Core Insights - Conagra Brands, Inc. (CAG) is experiencing a difficult environment characterized by a slowdown in consumer spending, elevated inflation, and tariffs, leading to a Zacks Rank of 5 (Strong Sell) and nearing a 5-year low [1] Financial Performance - In the second quarter of fiscal 2026, Conagra reported earnings of $0.45, beating the Zacks Consensus of $0.44, marking the second consecutive earnings beat [2] - Net sales decreased by 6.8%, with organic net sales down by 3.0%, although the company is optimistic about a return to net sales growth in the second half of the fiscal year [3] Guidance and Inflation - Conagra reaffirmed its fiscal 2026 guidance, expecting organic net sales to change by a loss of 1% to 1% compared to fiscal 2025, with earnings projected between $1.70 and $1.85 [4] - The company anticipates continued elevated costs of goods sold inflation, with total cost of goods inflation expected to reach 7% in fiscal 2026, influenced by U.S. tariffs increasing costs by 3% before mitigations [5] Analyst Revisions - Analysts have cut fiscal 2026 earnings estimates, with the Zacks Consensus falling to $1.72 from $1.75, indicating a 25.2% decline in earnings [6] - For fiscal 2027, estimates were also reduced, with the Zacks Consensus dropping to $1.79 from $1.86, reflecting a projected earnings growth of 4.2% [7] Stock Performance and Valuation - Conagra's shares have declined significantly over the past year, now near 5-year lows [10] - The company trades at a forward price-to-earnings (P/E) ratio of 9.6, suggesting it may be undervalued [12] Dividend Information - Conagra pays a dividend of $1.40 per share, yielding 8.5%, with dividends paid in the first half of fiscal 2026 remaining flat year over year at $335 million [13]

The volatility wrought by tariffs is no longer a background risk but a daily operational reality, forcing companies to make strategic decisions with incomplete data and shifting economic signals. As tariffs collided with delayed government statistics and cooling consumer demand, firms have had to confront what PYMNTS Intelligence describes as peak uncertainty for product and operational leaders.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your info ...

Core Viewpoint - President Trump is delaying new tariffs on critical mineral imports and is instead focusing on negotiating agreements with foreign nations to secure adequate supplies and address supply chain vulnerabilities [1][2]. Group 1: Tariff Decisions - Trump indicated that import restrictions, including tariffs, may be imposed if satisfactory agreements are not reached promptly [2]. - The absence of immediate tariffs suggests an effort to maintain a trade truce with China, which was established to lower import-tax rates and ease export controls [3]. - The administration is considering price floors for critical minerals, which may include minimum import prices and potential future tariffs to address supply chain vulnerabilities [4]. Group 2: National Security and Industry Impact - The investigation under Section 232 concluded that imports of processed critical minerals threaten US national security due to their importance in defense industries [2]. - Trump's proclamation allows for the possibility of imposing tariffs on critical minerals from countries with artificially low prices, which would raise import costs to support US production [5].

Core Insights - The U.S. manufacturing sector is experiencing a paradox where economic growth is occurring without a corresponding increase in employment, particularly in the automotive industry [1][2][3] Investment and Economic Growth - President Trump highlighted an $18 trillion global investment surge and a stock market that has set 48 records in eleven months, claiming that growth, productivity, and investment are booming [3] - Significant commitments from major automotive companies include $5 billion from Ford, $13 billion from Stellantis, and a large re-shoring effort from General Motors, contributing to over $70 billion in new investment in U.S. auto factories [3] Employment Trends - Despite the influx of investment, the manufacturing sector has lost approximately 72,000 jobs since April, with the automotive sector experiencing the most significant losses [2][3] - The disconnect between GDP growth, projected at 5.4% for the fourth quarter, and blue-collar employment is creating a "jobless boom" scenario [3] Structural Challenges - The manufacturing environment is characterized by uncertainty, with tariffs raising input costs and complicating long-term investment decisions [4] - Tariffs on motor vehicle parts, along with aluminum and steel duties, have made domestic car production more expensive than importing vehicles, leading to a reliance on automated processes in new factories [4]

Core Viewpoint - Doubts are emerging on Wall Street regarding the alignment of current tariff levels with the Trump administration's new affordability initiative [1] Group 1 - The Trump administration is pushing for increased affordability, raising questions about the effectiveness of existing tariff levels [1]

Core Viewpoint - Inflation pressure is increasing across the country as the year concludes, as indicated by the Federal Reserve's beige book report [1] Group 1: Economic Conditions - Cost pressures due to tariffs were consistently noted across all districts in the report [1]

