Wall Street deciphers U.S. consumer health and names stocks it likes

The US Federal Reserve has hiked interest rates by 225 basis points so far this year, with more potentially on the cards. One indicator that’s likely to feature prominently in the Fed’s thinking as it weighs the scale of further hikes is the strength of the consumer. It plays a pivotal role in the Fed’s … Read more

Warren Buffett’s stock shopping spree slows down even during market’s big pullback. Here’s why

Warren Buffett’s stock-buying spree slowed down drastically in the second quarter even during the market’s big correction, and analysts said the “Oracle of Omaha” could be preserving capital for other uses. Berkshire Hathaway’s net stock purchase fell to $3.8 billion in the second quarter, compared with more than $41 billion in the first quarter, the … Read more

Investor Sarat Sethi has some stock picks to play inflation and a consumer slowdown

Investors should stick to companies that can keep generating earnings as they navigate high inflation and a consumer slowdown, according to DCLA’s Sarat Sethi. “Earnings are going to drive this market going forward,” Sethi said Monday on CNBC’s “Squawk Box.” “Not multiple expansion, not liquidity, it’s going to be where do we find earnings, and … Read more

Most of Warren Buffett’s equity portfolio is tied up in just 5 stocks. Here’s what they are

Warren Buffett’s Berkshire Hathaway just revealed that about 70% of its equity portfolio was concentrated up in just five names. Here’s a look at these high-conviction bets from the legendary investor. While the conglomerate enjoyed a big rebound in operating earnings, it did post a $53 billion loss on its investments during the second quarter … Read more

Wall Street analysts pick safe-haven consumer stocks

The state of consumer spending in the US is tricky to call right now. On the one hand, inflation is hitting some consumers hard. The University of Michigan Consumer Sentiment Index fell to an all-time low in June, although it slightly improved in July, data on Friday showed. The Bureau of Economic Analysis reported Friday … Read more

Consumer spending remains strong in these three sectors

Despite new signs of slowing consumer demand, pockets of strength remain in travel, payments and autos. Hilton on Wednesday topped analysts’ second-quarter estimates and raised its full-year outlook, saying it remained optimistic there would be strong travel demand for the rest of the year. On Thursday morning, Southwest Airlines reinforced this view as it beat … Read more

Walmart’s slashed profit outlook sends consumer health warning

Shares of retailers including Macy’s, American Eagle and Amazon are falling Tuesday, a day after Walmart slashed its profit forecast and warned that surging prices for food and gas are squeezing consumers. The big-box retailer, which is the country’s largest grocer, said everyday necessities are eating up more of household budgets and leaving shoppers less … Read more

Snap, American Express, Verizon, Seagate and more

Signage for Snap Inc., parent company of Snapchat, adorns the front of the New York Stock Exchange, March 2, 2017 in New York City. Getty Images Check out the companies making headlines in midday trading. American Express — Shares of the credit card company climbed 2.9% as growth in travel and entertainment spending helped American … Read more

American Express earnings reveal a bounce back in corporate travel

Spending on travel and entertainment came roaring back in the second quarter, and it was not just consumers making the purchases, according to the latest results from American Express. The company said consumer spending in the category topped pre-pandemic levels for the first time in April. Notably, there also was a significant uptick in corporate … Read more

American Express, Verizon, Schlumberger and more

Check out the companies making headlines before the bell: American Express (AXP) – American Express rallied 4.5% in the premarket after beating top and bottom line estimates for the second quarter. Card members registered record spending, driven by a rebound in travel and entertainment. Verizon (VZ) – Verizon fell 4.4% in the premarket after adjusted … Read more