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Tariffs or not, a Chinese baby products company is ramping up its U.S. expansion

BEIJING — One Chinese baby products company announced Tuesday it is officially entering the United States, the world’s largest consumer market — regardless of the trade war.

Shanghai-based Bc Babycare expects its supply chain diversification and the U.S. market potential to more than offset the impact of ongoing U.S.-China trade tensions, according to Chi Yang, the company’s vice president of Europe and the Americas.

“Even [if] the political things are not steady … I’m very confident about our product for the moment,” he told CNBC, adding he anticipates “very fast” growth in the U.S. in coming years. That includes his bold predictions that Bc Babycare’s flagship baby carrier can become the best-seller on Amazon.com in half a year, and that U.S. sales can grow by 10-fold in a year.

The $159.99 carrier, eligible for a $40 discount, already has 4.7 stars on Amazon.com across more than 30 reviews. The device claims to reduce pressure on the parent’s body by up to 33%. A far cheaper version of the baby carrier is a top seller among travel products for pregnancy and childbirth on JD.com in China.

Bc Babycare already has the carrier stocked in its U.S. warehouses, and has a network of factories and raw materials suppliers in the Americas, Europe and Asia, Yang said. “The global supply chain is one of the things we keep on building in the past couple years.”

The Trump administration has sought to reduce U.S. reliance on China-made goods and to encourage the return of manufacturing jobs to the U.S. In a rapid escalation of tensions last month, the U.S. and China had added tariffs of more than 100% on each other’s goods. Last week, the two sides agreed to a 90-day pause for most of the new duties in order to discuss a trade deal.

Baby gear is particularly sensitive to tariffs since the majority of those sold in the U.S. are made in China, said U.S.-based Newell Brands, which owns stroller company Graco, on an April 30 earnings call. That’s according to a FactSet transcript.

The company said it raised baby gear prices by about 20% in the last few weeks, but had not incorporated the additional 125% tariffs announced in mid-April. Newell said on the call it had about three to four months of inventory in the U.S., and had paused additional orders from China.

The company did not respond to a request for comment about whether it had resumed orders from China and whether it planned more price increases.

Bc Babycare declined to share how much it planned to invest in the U.S. But Yang said the company plans to open an office in the country and hire about five to 10 locals.

The company initially plans to sell online, spend on marketing and eventually work with major retailers for offline store sales. Its partners for raw materials and research include three U.S. companies: Lyra, Dow and Eastman.

The Chinese company, which entered the baby products segment in 2014, in 2021 claimed a 700 million yuan ($97.09 million) funding round from investors including Sequoia Capital China.

Yang said the company scrutinizes the comments section on Chinese and U.S. e-commerce websites to improve its products. As a result, the U.S. version of the baby carrier is softer and larger than the Chinese version, he said.

Bc Babycare’s U.S. market ambitions reflect how large U.S. and European multinationals not only face growing competition in China, but also in their home markets.

“After experiencing substantial growth due to the premiumization of consumption in the Chinese market, multinational brands are now entering a challenging second phase where they compete fiercely for market share,” Dave Xie, retail and consumer goods partner in Shanghai at consultancy Oliver Wyman, said in a statement last week.

Oliver Wyman said in a report last month that the Chinese market has become the incubator for premium product innovations that are being exported. The authors noted, for example, that Tineco floor scrubbers have become Amazon best-sellers.

This post appeared first on NBC NEWS

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Exclusive: Intercepted radio chatter and drone footage appear to capture Russian orders to kill surrendering Ukrainian troops

The radio crackled, but the order barked into it was clear: Capture the commander and kill the others.

The chilling exchange was part of a series of radio transmissions between Russian forces that Ukrainian officials say provide further evidence that Russian superiors are ordering soldiers to execute surrendering Ukrainian troops in violation of international law.

Morris Tidball-Binz, the UN’s special rapporteur on extrajudicial, summary or arbitrary executions, said the radio transmissions and drone footage suggest the killing of surrendered soldiers by Russian forces, as has been reported by the UN.

Tidball-Binz, who has investigated similar suspected executions, called such incidents “grave breaches” of international law, adding that he believes this conduct could only be authorized by the highest authorities in Russia.

They “would not happen with such numbers and frequency without orders – or at the very least consent – from (the) highest military commanders, which in Russia means the Presidency,” he said.

Russian officials have previously denied that Russian troops have committed war crimes and insisted that Russia treats prisoners of war in accordance with international law.

