Stock investors weigh Home Depot earnings, rising bond yields: Live Updates

Tue, 20 May 2025 16:21:28 -0400

All three of the benchmark stock averages fell Tuesday as bond yields moved higher with the 10-year Treasury touching 4.48%.

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The Dow Jones Industrial Average lost over 100 points dragged down by Dow Chemical, American Express and Goldman Sachs, while United Health, Boeing and Merck bucked the selling.

The Nasdaq Composite and S&P 500 closed down over 0.3%.

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Tue, 20 May 2025 14:57:31 -0400

Tesla CEO Elon Musk, who is also the world's richest man and a close advisor to President Donald Trump, revealed how long he plans to stay at the helm of the electric-vehicle maker.

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Shares rose on the developments.

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Tue, 20 May 2025 16:32:21 -0400

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He still hates Bitcoin but JPMorgan CEO Jamie Dimon cleared the way for the bank to incorporate the largest crypto by market value for clients.

The move comes as Bitcoin surpassed its previous all time high hitting $107,289.34 intrady before pulling back.

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Tue, 20 May 2025 09:16:55 -0400

Kevin Hassett, who chairs the National Economic Council, tells FOX Business the combo of trade deals and President Trump's tax push in his "big beautiful bill" will ignite economic growth.

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Tue, 20 May 2025 07:55:43 -0400

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Morgan Stanley's top stock market strategist said in a note that any stock market decline that's linked to Moody's downgrade of the U.S. credit rating would likely create a buying scenario for the firm. 

Mike Wilson, chief stock market strategist at Morgan Stanley, said in his weekly research note that the temporary reduction of tariffs between the U.S. and China was one item that could lead to a more durable rally. A stock market decline following Moody's downgrade would present an opportunity to buy the dip. 

Wilson said that the equity-return-to-bond-yield correlation is currently close to 0 on a scale of -1 to 1. "In our view, a breakout of the 10-year yield above 4.50% would take this correlation negative, and drive more rate sensitivity for equities," he said. 

"Moody's late-day downgrade of the U.S. credit rating last Friday is also worth considering in this conversation, though Moody's is the last ratings agency to downgrade the U.S. credit rating, a process that began 14 years ago in the summer of 2011," Wilson wrote. 

"In short, a break above 4.50% in the 10-year yield can lead to modest valuation compression (5% compression is around what we've gotten in prior historical analogs) — we would be buyers of such a dip," he said. 

This is an excerpt from an article by Fox Business’ Eric Revell. To read more, click here.

Tue, 20 May 2025 07:40:24 -0400

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Moody's Ratings on Friday announced a downgrade of the U.S. government's credit rating, moving it down a notch from the ratings agency's top tier amid concerns about the rising national debt, which could have implications for the larger market. 

Credit ratings are used by analysts to determine the creditworthiness of debt issued by a government or a corporation. Higher credit ratings at or near the top of the rating scale are viewed as less of a default risk than those at the lower end of the scale. 

When ratings agencies downgrade the credit rating of a country or company, it can serve as a signal to the market that the debt is riskier, which can result in higher interest rates to compensate for the additional risk. In the case of the federal government, it means more spending on interest costs incurred from the national debt. 

The firm said the downgrade "reflects the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns." 

This is an excerpt from an article by Fox Business’ Eric Revell. To read more, click here.

Tue, 20 May 2025 07:24:21 -0400

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White House press secretary Karoline Leavitt on Monday detailed a provision of President Donald Trump's "big, beautiful bill" that would codify "MAGA" savings accounts for new parents. 

The 1,116-page legislative package that would make the Trump 2017 tax cuts permanent by 2026 and enact several other campaign promises narrowly passed out of the key House Budget Committee in a Sunday night vote. House Speaker Mike Johnson, R-La., is continuing negotiations with conservatives while racing to get the bill across the finish line by Memorial Day.  

The bill includes a proposal by Sen. Ted Cruz, R-Texas, that would establish something called the MAGA accounts contribution pilot program.  

"Put simply, President Trump's one big, beautiful bill will be a boon for working-class America," Leavitt said Monday. "This one big, beautiful bill is also pro-family. It will increase the child tax credit to $2,500 per child, establish an optional savings account for newborn babies with a $1,000 credit added and strengthen paid family leave." 

This is an excerpt from an article by Fox Business’ Danielle Wallace. To read more, click here. 

Tue, 20 May 2025 16:20:52 -0400

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Home Depot won’t hike prices on consumers to offset President Donald Trump’s tariffs, the company said on Tuesday. 

“Because of our scale, the great partnerships we have with our suppliers and productivity that we continue to drive in our business, we intend to generally maintain our current pricing levels across our portfolio,” CFO Richard McPhail told CNBC in an interview. 

The pricing news comes as Home Depot beat Wall Street estimates for first-quarter sales on Tuesday, capitalizing on demand for do-it-yourself projects ahead of spring, along with its professional customer base, which includes contractors. 

The world's largest home improvement retailer saw net sales jump 9% from last year, bringing in $39.86 billion for the quarter ending May 4. 

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The retail chain kept its fiscal year 2025 forecast unchanged, with a total sales growth target of 2.8%. Shares of the company were up about 2% in premarket trading. 

Home Depot’s strategy on pricing runs in contrast to another big retailer, Walmart, which announced last week that it plans to raise prices due to the "magnitude" of the tariffs. 

Treasury Secretary Scott Bessent said on Sunday that he spoke with Walmart CEO Doug McMillon after Trump warned the retail giant to "eat the tariffs." Bessent said McMillon told him the retailer would absorb “some of the tariffs,” though others may be passed onto the consumer. 

Reuters contributed to this report.

Tue, 20 May 2025 00:36:50 -0400

Stocks closed higher on Monday as investors looked past Moody's U.S. credit rating cut.

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The Dow Jones Industrial Average rose 137.33 points, or 0.32%, while the S&P 500 and Nasdaq Composite eked out gains, climbing 0.09% and 0.02%, respectively. Moody's Ratings on Friday announced that it downgraded the U.S. credit rating by one notch due to persistent fiscal deficits that it sees as likely to deteriorate in the future. The downgrade moves the U.S. credit rating down one notch from Aaa to Aa1 on Moody's 21-notch rating scale. The firm also changed its outlook for the U.S. from negative to stable. Moody's said that the downgrade "reflects the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns