News

Why stock market investing is so bizarre right now: Morning Brief – Yahoo Finance

future-dyanmics





This article first appeared in the Morning Brief. Get the Morning Brief sent directly to your inbox every Monday to Friday by 6:30 a.m. ET. Subscribe
Monday, October 22, 2022
Today's newsletter is by Brian Sozzi, an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn. Read this and more market news on the go with Yahoo Finance App.
Each Saturday, I have rituals of sorts.
First, I do two workouts — one in the morning and one in the afternoon. Two, I relax by waxing my car. And three, I rewatch a bunch of the on-camera content I produced from the week. Call it the obsessive pursuit of constant improvement. Did I miss a question to a top executive? Was I too harsh on a company's quarter? Did I smile when I should have been intensely serious? All questions I debate.
During this weekend's analysis, I realized I used the word bizarre a ton when breaking down corporate earnings and the general start to the earnings season.
Just look at a few of the things we've been covering on Yahoo Finance:
Bank of America CEO Brian Moynihan CEO tells me consumer spending is up 10% through October. What recession?
American Express CEO Stephen Squeri tells me in a fired up phone chat the market misunderstand his quarter and guidance, and he sees no recession on the horizon.
Snap's stock gets pummeled on a continued ad slowdown (and terrible execution by CEO Evan Spiegel), which is being caused by the global economic slowdown.
Generac posts an earnings warning and says there is too much generator inventory in the sales channel. Bring on the power-saving discounts!
Whirlpool — known for its impressive execution — slashes full year guidance and has inventory levels also running too high for the current economic environment.
Verizon posts lackluster subscriber additions because consumers are balking at the company's recent price increases. CEO Hans Vestberg struck a more cautious tone on the business — in my view — in an interview with Yahoo Finance's Brad Smith.
AT&T CFO Pascal Desroches tells me consumers are trading up to higher phone plans and that it added a solid number of new subscribers in the third quarter.
Netflix shares get major love by investors for a somewhat comeback quarter — with everyone overlooking a $1 billion projected sales hit this year from the stronger dollar.
P&G CEO Jon Moeller tells me he doesn't see a recession even as his company continues to push through price increases on everything from Tide detergent to Gillette razors.
Alcoa's quarter sucked.
I wasn't too keen on WD-40's quarter, either.
The read from all of this: It's bizarre times for investors because it's bizarre times for publicly traded companies.
Interest rates are on the rise. Supply chain inflation is still around in a big way. Some companies are doing great in this environment — others not so much. There truly is a lack of a clearly defined narrative at the moment for investors to rally around (or avoid). And oh yeah, the market could ignore corporate earnings entirely and get smashed to pieces by one word uttered by a Federal Reserve member on TV.
So what to do? UBS chief investment officer Mark Haefele provided a good framework for evaluating these bizarre times, making the case the markets can't mount a sustained advance until these conditions change:
"First, the latest US inflation and labor market data suggest that interest rate cuts remain far off, even if the Fed is likely to stop hiking rates in the first quarter of next year. Core consumer price inflation is at its highest since 1982, the Fed has consistently conveyed that it is more willing to 'overtighten' policy than risk not doing enough, and the labor market is tight.
Second, consensus earnings forecasts, which look for 5% growth globally in 2023, do not appear to factor in the potential negative consequences of a period of tight monetary policy. Numerous leading indicators are pointing down. And China remains a source of near-term risk as it attempts to resolve issues related to COVID-19 and the property market.
Third, the continued rise in interest rates also means that valuations, despite falling in absolute terms, do not yet fully discount a bear case, especially in the US. The sell-off in equities can be almost entirely explained by higher interest rates, while lower growth expectations are not yet priced into stocks."
On that note, Happy Wealth Building in what could be another bizarre week.
Economy
8:30 a.m. ET: Chicago Fed National Activity Index, September (0.00 during prior month)
9:45 a.m. ET: S&P Global U.S. Manufacturing PMI, October Preliminary (51.0 expected, 52.0 during prior month)
9:45 a.m. ET: S&P Global U.S. Services PMI, October Preliminary (49.6 expected, 49.3 during prior month)
9:45 a.m. ET: S&P Global U.S. Composite PMI, October Preliminary (49.5 during prior month)
Earnings
Bank of Hawaii (BOH), Crande (CR), Discover Financial Services (DFS), Logitech International (LOGI), Schnitzer Steel (SCHN), Zions Bancorp (ZION)
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for Apple or Android
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube
Canadian Solar (CSIQ) delivered earnings and revenue surprises of 93.10% and 5.38%, respectively, for the quarter ended September 2022. Do the numbers hold clues to what lies ahead for the stock?
