Optimism In The Market📈
Jan 19th 2023, 4:16 am
|The Street Brief
A Great Start
- A great start to the year, as traders increased their risk-taking as sentiment improved. Before, two FED members threw cold water on the markets by hinting that interest rates could go up to 5%, which led to a rise in tech stocks.
- Investors aim to build on recent gains, so the American stock market appears set for a good week's start. It's important to note that the pre-market trading strength of the broader equities futures has been suggesting a potential upward bias for today's session.
- Meanwhile, investors' attention will likely be primarily focused on corporate profits and inflation in the coming days.
BBBY - The Moment Of Truth
- Bed Bath & Beyond's $BBBY is in a financial bind and out of time. Its customers are fewer, its store traffic is declining, and it is having trouble replenishing inventories a result, the company's existence will depend on the earnings call today.
- Retail stock forums, notably Reddit, were humming with talk of a potential M&A deal before the earnings call, fueling a purchasing frenzy.
- However, the spike followed a warning from the company last week that it might not be able to continue as a going concern and might need to file for bankruptcy, according to Reuters.
Source: Yahoo Finance
Earning Season Starts
- Q4 results season will start in the corporate world later this week, starting with JPMorgan Chase $JPM, Citigroup $C, Bank of America $BAC, and Wells Fargo $WFC on Friday.
- It should be noted that large banks offer mortgages and loans to broadside a spectrum of households and lend to a diversified variety of commercial firms operating across several industries.
- The forthcoming earnings season will be particularly significant since businesses will disclose their final 2022 financial results and give preliminary 2023 earnings guidance.
- Tech Giants: Stocks surged Monday on speculation the FED could slow rate hikes. Tech stocks, which have been hit hard, drove the Nasdaq100 up over 2%. Thursday's CPI could indicate inflation is cooling, which could pave the way for more equity buyers.
- Asia Rises: After a difficult 2022, analysts predict that Asian stock markets will have a better year in 2023. As China shifted from substantial COVID-19 limitations, the Chinese market started to strengthen in November last year. This bull market turning point comes after the MSCI Asia index's approximately 40% decline from its top at the beginning of 2021.
- European Stocks Lower: After US Federal Reserve policymakers reaffirmed that interest rates would likely remain above 5% for the majority of 2023, European markets dipped on Tuesday, dampening investor confidence ahead of this week's release of US inflation data for December.
- Amazon to shut three warehouses: In its most recent round of employment cuts, $AMZN has announced that it will close three UK facilities in 2023, affecting 1,200 people's jobs.
Source: Yahoo Finance