Breaking
Your Invest Master
Archive

July 14, 2025

Browsing
Stock

Is It Time to Lower Our Market Expectations?

Stock 3 Mins Read

I remain very bullish and U.S. stocks have run hard to the upside off the April low with growth stocks leading the way. I expect growth stocks to remain strong throughout the summer months, as they historically do, but we need to recognize that they’ve already seen tremendous upside. Could technology (XLK) names, in particular, use a period of consolidation? Well, if we look at a 5-year weekly chart, the XLK really isn’t that overbought just yet:

The weekly PPO has crossed its centerline and is gaining bullish momentum. The recent price breakout suggests to me that we likely have further to run. And if you look at the weekly RSI, you’ll note that we’ve seen the weekly RSI move well into the 70s and even close to 80 before witnessing a market top or pause. Outside a bit of profit taking, I really don’t see the likelihood of a big selloff here. Keep in mind that the XLK represents 31% of the S&P 500. If the XLK doesn’t slow down, it’s very unlikely that we’ll see any type of meaningful decline in the S&P 500 either.

Growth vs. Value

Growth stocks have historically performed well over the summer months. One way to visualize this is to compare large-cap growth (IWF) to large-cap value (IWD) using a seasonality chart. Check this out:

The average monthly outperformance since 2013 is reflected at the bottom of each month’s column. If you add those numbers for May through August, you get +5.4%. If you add those numbers for the other 8 months combined, you get +0.6%. Clearly, large-cap growth has the tendency to outperform value from May through August. We’re in the growth “sweet spot” right now.

So Should We Lower Our Market Expectations?

I say absolutely not. Yes, we’ve run substantially higher off that April low, but I see more left in the tank. Will we see profit taking from time to time and could we see a period of consolidation? Sure. But I still believe that remaining on the sidelines is a big mistake as plenty of market upside remains. In fact, I see another somewhat forgotten asset class that’s poised to scorch 50% higher or more, possibly over the next 6 months. I’m investing in this area now, as I believe it’s in the early stages of a significant rally, and believe it would be prudent for you to take a look as well. For more information, simply CLICK HERE, provide your name and email address, and I’ll send you a video that explains exactly why I’m favoring this group right now!

Happy trading!

Tom

Keep Reading
Investing

Tech 5: NVIDIA Hits Market Cap Milestone, Harmonic Raises US$100 Million

Investing 5 Mins Read

NVIDIA (NASDAQ:NVDA) became the first publicly traded company to hit a US$4 trillion market cap this week.

Meanwhile, Apple (NASDAQ:AAPL) made headlines with a major leadership change as rumors of a lineup of upcoming product releases circulated, and Meta Platforms (NASDAQ:META) deepened ties with one of its hardware partners.

In the chip market, Huawei is trying to capitalize on the gap left by NVIDIA’s chips in China, while a startup is stepping up its efforts to help meet its ambitious plans to expand artificial intelligence (AI) chip delivery to Saudi Arabia.

1. Apple announces leadership shift

On Tuesday (July 8), Apple announced that Jeff Williams, its longtime chief operating officer, will retire at the end of 2025, ending a tenure that spanned decades and included overseeing hardware, software and operations.

“Jeff and I have worked alongside each other for as long as I can remember, and Apple wouldn’t be what it is without him,” said Apple CEO Tim Cook in a press release. “He’s helped to create one of the most respected global supply chains in the world; launched Apple Watch and overseen its development; architected Apple’s health strategy; and led our world-class team of designers with great wisdom, heart, and dedication.’

Williams will be succeeded by Sabih Khan, Apple’s senior vice president of operations, who has played a key role in managing Apple’s global supply chain.

In other Apple news, Bloomberg reported on Wednesday (July 9) that Apple plans to release its first hardware upgrade to the Vision Pro headset later this year. Anonymous sources say the upgrades will include a a new strap for added comfort, will incorporate the same M4 processor powering newer versions of the iPad Pro, MacBook Pri and iMac, and will incorporate a great number of cores in the neural engine to run AI more effectively.

The company is also working on a lighter version slated for release in 2027, according to the people.

The company is planning a series of product upgrades for the first half of 2026, including a new entry-level iPhone 17e, refreshed MacBook Pros and MacBook Airs with M5 chips and potentially a new external display, according to multiple reports this week. Entry-level iPad and iPad Air will reportedly also receive updates.

