(Bloomberg) — A looming recession, runaway inflation, an energy crisis in Europe and a euro that’s sunk to near parity with the dollar: corporate earnings worldwide face a laundry list of challenges this season that could create another reason to dump stocks. After a tumultuous first half for global equities, with $18 trillion in value […]
Read More(Bloomberg) — Investors are hoarding cash and hiding in US Treasuries as they dump equities amid fears that the US economy is headed for a recession. Nearly $63 billion flowed into cash in the week through July 6, while global equity funds had redemptions of $4.6 billion, according to Bank of America Corp. note citing […]
Read MoreIllustration by Elia Barbieri Economists and pundits who expect recession but not until 2023 may soon be surprised to find it already at our doorstep. That’s a big deal. It matters whether a recession comes sooner or later, for the following reasons. First, despite large setbacks in global equity and credit markets this year, investors […]
Read More(Bloomberg) — Emerging markets are well positioned to stare down a US recession and may even be able to lure investors their way. That’s the message from money managers including JPMorgan Chase & Co. and Deutsche Bank AG even as fears of a contraction in the world’s largest economy spark a dash into Treasuries and […]
Read More(Bloomberg) — A “recession shock” begins for markets following the worst first-half for the S&P 500 in more than 50 years, Bank of America Corp.’s Chief Investment Strategist Michael Hartnett says. While expectations of aggressive rate hikes by the Federal Reserve are peaking, inflation expectations are not, and Bofa’s bull and bear indicator remains at […]
Read More(Bloomberg) — Skeptics have long made a sport of predicting that the decade-long rally in technology stocks was destined to reverse. At the halfway point of 2022, it seems like this is the year when they will be proven right. The Nasdaq 100 Index has tumbled by almost a third this year, including a 1.3% […]
Read More(Bloomberg) — Citigroup Inc. Chief Executive Officer Jane Fraser said the US will have difficulty avoiding a recession, though a severe downturn is not the bank’s “base-case” scenario. “Europe definitely felt more likely to be heading into a recession than you see in the US,” Fraser, who just returned from a trip to Europe and […]
Read More(Bloomberg) — Corporate America has suddenly and drastically changed its tune on the US economy. Executives from Jamie Dimon and Elon Musk to Gary Friedman, the head of furniture retailer RH, all cautioned investors this week to be wary of an economic downturn. After months of strong consumer spending and supply-chain improvements, some of the […]
Read More(Bloomberg) — Social media stocks are on course to shed more than $100 billion in market value after Snap Inc.’s profit warning, adding to woes for the sector which is already reeling amid stalling user growth and rate-hike fears. Shares in digital ad-dependent Snap are set for a record one-day drop, down 32% in premarket […]
Read More(Bloomberg) — High-profile warnings over a possible US recession has investors bracing for a slowdown. Short interest in the $352 billion SPDR S&P 500 ETF Trust (ticker SPY) as a percentage of shares outstanding is above 7%, close to the highest since March 2020, IHS Markit Ltd. data show. Meanwhile, bets against the $19.5 billion […]
Read More(Bloomberg) — Target Corp. is on pace for its worst stock drop since 1987’s Black Monday crash after becoming the second big retailer in two days to trim its profit forecast. A surge in costs during the first quarter shows little sign of easing, said Chief Executive Officer Brian Cornell. Operating profit will amount to […]
Read More(Bloomberg) — Goldman Sachs Group Inc. Chief Executive Officer David Solomon said clients are preparing for slowing growth and a decline in asset prices — all as “extremely punitive” inflation creates a tax on the economy. “There’s a chance of recession,” he said in a telephone interview. While he added that he’s not overly concerned […]
Read More(Bloomberg) — Walmart Inc. tumbled the most in more than 20 years — and was headed for the worst rout since 1987 — after cutting its full-year profit outlook due to inflationary pressures, especially in food and fuel. The disappointing performance shook Wall Street’s faith in Walmart’s ability to cope with higher costs for merchandise, […]
Read More(Bloomberg) — Equity investors’ anxiety about a potential recession isn’t showing up in other parts of the market, which is giving JPMorgan Chase & Co. strategist Marko Kolanovic confidence in his pro-risk stance. US and European stock markets are pricing in a 70% chance that the economy will slide into recession in the near-term, according […]
Read More(Bloomberg) — The outlook for U.S. stocks isn’t particularly bright, even if an outright recession is avoided, according to Goldman Sachs Group Inc. strategists. “The best case scenario for the economy — and, eventually, for equity prices — probably involves a continued period of constrained equity market returns,” the strategists led by David Kostin wrote […]
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