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The following is a round-up of yesterday’s market activity:
The S&P 500 Index was up 51.3 (1.3%) at 4002.87, its highest close since March 6th; the Dow Jones industrial average was up 316.02 (1.0%) at 32,560.60; the NASDAQ Composite was up 184.57 (1.6%) at 11,869.11, the highest close since February 15th.
Treasury yield was up about 12 basis points at 3.594%.
Executives at GSK Plc (NYSE: GSK), Moderna Inc (NASDAQ: MRNA), and CSL Seqirus, owned by CSL (OTC: CSLLY), said they are developing or about to test sample human vaccines against bird flu as a precautionary measure against a future pandemic. Others, like Sanofi SA (NASDAQ: SNY), “stand ready” to begin production if needed, with existing H5N1 vaccine strains in stock. The U.N. said it had signed legally binding agreements with 14 manufacturers for 10% of their pandemic flu vaccine in a mix of donated doses and doses to be bought at affordable prices.
Shares in troubled First Republic Bank crashed more than 46% on Monday, after reports the San Francisco-based bank may need to raise more funds despite a $30bn (£24bn) rescue last week.
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U.S. stocks ended the day higher, as the financials sector bounced back amid the recent choppiness in the markets. Meanwhile, uncertainty remained regarding whether the turmoil will impact the Fed’s monetary policy decision on Wednesday. Banking stocks continued to be in focus, as UBS Group agreed to acquire Credit Suisse for a little over $3.0 billion, while the Fed and five other major central banks took action to increase the availability of liquidity for the financial system.
Treasury yields were higher, and the U.S. dollar was lower, while crude oil and gold prices gained ground.
Asia finished broadly lower, and markets in Europe rose sharply, as investors around the world contend with the latest updates surrounding global banks.
In 2023, the official first day of spring is today Monday, March 20th. This date marks the “spring equinox” in the Northern Hemisphere. So, what is the spring equinox and is it always on the 20th? Read on to learn more—plus, enjoy ideas on how to celebrate the season!
UBS agreed to buy its embattled rivalCredit Suisse for 3 billion Swiss francs ($3.25 billion) yesterday, with Swiss regulators playing a key part in the deal as governments looked to stem a contagion threatening the global banking system.
“With the takeover of Credit Suisse by UBS, a solution has been found to secure financial stability and protect the Swiss economy in this exceptional situation,” read a statement from the Swiss National Bank, which noted the central bank worked with the Swiss government and the Swiss Financial Market Supervisory Authority to bring about the combinationof the country’s two largest banks.
The CBOE VIX index the gauge of equity volatility, twice spiked up to 30 before tumbling back down. The ICE BoAML MOVE index, a VIX for the Treasury market, jumped to its highest since the great financial crisis of 2008, at one point up more than 80% from just the start of February.
Those moves illustrate the whipsaw action in stocks and bond yields as traders tried to work out the seriousness of the unfolding banking crisis and how much it would compromise central banks’ ability to sustain their inflation fighting strategies.
The Dow Jones Industrial Average decreased 385 points (1.2%) to 31,862, the S&P 500 Index fell 44 points (1.1%) to 3,917, and the NASDAQ Composite went down 87 points (0.7%) to 11,631. In heavy volume, 8.8 billion shares of NYSE-listed stocks were traded, and 7.5 billion shares changed hands on the NASDAQ WTI crude oil lost $1.61 to $66.74 per barrel.
Elsewhere, the gold spot price climbed $58.70 to $1,981.70 per ounce, and the Dollar Index went down 0.5% to 103.90. Markets ended mixed for the week, as the DJIA nudged 0.2% lower, while the S&P 500 gained 1.4%, and the NASDAQ Composite advanced 4.4%.
The European Central Bank (ECB) lifted its three policy rates by 50 basis points for the sixth consecutive time, raising the benchmark for borrowing costs in the Euro-zone to 3.0% from 2.5%, the highest level since late 2008, as inflation is seen overshooting its 2% target through 2025.
U.S. stocks blasted higher reversing some recent losses as the banking sector continues to remain in the headlines. First Republic climbed after reports that it could receive up to $30 billion in deposits from some of the nation’s largest banks in an attempt to stabilize the lending firm. In other equity news, Adobe topped quarterly expectations and offered upbeat guidance, while Dollar General offered mixed results.
The economic calendar was also busy today, as jobless claims declined more than anticipated, import prices dipped, housing construction activity rose much more than projected, and manufacturing output in Philadelphia remained solidly in contraction territory.
Treasury yields were higher too and the U.S. dollar dipped, while crude oil prices rose, and gold moved modestly to the downside.
Asia finished mostly lower amid the global banking worries, and markets in Europe rebounded even as the European Central Bank followed through with a 50-basis point rate hike despite the financial market turbulence. Finally, Suisse rallied after getting some capital support from the Swiss National Bank.
Great Britain’sNational Health Service, which is meant to provide “free” universal healthcare, is collapsing under the strain of long wait times, hidden data, and excess deaths. Long held up as the crown jewel of “socialized healthcare,” the world’s largest government-run system is unraveling. The crisis has led to a surge in excess deaths that has outlasted the coronavirus pandemic, with ambulance and emergency room delays linked to hundreds of deaths each week, leaked internal data suggest. Hospitals already near capacity last fall could not keep pace as the winter flu season took hold.
U.S. equities were able to claw out of a deep hole to finish mixed, as the recent turmoil in the banking sector on this side of the pond made its way to Europe.
Swiss regulators stepped in to reassure global financial markets after fresh fears about the viability of Credit Suisse threatened wider fallout just days after two historic U.S. bank failures. The Swiss National Bank issued a statement late Wednesday offering the embattled lender financial support if necessary, a move that helped markets pare some of the day’s steep losses. Other bank stocks took hits as well, with JPMorgan closing down 4% and Wells Fargo and Goldman Sachs closing down about 3%. Bank of America closed down less than 1%.
The broader Dow Jones Industrial Index ended Wednesday’s session down about 280 points — roughly 0.9% — while the S&P 500 closed 0.7% lower. The tech-heavy NASDAQ finished the day roughly flat.
The worries overshadowed a welcome benign read on February producer price inflation and a retail sales report that showed a key core component of spending unexpectedly rose and the prior month’s figures were revised to larger-than-expected jumps.
In other economic news, home builder sentiment unexpectedly improved, mortgage applications rose for a second-straight week, but manufacturing output in New York contracted much more than anticipated, and business inventories surprisingly dipped. In other equity news, Lennar Corporation topped quarterly expectations.
Treasury yields tumbled and the U.S. dollar rallied, while crude oil prices dropped, and gold was higher. Asia finished mostly higher after the rebound in the U.S. yesterday, while markets in Europe fell with the banking worries dragging stocks lower across the board.
On Monday, Newsweek published a list of banks that had trading of shares halted. According to the NASDAQ Trader website, these banks were placed under a Volatility Trading Pause. Some of the banks that were placed under a Volatility Trading Pause included PacWest Bancorp, Western Alliance Bancorporation Common Stock, First Republic Bank Common Stock and Comerica Incorporated Common Stock. Some of these banks were placed under the halt several times, but the pauses only lasted a few minutes. For example, the NASDAQ Trader website shows that PacWest Bancorp was halted at 9:49 a.m. EST and resumed at 9:54 a.m. EST.
Billionaire Charles Schwab’s net worth has plunged about $3 billion since March 8th, 2023.
Shares of Charles Schwab Corp fell sharply amid the collapse of Silicon Valley Bank.
Investors are worried as Charles Schwab Corp is sitting on a significant amount of unrealized losses on its bond assets.
Billionaire Charles Schwab’s fortune has taken a massive beating after shares of the eponymous company he founded plunged amid the banking crisis. Shares of Charles Schwab Corp, a savings and loan holding company, closed 11.6% lower at $51.91 apiece on Monday, bringing its market value lower by nearly 38% so far this year. But, by 11am Tuesday, shares of the corporation were back up 9.5 percent.
