May 6 (Friday)
Latest Morning Briefing Executive Summary:
Powell, Travel, Forward Earnings & Quantum Sensors
Investors liked the middle-of-the-road approach Fed Chair Powell laid out after yesterday’s FOMC meeting. We did too. … Travel-related industries are booming! Their Q1 earnings calls were brimming with optimism. Yet investors seem to have missed the memo: The share price indexes of most travel-related S&P 500 industries have plunged ytd ..: And it’s not just a travel thing: Most industries are seeing disconnects between earnings prospects and share price performance. Someone’s wrong: Either industry analysts are too optimistic in their estimates or investors too pessimistic about valuations. … Also: A developing technology with diverse potential uses: quantum sensors.
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YRI
Daily Markets Overview
Replay of Dr. Ed’s webinar on May 2.
Markets
Dow Slides More Than 1,000 Points as Investors Reassess Fed Comments | W
Stocks are tumbling. Here’s what to keep in mind | C
Elon Musk and Cathie Wood knock passive index investing, saying it’s gone too far | C
U.S. bonds: 10-year Treasury yield surges to 3.06% | C
Mortgage Rates Hit 5.27%, Highest Level Since 2009 | W
Central banks
Ex-Fed Vice Chair Richard Clarida Says Rates Must Rise to at Least 3.5% | B
Why the market is taking Powell’s ‘soft-ish’ economic language so hard | C
Fed, Biden Administration Float New Lending Rules for Lower-Income Areas | W
BoE flags risk of recession and 10% inflation as it raises rates again | R
US
Worker output fell 7.5% in the first quarter, the biggest decline since 1947 | C
‘Unretirement’ is becoming a hot new trend in the sizzling U.S. labor market | C
E-commerce stocks plummet as consumers pull back online spending | C
Here’s what Americans plan to spend more money on as inflation rises | C
Jim Cramer says he sees signs inflation is peaking | C
Why the child tax credit has not been expanded, despite Democrats’ support | C
Karine Jean-Pierre to Be Next White House Press Secretary | B
Europe
Germany to help eastern EU states without ports access LNG -Scholz | R
China
China’s Services Sector in Doldrums as Covid-19 Lockdowns Bite | W
Geopolitics & trade
Unexplained Attacks Inside Russian Territory Raise Prospect of Wider Conflict | W
Inside Ukraine’s Besieged Azovstal Steel Plant: Siphoning Fuel, Singing Songs and Surviving the Night | W
How Elon Musk’s Starlink Got Battle-Tested in Ukraine | foreignpolicy.com
Industries & companies
Consumer discretionary: Union leader slams Amazon’s labor practices at Senate hearing | C
Communications services: Digital-Ad Giants Google, Facebook, Amazon Come Down From Pandemic Highs | W
Communications services: Facebook Parent Meta Hits the Brakes on Hiring as Growth Stalls | W
Energy: The Most-Hated Solar Company in America | W
Corporate finance
Shell Takes $3.9 Billion Charge Related to Russia Exit | W
Bausch + Lomb Expected to Price IPO at Low End or Below Targeted Range | W
Elon Musk Gets $7 Billion in Fresh Financing for Twitter Deal | W
Musk to lead Twitter temporarily after $44 bln takeover – source | R