The alleged executions of prisoners of war, among other widespread charges that Russian military forces are responsible for war crimes in Ukraine, could complicate efforts by US President Donald Trump to bring a swift conclusion to the war. Trump has sought to end the fighting with an erratic approach that has often seen him side with Russian President Vladimir Putin and saw his administration briefly interrupt a State Department initiative to track alleged war crimes by Moscow.

The official said he was examining similar material from other cases, which “strengthen the evidence of a directive from Russian commanding officers to kill Ukrainian soldiers who have surrendered or are in the process of surrendering.”

The Ukrainian Prosecutor General’s office said it has, as of May 5, opened 75 criminal investigations into the suspected executions of 268 Ukrainian prisoners of war. It said the number of alleged executions of Ukrainian prisoners of war has been rising, with eight cases involving 57 soldiers in 2022, eight cases involving 11 soldiers in 2023, 39 cases with 149 soldiers in 2024, and 20 cases so far this year, with 51 soldiers.

Yurii Bielousov, head of the war crimes department at the Ukrainian prosecutor general’s office, said the rise was attributable to “instructions being given by top leaders of the Russian Federation, both political and military. We didn’t yet see a written order, but we had several examples of oral orders.”

Bielousov noted that Putin had said in March that Ukrainian soldiers captured in Russia’s Kursk region should be treated as terrorists. “Everyone knows how Putin treats people who they call terrorists. So, it’s almost a synonym for us to execute,” he said.

Bohdan Okhrimenko, head of the secretariat at Ukraine’s Coordination Headquarters for the Treatment of Prisoners of War, said another possible explanation for the killings was that the Russian military wanted to avoid the logistical issues of capturing and managing prisoners. “It complicates military logistics, from their point of view. The Russian command made a simple decision… to shoot captured prisoners.”

‘Take the commander captive and kill everyone else’

The Ukrainian intelligence official shared a transcript of the radio transmissions, which noted they were intercepted at 12:05 p.m. local time, when the Ukrainian position was stormed, and continued until 12:31 p.m., when apparent fears over a Ukrainian drone arriving causes the Russian commander to order a retreat.

The Russian commander can be heard ordering the killings on six separate occasions. According to the transcript of the intercepted transmissions, the commander’s first order was given at 12:22 p.m.

“Ask who is the commander. Who is the commander? Ask. Take the commander captive and kill everyone else,” he can be heard saying.

Four minutes later, he repeats the order twice.

“You do it. Take the commander captive, f**k off the others.”

“That’s it. Take the senior, get rid the f**k of the others!”

The commander frequently demands updates from his combat unit, who struggle to reply. “Someone, b*tch, answer, are the f**kers surrendering or not?”

The soldier referred to by the callsign “Arta,” who appears to be the main interlocutor, says they have not found a Ukrainian commander, only a “senior.”

At 12:28 p.m., the order is given on the radio a sixth time, and a soldier wearing a mask and a dark green uniform consistent with the Russian military can be seen emerging from the foliage, moving towards the captives.

“Get the f**k out! Take the senior, get rid of the others, f**k!” the commander said.

One Ukrainian soldier is visible in the grainy footage apparently gesturing to the Russians. Moments later, the masked soldier shoots him in the head. The voice of the Russian commander captured on the transmissions then asks if the killing is complete.

“Did you take them down? A question. Did you take them down? A question.”

“Arta! Arta! I’m Beliy, roger that!”

“We killed the f**king others.”

In the footage, another Ukrainian, presumably the commander who was motionless until that point, stands up, removes his body armor and is led away. The Russian commander radios his concern as a drone is seen rising over the smoke from an explosion. A retreat is then ordered.

The killing of surrendering Ukrainian troops is alleged by Ukrainian officials and international experts to be part of an orchestrated Russian policy. The incident appears to be one of the first times that intercepted radio transmissions have been linked to drone footage of a suspected execution.

Ukrainian officials claim the alleged executions are fueled by Russia’s cultural hatred of their opponents but are also meant for psychological impact. Okhrimenko said Russian soldiers had posted videos of the beheading and castration of Ukrainian troops to affect morale.

“Violence breeds violence,” he said, adding that Ukraine had increased training of its personnel to be sure Russian prisoners were held safely for later exchanges.

This post appeared first on cnn.com

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Three children and two adults killed in suicide attack on school bus in Pakistan

A suicide attack on a school bus in southwestern Pakistan killed three students of a military-run school on Wednesday, officials said, in the latest attack that underscores the deteriorating security situation in the region.

The explosion took place in the city of Khuzdar in restive Balochistan province and targeted a school bus carrying “a large number” of children of military officials, according to Yasir Dashti, a senior government official from the province.

