Investors want to know which companies are using more to get



Wall Street is already looking at the past what is expected to be the slowest of America's slower in quarterly income, instead focusing on the number that rarely takes the maximum: the use of capital.

As President Donald Trump's government of the tax re-tax makes investors wonder what follows, they are focusing their attention at the speed that the economic companies use to build their business. The hope is that their position on high use, such as real estate or main machine, will provide clarification on how they see the economy.

“I don't think businesses can spend money on such a time,” said Scott Ladner, chief investment officer in Horizon's investment. “It is not an environment they can work as usual, so they become very conservatives. It's a waiting situation and see.”

Early signs confirm Ladner's thoughts. This week, JB Hunt Transport Service Inc., the shipping industry, cut off its capital use plan for the year, following a similar move last month and FedEx Corp. Meanwhile, United Airlines Holdings Inc. is set to twoPossible income tests-The if there is an economy and another if it is avoided-but in both cases its long-term investment was below the previous expectation.

“The first quarter is already news of the past, even more this time because things have changed a lot this month and looked more changing in the coming months,” said Paul Christopher, head of the world investment strategy there Wells Fargo Investment Institute. “We look closely at the guide the company comes from and, especially from factories and equipment.”

Pessimism creates

Recent economic investigations increase the desire. Data from the Federal Reserve Bank of Philadelphia, New York, Richmond and Dallas all indicate that the manufacturers' plans for capital use collapsed in the first quarter. March Nfib A study of small business expectations -the usually has a pro-republican preference-fell below the average of 51 years. And a Referendum by the main executive journal Made earlier this month found that only 26% of the 329 company leaders who participated planned to increase their capital, from 36% in March and 56% in January.

At the same time, in generalIndustrial production fellIn March for the first time in four months. An economic model from Goldman Sachs Group The INC found that the highest policy was uncertain and financially difficult will provide a four percent rate on quarterly growth in capital use.

“The guide in this quarter will be hard to provide and be hard to believe,” Raheel Siddiqui, a senior expert in Neuberger Berman. “Company guidelines are important when they have a look, but right now no one is seen.”

Investors already had their eyes on use in a large company in S&P 500, known as seven magnificent, whichpour billionsIn the development of artificial mental work while running market benefits for the last two years. Those companies – The alphabet Inc ,, Amazon.com Inc., Apple Inc ,, Meta platforms Inc ,, Microsoft Corp., NVIDIA Corp. and Tesla Inc – is expected to continue using AI to develop AI this year, but Microsoft'sA sudden decisionThe suspension at data centers in Ohio shows that doubts about the value of that use arise.

Trump's tariffs are also expected to measure the use of major technology companies, which are in the heart of the global economy. And if the trade war causes the economic decline, their use on AI seems to be at stake.

“I expect the CEO across the country playing out what they will do if there was a decline in the economy, where to go back, and that is where the use of AI is coming,” said Brent Schutte, Chief Investment Officer there Northwestern mutual Wealth management Co. “If you really have economic problems, AI use will not be insulated.”

Meanwhile, next week's revenue from weight -manufacturing Caterpillar Inc ,, Great electricity Co. Boeing Co, telecommunications behemoth AT&T Inc. and the main chemical Dow The Inc. should provide reading of whether the largest American companies more than the seven are investing in growth.

The most vulnerable companies

Economic uncertainty erupted andTrump Tax PlansIt's bad for all businesses. But the most endangered companies are currently in the capital industry that also has international trade exposure, analysts and scholars said. Computer developers, electronic devices, equipment, machinery, oil and chemical products may have more bright updates, and shipping companies will feel weighted as consumer needs take, they added.

“The first casualties in the business war can be the confidence of the CEO,” Deane Dray, head of international industrial research in RBC capital markets. “Once that is affected, then you get a project delay, more approval times, and that leads to Capex's cancellation and reduction.

Dray expects other manufacturers to suspend the guide because of the uncertain business. A company as an industrial distributor Wesco International Inc, an engineering technology provider Surprisingly Corp. and 3m Co., which makes scotch tape with post -IT details, remains more exposed to chaos, he said.

The view from truck companies and equipment, which move the products used by organizations and consumers, will also be important to look at it.

“The carriers I think will start cutting Capex,” said TD Cowen Analyst Jason Seidl. “You'll see at least Capex cuts for this year.”

Most of the trucks sold publicly use new cars, Seidl noted. “They could easily push the half -year -old,” he said. “That's no more than a world of potential at all.”

However, the same type of decision can be increased through a distribution chain, where companies that make trucks and their parts – such as Cummins Inc. Paccar Inc – they will see the instructions beating if the transporters are holding plans to upgrade their truck ships.

In fact, it is still possible that Trump's administration's efforts to restore manufacturing in America through tax use will stimulate other companies to build new factories or expand their businesses, which can help end at least other expected expenditures.

“One way to prefer preference and this rule is to do what they are trying to get people to do. Which is to build the capacity of manufacturing in a particular capacity,” Horizon's Ladner said. “This is a different kind of marking, 'President marking.' Look we do the things you want us to do. ”

This story was previously shown Bahati.com



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