A 20% drop from the top dipped a toe in the bear market area on Friday before returning to a higher level than the marked level. Futures hinted at further gains on Monday morning.
Nevertheless, the index has now declined for seven consecutive weeks. The
Dow Jones Industrial Average
Fall for an eighth week. The technology-heavy Nasdaq is already in the bear market.
The reasons for the slight change seem to be very short term. Talking about tariff reductions on China has strengthened the sentiment, but in reality nothing has happened yet.
On the other hand, none of the causes of depression have changed much. The retailers reported this week will show us more about how households are coping with inflation and yet the evidence is not good. The Federal Reserve minutes this week are likely to show that policymakers are still determined to keep hiking rates low to stop inflation, possibly leading the economy down.
Anyone hoping that some loud words at the World Economic Forum in Davos, which started last night, will save the world – good luck with that.
Bank of America
Strategists say that if history is any guide, the S&P could fall below 3,000 in October. This compares with Friday’s close of 3,901. The bullish case is down to 3,800.
They say “hope lasts forever” and we “live in hope.” But anyone who has ever seen their favorite team lose in a heartbreaker knows that it can also be a hope to kill you.
– Brian Swint
*** Join the Baron this afternoon for an exclusive event at The Future Workplace. Baron’s reporters will explore what companies need to do to compete and improve, in conversations with executives who are finding success, and experts who are helping to plan ahead. Register here.
Another week of retail income to emphasize the impact of inflation
Including this week’s earnings from retailers
It will focus on how consumers are navigating inflation, higher petrol costs, and their household budgets.
Recent low incomes show that buyers are spending more cautiously
S&P Retail Selection Index
The year-to-date is 32% lower than the 18% fall in the S&P 500.
The cost speed indicator is on it Lowest points from February 2021 Since consumers spend more on food and gas and less on discretionary items.
Official data said April sales for retailers Has risen 0.9% since March And 8.2% from last year, but when adjusted for inflation using the consumer price index, they were negative for the second month in a row, Baron’s Report
Analysts surveyed by Factset are hoping Sales at the same store fell 2.6% Increase by 2.3% on ordinary dollar and dollar tree. Both companies may benefit from leaving the brand name to buyers for less expensive private-label products. Both reported earnings on Thursday morning.
Messi, who also reported on Thursday morning, warned that it would be difficult to repeat his 2021 performance. Analysts are hoping A 13.6% optic Strong sales of shoppers and high-value items in the same-store when people return to work and gather in person.
What next: On Friday, the Bureau of Economic Analysis is scheduled to release personal income, personal spending data and personal spending price indices for April. Both revenue and expenditure are expected to increase by about 0.6% from the previous month.
–Janet H. Cho
The second baby-formula shipment from Europe is coming this week
Agreement has been reached with the Department of Defense
A second formula is flight transport, of
Gerber Good Start a wide range of hypoallergenic formulas from Germany to Washington Dulles International Airport in the coming days. Special formula for children with allergies to cow’s milk protein.
With Sunday’s 78,000-pound Nestle’s Alfamino Infant and Alfamino Jr. formula shipments, they represent the equivalent of a special Formula 1.5 million 8-ounce bottle. The Preliminary Invoice Reached A C-17 military plane from Germany to Indianapolis, India.
White House Press Secretary Karin Jean-Pierre said the shipment came under President Joe Biden. Operation Fly FormulaWhich authorizes the Department of Agriculture and Health and Human Services to select child sources from abroad that meet U.S. health and safety guidelines.
CEO Robert Ford wrote a letter to the Washington Post apologizing for the company’s part in the deficit. It shut down a factory in Michigan earlier this year After a voluntary withdrawal. The factory may reopen in the first week of June.
Once the factory is reopened, Abbott will first resume production of its EleCare brand. It has created a 5 million funding The ready-to-use liquid formula has been relocated to Columbus, Ohio, to help affected families with medical and living expenses.
What next: Brian Diz, director of the National Economic Council, asked CNN why the three companies control 90% of the country’s infant formula production, saying the United States needs more competition and more formula makers, “so that no individual organization has so much control over the supply chain.”