38 people were wounded in the attack, Dashti said.

“The bus was carrying Army Public School children,” said Kaleem Ullah, a police official from Khuzdar.

Army Public Schools are a network of school across Pakistan for children of military staff.

At least three children and two adults were killed, according to a statement from the Pakistan military.

There has been no claim of responsibility for the attack so far.

Balochistan has been rocked for years by a separatist insurgency that seeks greater political autonomy and economic development in the strategically important and mineral-rich mountainous region.

Pakistan’s military accused “Indian proxies” of being behind the attack in a statement released shortly after the incident. It did not give evidence for its claims.

Pakistan has previously accused its neighbor and arch-rival of being behind attacks in Balochistan. New Delhi has denied the accusations.

Pakistan’s Prime Minister Shehbaz Sharif “strongly condemned the cowardly attack” in a statement and repeated the military’s accusations that India was behind the attack.

India has long accused Pakistan of sheltering militant groups that have carried out attacks across the border, including a recent massacre of tourists in India-administered Kashmir, allegations Islamabad has denied.

Tensions between the two spiraled after that massacre and resulted in a brief four-day conflict earlier this month that was the most sustained fighting between the two in decades. A fragile ceasefire has held since then.

Wednesday’s attack comes just over two months after the deadly hijacking of a train by separatist militants in Balochistan.

In that incident the Baloch Liberation Army took more than 350 people – some of whom were security personnel – hostage, killing 27 of them.

Children have also been the target of some of Pakistan’s most devastating terror attacks.

At least 145 people, mostly school children, were killed in by Pakistani Taliban militants in Khyber Pakhtunkhwa in 2014 – the worst terror attack in the country’s history.

The Pakistani Taliban’s most notable target was then 15-year-old Malala Yousafzai, who was singled out and shot on October 9, 2012 as she rode to school in a van with other girls.

This post appeared first on cnn.com

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Metals Focus: PGMs Deficits Deepen as Supply Tightens and Demand Realigns

Despite economic and geopolitical upheaval, 2024 was relatively calm for platinum-group metals (PGMs).

In its new PGMs report, research firm Metals Focus notes that all five PGMs — platinum, palladium, rhodium, iridium and ruthenium — ended 2024 in physical deficit, marking a pivotal year of stabilization and supply strain.

With tightening mine output, rising hybrid vehicle demand and industrial shifts driving ruthenium and iridium gains, 2025 is set to test the sector’s resilience amid constrained supply and cautious investor sentiment.

As the sector looks to 2025, the outlook remains constrained but cautiously optimistic.

PGM supply constraints widen deficits

While all five PGMs were in physical deficit last year, overall mine supply did edge on 2 percent year-on-year.

However, Metals Focus notes that this figure masks underlying weaknesses.

Much of the gain stemmed from temporary factors, such as the release of work-in-process stockpiles, particularly in South Africa, which accounted for a significant portion of the PGMs inventory processed during the year.

Platinum mine supply rose 3 percent to 5.77 million ounces, mainly due to output from South Africa, whose production exceeded 4 million ounces for the first time since 2021. Yet stripping out the one-time work-in-process boost, global production was more than 1 million ounces below the 2010 to 2021 average of 14.95 million ounces.

For palladium, mine supply rose less than 1 percent, bolstered by modest gains in Russia and stock drawdowns in South Africa, even as Canadian output dropped 10 percent due to price pressure.

The report notes that production cuts in high-cost regions were inevitable, owing to closures like Sibanye-Stillwater’s (NYSE:SBSW) shutdown of Stillwater West and curtailed operations at East Boulder.

In total, platinum ended the year with a second consecutive shortfall. Palladium was short by 407,000 ounces, continuing a near-decade trend of tightness. Rhodium, ruthenium and iridium also closed the year with deficits of 178,000 ounces, 219,000 ounces and 49,000 ounces, respectively — an across-the-board supply squeeze not seen in years.

Demand for PGMs shifts under electrification and industrial dynamics

On the demand side, the automotive sector — the dominant consumer of PGMs — saw a 4 percent contraction in fabrication demand to 12.14 million ounces, the first such drop since the pandemic year of 2020.

The continued rise of battery electric vehicles (BEVs), which do not use PGMs in their drivetrains, contributed to a 2 percent decline in catalyzed vehicle output. Although BEV growth slowed to 9 percent — its weakest since the technology gained mainstream traction — its market share still rose from 12 percent to 13 percent.