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Meanshile, mega-manager Vanguard Funds bought sizable stakes in both Silicon Valley Bank (US:SIVB) and Signature Bank (US:SBNY) in recent months, according to data compiled by Fintel.
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Finally, U.S. equities finished with gains and near the highs of the day, as investors sifted through the first look at February’s inflation picture. The Consumer Price Index (CPI) rose in line with estimates month-over-month, while the core rate—excluding food and energy—increased a little more than expected. On a year-over-year basis, both the headline and core rate declined, but remained elevated. In other economic news, small business optimism increased last month.
The banking sector remained in the headlines, with many banks climbing higher following sharp losses over the past few trading sessions. In other equity news, United Airlines fore-casted an adjusted Q1 loss, and Meta Platforms announced another round of layoffs that will begin tomorrow.
Treasury yields rebounded, especially at the shorter end of the curve, and the U.S. dollar was nearly unchanged, while crude oil prices tumbled, and gold traded lower.
Asian stocks fell as turmoil in the U.S. banking sector spilled over into the region, while European stocks climbed as investors digested the inflation data out of the U.S.
The average rate on the popular 30-year fixed mortgage dropped to 6.57% according to Mortgage News Daily. If rates continue to drop now, buyers could return to the housing market once again. “This mini banking crisis has to drive a change in consumer behavior in order to have a lasting positive impact on rates. It’s still all about inflation,” said Matthew Graham, chief operating officer at Mortgage News Daily.
U.S. stocks turned mixed to close out the day up, which follows a sharp decline last week amid turmoil in the banking sector. The uneasiness that came after the recent collapses of SVB Financial and Silvergate Capital has been exacerbated by the closure of Signature Bank in New York over the weekend. In M&A news, Pfizer confirmed that it reached an agreement to acquire cancer drug maker Seagen in a transaction valued at about $43 billion.
Treasury yields tumbled, and the U.S. dollar dropped, while crude oil prices saw pressure, and gold rallied. The economic calendar was dormant today, but will heat up tomorrow as the Consumer Price Index (CPI) will be released, beginning the development of the February inflation picture.
Asia finished mixed, with Chinese and Hong Kong markets rising, and European stocks fell amid heightened volatility due to the turbulence in the banking sector.
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Follow-Up: Silvergate, Silicon Valley Bank and Signature Bank collapsed last week. All eyes are now on First Republic Bank.
According to MarketWatch, U.S. equity markets traded unevenly Sunday afternoon, in the aftermath of the failure of Silicon Valley Bank SIVB, -60.41% on Friday, which has cast a pall over the banking sector and damaged market sentiment. Futures for the Dow YM00, 0.86% were off 70 points or 0.2%, those for the S&P 500 ES00, 1.18% were virtually unchanged, while those for the Nasdaq-100 futures NQ00, 1.18% were about 0.3%.
Over the weekend, the Federal Deposit Insurance Corporation was holding an auction for the assets of failed SVB Financial Group Capital, the parent of Silicon Valley Bank of California, according to reports. Discussions also were said to be underway involving the Federal Reserve to possibly create a fund to protect uninsured depositors.
Investors are assessing the SVB bank failure to see if it complicates the Fed’s plans to raise interest rates further and potentially faster than previously expected in its bid to tamp down inflation. SVB was closed by California regulators on Friday, in the second-largest in U.S. history, and taken over by the FDIC.
When local standard time was about to reach Sunday, March 12, 2023, 2:00:00 am clocks were turned forward 1 hour to Sunday, March 12, 2023, 3:00:00 am local daylight time instead.
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Meanwhile, although markets are still pricing in additional Fed rate hikes at upcoming policy meetings, concerns about the financial sector have helped push down the expected “peak” rate.
The following is a round-up of Friday’s market activity:
The S&P 500 Index ended 56.73 points (1.5%) lower at 3,861.59, the benchmark’s lowest close since Jan. 5; the Dow Jones industrial average fell 345.22 points (1.1%) to 31,909.64; the NASDAQ Composite fell 199.47 points (1.8%) to 11,138.89.
The 10-year Treasury yield was down about 22 basis points at 3.704%.
April WTI crude oil futures were up 84 cents at $76.56 per barrel.
The U.S. Dollar Index was down 0.7% at 104.58.
CBOE’s Volatility Index was up 2.19 points at 24.8.
The Federal Deposit Insurance Corp.’s decision to shutter Silicon Valley Bank came a day after the bank, once a top lender in the tech sector, failed in an attempt to raise new capital. The bank’s collapse weighed heavily on shares of regional banks, though large institutions held up better.
Financial regulators have closed Silicon Valley Bank and taken control of its deposits, the Federal Deposit Insurance Corp. announced yesterday, in what is the largest U.S. bank failure since the global financial crisis more than a decade ago.
The FDIC said in the announcement that insured depositors will have access to their deposits no later than Monday morning.
SVB’s branch offices will also reopen at that time, under the control of the regulator.
The FDIC’s standard insurance covers up to $250,000 per depositor, per bank, for each account ownership category.
And, the crypto company SB announced yesterday that it’s winding down operations and liquidating Silvergate Bank, which has about $11 billion in assets. Silvergate has been struggle throughout crypto’s downturn—especially after the collapse of FTX, one of its biggest customers. Last quarter, Silvergate fired 40% of its workforce, reported a $1 billion loss, and took out billions in loans…but apparently it wasn’t enough.
U.S. equities ended the day and week sharply lower, as the markets continued to look for hints regarding future monetary policy decisions. The moves came amid a flurry of news and economic data, as the February labor report showed stronger-than-expected job gains, and a lower-than-anticipated increase in wages, but a rise in the unemployment rate. The report was in stark contrast to January’s blowout figures, and seemed to soothe some of the anxiety over the Fed’s future actions.
In earnings news, Ulta Beauty handily beat estimates and provided upbeat guidance, and Oracle offered mixed quarterly results and increased its dividend, but Gap fell well short of expectations amid a tumble in online sales, and it saw a shakeup in management.
Treasury yields tumbled in the wake of the labor report and worries surrounding the banking sector, and the U.S. dollar was sharply lower, while crude oil and gold prices traded to the upside.
Asian stocks finished lower, and markets in Europe saw widespread losses, led by shares of banking companies, amid uncertainty regarding the overall effects of rate hikes.
The online health insurance marketplace for members of Congress and Washington, D.C., residents was subjected to a hack that compromised the personal identifying information of potentially thousands of lawmakers, their spouses, dependents and employees, according to a letter from House leaders informing their colleagues about the breach and a memo from the Senate’s top security official.
Today the U.S. Bureau of Labor Statistics (US-BLS) will report the number of jobs the U.S. economy added in February as well as other pertinent information surrounding the labor market. Officials at the Fed and investors have been watching the labor market very carefully, which has been red hot with the unemployment rate in January remaining near historic lows at 3.4%. Fed officials believe the tight labor market is empowering consumers to spend through rising consumer prices, which has made inflation sticky. Fed Chairman Jerome Powell has said previously the Fed would like to see some deterioration in the labor market to know that it’s winning its war with inflation.
Bank stocks plunged as investors assessed the potential fallout from the implosions of Silicon Valley Bank and Silvergate Capital.
SVB Financial surprised investors with lowered guidance, a $2.3 billion capital raise, and a massive $1.8 billion loss from its bond portfolio.
“This is sending shock waves through the financials with the regional bank ETF lower by 8%,” NYSE’s Michael Reinking said.
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U.S. stocks declined to close out a choppy trading session, adding to weekly losses that followed this week’s hawkish Congressional testimony from Fed Chairman Jerome Powell. A larger-than-expected increase in weekly initial jobless claims seemed to offer a modest reprieve from the concerns about how aggressive the Fed may be.
