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. 

By Raymond Kanyo, CFA

Portfolio Manager

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)