Welcome to MarketBites! Here's all you need to know about yesterday's market news.
“Success is not final; failure is not fatal: It is the courage to continue that counts.”
- Winston S. Churchill
PORTFOLIO MANAGER COMMENTARY
Markets rose early in the day before ending slightly down in the red. Still, markets are on pace to end the week about 5% higher. Energy was the best-performing sector gaining % in the midst of higher energy prices.
U.S. gas prices are climbing back up after a 100-day decline, threatening consumers who have been grappling with widespread inflation for over a year. Recent tighter gas supplies have contributed to a 14-day run of increasing gas prices. Even more recently, the decision by OPEC+ and its Russian-led allies on Wednesday to cut oil production by 2 million barrels a day will further exacerbate prices. The White House has openly called the move shortsighted and will explore measures to protect U.S. consumers.
Google unveiled its new flagship Pixel phones as well as its first smartwatch, which has Fitbit built in. Although the Pixel has been gaining momentum, it is still just a fraction of the phone market. The previous Pixel Series 6 was the company's "fastest-selling Pixel ever" according to CEO Sundar Pichai. The company is now hoping to carry that momentum into the new Pixel 7.
Investment Analyst
CHART OF THE DAY
The World Trade Organization (WTO) has noticed a sharp slowdown in global trade, pointing to a possible recession. The WTO expects exports and imports to increase by 1% in 2023, down from its previous forecast of 3.4%. As the chart below indicates, factories around the world are reporting a decline in new orders from overseas buyers. High inflation, borrowing costs, and supply disruptions are the main factors causing this slowdown.
By Kevin Hurley
Investment Analyst
WHAT ELSE IS HAPPENING
- Iran's crippled economy prevails (read here)
- President Biden approves more aid for Ukraine (read here)
- Chess investigation finds Grandmaster likely cheated over 100 times (read here)
- Streaming bundles forming, but don't expect cable TV packages (read here)