51 minutes ago
Google's AI is undervalued in the market, says Evercore ISI's Mahaney
This photo illustration taken on February 8, 2024 in Brussels, Belgium, features a smartphone with Google displayed with the Google Gemini logo in the background.
Jonathan Ra | Null Photo | Getty Images
Mark Mahaney, senior managing director at Evercore ISI, says Alphabet's work on generative artificial intelligence has been unfairly sidelined by the market.
Mahaney has a $160 price target for Google's parent company, which suggests an upside of about 6% from last week's closing price. He said the stock price could rise to $200, suggesting an expected upside of about 32.5% going forward.
“I think it's undervalued as an AI asset,” Mahaney said on CNBC's “Squawk Box.” “I know there's been some controversy…but this tool is very powerful.”
Mahaney acknowledges that there is a lot of competition in the AI space. But he noted that there aren't really that many challengers because the resource bar required to work at this scale is high.
“Google is in this race,” he said. “But I think the market sees them less as derivative play and more as roadkill for the AI generation.”
Mahaney said he prefers Alphabet to Facebook's parent company Meta from a stock price perspective. But Amazon remains his top choice.
— Alex Harring
2 hours ago
ISM manufactured gauges exceed expectations
U.S. manufacturing expanded in March for the first time in 17 months, according to ISM statistics for the sector released Monday.
The ISM Manufacturing Index rose to 50.3 from February's 47.8 and beat the Dow Jones consensus estimate of 48.1. The index measures the proportion of companies reporting expansion versus contraction, so above 50 indicates growth.
Production rose the most by 6.2 points to 54.6, and prices also accelerated by 3.3 points to 55.8. Although the employment index increased by 1.5 points, it still shrank at 47.4 points.
—Jeff Cox
2 hours ago
Stocks start the week little changed, with Nasdaq leading the way
3 hours ago
Powell doesn't think it's necessary to force a rate cut
Federal Reserve Chairman Jerome Powell speaks during a House Financial Services Committee hearing on the Federal Reserve's Semiannual Monetary Policy Report on March 6, 2024, at the U.S. Capitol in Washington, DC.
Bonnie Cash | Reuters
Federal Reserve Chairman Jerome Powell said Friday that recent economic data is providing a cushion as policymakers consider when to start cutting interest rates.
“That means there's no rush to cut rates,” the Fed president said in an interview on Marketplace public radio at the San Francisco Fed, according to Reuters. “I don't think we will overreact,” he added.
The remarks came on the same day that the Department of Commerce released its Personal Consumption Expenditure Price Index, which showed 12-month inflation of 2.5%, or 2.8% in the core, which excludes volatile food and energy components. Ta. The Fed prefers the PCE measure when looking at inflation, with particular emphasis on the core level as a long-term measure.
Powell said the report was “what we expected,” echoing other findings on labor and broader growth that showed the U.S. economy was strong. However, current levels are on the high side, as the Fed is targeting 2% inflation.
—Jeff Cox
3 hours ago
Stocks that make the biggest moves before the market
Check out some of the companies making headlines in pre-market trading.
- Micron Technology — Shares rose about 1.1% after Bank of America raised its price target on the company, with analysts predicting demand for high-bandwidth memory technology would grow to more than $20 billion by 2027 did.
- 3M — The manufacturer's stock rose nearly 3% on Monday. 3M completed the spinoff of its healthcare company Solventum and announced final approval of a $10 billion settlement with public water suppliers in chemical litigation.
- Devon Energy — The oil and gas producer added 1.4% after upgrading Wells Fargo from equal weight to overweight. Wells Fargo expects the company to turn around soon and says the stock is at a good entry point for investors.
Read the full list here.
— Brian Evans
5 hours ago
Tesla stock rises as Model Y price rises
Drivers charge their Teslas on Wednesday, March 20, 2024, in Fountain Valley, California.
Jeff Gritchen Media News Group | Getty Images
Tesla shares rose nearly 1% early after the company's website showed that the price of its Model Y cars in the United States had increased by $1,000. The base model costs $44,990 and the long-range version costs $49,990.
