Welcome to MarketBites! Here's all you need to know about yesterday's market news.
"The dictionary is the only place that success comes before work.”
- Vince Lombardi
PORTFOLIO MANAGER COMMENTARY
Stocks were mixed Monday in a volatile session to start a short trading week due to the Thanksgiving holiday. Fears that China may again ramp up Covid restrictions after reporting deaths from the virus weighed on markets, sending energy stocks and oil prices lower. Traders also looked for further signals from the Federal Reserve about future interest rate hikes. Cleveland Fed President Loretta Mester reiterated that rate hikes will continue, but that they may be smaller going forward.
“With 375 basis points of Fed rate hikes so far, an inverted yield curve, spikes in inflation, and commodity prices still a part of the narrative, we can all but conclude that we are late in the economic cycle,” Liz Young, SoFi’s head of investment strategy, said in a note this weekend.
The New York Stock Exchange will be closed Thursday for Thanksgiving and will have a shortened trading day on Friday. This week, traders will look forward to further speeches from Federal Reserve leaders as well as earnings reports from Best Buy, Nordstrom, Dick’s Sporting Goods and Dollar Tree.
CHART OF THE DAY
In the latest shakeup for the streaming services industry, Disney's board of directors on Sunday replaced CEO Bob Chapek with former Chairman and CEO Robert Iger. Although not the only factor in Chapek's departure by any means, Disney's streaming business has seen accelerating losses recently. Disney+ added 12.1 million new accounts in the three months ended Oct. 1, but quarterly losses at the company’s streaming business more than doubled from a year earlier. Shares of Disney rose 6.3% after the company announced the CEO change.