Hybrids, however, offered a bright spot for PGMs, with production jumping 28 percent and often requiring heavier PGM loadings than traditional internal combustion engine (ICE) vehicles. This helped cushion demand for autocatalysts, particularly platinum, which saw slower rates of palladium substitution as the price gap narrowed.

Platinum demand, in contrast, overall fell by 2 percent to 7.79 million ounces. Automotive and industrial usage were also dragged down by a 27 percent plunge in chemical applications, particularly in China’s paraxylene sector.

But jewelry demand surged 9 percent — its strongest growth since 2019 — driven by India’s booming export orders and Japanese consumers shifting from gold due to its soaring price.

Ruthenium and iridium, the lesser-known PGMs, also saw rising industrial relevance.

Ruthenium demand surged by 20 percent — reaching its highest level since 2006 — fueled by China’s caprolactam chemical sector and artificial intelligence-driven growth in hard disk drive production.

Meanwhile, iridium demand jumped 15 percent to a record 298,000 ounces, driven by ballast water treatment systems, acetic acid output, and early stage copper foil applications.

Palladium, long buoyed by ICE reliance, saw total demand fall 4 percent to 9.75 million ounces.

Automotive fabrication dropped 5 percent, with thrifting and substitution playing an increasing role, though the latter slowed due to narrowing discounts with platinum. Industrial use remained stable, down less than 1 percent, with electronics up 1 percent amid recovering consumer tech and AI hardware growth.

Recycling gains traction, but can’t fill supply gap

Secondary supply helped offset falling mine output, with autocatalyst recycling up 9 percent year-on-year.

Metals Focus largely attributes this gain to higher vehicle scrappage rates, improved new car sales and aggressive recycling incentives in China. Still, recycling fell short of restoring equilibrium.

Platinum secondary supply rose just 1 percent as jewelry recycling remained weak, with Chinese and Japanese flows down due to sustained low prices and reduced scrap availability.

Palladium fared better with a 9 percent increase — its strongest growth in five years — again led by China, where palladium dominates catalytic converter formulations.

Yet, even with these gains, total recycling volumes were insufficient to offset underlying shortfalls. Jewelry scrap fell by 29 percent for platinum and 45 percent for palladium compared to 2021, underscoring a structural shift in the recycling base amid changing consumer behavior and metal substitution.

PGMs prices stabilize, but caution prevails

PGMs prices stayed fairly in 2024, with volatility restrained.

Platinum traded within a tight US$850 to US$1,100 per ounce band, hovering mostly from US$900 to US$1,000.

Palladium, despite ongoing bearish sentiment, found support at US$900 per ounce, while rhodium stabilized around US$4,400 per ounce after collapsing from highs above US$29,000 in 2021. Meanwhile, iridium fell 12 percent in price over the year, though bargain hunters helped maintain a floor around US$4,000 per ounce.

Ruthenium rebounded 24 percent from September lows, ending the year supported by robust Chinese demand.

While the PGMs markets appear to be finding their bottom, the Metals Focus report emphasizes that the risk of supply squeezes and price spikes remains.

Indeed, short positioning on the CME contributed to sporadic rallies, especially for palladium. Net managed money positions averaged 1.05 million ounces short for the year, peaking at 1.63 million ounces in August.

Metals Focus’ 2025 PGMs outlook

Looking ahead, 2025 is expected to continue many of 2024’s trends.

Physical deficits will persist, particularly in rhodium, ruthenium, and platinum. Above-ground stocks (AGS) remain elevated for platinum and palladium, muting potential price rallies, but continued mine cutbacks could shift this balance over time.

Forecasts suggest platinum will average US$970/oz, up slightly from 2024. Palladium is expected to average US$930, down 5 percent year-on-year, while rhodium may rise 8 percent to US$5,000, supported by its deficit and scarce above-ground reserves.

Ruthenium is forecast to jump 26 percent to US$550, with iridium expected to average US$4,100, a 14 percent drop driven largely by 2024’s elevated base.

In sum, 2024 marked a transitional year for the PGMs—one of normalization rather than expansion. Supply remains tight, demand is recalibrating in the face of technological shifts, and investors are returning cautiously.

Whether 2025 brings further recovery or renewed disruption for the collective will depend not just on markets—but on mines, metals, and momentum-shifting market sentiment.

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

This post appeared first on investingnews.com

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Regulator: New York Taking Strong Steps in Bid to Become World’s “Crypto Capital”

In the absence of unified federal legislation on cryptocurrencies, New York is establishing its own comprehensive regulations for the sector as it looks to become the world’s crypto capital.

Adrienne Harris, superintendent of the New York Department of Financial Services (DFS), is playing a key role in this endeavor, and she says her approach is grounded in experience, not ideology.