2. Meta makes eyewear bet

Meta acquired a nearly 3 percent stake in luxury eyewear maker EssilorLuxottica (EPA:EL), the creator of Ray-Bans and the manufacturing partner for Meta’s smart glasses, including the Ray-Ban Meta and Oakley Meta lines. This is according to a Tuesday report from Bloomberg that cites unnamed sources with knowledge of the matter.

The stake is reportedly worth around 3 billion euros. According to the people, Meta is considering increasing its stake to approximately 5 percent “over time,” but noted that the plans could change.

3. Huawei seeks to step in amid US restrictions

Huawei is reportedly developing a new class of AI chips designed to support more generalized AI workloads, according to the Information, which broke the news on July 5.

According to the report, Huawei’s chip will be built around an architecture resembling that of NVIDIA’s GPU architecture (like Hopper or Blackwell) and Advanced Micro Devices’ CDNA architecture (used in their Instinct GPUs), which would allow Chinese developers to seamlessly incorporate the alternative.

Huawei’s pivot reflects China’s broader effort to bolster domestic chip capabilities as export restrictions from the US limit its access to advanced semiconductors. NVIDIA’s highly sought-after Blackwell GPUs are difficult for Chinese developers to legally acquire, leading to the development of downgraded, China-specific versions and a drive by Chinese firms to secure the chips through other means or source high-end alternatives.

Illustrating these efforts, recent Bloomberg analysis reveals ambitious plans by Chinese companies to acquire over 115,000 high-end NVIDIA chips for dozens of new AI data centers rising in the remote desert regions of Yiwu.

4. Harmonic raises US$100 million for ‘Superintelligence’

Harmonic AI, a stealth-mode AI company co-founded by Robinhood (NASDAQ:HOOD) CEO Vlad Tenev, has raised US$100 million in a Series B funding round led by Kleiner Perkins. Sequoia Capital, Index Ventures and Paradigm also participated in the round, which brought the company’s valuation to US$875 million.

Founded in 2023 by Tenev and Tudor Achim, who previously led autonomous driving startup Helm.ai, the startup is focused on building “smarter” AI models using a concept it calls “Mathematical Superintelligence.’

Its flagship model, Aristotle, is being trained to generate answers grounded in formal mathematical logic. On Bloomberg News, Tenev has said the company’s goal was to build AI systems that can solve the type of complex math problems that currently elude chatbots, eventually expanding its capabilities to physics and computer science.

Harmonic also aims to eliminate chatbot hallucinations through formal verification, a mathematical method that guarantees correct AI system function.

The startup wants to make the model available to researchers and the general public later this year.

5. Groq seeks US$6 billion valuation to fuel Saudi AI ambitions

The Information reported on Wednesday that Groq, a US-based AI chip startup and challenger to NVIDIA, is seeking to raise between US$300 million and US$500 million in a new funding round that would value it at US$6 billion.

Groq’s language processing units (LPUs) are known for their fast inferencing technology.

Unlike general-purpose GPUs, which were originally made for graphics and then adapted for AI, Groq’s LPUs were designed specifically to process language.

According to the report, the funding would help Groq fulfill a US$1.5 billion deal to deliver advanced AI chips to Saudi Arabia. With its ambitious Vision 2030, Saudi Arabia is actively pursuing a role as a global AI and technology hub, driving its interest in obtaining cutting-edge chips.

Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

Keep Reading
Politics

Trump says US will send Patriot missiles to Ukraine, adds that Putin ‘talks nice and then he bombs everybody’

Politics 3 Mins Read

President Donald Trump said the United States will be sending Patriot missiles to Ukraine while describing Russian President Vladimir Putin as a leader who ‘talks nice, and then he bombs everybody in the evening.’ 

Trump made the remarks as NATO Secretary General Mark Rutte is planning to meet with the president during a visit to Washington, D.C. Monday and Tuesday. Last week, Trump revealed a new NATO deal that would allow U.S. arms to flow to Ukraine through allied nations. 

‘I’m going to have a meeting with the Secretary General coming in tomorrow. But we basically are going to send them various pieces of very sophisticated military. And they are going to pay us 100 percent for them. And that’s the way we want it,’ Trump told reporters on Sunday. 

‘I haven’t agreed on the number yet, but they’re going to have some. Because they do need protection. But the European Union is paying for it. We’re not paying anything for it. But we will send it, and it’ll be good news for us, we will send them Patriots, which they desperately need,’ Trump added in reference to Ukraine. 

