Welcome to MarketBites! Here's all you need to about yesterday's market news.
Quote of the day:
"Life is not a problem to be solved, but a reality to be experienced."
- Soren Kierkegaard
PORTFOLIO MANAGER COMMENTARY
The markets cooled off Wednesday, clawing back at recent gains across the board. The S&P 500, Dow Jones Industrial Average, and Nasdaq all finished in the red at -0.72%, -0.50%, and -1.25%, respectively. The Federal Reserve’s meeting minutes provided slight comfort to investors by suggesting they will keep raising rates while being sensitive to the risk of going too far.
The Dow and S&P rose minutes after the minutes were released but quickly retreated back down after unfavorable earnings reports from large retailers such as Target. Target’s profit fell 90% as they have struggled with a massive stockpile of excess inventory.
A new report from J.P. Morgan strategists predicts that global inflation will halve to 4.7% in the second half of 2022, with U.S. inflation decreasing to an annualized rate of 3%. Western Europe, on the other hand, is forecasted to have an 8% annualized rate due to rising natural gas prices, which could lead to a recession. In the U.K., consumer price inflation hit 10.1% which is the fastest increase among G7 countries since the beginning of 2021.
CHART OF THE DAY
A severe drought and some of the hottest weather on record have scorched fields and driven a historically high level of abandonment in the Southwest.
Investment Analyst
WHAT ELSE IS HAPPENING
- Elliot ponders Phillip Morris deal - (read here)
- Cisco beats earnings across the board - (read here)
- Fed foresees rate hikes into the future - (read here)
- CVS, Walmart, Walgreens, ordered to pay for opioid case - (read here)