Welcome to MarketBites! Here's all you need to about yesterday's market news.
Quote of the day:
"The stock market is a device to transfer money from the impatient to the patient.”
- Warren Buffett
📅 Daily Stock Market Thoughts
Stocks finally experienced a broad-based rally on Tuesday that we haven't seen in over three weeks. The tech-heavy NASDAQ led the market gains with mega-caps such as Apple and Google bouncing back from Monday's selloff. What's behind the bullish sentiment?
Earnings have been a mixed bag, but it seems they are not as lackluster as the market was expecting. So far, banks struggled to impress, IBM showed weakness, and Johnson & Johnson (J&J) beat estimates but warned of foreign exchange headwinds due to the dollar's recent rise. A strong dollar lowers the overseas profits of American companies. Therefore, Tuesday's pullback in the dollar against all Group-of-10 peers except the yen helped buoy investor sentiment.
In Europe, the European Central Bank is expected to raise interest rates by either 0.25% or 0.50% for the first time in more than a decade in an effort to fight inflation. Meanwhile, the European Union is preparing to tell members to cut gas consumption "immediately" to preserve supplies for the winter.
📊Chart Of The Day
Here is an interesting table put together by The Macro Compass, showing inflation before and after a recession. The research indicates that recessions are the kryptonite of inflation.
What Else Is Happening:
- Netflix loses 970,000 subscribers for the quarter - (read here)
- Twitter vs Musk trial is set for October - (read here)
- India's Rupee hits low against USD - (read here)
- Amazon sues Facebook over fake reviews - (read here)