‘Because Putin had really surprised a lot of people. He talks nice, and then he bombs everybody in the evening. It’s a little bit of a problem there, I don’t like it,’ Trump also said. 

Trump said last Thursday that under the new NATO deal, ‘what we’re doing is the weapons that are going out are going to NATO, and then NATO is going to be giving those weapons [to Ukraine], and NATO is paying for those weapons.’ 

The developments came after the Pentagon previously froze some shipments of critical weapons to Ukraine, including Patriot missile interceptors and 155 mm artillery shells.  

The halt was driven by Under Secretary of Defense for Policy Elbridge Colby after a review of U.S. munitions stockpiles that showed dangerously low reserves, Politico first reported in early July. 

Then the Pentagon reversed course about a week later. 

‘At President Trump’s direction, the Department of Defense is sending additional defensive weapons to Ukraine to ensure the Ukrainians can defend themselves while we work to secure a lasting peace and ensure the killing stops,’ Pentagon Spokesman Sean Parnell said. ‘Our framework for POTUS to evaluate military shipments across the globe remains in effect and is integral to our America First defense priorities.’ 

Fox News’ Caitlin McFall, Jasmine Baehr and Jennifer Griffin contributed to this report. 

This post appeared first on FOX NEWS

Keep Reading
Business

Some Walmart garment orders from Bangladesh on hold due to U.S. tariff threat

Business 3 Mins Read

LONDON/NEW YORK, July 11 (Reuters) – Suppliers to Walmart WMT.N have delayed or put on hold some orders from garment manufacturers in Bangladesh, according to three factory owners and correspondence from a supplier seen by Reuters, as U.S. President Donald Trump’s threat of a 35% tariff on the textile hub disrupts business.

Bangladesh is the third-largest exporter of apparel to the United States, and it relies on the garment sector for 80% of its export earnings and 10% of its GDP. The factory owners all said they expected orders to fall if the August 1 tariffs go into effect, as they are unable to absorb that 35% rate.

Iqbal Hossain, managing director of garment manufacturer Patriot Eco Apparel Ltd, told Reuters an order for nearly 1 million swim shorts for Walmart was put on hold on Thursday due to the tariff threat.

“As we discussed please hold all below Spring season orders we are discussing here due to heavy Tariff % imposed for USA imports,” Faruk Saikat, assistant merchandising manager at Classic Fashion, wrote in an email to Hossain and others seen by Reuters. Classic Fashion is a supplier and buying agent that places orders for retailers.

“As per our management instruction we are holding Bangladesh production for time being and IN case Tariff issues settled then we will continue as we planned here.”

The hold was not decided by Walmart, Saikat told Reuters, but by Classic Fashion itself.

Walmart did not respond to a request for comment.

Bangladesh is currently in talks with the United States in Washington to try to negotiate a lower tariff. Trump in recent days has revived threats of higher levies on numerous nations.

“If the 35% tariff remains for Bangladesh, that will be very tough to sustain, honestly speaking, and there will not be as many orders as we have now,” said Mohiuddin Rubel, managing director at jeans manufacturer Denim Expert Ltd in Dhaka.

Rubel, whose company produces jeans for H&M HMb.ST and other retailers, said he expects clients will ask him to absorb part of the tariff, but added this would not be possible financially. Manufacturers have already absorbed part of the blanket 10% tariff imposed by the U.S. on April 2.

“Only probably the big, big companies can a little bit sustain (tariffs) but not the small and medium companies,” he said.

Retailers have front-loaded orders since Trump returned to the White House, anticipating higher tariffs. Jeans maker Levi’s LEVI.N, which imports from Bangladesh, said on Thursday it has 60% of the inventory it needs for the rest of 2025.

U.S. clothing imports from Bangladesh totaled $3.38 billion in the first five months of 2025, up 21% from the year-earlier period, according to U.S. International Trade Commission data.

Another Dhaka-based garment factory owner said an importer with whom he was negotiating a spring 2026 order of trousers for Walmart asked him on Thursday to wait a week before the order would be confirmed due to the tariff risk.

Hossain said he may look for more orders from European clients to make up for lost orders if the U.S. 35% tariff gets implemented, even if he has to cut prices to stimulate demand.

(Reuters reporting by Helen Reid in London and Siddharth Cavale in New York; Editing by David Gaffen and Matthew Lewis)

This post appeared first on NBC NEWS

Keep Reading