Welcome to Yahoo Finance flagship show, The Morning Brief. I'm Julie Heyman. Let's get the three things you need to know today.President Trump following through on his threats to slap tariffs on heavy trucks, furniture, and pharmaceuticals. For homegoods, two different tariff rates will go into effect next week. A 50% rate on items like kitchen cabinets, and a lower 30% rate on upholstered furniture.The news weighing on furniture companies this morning. But there's a big loophole for the drug makers. As lon ...

Core Insights - Investors are attracted to dividend stocks due to their ability to provide a significant income stream and substantial total return potential [1] Group 1 - Dividend stocks are favored by investors for their income generation capabilities [1] - These stocks also present considerable opportunities for total returns, making them appealing in various market conditions [1]

Market Trends - Rate cuts and options expiry are putting Bitcoin at a crossroads [1]

Hey, I'm Kramer. Welcome to Mad Money. Welcome to Cra America.Other people make friends. I'm just trying to make a little money. My job is not just to entertain, but to educate, to teach you.So call me at 1800 743 CBC. Tweet me, Jim Kramer. We have two economies.There's the tremendous economy with amazing growth, the one that's connected to artificial intelligence, and then there's the anemic economy connected to the consumer, which seems to deteriorate by the day. Oh, it's a stark contrast, but you can't r ...

Economic Overview - There are two contrasting economies: a thriving AI economy and a struggling consumer economy, with the latter deteriorating daily [2][19] - AI-related stocks have significantly contributed to market performance, accounting for 75% of S&P's returns and 80% of earnings growth since late 2022 [18] AI Economy - Intel, a semiconductor company, is reportedly seeking funds from Apple to re-enter the AI market, although this has not been confirmed [4][5] - Corewave has expanded its agreement with OpenAI, increasing its total contract value to $22.4 billion, highlighting the robust activity in the AI sector [8] - Meta is constructing a $10 billion data center in Louisiana, which will require significant energy resources, raising concerns about the impact on local consumers [9][10] Consumer Economy - CarMax reported disappointing results, with sales 6% below expectations, leading to a 20% stock plunge; the company may benefit from lower interest rates [12][13] - KB Home is reducing its home construction due to high interest rates, which are critical for the housing market [14][15] - Starbucks announced layoffs of 900 corporate workers and a 1% reduction in North American store count as part of a restructuring plan to improve profitability [16][17] Market Dynamics - The consumer-oriented part of the economy is weak, and without rate cuts, the situation is expected to worsen [19][23] - High interest rates are not a concern for AI companies, which often have substantial cash reserves [23] - Retailers are struggling with excess workforce and store counts, with only large players like Walmart able to compete effectively [21][22]

Economic Overview - The U.S. economy grew by 3.8% in Q2, surpassing the previous estimate of 3.3% [1] - Economic growth is outpacing elevated inflation significantly, according to Northlight Asset Management [4] - New orders for durable goods increased by 2.9% in August after two months of declines [4] Stock Market Performance - Major U.S. equity indexes extended their losing streaks to three days, with the Dow Jones down 0.4%, S&P 500 down 0.5%, and Nasdaq down 0.5% [7] - The S&P 500 is currently more than 2% above the average year-end analyst forecast [4] Company Highlights - IBM's stock rose by 5.2% after HSBC reported using its quantum computers for bond market predictions, achieving a 34% improvement over classical methods [8] - Intel's stock surged by 8.9% amid reports of soliciting an equity investment from Apple, with a year-to-date increase of 69.5% [8][9] - CarMax's stock fell by 20.1% after reporting Q2 earnings of 64 cents per share, below the consensus estimate of $1.04, and same-store sales declined by 6.3% [10] - Lithium Americas' stock increased by 22.3% as it discusses an equity stake with the Trump administration, linked to a $2.26 billion loan for its Thacker Pass mine [12][13]

Market Outlook - Piper Sandler expects improving EPS breadth to take over after three years of PE expansion [2] - The market has priced in very little macro risk, making further multiple expansion difficult, earnings will need to drive growth [3] - Stable to slightly lower interest rates over the last two and a half years provide tailwinds to the economy [5] - Globally, there have been approximately 95 rate cuts in the last several quarters [5] - Analyst estimates are starting to broaden out, and housing data is stabilizing to slightly improve [6] - Rising small cap and midcap earnings estimates are observed for the first time in three years [7] Economic Indicators - The current backdrop is considered a Goldilocks scenario, with a soft enough labor market to allow gradual rate cuts by the Federal Reserve [8] - Broadening of earnings estimates has been strong across mid, small, and large caps in the last two months [10] - Green shoots are appearing in housing data, with purchase applications and refi activity continuing to grind higher [10] - The Fed funds rate is 125 basis points lower and is expected to be another quarter point lower by year end [11]

Interest Rate Trends - In the fall of 2024, the Federal Reserve lowered the Fed funds rate by 100 basis points [1] - Contrary to expectations, the 10-year Treasury yield increased from 36% to 47% during the same period [2] - As of September 17th, the Fed has restarted its rate cutting cycle [3] - Before the cut, the 10-year Treasury yield was at 405%, and it slightly increased to 413% over the next 5 days [4] Inflation and Market Reaction - Analysts suggested the initial rate cuts were premature due to persistent inflation [2] - Headline inflation remains above the Fed's 2% target [2] - The modest increase in yield after the recent rate cut may indicate a market rotation into equities [4] - The bond market's inflation perception could change based on upcoming PCE and CPI data [5] Economic Concerns - Rising yields may be due to inflation concerns or the increasing amount of debt needing to be rolled over [5] - Reduced demand from China could impact the US [5]

live. It's time now for the big picture. Let's welcome in the team from Charles Schwab.Joe Maza, head trading derivative strategist. Charles Schwab and Cooper Howard, director and fixed income strategist, Schwab Center for Financial Research. Let's start with you, Joe.We've been talking about a lot of um a lack of breadth in this market. You know, concentration risk. There's just a handful of names that, you know, continue to help chug things along.Why is that important. Why are you watching that. Well, I I ...

Governor, welcome to the program, sir. We've got tons of time to talk about what's going to happen next. Your thoughts on the labor market, the balance of risk, the broader economy.I actually wanted to lead the conversation with this one. Governor, what was your experience like. I'm sure this was unexpected 12 months ago.What was it like walking into the room and was it different to what you expected. Good morning and thanks for having me. It's great to see you again.Look, you know, walking into the room, y ...