The Financial sector saw pressure, as SVB Financial plummeted after selling securities for a loss, and Silvergate Capital dropped after announcing that it would shut down its bank operations and liquidate. As a result of the turmoil in the sector, the shares of numerous banks declined. In other equity news, Dow member American Express increased its share buyback plan and raised its dividend, while GE rallied as the Street cheered its long-term outlook.
Treasury yields were mostly lower with short-term rates giving back recent gains, and the yield curve steepened somewhat after inverting further on Powell’s testimony.
The U.S. dollar relinquished some of this week’s rally, while crude oil prices were lower, and gold traded to the upside.
Asian stocks finished mixed following some cooler-than-expected Chinese inflation reports, and Europe ended mostly lower, as the global markets continued to react to Fed Chair Powell’s comments.
The Dow Jones Industrial Average decreased 575 points (1.7%) to 32,856, the S&P 500 Index was 62 points (1.5%) lower at 3,986, and the NASDAQ Composite lost 145 points (1.3%) to 11,530. In moderate volume, 3.8 billion shares of NYSE-listed stocks were traded, and 5.3 billion shares changed hands on the NASDAQ. WTI crude oil fell $2.88 to $77.58 per barrel. Elsewhere, the gold spot price tumbled $34.80 to $1,819.80 per ounce, and the Dollar Index jumped 1.2% to 105.59.
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And, a key recession indicator flashed its loudest warning ever after Federal Reserve Chairman Jerome Powell said benchmark rates will likely go higher than once anticipated. The inversion between the 2-year and 10-year Treasury yields hit a record 103.5 basis points on Tuesday, according to Refinitiv data. It later narrowed to 102.4 basis points. In normal economic times, shorter-term yields are below longer-term yields. But for months, the 2- and 10-year yields have been inverted amid growing recession fears, as the Fed continues to tighten policy to rein in inflation. The 2-year yield currently sits at 4.992% while the 10-year yield is 3.968%. Meanwhile, there’s a 61.6% probability the Fed will raise its benchmark rate by 50 basis points on March 22, up from 31.4% a day earlier.
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Finally, the economic calendar introduced a read on wholesale inventories, which was un-revised from the preliminary report at a m/m decline in January. Meanwhile, consumer credit for January expanded at a slower-than-expected pace. Q4 earnings season continues to wrap up, as Dick’s Sporting Goods bested earnings estimates, raised its quarterly dividend, and issued full-year guidance that came in above forecasts. In other equity news, Meta Platforms is planning another round of layoffs that could affect thousands of workers, according to a Bloomberg News report.
Treasury yields were mixed, and the U.S. dollar rallied, while crude oil and gold prices were sharply lower.
Asian stocks ended mixed following the Reserve Bank of Australia’s 25 bp rate hike, and European stocks were lower, as international investors digested Powell’s comments.
U.S. stocks were subdued in a choppy trading session, as the markets struggled to add to last week’s gains that snapped a string of weekly losses.
Treasury yields went up and the U.S. dollar was lower ahead of this week’s two-day Congressional testimony from Fed Chairman Jerome Powell. Crude oil prices rose, and gold traded slightly to the downside.
Equity news was light with Q4 earnings season mostly in the books, though Tesla announced that it reduced the price of its pricier models in the U.S. for the second time this year, and Ciena Corporation topped earnings forecasts. The economic week began with a read on factory orders that fell less than expected. Additionally, durable goods orders were unchanged from the preliminary report, while excluding transportation, orders were unexpectedly revised upward.
Asian stocks finished mostly higher even as China offered a conservative economic growth outlook, and markets in Europe were mixed following some lackluster data.
Shares of cryptocurrency bank Silvergate Capital plummeted 57% last week after the company delayed its annual financial report and warned investors that it may not survive the recent “crypto winter.” In a filing with the Securities and Exchange Commission, Silvergate said it is “analyzing certain regulatory and other inquiries and investigations that are pending.”
Electric vehicle company Tesla unveiled its latest “master plan” at its highly anticipated analyst and investor meeting but Tesla shares dropped 5.9% amid criticism from analysts that the presentation by CEO Elon Musk lacked clarity and details. Musk reiterated Tesla’s goal of increasing its annual EV production from 1.3 million vehicles in 2022 to 20 million by 2030.
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Chip designer shuns London to list in NYC:UK-based Arm—a company whose tech is inside almost every smartphone—used to be listed in London before being taken private by Softbank. Yesterday it said it’s planning an IPO in New York.The British government has been trying to woo the company to relist in London, and Arm said it wasn’t ruling out a future London IPO. But it’s a big loss for London for now, and it heightens concerns that the UK market is not competitive internationally. Investment bankers are pegging the company’s valuation between $30 billion and $70 billion, per Bloomberg.
U.S. equities finished higher, with all the major indexes posting solid gains for the week. Q4 earnings season approached the end of the final chapter, as Broadcom topped forecasts and issued upbeat guidance, though Zscaler’s billings outlook appeared to overshadow a stronger-than-expected quarterly report, and Costco Wholesale posted mixed results. The market broke a four-week losing streak as Meta was one of the stocks that climbed after the Facebook parent announced big price cuts for its VR headsets, including the high-end Meta Quest Pro.
The economic front offered services sector reports that showed growth was stronger than expected.
Treasury yields came under pressure, along with the U.S. dollar, while crude oil prices were higher, and gold rallied.
Asia finished out the week in positive fashion, and Europe was mostly higher following some economic data.
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Backstone (NYSE:BX) has reportedly defaulted on a €531M bond backed by a portfolio of offices and stores owned by Finnish property investment firm Sponda, which it acquired in 2017. The private equity firm earlier sought an extension from holders of the securitized notes so that it could sell the assets and repay the debt, Bloomberg reported citing people aware of the matter. And, Seeking Alpha learned that the asset sale process was impacted by COVID-related disruptions, the Ukraine war (the assets are located in Finland, which shares its border with Russia) and wider market volatility.
The US Senate passed a disapproval resolution formally killing a Department of Labor rule that encourages private retirement plan fiduciaries to consider environment, social and governance (ESG) factors when making investment decisions for over 150 million Americans. ESG is a framework that helps stakeholders understand how an organization is managing risks and opportunities related to environmental, social, and governance criteria (sometimes called ESG factors). ESG is an acronym for Environmental, Social, and Governance. ESG takes the holistic view that sustainability extends beyond just environmental issues. While the term ESG is often used in the context of investing, stakeholders include not just the investment community but also customers, suppliers, and employees, all of whom are increasingly interested in how sustainable an organization’s operations are.
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Stocks Shake Off Fed Uncertainty, Rise in Interest Rates: U.S. equities rallied into the close to finish near the highs of the day, as investors appeared to shake off the persistent rise in interest rates. The markets also digested some earnings reports, as shares of Dow member Salesforce jumped after topping expectations, and Macy’s also moved solidly higher after besting the Street’s forecasts.
However, disappointing guidance from Best Buy took some of the luster of its earnings beat. Elsewhere, the economic calendar added to the Fed uncertainty, as jobless claims unexpectedly dipped, while Q4 productivity was revised lower and unit labor costs were adjusted to the upside. Treasury yields continued their ascent, and the U.S. dollar gained solid ground, while crude oil prices edged higher in choppy trading, and gold was slightly lower.
Asia finished mixed, and Europe posted gains across the board, as the global markets continued to wrestle with recent data.
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Finally, Marc Benioff is bracing for a recession that shows shades of the dot-com crash and financial crisis. The Salesforce CEO is shifting his focus from sales and deals to efficiency and profitability. Benioff warned that falling stocks and recession fears dampen corporate spending.
U.S. equities finished mixed as the global markets remained choppy amid uncertainty regarding how aggressive monetary policy tightening will remain and what the ultimate impact will be. Q4 earnings season continues to wrap up, with Lowe’s Companies posting mixed results and guidance, while Kohl’s Corporation missed and issued disappointing guidance, and Dollar Tree bested the Street’s forecasts.
