 |
|
|
|||||
U.S. stocks soared to one of their best days in history on a euphoric Wall Street Wednesday after President Donald Trump said he would back off on most of his tariffs temporarily, as investors had so desperately hoped he would.The S&P 500 surged 9.5%, an amount that would count as a good year for the market. It had been sinking earlier in the day on worries that Trump’s trade war could drag the global economy into a recession. But then came the posting on social media that investors worldwide had been waiting and wishing for.“I have authorized a 90 day PAUSE,” Trump said, after recognizing the more than 75 countries that he said have been negotiating on trade and had not retaliated against his latest increases in tariffs.Treasury Secretary Scott Bessent later told reporters that Trump was pausing his so-called ‘reciprocal’ tariffs on most of the country’s biggest trading partners, but maintaining his 10% tariff on nearly all global imports.China was a huge exception, though, with Trump saying tariffs are going up to 125% against its products. That raises the possibility of more swings ahead that could stun financial markets. The trade war is not over, and an escalating battle between the world’s two largest economies can create plenty of damage. U.S. stocks are also still below where they were just a week ago, when Trump announced worldwide tariffs on what he called “Liberation Day.”But on Wednesday, at least, the focus on Wall Street was on the positive. The Dow Jones Industrial Average shot to a gain of 2,962 points, or 7.9%. The Nasdaq composite leaped 12.2%. The S&P 500 had its third-best day since 1940.The relief came after doubts had crept in about whether Trump cared about the financial pain the U.S. stock market was taking because of his tariffs. The S&P 500, the index that sits at the center of many 401(k) accounts, came into the day nearly 19% below its record set less than two months ago.That surprised many professional investors, who had long thought that a president who used to crow about records for the Dow under his watch would pull back on policies if they sent markets reeling.Wednesday’s rally pulled the S&P 500 index away from the edge of what’s called a “bear market.” That’s what professionals call it when a run-of-the-mill drop of 10% for U.S. stocks, which happens every year or so, graduates into a more vicious fall of 20%. The index is now down 11.2% from its record.Wall Street also got a boost from a relatively smooth auction of U.S. Treasurys in the bond market Wednesday. Earlier jumps in Treasury yields had rattled the market, indicating increasing levels of stress. Trump himself said Wednesday that he had been watching the bond market “getting a little queasy.”Analysts say several reasons could be behind the rise in yields, including hedge funds and other investors having to sell their Treasury bonds to raise cash in order to make up for losses in the stock market. Investors outside the United States may also be selling their U.S. Treasurys because of the trade war. Such actions would push down prices for Treasurys, which in turn would push up their yields.Regardless of the reasons behind it, higher yields on Treasurys add pressure on the stock market and push upward on rates for mortgages and other loans for U.S. households and businesses.The moves are particularly notable because U.S. Treasury yields have historically droppednot risenduring scary times for the market because the bonds are usually seen as some of the safest possible investments. This week’s sharp rise had brought the yield on the 10-year Treasury back to where it was in late February.After approaching 4.50% in the morning, the 10-year yield pulled back to 4.34% following Trump’s pause and the Treasury’s auction. That’s still up from 4.26% late Tuesday and from just 4.01% at the end of last week.Of course, the trade war is not over. Bessent and Trump clearly showed their anger at China, which has been ratcheting up its own tariffs on U.S. goods and announcing other countermeasures with each move Trump has made.China earlier said it would raise tariffs on U.S. goods to 84% on Thursday. “If the U.S. insists on further escalating its economic and trade restrictions, China has the firm will and abundant means to take necessary countermeasures and fight to the end” the Ministry of Commerce said.Later the U.S. Treasury secretary said in a message to countries worldwide, but perhaps most directly aimed at China, “Do not retaliate, and you will be rewarded.”Wednesday’s rally provided the latest reminder that some of the U.S. stock market’s best days have been clustered around some of its worst days historically. That’s one of the reasons many financial advisers suggest not trying to time the market and selling stocks and other investments meant for the long term when nervous, because of the risk of missing out on such huge up days.The biggest gain for the S&P 500 since World War II was an 11.6% surge on Oct. 13, 2008, for example. That was during the depths of the Great