Barilla markets itself as "Italy’s No. 1 brand of pasta," but the Illinois-based company makes its products in Iowa and New York, a suit alleges. America’s housing shortage is a key reason why the benchmark 30-year mortgage rate likely will top 7%, according strategists at BofA Global. Overnight in Asia, Walmart Stores Incorporated stock forecast Japan’s Nikkei 225 ended 0.92% while the MSCI ex-Japan index fell 0.82% to pull the regional benchmark to its lowest levels in two-and-a-half years. In Europe, stocks moved higher by the close of trading, with London’s FTSE 100 up 0.27% while the region-wide Stoxx 600 closed 0.26% higher in Frankfurt.
Stocks had traded firmly higher for much of the session, powered in part by better-than-expected corporate earnings and news of the resignation of embattled British Prime Minister Liz Truss. Yields are rising again, and the path of interest rate hikes seems set to continue. The bank named several buy-rated stocks it thinks could do well against the current macro backdrop.
Xi’s Third Term to Hit Investors as U.S., China Part Ways
"OPEC’s move to cut production by two million barrels per day could be a turning point for the oil market. With the risk of Russian supply disruptions due to the price cap, it could tighten the market," said ANZ Research in a Friday note. "A slowing global economy and sustained soft demand from China are key headwinds, but the oil market is fundamentally in a stronger position https://dotbig.com/ than it has been in previous economic downturns." Investors wind down a volatile week for stocks as 20% of S&P 500 companies report results. Soaring energy costs worry consumers as winter approaches and Elon Musk plans massive Twitter workforce layoffs. FOX Business is providing real-time updates on the markets, commodities and all the most active stocks on the move.
- Lags between rate increases and real-world impacts raise the twin risks of tightening too much and too little.
- Biden in August announced $10,000 in federal student debt cancellation for those with incomes below $125,000 a year, or households that make less than $250,000 a year.
- Toymaker Mattel has agreed to pay $3.5 million to settle charges relating to misstatements in its third and fourth quarter 2017 financial statements, the Securities and Exchange Commission announced.
- Bond investors aren’t all convinced that’s enough for what comes next.
- Yields are rising again, and the path of interest rate hikes seems set to continue.
"If these inflation numbers don’t come down and they don’t come down consistently over several months, you are not going to get a pivot anytime soon." The U.S. employment market remains strong, with the latest government data showing the number of Americans applying for unemployment benefits fell last week and remains historically low. Wall Street was expecting such price hikes due to weak demand for COVID vaccines, which meant manufacturers would Walmart Stores Incorporated stock need to hike prices to meet revenue forecasts for 2023 and beyond. Hankey’s departure was announced inside the Cupertino, California-based firm this week, with Hankey telling colleagues that she will remain at Apple for the next six months, according to the report, which added that a replacement has not been named so far. Adjustable-rate mortgage applications rise to highest level since March 2008 — as house buyers bet on rates falling.
U.S. Markets
Investors often view real estate investment trusts as a defensive asset in a sinking stock market, but REITS are struggling in 2022 as investors look for places to hide in a year market rocked by soaring inflation and risi… Treasury yields fell from their highs on Friday morning after a report from the Wall Street Journal that some Fed officials are concerned about overtightening with large rate hikes. The Bank of Japan has kept an ultra-low interest rate policy, while the Federal Reserve and other central banks have https://dotbig.com/ been raising rates to counter surging prices. Until recently, the Japanese central bank had devoted its efforts to fending off deflation, or the continued downward spiraling of prices. The Federal Reserve has raised interest rates five times this year and is likely to increase its benchmark federal-funds rate by another 0.75 percentage point at its meeting next month as it tries to bring down high inflation. US stocks were lower early Friday as investors weigh third-quarter earnings reports and possible Fed actions.
All three of the benchmark’s showed the biggest weekly gains since June rising roughly 5% apiece. This as the yield stock market news today on the 10-year Treasury settled at 4.212%. In commodities, oil inched up 0.5% for the week to $85.05 per barrel.
