Skip to main content

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

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.

This image was created by Yahoo Finance using the Dall-E image generator. (Open AI)
This image was created by Yahoo Finance using the Dall-E image generator. (Open AI)

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.

What to Watch Today

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)

Yahoo Finance Highlights

—

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

Techyrack Website stock market day trading and youtube monetization and adsense Approval

Adsense Arbitrage website traffic Get Adsense Approval Google Adsense Earnings Traffic Arbitrage YouTube Monetization YouTube Monetization, Watchtime and Subscribers Ready Monetized Autoblog



from Investing – My Blog https://ift.tt/PeXKV6U
via IFTTT
Labels:

Comments

Post a Comment

Popular posts from this blog

These money and investing tips can give you a smooth ride in a rough market – MarketWatch

Don’t miss these top money and investing features: Sign up here  to get MarketWatch’s best mutual funds and ETF stories emailed to you weekly! INVESTING NEWS & TRENDS How to approach rebalancing your portfolio for 2023 It’s not a good idea to rebalance your portfolio at preset intervals Read More Bonds aren’t more attractive than stocks even as yields register a 15-year high The S&P 500’s return is similar when the 10-year Treasury yield is high or low. Read More Here’s who’s been trading crypto, and how they’re doing A new study finds that most people who entered the cryptocurrency market have lost money — and that those people are young men. Read More BlackRock sees these thematic ETFs potentially outperforming in 2023 In this week’s ETF Wrap, MarketWatch spoke with BlackRock’s Jay Jacobs on investing themes he likes for 2023 as investors worry about a slowing economy and monetary tightening. Read More Three seasonal effects in the stock market begin around T...
Post a Comment
Read more

Four months until SACSCOC visits Auburn: Four things you might not know about SACSCOC – Office of Communications and Marketing

Notice body There’s less than four months remaining until Auburn University’s accrediting body, the Southern Association of Colleges and Schools Commission on Colleges, or SACSCOC, arrives for its on-site visit. As the Accreditation team prepares for the on-site phase of the reaffirmation process, we want to share four things you might not know about SACSCOC: 1. SACSCOC is self-governed by the accredited institutions SACSCOC’s Principles of Accreditation requires a model of shared governance of its member institutions and holds itself to the same standards. The Commission on Colleges is operated by the SACSCOC Board of Trustees. The 77 Board members are elected by the College Delegate Assembly, or CDA, which is comprised of one voting representative from each of the 780 SACSCOC-accredited institutions. Each representative is the president or other chief executive of their respective college or university. In other words, the election of SACSSCOC’s leadership is in the hands of its ...
Post a Comment
Read more

5 YouTube features to use to boost engagement – Sprout Social

When you want to explore a new hobby or learn something new, where do you go? The answer is probably “YouTube.” The second-most popular social platform has come a long way since the “Charlie bit my finger” days. And new YouTube features are making it even more beneficial to marketers and creators—YouTube Shorts topped 1.5 billion monthly users in just two years. With 51% of consumers anticipating YouTube will be one of the social media platforms they use most this year, it’s a digital space your audience most likely uses. But with 500+ hours of content uploaded to YouTube every minute, high popularity also means high competition. Whether you’re new to YouTube or conducting a YouTube audit , using some of these features can help you stay ahead, grow your audience and give your channels a boost. 5 free YouTube features you need to use more often To help your audience find your videos in YouTube and Google search alike, you need to use the right tools. From underused YouTube sear...
Post a Comment
Read more