EU, for instance. And an increase in tariffs on China is not a good thing, especially for retailers.
“It’s beginning to look like this thing has been all about China. Certainly, the big tariffs package just didn’t make sense to economists like me. It felt like they were creating maximum leverage by creating maximum chaos — classic game theory. So we needed a reprieve from that, and got one.”

TOM GRAFF, CHIEF INVESTMENT OFFICER, FACET, PHOENIX, MARYLAND

“It sounds like Trump is pivoting to a focus on China, and going easier on other countries. I still think a 10% universal tariff will have negative effects, but if this 90-day pause becomes more long term, it takes the worst-case scenario off the table.”

TIM HOLLAND, CFA, CHIEF INVESTMENT OFFICER, ORION, OMAHA, NEBRASKA

“Investors will anxiously be waiting to see how other nations respond. We also think the fact that U.S. investor sentiment was so bearish heading into today’s announcement by the president is additional fuel for the move higher.”

RON PICCININI, DIRECTOR OF INVESTMENT RESEARCH, AMPLIFY, SCOTTSDALE, ARIZONA

“Today’s move is a classic example of why not to panic, and why having a disciplined approach is so crucial.”
“Our allocations are remaining unchanged, as we viewed the current episode as a bit of a replay of the events of December 2018, where the markets were down 18.5% by December 24, amid fears related of trade tariffs, government spending, high equity valuations, and interest levels considered too high by some. Markets made back all the losses quickly (about a month and a half)… we stay the course.”

GINA BOLVIN, PRESIDENT OF BOLVIN WEALTH MANAGEMENT GROUP IN BOSTON

“This is the pivotal moment we’ve been waiting for. The immediate market reaction has been overwhelmingly positive, as investors interpret this as a step toward much-needed clarity. The timing couldn’t be better, coinciding with the start of earnings season, which kicks off with the big banks this Friday.
“This pause may provide companies with a clearer backdrop for their guidance, offering some relief to a market hungry for direction.
“However, uncertainty looms over what happens after the 90-day period, leaving investors to grapple with potential volatility ahead.”

UTO SHINOHARA, SENIOR INVESTMENT STRATEGIST, MESIROW CURRENCY MANAGEMENT, CHICAGO

“Amid the recent doom-and-gloom sentiment, investors were eager for any signs of optimism… Risk-sensitive currencies saw the strongest rebound, led by the Australian dollar, while traditional safe-havens like the Japanese yen and Swiss franc came under pressure.”

AMARJIT SAHOTA, EXECUTIVE DIRECTOR, KLARITY FX, SAN FRANCISCO

“The questions are really going to come: why did we see this reprieve today and is it even a good idea? Personally, I don’t think it’s a good idea: 90-day pause just creates more uncertainty.”
“But why today? I think that the talking point on nearly all desks this morning was what on earth is happening with the U.S. 10-year yield and why were we seeing this huge rally in the yields and people are offloading bonds and who in particular is offloading those bonds? … Speculation has been that it was real money sellers and also foreign interest. That may have been enough to spook the administration into offering a reprieve.”

STUART THOMAS, FOUNDING PRINCIPAL, PRECIDIAN INVESTMENTS, NEW YORK

“This is a positive signal for the markets and validates Trump’s use of tariffs as a negotiating tool and highlights his willingness to deal with our trading partners in good faith.”

CAROL SCHLEIF, CHIEF MARKET STRATEGIST, BMO PRIVATE WEALTH, MINNEAPOLIS, MINNESOTA

“Markets had been looking for a reason to rally for a few days. Markets can only sustain extreme conditions for so long before exhaustion sets in – rather like a toddler and a tantrum.”
“The 90-day suspension does allow nice breathing room to allow negotiation to settle in and market valuations have clearly been reset. Yet, the uncertainty for companies remains.”

STEVE SOSNICK, CHIEF MARKET STRATEGIST, INTERACTIVE BROKERS, GREENWICH, CONNECTICUT

“This was definitely a surprise, considering that the administration consistently said they would not back off the tariffs and that they were non-negotiable… This is a very understandable relief rally.”
“We now have to wonder whether the tariffs resume in 90 days or not. That will impede companies’ ability to plan for the near future and to offer guidance regarding the current quarter. Uncertainty is reduced, but not fully dissipated.”

JAY HATFIELD, CEO, INFRASTRUCTURE CAPITAL ADVISORS, NEW YORK

“This is going to come as a huge relief to the markets. This is what should have been done initially… We think that the selloff was overdone anyway and nobody was taking into consideration that oil prices are lower and that there are positive things happening too.”
“We are now set up for a good rally going into the earnings season… this rally makes sense now. There will be some residual concerns around the broader economy and recession, but that will get clearer with more data.”