Tesla has been under pressure from declining demand for electric vehicles, with its stock price down nearly 30% since the start of the year.
— Fred Imbert
11 hours ago
Gold prices soar to record high on expectations of Fed rate cut
Gold prices extended their gains on Monday, hitting a new record.
Expectations of lower interest rates in the US and the appeal of bullion as a safe haven fueled optimism.
Spot gold rose 1.32% to trade at $2,265.53 per ounce. U.S. gold futures rose more than 2% to trade at $2,286.39 an ounce.
“I think this is a very exciting moment for gold,” said Joseph Cavatoni, market strategist at the World Gold Council (WGC). “I think what's really driving this situation is that a lot of market speculators are actually getting that confidence and comfort.” [in] “The Fed will cut rates,” he said.
Gold prices tend to be inversely related to interest rates.
— Li Yingshan
13 hours ago
Japan's Nikkei Stock Average is below 40,000 yen
The logo of the Tokyo Stock Exchange (TSE), operated by Japan Exchange Group, Inc. (JPX), will be displayed at the stock exchange in Tokyo on Friday, October 2, 2020.
Akio Kon | Bloomberg via Getty Images
Japan's Nikkei 225 index fell 1.5% from the previous session to 39,762.85, falling below the 40,000 yen mark for the first time in 12 days.
The index rose to 40,000 in early March and has hit multiple new highs since then. On March 22, it surpassed $41,000 and hit an all-time high of 41,087.75.
This came after the Bank of Japan ended its negative interest rate regime in mid-March, along with other non-traditional easing measures aimed at revitalizing the Japanese economy.
The Japanese yen traded at 151.29 yen to the dollar, after hitting a 34-year low of 151.97 yen last week.
— Shreyashi Sanyal
15 hours ago
South Korean factory activity begins to shrink in March
South Korean factory activity fell into contraction territory in March after expanding for two consecutive months.
The country's Purchasing Managers Index stood at 49.8, down from 50.7 in February.
S&P Global said in a report that panel members mainly blamed weak demand and downward revisions to investment plans.
“Many companies noted that sales remained weak, especially in response to the weak domestic economy,” it added.
— Lim Huijie
15 hours ago
Business confidence in Japan's major manufacturing industries has declined slightly
According to the Bank of Japan's Tankan survey, business confidence in Japan's major manufacturing industries declined in the first quarter, to +11 compared to +12 in the previous survey.
Economists' forecasts compiled by Reuters were for major manufacturers to increase by 10.
However, non-manufacturing optimism rose to its highest level since August 1991, with the Tankan gauge at +34 compared with +30 in the fourth quarter, beating Reuters' forecast of +33.
The Tankan survey also monitors the Bank of Japan as it formulates monetary policy.
— Lim Huijie
16 hours ago
China's factory activity expands in March, unexpectedly
Employees work on a production line for motorcycle and electric bicycle wheel hubs at a factory in Huaibei, Anhui Province, China, March 30, 2024.
Lee Shin | VCG | Getty Images
China's factory activity expanded in March, ending a five-month streak of contraction and surprising expectations.
The country's Manufacturing Purchasing Managers Index stood at 50.8, according to official data.
This is a smaller number compared to February's 49.1 and the Reuters poll's estimate of 49.9.
Separately, the non-manufacturing PMI rose to 53.0 from 51.4 in January.
— Lim Huijie
17 hours ago
Trends in major averages at the start of the second quarter
Wall Street sees another strong quarter and month as excitement around artificial intelligence shows no signs of abating and investors brace for the start of the Federal Reserve's interest rate cutting cycle later this year. It's coming.
Let's take a look at where the key averages stand as the second quarter begins.
Dow Jones Industrial Average:
- The stock rose 2.1% in March, marking its first five-month winning streak since August 2020.
- 5.6% increase in 1st quarter
S&P500:
- Increased by 3.1% in March
- Up 10.2% in the quarter, delivering the best first-quarter performance since 2019
Nasdaq Composite:
- 1.8% increase in March
- 9.1% increase in 1st quarter
— Samantha Subin, Chris Hayes
18 hours ago