“I have never been a believer that you should have ideology in financial regulation,” Harris said during a discussion at last week’s Consensus conference, held from May 14 to 16 in Toronto.

“I really am a firm believer that you can protect consumers and markets, look after the safety and soundness of companies and be good for business all at the same time. And we really seek to prove that out every day at DFS.”

Appointed in 2021, Harris described her stints in big law, the US Department of the Treasury, the Obama White House, Silicon Valley and academia. Her influence as a regulator has arguably been most deeply felt in crypto, where New York’s licensing regime — particularly its much-discussed BitLicense — has served as both a gatekeeper and a benchmark.

“There is unnecessarily tough, and then there’s necessarily tough,” Harris explained. “I think prior to me and my team coming in, things were probably unnecessarily tough … the team was under-resourced. There were maybe 30 people in the crypto unit. Now we have 60 people that are dedicated to virtual currency every day, all day.”

Under Harris’ leadership, the DFS has implemented an applications manual, instituted pre-application meetings and issued nine pieces of regulatory guidance. These reforms aim to demystify a process long criticized as opaque.

And while the BitLicense remains difficult to obtain, Harris believes the outcome justifies the rigor: “FTX, Voyager and Celsius didn’t pass our test, and therefore couldn’t do business in New York.”

This tough-but-fair regulatory stance has elevated New York’s position not only domestically, but also globally.

Even with various international counterparts, Harris told the Consensus audience that New York has become “the gold standard” in how virtual currencies are regulated. That international recognition is becoming increasingly formalized through initiatives like the DFS’ transatlantic regulatory exchange program with the Bank of England.

“They’ve sent us some senior staff. We’ve sent them some senior staff. It was really an arm-wrestling match to see who was going to get to move to London for six months to a year,” Harris joked. The program, which focuses on payments and cryptocurrencies, is already expanding to include other regulators in Europe and Asia.

Closer to home, Harris said the DFS is also working closely with Congress on stablecoin legislation.

“There isn’t a version of any of those bills — be it House or Senate, Rs or Ds — that don’t come to me and to the team to say, ‘Give us your feedback, give us your technical assistance, your insights,’” she said.

The DFS has already pioneered its own stablecoin guidelines, which require that any licensed stablecoin in New York be fully backed by a reserve of assets. That initiative, like much of DFS’ crypto framework, has been driven by a regulatory unit that Harris described as perhaps the largest of its kind anywhere in the world.

“We have folks that came from the (US Federal Reserve), we have cryptographers, we have financial crime experts … we have some real sort of crypto bros on the team. So it’s a great mix of expertise.”

Despite building out that workforce to 60 full-time crypto regulators, Harris admitted that resource constraints remain.

She noted that the DFS has hired more than 600 people across the department during her tenure and continues to recruit — especially amid talent shifts from federal agencies.

The result of all this work, Harris argued, is a regulatory environment that fosters innovation rather than hinders it.

“It used to be that people would say the regulations stifled that ecosystem, that innovation. But what we’ve learned over time is that that clarity, that certainty, that transparency really provides a fertile ground for that innovation,’ she said.

That sentiment is reflected in how regulated firms market themselves abroad. “Our regulated crypto companies market the fact that they are regulated by DFS,” Harris continued. “When they go overseas, they are telling those other regulators, ‘We have a license from DFS.’ And it goes a long way toward growing the ecosystem in New York.”

She also credited state leadership for supporting a dual agenda of consumer protection and economic development, citing New York Governor Kathy Hochul’s ‘steadfast commitment’ to making sure New York is a hub for responsible innovation. This growth aligns with Mayor Eric Adams’ ambition to make New York City the crypto capital not just of the US, but also the world — an aspiration Harris sees as within reach, if not already reality.

“When we think about crypto — having the fastest-growing sector in New York — put that together with the fact that New York is really the financial capital of the world. That is an environment, I think, perfect for the crypto ecosystem.”

Looking ahead, Harris said the DFS will continue on its current path, even as it hopes for stronger federal engagement.

“Hopefully we have federal legislation done, and some of those federal rules will be coming into place,” she said.

“We’re thinking about, of course, (artificial intelligence) and crypto. We’re thinking about deepfakes and market manipulation and crypto, and how those things overlap.”

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

This post appeared first on investingnews.com

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5 Small-cap Biotech ETFs to Watch

Thanks to exchange-traded funds (ETFs), investors don’t have to be tied to one specific stock. When it comes to biotech ETFs, they give sector participants exposure to many biotech companies via one vehicle.