–Janet H. Cho
VMware Broadcom has taken over the report of Takeover Talks
Shares of Cloud Computing Provider
Monday was rising, the chip maker said after the report
Negotiations were underway to buy a software company. Broadcom, which has a market value of $ 222 billion, is in talks to buy VMware, with a market value of about $ 40 billion, according to a report in the Wall Street Journal.
VMware allows software businesses to integrate the public cloud services offered by Amazon.com with their own networks. Demand for cloud services increased during the Covid-19 epidemic as companies moved to remote areas. A price for the cash and stock offer was not mentioned, and it is still there No agreement can be reached.
Symantec Corp. for 11 billion in 2019 Broadcom has been looking for a deal for some time after buying its enterprise security unit. Acquisition Broadcom has played a big role in the growth strategy, CEO Hawk Tan said at the time.
VMware shares About 14% jumped Premarket Trading Monday. Broadcom is down about 2%. VMware is down 17.4% this year and Broadcom is down more than 18%, in line with the broader market.
What next: The transaction shows that the deal has not been finalized, although this year the S&P 500 has made things even more difficult as it descends on the doorstep of a bear market. Due to VMware reporting earnings on Wednesday and Broadcom’s earnings are scheduled for next week, so expect an upcoming update.
JPMorgan celebrates its first investor day since the epidemic began
JP Morgan Chase
Faced with criticism over plans to spend billions of dollars this year on technology upgrades and other projects, CEO Jamie Dimon was offered a 50 million one-time bonus, which shareholders voted in a symbolic vote.
Bank shares About 26% less 19% drop so far this year
Invesco KBW Bank ETF,
Which makes JPM one of its largest holdings and an 18% drop in the S&P 500.
Analysts and investors Awaiting more details The bank plans to invest about $ 15 billion in cloud computing capabilities and recruitment and marketing, and what those investments could earn, the Financial Times reported.
The bank is expecting its details Expansion to the UK Last year with a digital-only retail bank. JPMorgan is filling its internal branch network, reaching presence in 48 adjacent U.S. states last year.
Last year, JPMorgan Frank, a college financial planning site and The Infatuation, a restaurant website acquired by the owner of Zagat Guide. Both are seen as bank improvements Customer loyalty program. It bought nutmeg from the UK digital asset management site.
What next: Now that the Federal Reserve is expected to raise interest rates faster this year, analysts are looking to raise JPMorgan’s guidelines for 2022 net interest income as it could earn more from debt than previously expected, the FT reported.
Personally the annual Davos Summit amid growing uncertainty
Ukrainian President Volodymyr Zelensky is speaking today at the World Economic Forum in Davos, Switzerland, as he convenes the annual meeting in person for the first time since 2020. Chiefs include German Chancellor Olaf Schulz, European Central Bank President Christine Lagarde and European Commission President Ursula von der Leyen.
Includes other designated speakers
Stephen Bansel, CEO
CEO Jane Fraser and head of the International Monetary Fund Kristalina Georgieva. Russian President Vladimir Putin and Russian businessman Oligarch Not invited.
Given Russia’s war against Ukraine and Ongoing uncertainty On the global economy and epidemics, WEF founder Klaus Schwab said the forum was the most timely and fruitful annual meeting since its inception.
A panel of US senators will discuss the issue The challenges they face In the era of hyperparty politics. Speakers include Sense Christopher Kuns (D., Del.), Debra Fisher (R., Neb), Patrick Leahy (D., VT), Robert Menendez (D., NJ), and Roger Wicker (R., Miss). .)
Russia-Ukraine war has erupted The threat of global food shortages Which can lead to widespread social unrest and immigration. Officials, including Syngenta CEO J. Eric Firewald, will discuss ways to avoid a global food crisis.
What next: The outlook for global growth is shaky. Many CEOs in Davos are probably leading companies that have run out of stock and are facing supply and price challenges. It could be the topic of conversation both on stage and behind the scenes this week.
–Jack Denton and Janet H. Cho
Marketwatch wants to hear from you
Real estate is still appreciated when the stock market is falling. Can a real estate investor still do a tax-free ‘Section 1031 exchange’ for a widely acclaimed real estate investment?
A MarketWatch reporter will answer this question soon. In the meantime, send any questions you have to [email protected]
– Newsletter edited by Liz Moore, Camilla Imperial, Rupert Steiner