Group 1: Earnings Overview - The Q4 earnings season is expected to begin with major banks like JPMorgan Chase, BNY Mellon, Bank of America, Wells Fargo, and Citigroup reporting results, with corporate earnings expectations strengthening over recent quarters [1] - Total S&P 500 earnings for Q4 2025 are projected to rise by 7.9% year over year, supported by an 8.2% increase in revenues, marking the 10th consecutive quarter of positive earnings growth for the index [2] Group 2: Sector Performance - Aerospace, tech, and finance sectors are anticipated to perform well in Q4, while seven of the 16 Zacks sectors are expected to underperform, notably Autos with a projected earnings decline of 24%, Transportation with an 8.5% decline, and Consumer Staples with a 4.1% decline [3] - The Auto sector is expected to see a 24% decline in earnings due to a 7.3% decrease in revenues, following a 20.7% earnings loss in Q3 2025 despite 4% revenue growth [4] - The Transportation sector is projected to lose 8.5% in earnings with only 1.2% revenue growth, following a minimal earnings gain of 0.3% in Q3 [7] - The Consumer Staples sector is expected to post a 4% earnings decline despite 2.4% revenue growth, following a 0.9% earnings drop in Q3 [8] Group 3: Sector Challenges - The Auto sector faces challenges from increased costs due to tariffs and softening demand, with lower-income buyers likely to pull back on purchases [6] - The Transportation sector is experiencing earnings pressure from subdued freight demand, attributed to earlier inventory buildup from trade policy uncertainty [7] - Consumer Staples companies are under pressure from inflation, a soft labor market, and falling affordability, impacting their pricing power [8]

The Supreme Court is expected to soon issue a ruling on whether Donald Trump’s tariffs are legal - REUTERS/Evelyn Hockstein US stocks slumped on Wednesday as the US Supreme Court failed once again to issue a ruling on the legality of Donald Trump’s global tariffs. Stock indices were lower on Wall Street as uncertainty continues about the case which has huge repercussions for the global economy. However, justices once again declined to issue a ruling. The Supreme Court does not issue guidance beforehand ...

Core Viewpoint - Nike's stock price has declined over 50% in the past five years, despite its strong brand recognition and sponsorship deals with elite athletes [1] Group 1: Financial Performance - Nike's current dividend yield is 2.5%, which is attractive given its poor stock performance [2] - In Q2 of fiscal 2026, revenue increased by 1% year over year, but net income fell by over 30% [4] - Wholesale revenue, Nike's largest segment, grew by 8% year over year, while Nike Direct revenue decreased by 8% [5] Group 2: Regional Sales Performance - North American revenue increased by 9%, but sales in other regions, including Europe, China, and Asia Pacific & Latin America, declined by 1%, 16%, and 4% respectively [6] - International sales, which account for over half of Nike's revenue, are under pressure from tariffs, trade wars, and rising competition [6] Group 3: Market Position and Growth Potential - Nike has been losing market share for years, with only the apparel segment showing meaningful growth, which has decelerated [7] - Executives believe North American sales growth indicates a comeback, but the potential for further growth in this saturated market may be limited [8]

Core Insights - Spot Bitcoin (BTC) exchange-traded funds (ETFs) have reversed a prolonged outflow trend, experiencing significant inflows as BTC's price surpassed $95,000 after being below $92,000 for months [1][4] Group 1: Inflows and Market Dynamics - On January 13, Bitcoin ETFs recorded net inflows of approximately $753.7 million, marking the largest single-day total in three months since October 7, 2025 [2] - Fidelity's FBTC led the inflows with $351 million, followed by Bitwise's BITB with $159 million, and BlackRock's IBIT with $126 million [2] - Cumulative inflows for U.S. spot Bitcoin ETFs reached $56.52 billion by January 12, prior to the recent surge, indicating renewed institutional confidence [6] Group 2: Institutional Investor Behavior - The recent influx of funds marks a reversal from the outflows seen in late 2025 and early 2026, as institutional investors are rotating back into risk assets following year-end portfolio rebalancing [3] - Early January 2026 saw mixed results with net inflows of roughly $1.2 billion over the first two trading days, followed by renewed outflows, including $243 million on January 12 [5] Group 3: External Factors Influencing Market Sentiment - The recent inflows may have reignited bullish sentiments in the market, although uncertainty surrounding the U.S. Supreme Court's impending verdict on President Trump's tariffs could introduce volatility [7] - Trump's tariffs, imposed under the 1977 International Emergency Economic Powers Act, have faced legal challenges, with lower courts ruling they exceeded authority [8]