Recession, when worries were high that the financial system was collapsing and the S&P 500 was in the midst of a nearly 57% plunge from its peak in late 2007 until its bottom in March 2009. A couple weeks later, the index had another one of its best days in history, soaring 10.8%.Wednesday’s gains were widespread across the U.S. stock market, and 98% of the stocks in the S&P 500 index rallied.Leading the way were airlines and other stocks that need customers feeling confident enough to travel for work or for vacation.Delta Air Lines soared 23.4%. Earlier in the day, it had pulled financial forecasts for 2025 as the trade war scrambles expectations for business and household spending and depresses bookings across the travel sector. All told, the S&P 500 rocketed higher by 474.13 points to 5,456.90. The Dow Jones Industrial gained 2,962.86 to 40,608.45, and the Nasdaq composite surged 1,857.06 to 17,124.97.In stock markets abroad, indexes tumbled across most of Europe and much of Asia after they closed before Trump’s announcement.London’s FTSE 100 dropped 2.9%, Tokyo’s Nikkei 225 sank 3.9% and the CAC 40 fell 3.3% in Paris. Chinese stocks were an outlier, and indexes rose 0.7% in Hong Kong and 1.3% in Shanghai. AP Business Writers Matt Ott and Elaine Kurtenbach contributed. Stan Choe, AP Business Writer
Category:
E-Commerce
Yesterday was a head-spinning day in the markets. After President Donald Trump announced out of the blue that he would be placing a 90-day pause on reciprocal tariffs for many countriesexcluding Chinastocks rallied. As noted by CNBC, the S&P 500 had its biggest one-day gain since 2008. It surged 9.52% to 5,456. Meanwhile, the Dow rallied 7.87%, and the Nasdaq climbed 12.16%. Yet despite the market recovery, one stock had a particularly bad day. WW International, Inc. (Nasdaq: WW), owner of the WeightWatchers brand of weight management products, saw its shares crash over 62%. Heres what you need to know about the WW stock plunge. WW International reportedly mulling Chapter 11 bankruptcy The main driver of WW International, Inc.s stock price fall yesterday was a report from the Wall Street Journal that said the company was preparing to file for bankruptcy in the coming months. After the report was published, WW stock plummeted. Its important to note that WW International has said nothing publicly about any bankruptcy plans or the WSJs report. However, the WSJ cited people familiar with the matter in its reporting. Fast Company has reached out to WW International for confirmation of its bankruptcy plans. According to the report, one of the big financial challenges affecting WW International is that the company has over $1.4 billion worth of bonds and loans that are set to come due in 2028 and 2029. The report also says that the company would prefer to restructure its balance sheet outside of court processes, but because WW International is publicly traded, that option is likely not feasible. Ozempic and a lackluster 2024 The report notes that one of the main challenges WeightWatchers has faced in recent years is the rise of weight loss drugs like Ozempic. This, combined with an aging subscriber base and a failure to attract younger users, has resulted in a diminished brand image. Partly due to the above, the company has faced financial headwinds. In February, WW International reported its full-year Fiscal 2024 results, in which it said that it made $785.9 million in revenues but that subscription revenues were down 5.6% from the year earlier. The company also reported an operating loss of $236.2 million for fiscal 2024 and a net loss of $345.7 million. Announcing its results at the time, the companys new CEO, Tara Comonte, acknowledged the company was in a period of significant transition as we navigate industry shifts and reposition our business for long-term growth. In 2024, the company launched a telehealth arm aimed at providing weight loss drugs, but that endeavor has struggled. Early in 2024, WeightWatchers lost its most prominent board member, Oprah Winfrey, when the media mogul announced her departure from the company because she wanted to avoid any appearance of a conflict of interest with a TV show she was making about weight loss drugs. WW stock plummets After the Wall Street Journal published its report about WW Internationals alleged bankruptcy plans, WW stock plummeted yesterday. Shares fell a staggering 62.21% in the trading session. But while that is a massive double-digit drop, it only equated to a per-share loss of slightly over 28 cents. WW shares had already been below $1 per share since early February. They ended up closing at 0.175 yesterday. As of the time of this writing, in premarket trading this morning, WW shares have recovered slightlyup about 2.9% to around 18 cents per share. Year to date, WW shares have fallen over 86%, and over the past 12 months, WW shares have declined more than 91% as of yesterdays close. Over the past five years, WW shares are down more than 99%. Back in June 2018, WW shares traded above $100 per share.