In economic news, the ISM Manufacturing Index and S&P Global’s Manufacturing PMI both remained in contraction territory, mortgage applications fell for a third-straight week, and construction spending surprisingly declined.
Treasury yields rose, and the U.S. dollar was lower, while crude oil and gold prices advanced. Asia finished mostly higher, and markets in Europe were mostly lower, as some favorable economic data out of China was met with some disappointing European reports.
Three cities that saw the steepest home price declines on a seasonally-adjusted, month-over-month basis include Las Vegas, Phoenix, and Portland, with drops of 1.5%, 1.3%, and 1.3%, respectively.
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U.S. equities finished lower in choppy action amid the backdrop of uncertainty regarding the ultimate impact of aggressive monetary policy tightening.
Treasury yields were little changed, and the U.S. dollar was slightly higher, while crude oil and gold prices gained ground. Q4 earnings season continues to wrap up this week, with Target topping forecasts but offering disappointing guidance, while Zoom Video Communications bested forecasts but delivered a mixed outlook.
The economic calendar showed home prices dipped compared to the prior month, while the trade deficit widened more than expected, and wholesale inventories unexpectedly declined. Additionally, consumer confidence and manufacturing activity in the Chicago region unexpectedly declined in February.
Asia finished mixed and Europe also diverged, with the markets continuing to grapple with monetary policy uncertainty.
It’s the 28th and final day of February. Have you wondered why February is shorter than the other months? Turns out, we have ancient Roman superstitions to thank. Roman King Numa Pompilius tweaked the calendar to sync it with the lunar year, and that included changing every month to 29 days (because even numbers were unlucky at that time). One month, though, needed to have an even number of days, and February was selected since it was when the Romans held rituals for the dead. And so, February was dropped down to 28 days.
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Markets: Stocks started climbing again yesterday after last week’s slump as things calmed down a bit in the bond market. Tech stocks led the upward trend, along with Union-Pacific, which jumped after the railroad company said it would give in to investor pressure and replace its CEO this year.
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Overall, U.S. equities finished in the green, although well off the best levels of the day, trimming some of last week’s sharp drop.
Treasury yields were mixed, and the U.S. dollar lost ground as the markets continue to grapple with uncertainty regarding how much more aggressive monetary policies in the U.S. and Europe will be to try to cool off inflation.
Gold traded higher and crude oil prices saw modest losses. The equity front was relatively light, though Pfizer is reportedly in talks to acquire Seagen, while Berkshire Hathaway posted Q4 operating earnings that were down year-over-year (y/y) but it noted $2.6 billion in share buybacks.
Finally, in other economic news, durable goods orders fell on the headline level, though core durable goods orders rose, while pending home sales jumped. Asia was broadly lower, while Europe finished with widespread gains.
All three major stock averages just finished up their worst week of the year so far. A new data drop: One of the Fed’s favorite measures of inflation came out yesterday…and it was higher than expected for January. Meanwhile, Boeing’s shares fell on the news that the company temporarily stopped deliveries of its 787 Dreamliner jets due to a fuselage documentation problem.
Berkshire Hathaway CEO Warren Buffett is releasing his annual shareholder letter. These letters, which 92-year-old Buffett has been writing for more than 60 years, are closely analyzed for his hot takes on the US economy; complete with nitty-gritty business analysis, and folksy advice.
Jeffrey Gundlach has raised the alarm on an impending US recession, warning investors they need to prepare for it regardless of how severe it ends up being. Gundlach — whose nickname is the “Bond King” — is a billionaire investor and the boss of DoubleLine Capital. He warned stocks may come under pressure, loan defaults might surge, and inflation could prove stubborn in a recent Yahoo Finance interview. Moreover, he cautioned that attempting to forestall an economic slump can result in a far more devastating downturn in the future.
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U.S. equities ended higher in a choppy trading session as uncertainty remained regarding the ultimate economic impact of aggressive global central bank tightening. The volatile session followed yesterday’s release of the minutes from the Fed’s February monetary policy meeting, which suggested that the Central Bank may need to continue its rate hike campaign to try to tame inflation. In economic news, jobless claims came in below expectations, and Q4 GDP growth was unexpectedly revised lower and the inflation components came in well above estimates.
Treasury yields were mostly lower in choppy trading, and the U.S. dollar was mostly unchanged, while crude oil prices increased after a string of losses, and gold moved to the downside. Q4 earnings season continued down the home stretch, as Nvidia Corporation rallied after topping estimates and offering upbeat Q1 revenue guidance. Elsewhere, eBay matched earnings forecasts but its outlook garnered scrutiny, and Domino’s Pizza fell after missing revenue forecasts and adjusting its guidance lower.
Asian stocks finished mostly lower, though Japan was closed for a holiday, and markets in Europe were mixed as investors around the globe grappled with the outlook for monetary policies.
Getting a new medical practice or healthcare business up and running sometimes means investing large sums of money, and when physician entrepreneurs don’t have the cash to make their visions reality, many turn to venture capitalists.
Here is a look at where these deals are being approved, and which industries are commanding the highest investments. Brought to you by focus.com in collaboration with Column Five
Conclusion
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U.S. equities did an about-face in late-day trading to finish mixed, with the Dow and S&P 500 adding to yesterday’s solid declines. The moves came following the release of the minutes from the Fed’s February 1 monetary policy meeting that showed Committee members remain steadfast in their rate hike campaign despite some cooling in inflationary pressures. In other economic news, mortgage applications fell for a second-straight week.
Treasury yields were lower, and the U.S. dollar was higher, while crude oil prices tumbled, and gold traded to the downside. As Q4 earnings season continued to roll down the home stretch, Palo Alto Networks topped forecasts and offered upbeat guidance, and TJX Companies offered an outlook that missed forecasts.
In other equity news, Dow member Intel Corporation slashed its dividend and reaffirmed its Q1 outlook. Asia finished lower and Europe was mixed as investors awaited today’s Fed report.
Meta confirmed chief business officer Marne Levine is stepping down after 13 years with the company in order to “recharge and prioritize some quality time with family” before beginning her “next professional chapter.” She’s the third female C-suite leader to leave Meta in recent years, following chief operating officer Sheryl Sandberg’s exit in 2022 and global ad chief Carolyn Everson’s in 2021.
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Cathie Wood has steadily reduced ARK Invest’s position in Nvidia (NASDAQ: NVDA) over the last four months. Between November 2022 and January 2023, her flagship ARK Innovation ETF (NYSEMKT: ARKK) completely exited its stake in the microchip stock. So far in February, Wood has also significantly trimmed the positions of Nvidia held by two other ARK Invest ETFs. ARK Fintech Innovation ETF (NYSEMKT: ARKF) still owns 48,272 shares of the stock. ARK Next Generation Internet ETF (NYSEMKT: ARKW) still owns 81,054 shares. After the sales, Nvidia ranks as the 22nd- or 23rd-largest holding in both of these ETFs. Wood’s activity isn’t because Nvidia isn’t performing well. Actually, the stock has soared close to 50% so far in 2023. Several stocks that she has bought this year haven’t delivered comparably impressive gains. So, she is likely just taking gains.
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U.S. equities kicked off the holiday-shortened week by posting sharp losses. Uncertainty regarding the Fed’s future rate hike decisions appeared to pressure market sentiment, as investors grapple with recent hot inflation data and Fedspeak. Retail companies headlined the earnings calendar, as Dow member Walmart bested profit projections and raised its annual dividend, while Dow component Home Depot beat estimates and increased its quarterly dividend, but issued some disappointing guidance. And, Amazon corporate employees will be paid up to 50% less in 2023 due to its falling share price, the WSJ reported. Amazon’s pay packets rely heavily on stock awards, making them vulnerable to price fluctuations. The tech giant is laying off 18,000 employees, its largest ever job cuts, amid weakening economic conditions.