Daly indicated during a Q&A at the University of California Berkley that she thinks the Fed should be looking at reducing the pace of what has been a series of 0.75 percentage point rate hikes that markets expect to continue in November. The advance came despite the 10-year Treasury yield surging to its highest level since 2008 and a mixed bag of corporate earnings reports. The S&P 500 and Dow gained 4.7% and 4.9%, respectively, while the Nasdaq rose 5.2%. It was the best week since June for all three major averages. Oil prices were little changed on Friday as optimism about a possible rise in demand in China faded and the market again weighed the impact of sharp interest rate rises on energy consumption.
Twitter workforce may be cut nearly 75% by Elon Musk: report
There’s also a lack of a clear driving catalyst for the bear cast without a guidance cut, according to Foroohar. Alphabet and Meta Platforms’ stocks have plummeted about 32% and 62% since the start of 2022. But she noted that she’s not advocating lower rates, only a slower pace of getting there. "But like every other bounce we’ve had, it hasn’t been very well sustained. … A bounce today doesn’t necessarily mean it’s going to continue into next week. If it does, I suspect it won’t be more than a DotBig day or two," Frederick added. The outlet cited interviews and documents as the basis of its reporting published Thursday. While speaking to potential investors, Musk said he planned to reduce Twitter’s staffing from about 7,500 to around 2,000 employees, a nearly 75% decrease, according to The Washington Post. OPEC+ had agreed on a production cut of 2 million barrels per day in early October, leading the White House to claim that Saudi Arabia had pushed other member nations into the output cut.
Stock Market Just Passed Recession Test
Investors focus on this Fed number as stock market threatens test of June lows. The Dow Jones Industrial Average on Monday closes in a bear market, joining the S&P 500. U.S. stock indexes traded higher in the final hour of trading on Wednesday with Dow climbing over 550 points and S&P 500 attempting to snap its longest losing streak since February 2020. CarMax disappointed investors, citing "vehicle affordability challenges," while Tesla’s shares sank ahead of its AI Day. For investors, that means that they should seize the opportunity now to put their cash in bonds or Treasurys – particularly the ones with the shortest durations, analysts said this week. "As this represents inadequate downside from MRNA’s current level (~$118) near its 52-week low to justify an Underperform rating, we step to the sidelines and wait for a more attractive entry point on either the long or short side," Foroohar said. While a 75 basis point rate hike is still highly expected at the November Fed meeting, traders increased the chances that the December meeting would see just a 50 basis point move.
The silver lining of this year’s stock and bond bear markets
Futures rebounded off their lows after the Wall Street Journal reported that some Federal Reserve officials were growing uneasy with the current pace of rate increases and are starting to worry about the risks of overtightening. The Wall Street Journal reported Friday that some Fed officials, while expected to approve another large rate increase at the Nov. 1-2 meeting, also want to talk about slowing the pace of hikes. With less than an hour of trading left on the day, the major averages appear set to close sharply higher for the week. DotBig Stocks climbed on Friday as Wall Street closed a volatile week on a high note despite some disappointing earnings reports. But oil prices have been supported recently by a looming European Union ban on Russian crude and oil products, as well as the output cut from the Organization of the Petroleum Exporting Countries and allies including Russia, known as OPEC+. Beijing is considering cutting the quarantine period for visitors to seven days from 10 days, Bloomberg news reported on Thursday, citing people familiar with the matter.
Markets with Santo
U.S. stocks finished the week in the red after a still-strong September jobs report Friday suggested the central bank would not alter the course of monetary policy soon. Traders adjusted their expectations for Federal Reserve actions following a Wall Street Journal report Friday indicating the central https://dotbig.com/markets/stocks/WMT/ bank will be talking about the future pace of rate hikes. Meanwhile, Asian shares were mostly lower Friday in muted trading, as investors kept an eye on inflation and awaited the outcome of a Communist Party congress in China. Benchmarks fell in most regional markets but rose in Mumbai.