ART HOGAN, INVESTMENT STRATEGIST, B. RILEY WEALTH MANAGEMENT, BOSTON

“The day that felt really nuts was two days ago, when someone on Twitter posted what the White House called a fake news report that Donald Trump was considering doing what now he has just done – halt tariffs for 90 days. That triggered $2 trillion in buying in just eight minutes. Now we have the reality, and it’s no surprise we’re seeing another giant move upward.”

ALEX MORRIS, CHIEF INVESTMENT OFFICER, F/M INVESTMENTS, WASHINGTON, D.C.

“This is a giant meltup, because the announcement was the walkback the market needed to see. They hit the pause button and the market rejoiced. But of course, there is no promise that we’ll manage to solve anything in 90 days. We’re certainly not out of the woods, and we may see inflation data spike.
“What convinced the president to act was the bond market, which had begun sending signals that this was going to get steadily worse. The market moves have been an absolute whiplash… Stocks are trading on tweets and sentiment and the fear of silly policies being enacted. But there is plenty of liquidity and the market structure has held up very well.”

MARK HACKETT, CHIEF MARKET STRATEGIST, NATIONWIDE INVESTMENT MANAGEMENT GROUP, PHILADELPHIA

“It’s definitely good news because it shows that the negotiations are in good enough shape that they think that they’ve accomplished what they needed to by this initial conversation.”
“But I want to put a pretty big caveat out there because 8% rallies in 20 minutes in the Nasdaq aren’t a heck of a lot healthier than 8% declines … so I’m careful about giving an all-clear.”

CHRISTOPHER HODGE, CHIEF ECONOMIST FOR THE US,

NATIXIS IN NEW YORK

“We had assumed that some form of capitulation would be forthcoming – the financial carnage, let alone the economic pain that has yet to be felt, and it was inconceivable that the administration to endure for much longer. The decoupling with China looks to be real with no sign of concessions from either side. Will the EU similarly stand firm? The fractures appear to be deep.”
“We may revert to the Trump 1.0 playbook of foreign countries agreeing to purchase more specific goods from the U.S. This could improve the trade deficit marginally, but will not fundamentally change the trading relationship like the administration desires.”

JOHN CANAVAN, LEAD ANALYST, OXFORD ECONOMICS, NEW YORK

“The way President Trump worded this makes it not entirely clear if we actually have a pause or if we just have lower reciprocal tariffs at 10%… the president is backing off some of the worst of his tariff threats here, and I think that’s clearly going to be a net positive for risk assets.”
“One thing that it doesn’t do is eliminate uncertainty… because the level of tariffs just seems to change from day to day.”
“This only adds to the broader uncertainty as we go forward. But at least for the time being, while we can’t be certain where the tariff situation is going to wind up, we can at least see that the president is showing an increased willingness to back down from the worst of his tariff threats and allow for some calm to enter the markets.”
(This story has been corrected to fix the date to December 24, not December 4, in paragraph 12)
George by — April 10, 2025 By George in Equities
Stock market posts third biggest gain in post-WWII history on Trump’s tariff about-face

Wednesday’s jaw-dropping stock-market rally on President Donald Trump’s surprising tariff reversal is one for the history books.

The S&P 500 skyrocketed 9.52% in a kneejerk reaction to Trump’s announcement to put a 90-day pause on some of the lofty ‘reciprocal’ tariffs. The one-day gain ranks as the third biggest since World War II for the main stock market benchmark, according to FactSet.

The Dow Jones Industrial Average advanced 2,962.86 points, or 7.87% and posted its biggest advance since March 2020.

The Nasdaq Composite jumped 12.16%, notching its largest one-day jump since January 2001 and second-best day ever.

“This is the pivotal moment we’ve been waiting for,” said Gina Bolvin, president of Bolvin Wealth Management Group. “The immediate market reaction has been overwhelmingly positive, as investors interpret this as a step toward much-needed clarity.”

The market was a coiled spring after a brutal four-day stretch that briefly pushed the S&P 500 into bear-market territory. Over the course of the previous four trading sessions, the S&P 500 suffered a 12% loss, a decline not seen since the pandemic. The Dow lost more than 4,500 points during the four-day stretch, while the Nasdaq was down more than 13%.

While stocks managed to recoup much of the losses, investors are not completely out of the woods as Trump vows to reorient global trade. The president said more than 75 countries contacted U.S. officials to negotiate after he unveiled his new tariffs last week.