The economic calendar showed manufacturing activity increased but continued to contract, while services activity rose more than expected into expansion territory. Additionally, existing home sales declined in January as the median existing home price continued to rise.
Treasury yields were noticeably higher, and the U.S. dollar gained ground, while crude oil prices were slightly lower, and gold fell. Asia finished mixed, and Europe was mostly lower, as international investors digested some mixed global manufacturing and services sector reports.
Finally, SoftBank Group Corp. founder Masayoshi Son increased the amount of stock pledged as collateral to financial institutions to 175.25 million shares, or about 35% of his total stake in the Japanese conglomerate.
Mardi Gras: New Orleans loves to party all year round, but today aka “Fat Tuesday,” the city will go wild with parades to celebrate Mardis Gras. Down in Rio de Janeiro, Carnival is back in full force and an expected 46 million people will join in on the fun, which lasts through Wednesday.
Shopping insight: Walmart and Home Depot will report earnings this week and share an important update about the American consumer…who seems to be holding up pretty well, despite inflation. Fed minutes on Wednesday, and an inflation report due Friday. Stocks have hit a wall after a blistering start to the year, and the Dow has posted three straight weekly losses.
And, Amazon’scorporate employees will make less money in 2023, people close to the matter just told the Wall Street Journal. Shares of the world’s largest online retailer dropped roughly 36% over the last year, shaking up Amazon’s stock-heavy compensation plan while pulling employee pay much lower than target compensation levels.
U.S. Markets will be closed for Presidents’ Day. The U.S. Markets will be closed on Monday, February 20, 2023. Please be aware that, when making brokerage transactions after 4 p.m. EST on Friday, February 17, 2023, you will receive the closing price as of Tuesday, February 21, 2023.
But crypto trading takes no days off, and despite the fallout from FTX’s collapse and a flurry of crackdowns by regulators, bitcoin has been on a nice run lately. Last Thursday, it topped $25,000 to hit an eight-month high.
PS: Did you know that Presidents Day (today) doesn’t actually fall on any president’s birthday? While originally celebrated on February 22, the day George Washington was born, the holiday was moved to the third Monday of February in 1971. That’s because Congress passed the Uniform Monday Holiday Act, which moved some federal holidays to Monday so we could all enjoy more three-day weekends.
Meta gave about 10% of its staff performance reviews indicating they were under performing, WSJ reported.The performance reviews signal that Meta could be gearing up for another round of layoffs.Meta let go of about 11,000 workers late last year and dubbed 2023 the “Year of Efficiency.”
MSFT BING: The software giant now limits the number of queries per day a user can make on its artificial-intelligence-powered Bing search engine – Get Free Report. The company has been inundated with requests from users who want to test the Bing Chabot. You have to register in a wait-list to have access to the new Bing. The influx of users has been a very encouraging sign from Microsoft, whose CEO Satya Nadella sees Bing Chatbot as the start of a “paradigm shift,” and a huge growth opportunity.
“These paradigm shifts or platform shifts are a great opportunity for us to innovate,” Nadella said on Feb. 7. “It’s more a priority for us to say what, how can we rethink what search was meant to be in the first place. In fact, Google success in the initial base was by reimagining what can be done in search.”
Wrap-Up on Markets: Stocks offered up a mixed bag last week, as investors continued to fret that the FOMCs rate hike path will just keep on raging. However, John Deere stock had its best day in two years after the tractor company raised its profit forecast for 2023.
U.S. equities ended the day and week mixed ahead of the long holiday weekend. The markets continued to grapple with the possibility of further aggressive FOMC measures to try to tamp down inflation pressures after this week’s reports showed continued elevated consumer and wholesale prices.
Today, the economic calendar showed headline import price inflation declined more than expected in January, though excluding petroleum it unexpectedly rose. Meanwhile, recession uncertainty was preserved by a tenth-straight monthly decline in the Leading Economic Index. Earnings results were positive today, as Deere & Company topped estimates and raised its guidance, while Applied Materials also exceeded expectations and issued a favorable outlook.
Treasury yields were lower, and the U.S. dollar was mostly unchanged, while crude oil prices fell, and gold dipped.
And, Asian stocks finished broadly lower to close out the week, and markets in Europe diverged, as the global markets wrestled with uncertainty.
Finally, CEO of ARK Investment Management and investment mega personality Cathie Wood purchased a hefty chunk of shares for Shopify Inc (SHOP) – Get Free Report. ARK scooped up 776,835 shares that are worth an estimated $34.8 million.
Gasoline prices have unexpectedly risen in January, at a time when Americans normally stay put and demand remains relatively flat. Last week, the national average price for regular gas crept up to $3.51 a gallon, according to the American Automobile Association (AAA), jumping up by 12 cents compared to a week before and 41 cents in December. As of today, regular gas was on average $3.49 a gallon. It was a dark surprise for American consumers wary of the skyrocketing prices experienced last summer when gas reached a record height of $5.02 a gallon on average nationwide
U.S. equities declined sharply following another hotter-than-expected read on inflation, as well as hawkish commentary from Fed officials, which seemed to complicate the outlook for further monetary policy tightening. January’s Producer Price Index (PPI) came in above estimates, causing more Fed uncertainty that had already ramped up following this week’s elevated consumer inflation report, and yesterday’s much stronger-than-anticipated retail sales data. A busy day of economic data also included a lower-than-projected level of jobless claims, softer-than-forecasted housing construction activity, and an unexpected tumble in manufacturing activity out of Philadelphia.
Treasury yields were higher following the inflation report, and the U.S. dollar increased, while crude oil prices nudged lower, and gold was little changed. Q4 earnings season continued to roll on, with Dow member Cisco Systems topping forecasts, though Shopify offered disappointing revenue guidance, and Paramount missed expectations.
Asian and European stocks finished higher for the most part, as investors grappled with the U.S. inflation data and monetary policy uncertainty.
THE DATA: U.S. retail sales jumped 3% in January as consumers broadly boosted spending on vehicles, furniture, clothing and dining out, adding to signs that economic growth picked up at the start of the year. Last month’s seasonally adjusted spending increase was the biggest since March 2021 and followed two months of declines at the end of last year, the Commerce Department said yesterday. Job growth surged and high inflation cooled slightly in January after rising prices, increased borrowing costs and uncertainty about the economy caused households to pull back on spending late last year.
The unexpectedly strong employment report last month and still solid wage gains bode well for consumer spending, and some economists think economic growth could be picking up. The Federal Reserve has raised interest rates aggressively since last March in an attempt to slow the economy and bring down inflation. The consumer-price index climbed 6.4% in January from a year earlier, down slightly from 6.5% in December but still well above the Federal Reserve’s 2% inflation target.
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THE MARKETS: U.S. stocks were higher to end the day, as investors continued to wrestle with the implications of persisting inflation and a tight labor market on Fed monetary policy actions. The economic calendar came in heavy, as retail sales rose much more than anticipated in January, which may be further complicating Fed perception, home-builder sentiment improved by the most since the summer of 2013, and business inventories continued to rise.
However, industrial production came in below forecasts, mortgage applications dropped, and New York manufacturing remained in contraction territory. Q4 earnings season continued to roll on, with AirBnB topping estimates and offering upbeat guidance, and Kraft Heinz also exceeding earnings estimates, while Devon Energy missed profit projections.
Treasury yields were mostly higher, and the U.S. dollar rallied, while crude oil and gold prices were lower.
Asian stocks finished mostly lower, and markets in Europe traded higher as investors digested further inflation data in the region.
U.S. stocks rose ahead of some key January inflation data this week, which will begin with the Consumer Price Index (CPI) report. The economic calendar was dormant today, while Q4 earnings season continued down the back stretch, as Check Point Software Technologies topped estimates and announced an increase to its share buyback plan, while Fidelity National Information Services offered disappointing guidance.
