6/7/2023 0 Comments Good for the ticker crossword![]() “There’s nothing wrong with buying assets on the cheap, but when prices continue sliding, that affects both capital available to dip into other opportunities (e.g., tech) and risk appetite. It’s not gone well, as this chart from Vanda Research shows. The trend among retail investors of buying badly hammered stocks, almost regardless of how bad are the underlying company’s prospects in the hope of riding a massive rebound, has drawn funds into the struggling financial sector. It’s time to find out why.Īt Musk’s brain-chip startup, animal-testing panel is rife with potential conflicts. Warren Buffett has been betting big on oil. Shares are off more than 14% after the new chief executive’s quarterly guidance came in light on revenue and adjusted earnings.Įarlier hit a one year high versus the dollar, topping $1.26, ahead of the Bank of England’s interest rate decision next week. Shares are soaring 43% in premarket action after after the online used-car company narrowed a quarterly loss and said it expects to reach positive adjusted EBITDA in the current quarter. Icahn Enterprises has been under a cloud after a short seller report earlier this week accused it of inflating its value. Is rebounding more than 6% after activist investor Carl Icahn’s company said it would pay out $2 per unit and it does not face a liquidity problem. Read: Apple hands Warren Buffett’s Berkshire Hathaway a $214 million payout ahead of shareholder weekend ![]() Shares are up 2% in premarket action after the iPhone maker beat expectations with its fiscal second-quarter report and promised billions more to investors in share buybacks and dividends. Other recent earnings will make their presence felt in Friday’s market. The earnings season is starting to wind down, but on Friday we still got, among others, AMC Entertainment Louis Fed President Bullard due to make comments at 1 p.m. The other economic release is the March consumer credit report at 3 p.m. The unemployment rate dipped fractionally from 3.5% to 3.4%, and the month-on-month increase in hourly wages rose to 0.5% against expectations of 0.3%. economy created a net 253,000 last month, well above forecasts of 180,000. Top datapoint on Friday was the nonfarm payrolls report for April, released at 8:30 a.m. Try your hand at the Barron’s crossword puzzle and sudoku games, now running daily along with a weekly digital jigsaw based on the week’s cover story. MarketsĪre firmer and so are government bond yields Following 9 sharp declines in market breadth since 1980 (similar to recent experience) the S&P 500 then went on to post below-average returns and larger peak-to-trough drawdowns,” the Goldman team conclude. The problem is that when returns get very narrow it is not a good sign. strategy team finds that market breadth has fallen to one standard deviation below average for the first time since 2020. The largest 15 companies have generated 90% of the S&P 500’s rally for 2023 so far, Goldman notes. dollar cash return.”įinally, market concentration is a problem. With high valuations, the combination does not offer much return for the risk in the face of 5% risk free U.S. and Europe, 6% for Japan and 17% for Asia. “Our forecasts remain at roughly flat earnings growth in most regions this year and 5% in 2024 for the U.S. +1.69%, remains too low and implies a reasonable degree of complacency, particularly surprising given chances of the debt ceiling being breached by the start of June, Goldman notes.įifth, the recent better-than-expected results season is priced in and earnings growth will not be great in coming quarters. ![]() Fourth, equity volatility, as measured by the CBOE VIX index VIX,
0 Comments
Leave a Reply. |