Category:
E-Commerce
Jason Momoa is a tough act to follow. Especially if youre a Guinness marketer. Last year, the brand partnered with Momoa to direct and star in a U.S. spot for his favorite beer that ended up getting 13 billion impressions. So this year, Guinness decided to celebrate an even more valuable partnerits actual customers and fans. For the newest iteration of the long-running Lovely Day for a Guinness taglinefirst rolled out in a 1935 ad campaignthe brand collected stories from customers across all 50 states. Among the stories is the Treme Brass Brand in New Orleans, who share pints of Guinness before taking the stage. The Chicago Plumbers Union are in there, as theyve been dyeing the Chicago River green on St. Patricks Day since 1962. Theres also Minnesotas Brainerd Jaycees Ice Fishing Extravaganza, which claims to be the worlds largest ice fishing competition. Guinnesss North American vice-president of marketing Joyce He says the goal was to illustrate how Guinness is not just for St. Patricks Day or an Irish pub (though it is very much about those things). As we delved into the work, the bit that bubbled up that felt so magical was, instead of writing a story and casting actors, we know there’s real people out there who love the brand and have their real Guinness moments, so let’s go and find them, says He. Real fans Created with agency Uncommon, the new campaign solicited stories from real U.S. customers before St. Patricks Day to find as many as it could to feature. The move is the latest example of a brand shining the spotlight on its own customers for a major advertising moment, like Taco Bells Super Bowl ad featuring more than 400 fans. The more than 250-year-old brand has seen a surge in popularity recently, even running short on supply in the UK ahead of the holidays late last year. Some credit the boost to an overall interest in stout among younger customers, which includes the viral splitting the G social trend. Whether youre aiming to get your beer level down to evenly split the word Guinness on a pint glass in your first sip or not, He is hoping the diversity of locations and occasions in the new campaign will give people ideas. We know there’s a massive opportunity beyond the pub, she says. Of course, a Guinness in a pub is amazing and magical, but it’s also really great with Mexican food, and Asian food, and seafood and oysters. I think what’s worked really well for us is honestly just staying true to what’s been true about the brand for over 260 years, and just finding new ways to share that with beer people and being really, really focused about it. Commercial tradition Guinness has long navigated the balancing act between its Irish heritage and the place of prominence in pubs and St. Patricks Day that comes with it and extending its reach to a broader audience. Here are three of its best-ever ads to defy the Guinness stereotype. Surfer (1998) Directed by Jonathan Glazer (The Zone of Interest, Under The Skin, Sexy Beast), this ad won every major advertising award, and has been named by many as one of the best commercials of all-time. Sapeurs (2014) Here the brand heads to Brazzaville, the capital of the Republic of Congo, in celebration of the Society of Elegant Persons of the Congo, or Sapeurs. Created with AMV BBDO, the spot spotlights a real group of men from all walks of life, who make up the group united by a love of style. The ad was also complemented by a short doc called The Men Inside The Suits, and won director Nicolai Fuglsig a 2015 Directors Guild Award for Outstanding Achievement in Commercials. Compton Cowboys (2018) This was another portrait of a compelling group of friends, this time in Compton, California. Another from AMV BBDO, the ad is told from the perspective of Keenan Abercrombie, who tells us about how he and his friends care for and ride horses in their city better known for its gang violence.
Category:
E-Commerce
All news |
||||||||||||||||||
|
||||||||||||||||||