ETFs are a popular choice as they allow investors to enter the market more safely compared to investing in standalone stocks. A key advantage is that even if one company in the ETF takes a hit, the impact will be less direct.

All other figures were also current as of that date. Read on to learn more about these investment vehicles.

1. ALPS Medical Breakthroughs ETF (ARCA:SBIO)

AUM: US$80.23 million

Launched in December 2014, the ALPS Medical Breakthroughs ETF tracks small- and mid-cap biotech stocks that have one or more drugs in either Phase II or Phase III US FDA clinical trials. Its holdings must have a market cap between US$200 million and US$5 billion.

There are 100 holdings in this biotechnology fund, with about 60 percent being small- and micro-cap stocks. Its top holdings include Verona Pharma (NASDAQ:VRNA) at a weight of 5.31 percent, Alkermes (NASDAQ:ALKS) at 4.41 percent and Axsome Therapeutics (NASDAQ:AXSM) at 4.24 percent.

2. Tema Oncology ETF (NASDAQ:CANC)

AUM: US$63.67 million

The Tema Oncology ETF provides exposure to biotech companies operating in the oncology industry. It includes companies developing a range of cancer treatments, including CAR-T cell therapies and bispecific antibodies.

Launched in August 2023, there are 52 holdings in this biotechnology fund, of which about half are small- to mid-cap stocks and 4 percent are micro-cap stocks. Among its top holdings are Revolution Medicines (NASDAQ:RVMD) at a 6.05 percent weight, Roche Holding (OTCQX:RHHBF,SWX:RO) at a weight of 5.08 percent and Eli Lilly and Company (NYSE:LLY) at 4.87 percent.

3. Tema GLP-1 Obesity and Cardiometabolic ETF (NASDAQ:HRTS)

AUM: US$51.5 million

Launched in November 2023, the Tema GLP-1 Obesity and Cardiometabolic ETF tracks biotech stocks with a focus on diabetes, obesity and cardiovascular diseases. The fund was renamed on March 25 from Tema Cardiovascular and Metabolic ETF. More than three-quarters of its holdings are based in the US.

There are 47 holdings in this biotechnology fund, with about 75 percent being large-cap stocks and 18 percent mid-cap. Its top holdings are Eli Lilly and Company at a 9.92 percent weight, Abbott Laboratories (NYSE:ABT) at 4.77 percent and AstraZeneca (NASDAQ:AZN) at 4.14 percent.

4. ProShares Ultra NASDAQ Biotechnology (NASDAQ:BIB)

AUM: US$44.19 million

The ProShares Ultra NASDAQ Biotechnology ETF was launched in April 2010 and is leveraged to offer twice daily long exposure to the broad-based NASDAQ Biotechnology Index, making it an ideal choice “for investors with a bullish short-term outlook for biotechnology or pharmaceutical companies.” However, analysts also advise investors with a low risk tolerance or a buy-and-hold strategy against investing in this fund due to its unique nature.

Of the 268 holdings in this ETF, the top biotech stocks in the ETF are Gilead Sciences (NASDAQ:GILD) at a 6.06 percent weight, Vertex Pharmaceuticals (NASDAQ:VRTX) at 5.99 percent and Amgen (NASDAQ:AMGN) at 5.84 percent. Additionally, over a third of its holdings are in United States Treasury Bills.

5. Direxion Daily S&P Biotech Bear 3x Shares (ARCA:LABD)

AUM: US$43.42 million

The Direxion Daily S&P Biotech Bear 3x Shares ETF is designed to provide three times the daily return of the inverse of the S&P Biotechnology Select Industry Index, meaning that it rises in value when the index falls and falls in value when it rises. Leveraged inverse ETFs are designed for short-term trading and are not suitable to hold long-term. They also carry a high degree of risk as they can be significantly affected by market volatility.

The top three life science holdings in this ETF are Exact Sciences (NASDAQ:EXAS) at a weight of 2.23 percent, Alnylam Pharmaceuticals (NASDAQ:ALNY) at a weight of 2.15 percent and Neurocrine Biosciences (NASDAQ:NBIX) at 2.03 percent.

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

This post appeared first on investingnews.com

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Not All Price Gaps Are the Same! Here’s How to Trade Them

Learn how to analyze stock price gaps with Dave! In this video, Dave discusses the different types of price gaps, why all price gaps are not the same, and how you can use the StockCharts platform to identify key levels and signals to follow on charts where price gaps occur. Charts discussed include the S&P 500, First Solar (FSLR), Microsoft (MSFT), and more!

This video originally premiered on May 19, 2025. Watch on StockCharts’ dedicated David Keller page!

