July 28 (Thursday)
Latest Morning Briefing Executive Summary: The Fed, Earnings, Chips & AI
Investors cheered the Fed’s no-surprises announcement of another 75bps hike in the federal funds rate yesterday. Moreover, Q2 earnings reports have been confirming our soft-landing scenario for the economy, and S&P 500 companies’ earnings are expected to hold up respectably this year and next. … But Q2 reports revealed pain points for certain industries—e.g., retailers that cater to lower-income consumers felt the brunt of inflation-strained consumer budgets. … Semiconductor makers on Q2 calls addressed worries about customers’ inventory buildups. … And: What won’t AI be transforming? Today, we look at how AI is facilitating new drug development.
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YRI
Daily Markets Overview
Replay of Dr. Ed’s webinar on July 25.
Markets
Dow rallies 400 points as Powell hints Fed could slow pace of rate hikes, Nasdaq jumps 4% | C
OPEC+ Walks a Fine Line on Oil Output: Elements by Julian Lee | B
Nasdaq has biggest one-day jump since 2020 after Fed rate hike, Powell comments | R
Powell says markets have been orderly as Fed has hiked rates | R
Energy
Energy Prices in Europe Surge After Russia Slashes Gas Flows | W
Central banks
Fed decision July 2022: Fed hikes interest rates by 0.75 percentage point | C
Fed raise rates again, says will not relent in inflation fight | R
Fed’s Powell: Another ‘unusually large’ rate increase may be warranted at next meeting | R
Dudley Says Fed Will Hike Interest Rates Much Further Than What Markets Expect | B
Widely Watched Yield Curve at Most Inverted in Decades After Fed | B
Fed Chair Jerome Powell said he does not think the U.S. is currently in a recession | C
US I
U.S. economy probably barely grew last quarter and may have contracted | C
What Is Stagflation? What to Know About the Combination of High Inflation and Stagnating Economic Growth | W
How U.S. Inflation Expectations Are Being Shaped by Consumer Choices | N
Cost of living crisis? Consumers keep spending for now | R
US II
US Budget Deficit to Hit Lowest Since 2018 This Year, CBO Says | B
CBO Expects Significant Rise in Public Debt Burden, Deficit | W
Midterm Elections 2022: The Political Guessing Game Just Got Weirder | B
Boise’s Housing Market Boomed Early in the Pandemic. Now It Is Cooling Fast. | W
China
China’s Wuhan Province Locks Down District With One Million People | W
Geopolitics & trade
Russia cuts gas flows further as Europe urges energy saving | R
U.S., Europe Dig In for Long Economic Standoff With Russia | W
Ukraine Strikes Crucial Bridge in Russian-Occupied South | W
Biden to Speak With Chinese President Xi on Thursday | W
Semiconductor Subsidies, Tariffs Are the Price of Reducing Dependence on China | W
Industries & companies
Hotels: Everybody Into the Hotel Pool! That’ll Be $200. | W
Retail: Walmart Discounts, Falling Gas Prices Could Help Consumers | B
Retail: Best Buy cuts sales forecast as inflation pressures shoppers | C
Corporate finance
Spirit and Frontier End Merger Agreement | W
Beyond markets
A radical vision for reinventing the suburbs | fastcompany.com
The Unsolved Mystery Attack on Internet Cables in Paris | WIRED