Treasury yields were mixed, and the U.S. dollar was lower, while crude oil prices gained ground, and gold traded to the downside.
Asian stocks finished mostly lower ahead of the U.S. inflation data and as tensions between the U.S. and China remained, though markets in Europe rebounded from last week’s decline.
In a first-of-its-kind settlement with the SEC, the crypto exchange Kraken will stop offering crypto staking services in the US. The regulatory crackdown sent a chill across the crypto industry, since staking (crypto’s version of a high-yield savings account, as CoinDesk explains it) is a growing source of revenue for crypto platforms. Shares of Coinbase, the largest crypto exchange in the US, dropped the most since July on the news.
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The IRS is asking millions of taxpayers in 22 states including California and Colorado who received tax rebates last year to hold off on filing their taxes. Why? The agency said it is seeking to clarify whether those tax rebates and special refunds are considered taxable income. “We expect to provide additional clarity for as many states and taxpayers as possible next week,” the IRS said on February 3.
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Inflation going back up? The big economic data release of the week is Tuesday’s consumer price index report. It probably won’t be cause for celebration, because inflation is expected to have ticked back up in January. If so, it’ll fan more fears that the economy is heating up when the Fed wants it to keep cooling down.
U.S. equities ended the day mixed in a quiet trading session, while the major indexes posted solid losses for the week. Investors sifted through more mixed earnings results, as Expedia Group and Lyft fell well short of the Street’s expectations, with the latter also disappointing with its Q1 guidance, and PayPal Holdings bested forecasts and offered an upbeat outlook.
US Markets: After a mixed performance yesterday, all three major indexes ended up down for the week, with both the NASDAQ and the S&P 500 suffering their worst week of the year. News Corp’s stock fell after the company said it plans to cut 1,250 jobs, or about 5% of its workforce, this year.
Economic news remained light, as the lone report showed a better-than-expected increase in consumer sentiment for February.
Treasury yields were mixed, and the U.S. dollar traded to the upside, while crude oil prices rose and gold declined.
Asian and European stocks finished lower as the international markets digested regional data and continued to grapple with the implications of monetary policy tightening.
The “Medical Executive-Post” is about connecting doctors, health care executives and modern consulting advisors. It’s about career, business, IT, practice, policy, personal financial planning and wealth building.
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The Institute of Medical Business Advisors, Inc provides a team of experienced, senior level consultants led by iMBA Chief Executive Officer Dr. David Edward Marcinko MBA CMP™ MBBS [Hon] and President Hope Rachel Hetico RN MHA CMP™ to provide going contact with our clients throughout all phases of each project, with most of the communications between iMBA and the key client participants flowing through this Senior Team. iMBA Inc., and its skilled staff of certified professionals have many years of significant experience, enjoy a national reputation in the healthcare consulting field, and are supported by an unsurpassed research and support staff of CPAs, MBAs, MPHs, PhDs, CMPs™, CFPs® and JDs to maintain a thorough and extensive knowledge of the healthcare environment. The iMBA team approach emphasizes providing superior service in a timely, cost-effective manner to our clients by working together to focus on identifying and presenting solutions for our clients’ unique, individual needs.
The iMBA Inc project team’s exclusive focus on the healthcare industry provides a unique advantage for our clients. Over the years, our industry specialization has allowed iMBA to maintain instantaneous access to a comprehensive collection of healthcare industry-focused data comprised of both historically-significant resources as well as the most recent information available. iMBA Inc’s specific, in-depth knowledge and understanding of the “value drivers” in various healthcare markets, in addition to the transaction marketplace for healthcare entities, will provide you with a level of confidence unsurpassed in the public health, health economics, management, administration, and financial planning and consulting fields.
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GitHub, owned by Microsoft (NASDAQ:MSFT) is reportedly letting go 10% of its employee base and will become fully remote when its lease ends. The layoffs and cost cutting were laid out in a memo from CEO Thomas Dohmke to his staff, The Information reported, citing a person with knowledge of the situation. Last month, Microsoft (MSFT) said it would let go 10,000 employees in its fiscal second-quarter and take a $1.2B charge related to the layoffs. In conjunction with the layoffs, Microsoft (MSFT) added it would initiate “lease consolidation as we create higher density across our work spaces.”
GitHub competitor GitLab (GTLB) said Thursday morning that the company would lay off 7% of its employees due to a “tough” macroeconomic environment.
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The rally in US stocks could be stunted by a rebounding dollar, according to a Bloomberg market technician.
“We don’t think there’s a ton of downside for the dollar, and if there’s not a lot of downside for the dollar, it’s tough to see a lot of upside for equities,” Jonathan Krinksky said.
US stocks and the dollar have an inverse relationship, so a stronger dollar tends to push stocks down.
US Markets: After another down day for stocks, the major indexes are on track to close out the week in the red. Alphabet has been slumping hard since its AI chatbot underwhelmed in its public debut. In the past two trading sessions, the tech giant has lost a total of $173 billion in market cap.
According to Bloomberg, SoftBank Group Corp.’s first earnings report without founder Masayoshi Son went a lot like those he presided over the past few years: The Japanese conglomerate lost billions of dollars on failed startup bets.
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ZOOM-The videoconferencing company that became a household name during Covid is cutting 15% of its workforce, or about 1,300 people. CEO Eric Yuan said the “uncertainty of the global economy” was partly to blame, but he also admitted the company “made mistakes.” To own up to those mistakes, Yuan said he’s reducing his upcoming fiscal year salary by 98% and ditching his 2023 corporate bonus. Zoom shares are down about 85% from their 2020 highs’ according to Bloomberg.
U.S. equities finished near their lows of the day as the markets continued to digest mixed earnings data and last night’s State of the Union Address from President Joe Biden. Meanwhile, yesterday’s commentary from Fed Chairman Jerome Powell remained in focus after he acknowledged that inflation pressures are coming down but more needs to be done to finish to job.
Earnings season continued in earnest, as Chipotle Mexican Grill missed estimates, but Uber Technologies topped quarterly expectations and issued a positive outlook, and Yum! Brands also bested the Street’s projections. Outside earnings, Activision Blizzard fell as U.K. regulators are challenging Dow member Microsoft Corporation’s near $69 billion takeover agreement of the gaming company.
The economic calendar was relatively light, but mortgage applications rebounded last week, and wholesale inventories were unrevised at its previously reported modest increase.
Treasury yields were lower, and the U.S. dollar was little changed, while crude oil prices were higher to add to a weekly advance, and gold saw a modest gain.
Asia finished mixed and Europe was mostly higher with the markets continuing to grapple with monetary policy uncertainty across the globe.
U.S. equities finished higher after whipsawing in the wake of comments from Federal Reserve Chair Powell. The Chairman spoke at the Economic Club in Washington D.C. today, saying that disinflation has begun, but interest rate increases would likely continue. The moves came as the markets were looking for more insight regarding monetary policy, but all-in-all Powell’s remarks appeared to offer little in the way of new information on the Fed’s path forward.
And, the economic calendar was fairly light as data on the trade balance showed that the deficit widened at a slower pace than expected, while consumer credit expanded by a smaller-than-expected amount in December. Earnings data continued to heat up, as Take-Two Interactive missed forecasts and warned that net bookings will be lower in the near term. Dupont, on the other hand, bested earnings estimates, but provided some disappointing guidance, while Hertz beat EPS forecasts and posted revenues that were in line with estimates.
Treasury yields were also higher, and the U.S. dollar ticked lower, while crude oil and gold prices traded to the upside.
Asian stocks were mixed and markets in Europe diverged following a rate hike from the Reserve Bank of Australia, and as global sentiment remained choppy amid heightened tensions between the U.S. and China.