“It’s still too early to signal an all clear,” said Dave Sekera, Morningstar’s chief U.S. market strategist. “Trade negotiations have yet to start and once they do, there will be positive and negative headlines as each party positions itself to extract the maximum amount of concessions possible.”
George by — April 10, 2025 By George in Equities
Stocks, oil fall as US-China tariff war escalates

NEW YORK, April 8 (Reuters) – Major stock indexes fell on Tuesday as the trade war between the United States and China intensified, while oil prices and the U.S. dollar also eased.
The United States said 104% duties on imports from China will take effect shortly after midnight. The news drove up concerns about slowing growth and higher inflation that have pummelled stocks since last week.
S&P 500 companies have lost $5.8 trillion in stock market value since U.S. President Donald Trump’s tariff announcement late last Wednesday, the deepest four-day loss since the benchmark was created in the 1950s, according to LSEG data.
The U.S. Treasury yield curve reached its steepest level since February 2022 on Tuesday as longer-dated yields jumped on supply concerns.
On Wall Street, the S&P 500 closed below 5,000 for the first time in almost a year. Stocks had been sharply higher early in the day amid investor optimism that Washington might be willing to negotiate on some of its aggressive tariffs.
“People wanted to be optimistic and eventually realized they didn’t have a good reason,” said Melissa Brown, managing director, investment decision research, at SimCorp.
Since Trump unveiled his tariffs late on Wednesday, S&P 500 companies have lost almost $6 trillion in stock market value, a record four-day decline for the benchmark going back to the 1950s
Since Trump unveiled his tariffs late on Wednesday, S&P 500 companies have lost almost $6 trillion in stock market value, a record four-day decline for the benchmark going back to the 1950s
The Cboe Volatility index (.VIX), opens new tab climbed for a fourth straight session and had its highest closing level since April 1, 2020.
The Trump administration also is negotiating trade agreements with countries, including Japan, and Treasury Secretary Scott Bessent said the discussions are the result of multiple calls from other countries.
The Dow Jones Industrial Average (.DJI), opens new tab fell 320.01 points, or 0.84%, to 37,645.59, the S&P 500 (.SPX), opens new tab fell 79.48 points, or 1.57%, to 4,982.77 and the Nasdaq Composite (.IXIC), opens new tab fell 335.35 points, or 2.15%, to 15,267.91.
MSCI’s gauge of stocks across the globe (.MIWD00000PUS), opens new tab fell 2.52 points, or 0.34%, to 742.96. The pan-European STOXX 600 (.STOXX), opens new tab index rose 2.72%.
Investors are looking ahead to the start of U.S. quarterly earnings reports this week.
Adam Sarhan, chief executive of 50 Park Investments in New York, said upbeat results could potentially be a catalyst to support stocks.
JPMorgan Chase (JPM.N), opens new tab, Citigroup (C.N), opens new tab and Wells Fargo (WFC.N), opens new tab will kick off results on Friday.
JPMorgan’s CEO Jamie Dimon has warned that trade wars could have lasting negative consequences, including inflation and recession.
In Treasuries, the curve between two- and 10-year note yields steepened sharply to 57 basis points, as the two maturities moved in opposite directions on a volatile day of trading.
The benchmark 10-year yield rose to an 11-day high on worries about weak demand for longer-dated U.S. government debt before a sale of the notes on Wednesday.
The 10-year note yield was last up 12.6 basis points on the day at 4.283%. It fell to 3.86% on Friday, the lowest since October 4.
The interest-rate sensitive two-year yield reversed an earlier increase and fell 2.3 basis points to 3.715%. It had reached 3.435% on Monday, the lowest since September 2022.
The euro gained following reports that German political parties had agreed to form a coalition, while the U.S. dollar weakened against major currencies and China’s offshore yuan hit a record low. European equity index futures also rose after the reports.
Germany’s conservatives under chancellor-in-waiting Friedrich Merz on Tuesday reached a deal with the centre-left Social Democrats (SPD) to form a government, NTV reported. But two people with knowledge of the matter denied to Reuters that a deal has been reached.
The dollar, which has taken a beating from the tariff turmoil, remained weak against other major currencies.
The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, fell 0.48% to 102.92.
Oil prices ended lower amid the recession worries as the U.S.-China trade war escalated.
Brent futures fell $1.39, or 2.16%, to settle at $62.82 a barrel. U.S. West Texas Intermediate crude futures settled down $1.12, or 1.85%, at $59.58.
George by — April 09, 2025 By George in Equities
Magnificent Seven Stocks Tumble: Apple, Nvidia, Tesla Sell Off

Dubbed the Magnificent Seven stocks, Apple, Microsoft, Google parent Alphabet, Amazon.com, Nvidia, Meta Platforms and Tesla lived up to their name in 2024 with solid gains. Through the first three months of 2025, however, performance for these mega-cap stocks has been negative thus far.

Due to their outsized market capitalizations, Magnificent Seven stocks hold a disproportionate influence on the market-cap weighted Nasdaq composite and S&P 500 indexes.

For an in-depth look at this issue, check out IBD’s page on the Magnificent Seven weightings, market capitalizations and the companies’ latest news stories.