Three top ones that investors will probably eventually regret not buying at their current prices are Enbridge (NYSE: ENB), Enterprise Products Partners (NYSE: EPD), and Energy Transfer (NYSE: ET). Enbridge's dividend currently clocks in at a 6.4% yield. With its stock price recently around $40 a share, it trades at about 10 times cash flow.
In this article, we talk about 10 stocks that billionaire Ray Dalio dumped from his portfolio. If you want to see more stocks in this selection, check out Billionaire Ray Dalio is Dumping These 5 Stocks. Ray Dalio is an American billionaire hedge fund manager, philanthropist, and the founder of Bridgewater Associates, one of the […]
High Tide Inc. ("High Tide" or the "Company") (NASDAQ: HITI) (TSXV: HITI) (FSE: 2LYA), a leading retail-focused cannabis company with bricks-and-mortar as well as global e-commerce assets, announced today that according to new data recently released by the cannabis business publication, New Cannabis Ventures, the Company is now Canada's top revenue-generating cannabis company1.
Yahoo Finance Live anchor Dave Briggs looks at SoFi shares following a letter from the Senate's Banking Committee.
These supercharged income stocks, with yields ranging from 8.5% to 17.7%, were on billionaire money manager's buy lists during the third quarter.
With a price-to-earnings (or "P/E") ratio of 24.9x Blackstone Inc. ( NYSE:BX ) may be sending very bearish signals at…
When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") below 14x, you may…
For anyone looking to get ahead in the investing game, following in the footsteps of stock picking legends is an obvious path to follow. Hardly any are more legendary than George Soros, forever known as the ‘man who broke the Bank of England,’ after pocketing a cool billion dollars in one day when betting against the Pound back in 1992. That single act, however, does not define Soros, who has made sound investment decisions throughout his career which bought decades-long returns of 30% to his Qu
It's been an especially difficult year for the growth-focused Nasdaq Composite (NASDAQINDEX: ^IXIC). Innovative businesses that offer industry-changing potential can deliver big gains when the next bull market inevitably arrives. What follows are three remarkable growth stocks beaten down more than 90% from their respective all-time highs that can double your money by 2025.
Higher production and commodity price realizations aid BP's earnings in Q3.
Let's talk about the popular Ford Motor Company ( NYSE:F ). The company's shares led the NYSE gainers with a relatively…
AbbVie Inc. ( NYSE:ABBV ) will increase its dividend from last year's comparable payment on the 15th of February to…
Veru (NASDAQ: VERU), a biopharmaceutical company that looks for novel cancer therapies, particularly in breast cancer or prostate cancer, saw its shares drop 10.33% on Monday. The company's stock already lost $10 a share two weeks ago when a Food and Drug Administration (FDA) advisory panel voted 8-5 against approving sabizabulin, Veru's COVID-19 oral therapy, via the Emergency Use Authorization route. It's not the last word, but the FDA usually agrees with advisory panels' votes.
Despite launching multiple new products over the past few years, including meatless chicken tenders and jerky, that hasn't been enough to keep revenue from falling. The company blamed the underwhelming Q3 revenue numbers on a "challenging macro environment," and the reality is that might not be improving next year.
Activist investor Carl Icahn is holding a large short position in GameStop , according to reports. There are approximately 53,370,000 shares of GME sold short as of November, according to the website ShortSqueeze.
Wharton Professor Jeremy Siegel says 90% of U.S. inflation is already gone, but Bill Ackman is warning investors not to forget about deglobalization.
The legendary investor's holding company made a surprisingly big bet on this chipmaker in the third quarter.
When Warren Buffett buys shares of any company, it makes news. And the legendary investor has been busy buying lately. Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) added to its positions in several companies in the third quarter of 2022.
Bitcoin fell Monday on fears Grayscale Bitcoin Trust could be hit by Digital Currency Group's liquidity crunch as Genesis warns of bankruptcy

source



future-dyanmics

Related posts
News

Stock market news today: Nasdaq snaps win streak on weak tech earnings - Markets Insider

US stocks finished mixed on Wednesday, as the Nasdaq and S&P 500 snapped three-day win streaks…
Read more
News

Iowa Football: Hawkeyes morphing into unlikable football program? - Hawkeyes Wire

Somehow, things just seem to keep getting worse and worse for the Iowa Hawkeyes in 2022.Iowa (3-4…
Read more
News

NFL World Reacts To Unfortunate Ezekiel Elliott News - The Spun

ARLINGTON, TEXAS – OCTOBER 03: Ezekiel Elliott #21 of the Dallas Cowboys kneels in the endzone…
Read more
Newsletter
Join THE PRO PEOPLE Family

Sign up for The Pro People Community's Daily Digest and get the best of Industry updates, tailored for you.

Leave a Reply

Your email address will not be published. Required fields are marked *