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A frenzy over investing opportunities in artificial intelligence continues to benefit Baidu BIDU +12.18% with shares in the Chinese tech giant rallying Tuesday after the company revealed concrete plans to launch a chatbot to rival the likes of popular ChatGPT. It is known as ERNIE-bot.
American depository receipts of Baidu (ticker: BIDU) jumped 15% in pre-market trading on Tuesday, bringing the 2023 gain for the shares above 20%. The stock’s latest jump higher comes as Baidu detailed plans to launch an artificial intelligence chatbot in the coming months, confirming media reports that had telegraphed the move.
After a record year in 2021 transactional activity, where healthcare mergers and acquisitions (M&A) were up by 56%, the market continued to thrive in 2022. Preliminary results revealed that 2022 M&A deals hit a record high of 2,409 deals, 150 transactions over what was observed in 2021. Despite economic challenges (e.g., rising interest rates and borrowing costs, inflation, and labor costs), the healthcare transactional market has remained active.
This Health Capital Topics article will review the U.S. healthcare industry’s M&A activity in 2022, and discuss what these trends may mean for 2023. (Read more…)
Ark Investment Management’s chief executive Cathie Wood is upbeat about her strategy of investing in young technology companies. After her exchange-traded funds dropped 60% to 80% last year from highs in 2021, Woods talked about the current stock market environment in a year-end commentary Dec. 29, 2022.
“We’re getting a lot of deflationary signals, but the Fed isn’t buying in yet,” Wood said, referring to the Federal Reserve’s continuing interest-rate increases. “But the bond market will start to convince the Fed,” Wood said. “The bond market is telegraphing much lower-than-expected inflation and/or recession.”
That prediction seemed to be validated February 1st. when the Federal Open Market Committee (FOMC) raised interest rates by only 25 basis points. That was smaller than the 50 basis points it had raised them by in December and the 75 basis points it had increased the rates by in each of its previous four meetings. The Fed seemed to have been recognizing the deflationary signs.
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Markets: In the five weeks of trading so far in 2023, the NASDAQ gained in all five and the S&P 500 in four. The still-booming labor market and falling inflation appear to be outweighing poor corporate earnings in investors’ minds.
This is just the fourth National Women Physicians Day, on February 3rd 2023, which we extend thru the weekend. The event celebrates Elizabeth Blackwell’s birthday; she was the first female medical doctor in the U.S.
It’s a time to honor women doctors across the country, and the progress they’ve made since Blackwell’s time. Nationally, there are still fewer female doctors than male doctors, but the progress is steady. In 2017, for the first time in history, women made up more than half of all those in medical schools.
Treasury yields jumped after a much stronger-than-expected U.S. January jobs report clouded investor expectations for the Federal Reserve to end its interest rate hiking cycle in coming months. Treasury Yields and debt prices move opposite each other:
The yield on the 2-year Treasury note rose 14.9 basis points to 4.233%.
The 10-year Treasury note yield jumped 9.9 basis points to 3.498%.
The 30-year Treasury bond yield was up 6.9 basis points at 3.626%.
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U.S. equities declined in a choppy trading session following a stronger-than-expected January labor report, and some uninspiring earnings results from mega-cap stocks. Non farm payroll additions beat estimates by a large amount, and the unemployment rate declined, solidifying the notion of a tight job market.
Meanwhile, a read on domestic services sector activity moved back into expansion territory. Mega-cap stocks were in focus today, as Dow member Apple missed estimates and posted its first quarterly decline in revenues since 2019, and Alphabet also posted discouraging quarterly results, while Qualcomm bested EPS estimates by a penny, but fell short on the revenue side.
Notably, the retail giant Amazon is finally starting to feel the economic pinch. The e-commerce company, which most people thought was unstoppable, has reportedly had its first unprofitable year since 2014. The company released this week that it has lost over $2 billion in 2022, despite holiday-season sales increasing by 9%.
Asian and European stocks finished mixed, as the markets continued to process the week’s monetary policy decisions, as well as some services sector data across the globe.
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Elon Musk was found not liable for investors’ losses in a securities fraud trial over his 2018 tweet that he had “funding secured” to take Tesla private at $420 per share, continuing the tech mogul’s streak of favorable verdicts over his erratic behavior. Plaintiff Glen Littleton and fellow members of the class action sued Musk and Tesla, including its board of directors, over the tweet and Musk’s subsequent statements, alleging the notion that financing was in place had been false. They said shareholders suffered steep financial harms because of panicked sales in the 10 days following the tweet, as Tesla and Musk engaged in damage control.
Palantir Technologies is a public American company that specializes in big dataanalytics. Headquartered in Denver, Colorado, it was founded by Peter Thiel, Nathan Gettings, Joe Lonsdale, Stephen Cohen, and Alex Karp in 2003. The company’s name is derived from The Lord of the Rings where the magical palantíri were “seeing-stones,” described as indestructible balls of crystal used for communication and to see events in other parts of the world.
According to Wikipedia, the company is known for three projects in particular: Palantir Gotham, Palantir Apollo, and Palantir Foundry. Palantir Gotham is used by counter-terrorism analysts at offices in the United States Intelligence Community (USIC) and United States Department of Defense. In the past, Gotham was used by fraud investigators at the Recovery Accountability and Transparency Board, a former US federal agency which operated from 2009 to 2015. Gotham was also used by cyber analysts at Information Warfare Monitor, a Canadian public-private venture which operated from 2003 to 2012. Palantir Apollo is the operating system for continuous delivery and deployment across all environments. Their SaaS is one of five offerings authorized for Mission Critical National Security Systems (IL5) by the U.S. Department of Defense. Palantir Foundry is used by corporate clients such as Morgan Stanley, Merck KGaA, Airbus, Wejo, Lilium, and Fiat Chrysler Automobiles.
Now, Palantir is coming off a tough year, with its shares falling 65% in 2022. That’s a more severe decline than the tech-heavy NASDAQ Composite Index, which fell 33% last year. But, Palanti just announced new commercial customers, including J.D. Power and Dish Network Corp. Palantir is expected to report its year-end financial results on February 13th, 2023.
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U.S. equities came well off the lows of the day to finish higher, as investors shook off the Fed’s decision to raise rates for a seventh time. The Central Bank opted to raise its target by only 25 basis points, while in his presser Chairman Powell appeared somewhat dovish, alluding to the possibility that it may be near the end of its rate hike campaign.
Meanwhile, the markets also digested a batch of economic data that showed manufacturing activity continued to contract, ADP private sector employment grew at a slower pace than anticipated, job openings unexpectedly rose, mortgage applications snapped a three-week winning streak, and construction spending surprisingly declined. Q4 earnings season continues to heat up, with Snap reporting a larger-than-expected loss and suggesting current quarter revenues may decline for the first time, though Advanced Micro Devices topped quarterly estimates.
Treasury yields turned lower following the Fed’s announcement, and the U.S. dollar accelerated to the downside, while crude oil prices tumbled on reports of a large build in stockpiles, and gold rallied.
Asia finished higher and Europe was mixed as today’s Fed decision will be followed by announcements from the European Central Bank and Bank of England tomorrow.
Foreign-exchange volatility hammered North America’s corporate profits by a record in the third quarter, though signs of relief are on the horizon. Currency oscillations cost North American companies $43.2 billion in the July to September period — an all-time high since data tracking started a decade ago — according to Kyriba Corp. That’s a 26% spike from the previous quarter, also a record, according to the corporate-treasury management software company. And, public companies pointed to the euro, Canadian dollar and ruble as the currencies weighing the most on profits in the period, followed by the Chinese yuan and the Japanese yen, according to Kyriba’s report. The euro and the loonie had also earned top mentions in the firm’s second-quarter report.
U.S. equities ended a choppy trading session higher, as investors sifted through a host of earnings and economic data, and awaited tomorrow’s monetary policy decision from the Federal Reserve. Several Dow members were in focus, as McDonald’s beat earnings estimates, and Caterpillar missed expectations due to unfavorable foreign currency impacts.