On Tuesday, the Roundhill Magnificent Seven (MAGS) exchange traded fund tumbled 2.5%.

Nvidia Stock

Nvidia reversed 3.5% higher Monday, continuing to trade below the 50-day and 200-day moving averages. But Nvidia stock sold off 1.5% Tuesday.

On Feb. 26, Nvidia beat Wall Street’s targets for its fiscal fourth quarter and guided above views for the current period.

In recent months, Nvidia CEO Huang delivered the keynote address at CES 2025. He unveiled new AI initiatives, including Nvidia Cosmos, a computing platform for accelerating physical AI development. Cosmos offers world foundation models to help developers make next-generation autonomous vehicles and robots.

Magnificent Seven Stocks: Amazon Rebounds

Amazon.com (AMZN) stock is trading below its long-term 200-day line following heavy losses in recent sessions. But shares dropped 2.8% Tuesday.

On Feb. 6, Amazon reported fourth-quarter results that beat expectations. But the tech giant predicted lower-than-expected sales and operating income for the first quarter, citing currency exchange headwinds.

Amazon said in a news release that it earned $1.86 per share on sales of $187.8 billion. Investors, meanwhile, were expecting earnings of $1.49 per share and revenue of $187.3 billion from the Seattle-based firm.

Tesla Stock Reverses

Tesla (TSLA) reversed from big gains to drop 4.7% Tuesday, still sharply below the 200-day line. The EV giant set an all-time high on Dec. 18, topping out at 488.53, but is around 50% off that high.

Last week, Tesla reported first-quarter vehicle deliveries of 336,681. That was worse than analyst forecasts and the worst showing in more than two years.

On Jan. 29, the company announced worse-than-expected earnings and revenue for the fourth quarter. But Chief Executive Elon Musk said that unsupervised full self-driving will come to Texas in June and that the robotaxi will arrive in 2026.

Tesla reported Q4 EPS of 73 cents, growing 3% compared to Q4 2023, while revenue increased 2% to $25.71 billion. Analysts expected earnings of 77 cents per share and sales coming in at $27.26 billion, according to FactSet.

Meanwhile for 2025, current consensus has Tesla profit returning to year-over-year growth, after the expected dip for 2024.

Dow Jones Stocks In Magnificent 7: Apple, Microsoft

Besides recently added Nvidia stock, there are two other Dow Jones names among the Magnificent Seven: Apple (AAPL) and Microsoft (MSFT).

Apple stock moved down 5.1% Tuesday, adding to heavy losses that sent the stock below the 200-day line.

On Jan. 30, the Cupertino, Calif.-based consumer electronics giant said it earned $2.40 a share on sales of $124.3 billion in the quarter ended Dec. 28. Analysts polled by FactSet had expected Apple earnings of $2.35 a share on sales of $124.3 billion. On a year-over-year basis, Apple earnings rose 10% while sales increased 4%.

Magnificent Seven Stocks 2025 Performance

Company Name Symbol 2025 Performance
Alphabet (GOOGL) -18.5%
Amazon (AMZN) -12.2%
Apple (AAPL) -13.0%
Meta Platforms (META) -1.5%
Microsoft (MSFT) -10.1%
Nvidia (NVDA) -18.3%
Tesla (TSLA) -34.7%
Source: IBD Data as of March 31

Meanwhile, Microsoft beat Wall Street’s targets for its fiscal second quarter on Jan. 29 thanks to its booming artificial intelligence business. But there was decelerating growth in its Azure cloud infrastructure unit. Microsoft also offered a revenue outlook that was below views for the current quarter.

The software giant earned $3.23 a share on sales of $69.6 billion in the December quarter. Analysts polled by FactSet had expected Microsoft to earn $3.11 a share on sales of $68.9 billion. On a year-over-year basis, Microsoft’s earnings rose 10% while sales increased 12%.

Meta Stock Breaks Support

Shares of Meta Platforms (META) lost 1.5% Tuesday, still sharply below the 200-day line.

On Jan. 29, Meta reported fourth-quarter earnings and revenue that topped Wall Street estimates. But its revenue outlook for the March quarter came in below views amid worries over currency exchange rates and a strong U.S. dollar, tempering investor enthusiasm.

The social media giant’s earnings rose 50% to $8.02 per share while revenue climbed 21% to $48.38 billion.

Meta stock shows a near-perfect 98 IBD Composite Rating, per the IBD Stock Checkup.

Alphabet Plunges On Earnings

Alphabet (GOOGL) plunged from new highs in recent months after the company’s earnings report. Shares dropped 1.5% Tuesday, far below their 200-day line.

On Feb. 4, Alphabet reported fourth-quarter earnings that edged by analyst estimates while revenue came in slightly below views. Also, cloud computing revenue growth missed forecasts.

George by — April 09, 2025 By George in Equities
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