Powell Hints Fed Is Done With Hikes in Pivot Cheered by Markets
Steve Matthews and Craig Torres Bloomberg November 1, 2023 Question now is ‘Should we hike more?’ Fed chief says Powell downplays previous projections for more tightening Federal Reserve Chair Jerome Powell hinted the US central bank may now be finished with the most aggressive tightening cycle in four decades after it held off on raising interest rates for […]
Investors should be careful: Wall Street is too eager to buy the dip in bonds, says Strategas
Michelle Fox CNBC October 30, 2023 Investors lured by high yields could be making a mistake if they are buying bonds these days, according to Strategas. Yields have been climbing since the Federal Reserve began raising interest rates last year. The 10-year Treasuryrecently topped 5%, a level not seen since 2007, and is now hovering around 4.9%. Meanwhile, […]
Goldman says sell-off is a buying opportunity for these stocks with healthy balance sheets
Yun Li Reuters October 30, 2023 The recent sharp drawdown in stocks presents a buying opportunity for those stocks that are positioned to withstand a double whammy of higher interest rates and an economic slowdown, according to Goldman Sachs. “Although we expect headwinds to discount rates and balance sheets to persist, we would view a […]
Yellen Says Yield Surge Is Due to Strong Economy, Not Deficits
Viktoria Dendrinou, Christopher Condon, and Margaret Collins Bloomberg October 26, 2023 Treasury Secretary Janet Yellen said the surge in longer-term bond yields in recent months is a reflection of a strong US economy, not the jump in government borrowing driven by a widening fiscal deficit. “I don’t think much of that is connected” to the US budget deficit, Yellen […]
US PREVIEW: Third-Quarter GDP to Blow by Consensus Estimate
Eliza Winger Bloomberg October 25, 2023 A frenzy of summer spending on travel and entertainment drove real GDP growth to an unsustainable pace in the third quarter. A narrowing trade deficit and modest build up of inventories also added to the topline figure. We expect consumption to slow in 4Q given elevated inflation, high interest […]
Wall Street rises as upbeat earnings, forecasts lift sentiment
Shubham Batra and Shashwat Chauhan Reuters October 24, 2023 Wall Street’s main stock indexes advanced on Tuesday as upbeat forecasts from Verizon, Coca-Cola and others boosted optimism about corporate America’s health in the face of a slowing economy and higher inflation. Verizon (VZ.N) surged 9.1% after the U.S. wireless carrier raised its annual free cash flow forecast, […]
The Economy Was Supposed to Slow by Now. Instead It’s Revving Up.
David Harrison The Wall Street Journal October 23, 2023 Earlier this year, economists and Federal Reserve officials predicted that the U.S. economy would be sputtering by now as higher interest rates cut into spending and investment. The opposite is happening. Recent economic data suggest the economy is accelerating despite higher borrowing costs, the resumption of […]
US Retail Sales Top Forecasts in Sign of Durable Consumer Demand
Augusta Saraiva Bloomberg October 17, 2023 Increase in household purchases spans variety of categories Data bolster already-robust economic growth in third quarter US retail sales increased in September by more than forecast in a broad advance that suggests durable household demand as the third quarter drew to a close. The value of retail purchases, unadjusted for […]
A Recession Is No Longer the Consensus
In WSJ survey, economists lower recession probability below 50% and say Fed is finished raising interest rates Harriet Torry and Anthony DeBarros The Wall Street Journal October 15, 2023 Economists are turning optimistic on the U.S. economy. They now think it will skirt a recession, the Federal Reserve is done raising interest rates and inflation will continue […]
Wall Street Is Marking Up Forecasts as Profit Downturn Nears End
Jessica Menton Bloomberg October 11, 2023 Strongest upward revisions ahead of earnings since early 2022 Shows hopes for ‘Goldilocks scenario’ after Fed’s rate hikes Wall Street analysts are boosting US earnings forecasts even before results start rolling in, signaling that the worst of the profit slump is likely over as ebbing inflation eases the pressure […]