In other equity news, UPS posted higher-than-expected earnings, declared a new quarterly dividend, and revamped its share repurchase program, while Pfizer beat forecasts but issued lower-than-anticipated guidance, and General Motors trounced expectations and offered an upbeat full-year outlook.
The economic calendar heated up, with the Q4 Employment Cost Index coming in lower than expected, and home prices declining by a smaller amount than anticipated in November. More reports came out after the opening bell, as January’s consumer confidence unexpectedly declined, and the Chicago PMI fell further into contraction territory.
Treasury yields were lower, and the U.S. dollar dipped, while crude oil prices increased, as did gold. Asian stocks were mostly lower amid a swarm of economic reports.
European markets finished mixed following the economic data, and as investors awaited monetary policy decisions from the European Central Bank and Bank of England later this week.
U.S. stocks declined, trimming a strong start to 2023, as investors prepared for a busy week full of earnings data, economic reports, and monetary policy decisions. The Fed is expected to raise rates by a decelerated 25-bp rate hike later this week, and the European Central Bank and Bank of England are anticipated to increase their benchmark rates by 50 bps. Equity news was light to begin the week, and the economic calendar was quiet today before heating up, with the most notable report being the Dallas Fed Manufacturing Index, which improved but remained in contraction territory.
Treasury yields were higher, and the U.S. dollar increased, while crude oil prices fell, and gold declined.
Asian stocks were mixed as China returned to action following the week-long Lunar New Year holiday break, and markets in Europe also diverged amid some caution ahead of the data and monetary policy decisions.
Despite admitting the company had “strong growth” across Wizards of the Coast, Digital Gaming, Hasbro Pulse, and its licensing business, Hasbro has announced that it will be laying off 15 percent of its workforce in an effort to cut down on costs and “return business to a competitive, industry-leading position.” Up to 1,000 workers will be affected by these layoffs, which have apparently been caused by Hasbro’s Consumer Products business under performing over the holiday period.
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This flood of Big tech and other layoffs has again upended the dynamic between employers and employees, workers and executives say, leading to prolonged job searches and widespread fear and anxiety among many in the industry. “It is an employer’s market after years of employees having the benefit of working from home [and] more jobs with higher pay and perks,” said an anonymous unemployed worker after being let go by an educational-tech company last November. “Employers are reasserting their dominance — For example: Disney Google Meta Apple Snap [are] asking workers to be on site three or four days a week.”
Moreover, last week, Alphabet Inc.’s Google was the latest tech giant to add to the uncertainty, announcing the elimination of 12,000 jobs just two days after Microsoft Corp. announced it was cutting 10,000 positions. The two join a long list of companies that have announced layoffs in recent months, including Salesforce Inc. Facebook parent Meta Platforms Inc., Amazon.com Inc. Cisco Systems Inc. Intel Corp. HP Inc. Coinbase Global Inc. Spotify Technology Inc. and Snap Inc.
And so, is the above and more, leading to the next employment cycle? Perhaps to become known as the “Great Re-Commitment“?
Technology giants IBM and SAP joined the ranks of large companies laying off significant numbers of workers, as both announced that they will be laying off thousands of employees.
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U.S. equities closed out the week on a positive note, as investors sifted through another heavy dose of earnings and economic data. Dow components posted mixed earnings results, as Visa bested expectations, and American Express missed forecasts but offered upbeat guidance.
Additionally, Dow member Chevron also fell short, and Intel disappointed the Street amid a fourth-consecutive quarter of declining sales and warned of future losses. Meanwhile, KLA Corporation beat estimates but offered lackluster guidance. News on the economic front was upbeat, as personal income rose, pending home sales posted a gain for last month, and consumer sentiment was positively revised.
Treasury yields were higher, and the U.S. dollar increased, while crude oil and gold prices declined.
Asian stocks finished out the week with gains in continued light volume as mainland Chinese markets remained closed for the Lunar New Year holiday, and markets in Europe were higher for the most part amid some cautious trading ahead of a host of monetary policy decisions slated for next week.
U.S. equities came well off their lows of the day to finish nearly where they began, as the Street sifted through a slew of mixed results with Q4 earnings season kicking into gear.
IOW: A seismic morass.
Dow member Microsoft topped profit projections, but its revenues and guidance disappointed, and Dow Component Boeing Company posted an unexpected loss, and its revenues came in short of forecasts. Elsewhere, AT&T exceeded earnings estimates and topped subscriber expectations, which are overshadowing its lackluster guidance, and Texas Instruments is lower on its outlook. The economic calendar was relatively light today, with the lone report being a third-straight weekly gain for mortgage applications.
Treasury yields were lower, and the U.S. dollar lost ground, while crude oil prices were nearly unchanged, and gold prices were higher.
And, Asia finished mixed, with mainland China and Hong Kong remaining closed for the Lunar New Year holiday, and Europe was mostly lower as investors continued to digest yesterday’s flood of manufacturing and services data.
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Finally, Walgreens Boots Alliance Inc. is weighing a sale of its pharmacy automation business, which could fetch up to $2 billion, according to people familiar with the matter.
Serta Simmons Bedding, the Georgia-based mattress maker owned by private equity firm Advent International, has filed for Chapter 11 bankruptcy protection. The prepackaged bankruptcy filing includes $125 million of debtor-in-possession financing and another $125 million once it exits Chapter 11.
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U.S. equities finished mixed in a lackluster trading session, as Q4 earnings season shifted into a higher gear today. Corporate results from several Dow members were in focus, as 3M missed estimates and reported that it would reduce its global workforce by approximately 2,500 jobs. Verizon Communications and Travelers Companies reported bottom-line results that were in line with expectations, and the former offered some disappointing full-year guidance, while Johnson & Johnson missed estimates amid a decline in revenues citing unfavorable foreign exchange and lower COVID vaccine sales.
Additionally, Lockheed Martin bested forecasts but issued EPS guidance that was lower than anticipated. The economic calendar offered several reports on domestic activity, as manufacturing and services PMIs unexpectedly rose but remained contractionary in January, while manufacturing activity in the Richmond region fell much more than expected.
Treasury rates were lower, and the U.S. dollar dipped, while crude oil prices fell, and gold was higher.
Asian stocks rose although volume remained light as Chinese and South Korean markets were closed for a holiday, while European stocks were mixed amid a host of PMI data across the globe.
U.S. stocks were higher, extending the rally from late last week, as Q4 earnings season is set to shift into high gear tomorrow. The markets also prepared for next week’s Fed monetary policy decision, with the Central Bank expected to slow down on their tightening campaign. The economic calendar was light, with the only report being the Leading Economic Index, which indicated a tenth-straight monthly decline and bolstered Fed expectations.
Treasury yields rose, and the U.S. dollar nudged higher, while crude oil prices were mostly unchanged, and gold gained ground. Equity news was relatively light before the week’s earnings storm, as Elliott Investment Management reportedly took a multi-billion dollar stake in Dow member Salesforce, and Evoqua Water Technologies agreed to be acquired by Xylem Inc. for roughly $7.5 billion.
Asian and European stocks finished higher, although trading volume in Asia was lower than usual as several markets were closed for the Lunar New Year holiday.
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Spotifyannounced that it will lay off about 600 employees, or 6% of its workforce, in the latest Big Tech recession hedge. The shakeup could signal a pivot in the company’s podcast strategy. Like most of the other major tech companies making cuts, Spotify cited overly ambitious pandemic growth as the primary cause, and CEO Daniel Ek took “full accountability.” Along with the layoffs, Ek announced a major departure from the audio streamer: Chief Content Officer Dawn Ostroff, who was the driving force behind the company’s $1+ billion podcasting arms race to sign deals with companies like Gimlet and high-profile talent like Barack and Michelle Obama, Prince Harry and Meghan Markle, and Joe Rogan.
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