Previously recorded videos from Dave are available at this link.

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Earnings Watch: Smart Setups in HD, PANW, and BJ

Earnings season continues with names like Home Depot, Palo Alto Networks, and BJ’s Wholesale flashing signals that investors shouldn’t ignore. Whether you’re following home improvement trends, cybersecurity growth, or retail resilience, these stocks offer insight into where the stock market could be headed next.

Let’s break down the charts, decode the earnings, and explore the setups that could shape your next move.

DIY Boom Fizzling: What Home Depot’s Earnings Might Tell Us

Home Depot, Inc. (HD) reports earnings on Tuesday, and its results will give a peek at how the DIY home retail investor is changing their spending habits. HD’s stock price has struggled and is down about 2.5% year-to-date, but well off its lows. Like most stocks reporting earnings this quarter, investors will listen for any revisions to HD’s guidance, especially considering ongoing economic challenges such as high interest rates and their impact on consumer spending.

Let’s look at the daily chart of HD.

FIGURE 1. DAILY CHART OF HOME DEPOT, INC. STOCK PRICE. The $377 area and 200-day moving average act as the middle road for a potential setup.Chart source: StockCharts.com. For educational purposes.

The chart of HD stock displayed a head-and-shoulders top last quarter, which we warned about. Sadly, that pattern broke to the downside and hit its target some $50 lower. Since bottoming, shares have retreated to where they were before their last report.

The set-up is a coin flip, with the $377 area and 200-day simple moving average (SMA) acting as the middle road. Stock prices are known to gap and trend for roughly two weeks in the gap’s direction before reversing direction.

If HD’s stock price dips, there are clear support and potential entry points. Look for the rising 50-day SMA to hold at around the $360 level. A dip and hold here would be good for the longer-term turnaround story and the bullish case. If there’s a break, wait for a deeper drop to enter HD. A gap above the 200-day SMA should lead to near-term smooth sailing and enable a trader to use the average as a great stop loss guide.

Palo Alto Networks (PANW): Can It Keep Climbing?

It’s one of the biggest names in cybersecurity, and it’s on the verge of getting back to its all-time highs.

Fundamentally, Palo Alto Networks’ annual recurring revenue (ARR) continues to be the significant growth driver. In Q1, ARR grew 40% year-over-year to $4.5 billion. For Q2 2025, the company projected ARR between $4.70 billion and $4.75 billion. Investors will be keen to see if the company meets or exceeds this guidance.

Technically, we wanted to look at this chart on a longer time frame. The five-year weekly chart of PANW below shows the trend is stalling under a double top at the $205 level. There are some good signs that it may be able to get back on track and push to new highs.

FIGURE 2. WEEKLY CHART OF PALO ALTO NETWORKS STOCK PRICE. Monitor the rising 50-week SMA. Will it hold that level after earnings? The MACD is displaying a bullish crossover, which signals a favorable risk/reward setup.Chart source: StockCharts.com. For educational purposes.

The key level to watch for the bulls is the rising 50-week (blue line) SMA. Shares had consistently trended above this level since initially surpassing it in early 2023. Price action briefly broke below that average, but recaptured it two weeks ago. Now it must hold that level, so watch $178.50 for support on any weakness.

The technical indicator that caught my eye was the moving average convergence/divergence (MACD), which just experienced a bullish crossover. This has a history of leading to great risk/reward setups in a stock. The chart highlights the current crossover and the last two notable ones in green to demonstrate the indicator’s past performance.

Any upside movement should take PANW’s stock price back to the $205 level and a re-test of all-time highs.

BJ’s Wholesale (BJ): Quietly Outperforming

BJ’s has quietly enjoyed a strong 2025, despite tariff talk and negative consumer sentiment. Shares of BJ are up 29% year-to-date and over 44% over the last 52 weeks. While its $14 billion market cap pales in comparison to the $450 billion size of its biggest wholesale competitor in Costco (COST), BJ continues to exceed expectations and thrive.

BJ’s stock price has rallied after four of the last five earnings reports, with an average gain of 8%, including a 12% rally last quarter. Coming into the results, the stock price is starting to rally back towards all-time highs. Maybe this will be the catalyst to break out even higher.

Technically, there is much overhead resistance at the $120 level (see daily chart of BJ below). A break above there should lead to another $10–$15 on the upside. 

FIGURE 3. DAILY CHART OF BJ STOCK. Note the overhead resistance at around the $120 level. On the downside, there’s support at $108 and the rising 100-day SMA.Chart source: StockCharts.com. For educational purposes only.

Weakness has given investors opportunities as well. There is clear support at the $108 level and the rising 100-day SMA (in green). The long-term trend has been strong and, barring a major change in the fiscal direction of BJ’s, the trends should continue to be your friend and give solid risk/reward entry points. 

Final Thoughts

Charts aren’t just squiggly lines. They’re tools to help you make smarter decisions with your hard-earned money. 

Whether you’re eyeing a potential rebound in Home Depot, the strength of cybersecurity, or a quiet winner like BJ’s, remember: technical patterns can give you an edge, but so can patience and perspective.

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The Best Five Sectors, #19

Sector Rotation Shakeup: Industrials Take the Lead

Another week of significant movement in the sector landscape has reshaped the playing field. The Relative Rotation Graph (RRG) paints a picture of shifting dynamics, with some surprising developments in sector leadership. Let’s dive into the details and see what’s happening under the hood.

  1. (6) Industrials – (XLI)*
  2. (4) Financials – (XLF)*
  3. (1) Utilities – (XLU)*
  4. (2) Communication Services – (XLC)*
  5. (3) Consumer Staples – (XLP)*
  6. (8) Technology – (XLK)*
  7. (5) Real-Estate – (XLRE)*
  8. (9) Materials – (XLB)*
  9. (11) Energy – (XLE)*
  10. (10) Consumer Discretionary – (XLY)
  11. (7) Healthcare – (XLV)*

Weekly RRG

On the weekly RRG, Utilities and Consumer Staples maintain their high positions on the RS-Ratio scale. However, there are signs of waning momentum. Staples has rolled over within the leading quadrant and is now showing a negative heading. Utilities, while still strong, are losing some of their relative momentum.

Financials and Communication Services are hanging on in the weakening quadrant, but their tails are relatively short — indicating potential for a quick turnaround.

The show’s star, Industrials, has made a beeline for the leading quadrant, climbing on the RS-Ratio scale while maintaining a positive RRG heading.

Daily RRG

Switching to the daily RRG, we get a more granular view. Utilities, Staples, and Financials are found in the lagging quadrant, but Staples and Utilities are showing signs of life, turning back up towards the improving quadrant.

Financials, meanwhile, are hugging the benchmark.

The daily chart confirms Industrials’ strength, mirroring its weekly performance.

Communication Services, however, is showing some worrying signs — it’s dropped into the weakening quadrant on the daily RRG, confirming its vulnerable position on the weekly chart.

Industrials

XLI flexes its muscles, pushing against overhead resistance around the $144 mark.

A break above this level could trigger a further acceleration in price.

The relative strength line has already broken out of its consolidation pattern, propelling both RRG lines above 100 and driving the XLI tail deeper into the leading quadrant.

Financials

The financial sector continues its upward trajectory, trading above its previous high and closing in on the all-time high of around $53.

Like Industrials, a break above this resistance could spark a new leg up.

The RS line is moving sideways within its rising channel, causing the RRG lines to flatten—something to watch.

Utilities

XLU has finally broken through its overhead resistance, approaching its all-time high around $83.

After months of pushing against the $80 level, this breakout is a clear sign of strength.

The RS line is still grappling with its own resistance, but the RS-Ratio line continues its gradual ascent.

Communication Services

While XLC is moving higher on the price chart, its relative strength is lagging.

The sideways movement in the RS line is causing both RRG lines to move lower, with the RS-Momentum line already below 100.

This sector is rapidly approaching the lagging quadrant on the daily RRG—definitely one to watch for potential risks.

Consumer Staples

XLP is approaching the upper boundary of its trading range ($83-$85), where it is running into resistance. The inability to push higher while the market is moving up is causing relative strength to falter.

The recent strength has pushed both RRG lines well above 100, but the current loss of relative strength is now causing the RRG-Lines to roll over.

The tail is still comfortably within the leading quadrant, but this loss of momentum could signal a potential setback.

Portfolio Performance

The model portfolio’s defensive positioning has led to some underperformance relative to SPY, with the gap now just under 6%.

However, the model is sticking to its guns, maintaining a defensive stance with Staples and Utilities firmly in the top five.

It’s worth noting that Healthcare has now definitively dropped out of the top ranks. Nevertheless, with Staples and Utilities holding firm, and Technology and Consumer Discretionary still in the bottom half, the overall positioning remains cautious.

These are the periods when patience is key. We need to let the model do its work and wait for new, meaningful relative trends to emerge. It’s not always comfortable to endure underperformance, but it’s often necessary to capture longer-term outperformance.

#StayAlert, –Julius

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