The possibility of a recession was a hot topic on Monday as stocks opened the week with a volatile, uneven session.
Over the weekend, former Goldman Sachs CEO Lloyd Blankfein told CBS’ “Face the Nation” that a recession is “a very, very high risk.” factor”. A few other calls met that opinion Monday morning.
For example, the Wells Fargo Investment Institute said “we strongly believe the probability of an outright recession in 2022 remains low,” but sees an increasing likelihood of an economic contraction in 2023. UBS strategists say the chances vary – their global economists say “hard data” suggests a less than 1% chance of a recession in the next 12 months, but the yield curve implies a 32% chance sex.
“There is no crystal ball to predict what will happen next, but historical trends can play a role here. [S&P 500] Chris Larkin, managing director of trading at E*Trade, added that the close was 15% lower than its weekly record and that there have only been two times in the past 60 years that the market has not fallen into a bear market following a similar decline. “That doesn’t mean it’s bound to happen, but there is potential downside.
Larkin says watch out Key Retail Earnings This Week — which will officially begin in Walmart’s report on Tuesday — to check the pulse of American consumers.
Monday itself was a fairly quiet event. Exxon Mobil (XOM+2.4%) and Chevron (CVX+3.1%) is from energy sector (+2.7%) surged after U.S. crude futures rose 3.4% to $114.20 a barrel.
Twitter (TWTR-8.2%) after the share price fell Tesla (Tesla, -5.9%) CEO Elon Musk spent the weekend questioning how much of Twitter’s traffic came from bots. Wedbush analyst Daniel Ives said the move felt more like a “‘dog ate homework’ excuse to bail on Twitter or lower the price.” TWTR stock has now given up on its own Musk announces his stake in the social platform.
The major indexes ended mixed, with mostly weak results.this Dow Jones Industrial Average managed to get a marginal gain of 32,223, but S&P 500 fell 0.4% to 4,008, while Nasdaq Composite It fell 1.2 percent to 11,662.
Also of note: Warren Buffett’s Berkshire Hathaway will soon file its quarterly Form 13F. check back Tonight, as we examine what Buffett has been buying and selling.
Other stock market news today:
- small cap Russell 2000 It was down 0.3 percent at 1,786 at the close.
- Gold Futures It rose 0.3 percent to settle at $1,814 an ounce.
- bitcoin Down 1.6% to $29,551.92 (Bitcoin trades 24 hours a day; prices reported here as of 4pm)
- JetBlue Airways (JBLU-6.1%) increased the pair Spirit Airlines (save+13.6%) on Monday, urged SAVE shareholders to vote against low-cost airline takeover bid Frontier Group Holdings (Supercritical, +5.9%). JBLU last month offered to buy Spirit Airlines for $33 a share — a premium to ULCC’s $21.50 a share proposed in February — but SAVE’s board rejected the bid, citing concerns about regulatory approval. JBLU followed up in early May with an “enhanced superior proposal” that included paying a reverse breakup fee of $200 million or $1.80 per SAVE share in case regulators blocked the deal.
- Warby Parker (WRBY) fell 5.0 percent after the eyewear maker reported a first-quarter loss of 30 cents per share. That was much larger than the 3 cents per share loss the company reported in the year-ago period and missed consensus estimates of breakeven per share. Revenue of $153.2 million also missed analysts’ expectations. WRBY did maintain its full-year revenue guidance of $650 million to $660 million. Zachary Warring (Buy), analyst at CFRA Research, said: “We are cautiously optimistic about the stock as WRBY continues to show the ability to grow revenue, open new stores, and be recession-resistant as a low-cost option for non-discretionary spending. “We see the company using SG&A to be profitable in the second half of 2022.”
View Dividend Royalties in Europe
Investors are looking for more stability in the uncertain U.S. market…well, the rest of the world is clearly volatile too. But that doesn’t mean there aren’t a few bites worth taking.
BCA Research noted that while there was negative news around the world, “European benchmarks have dispelled a significant portion of the negative news.” Looking ahead, inflation is expected to peak in the summer “as commodity impulses are decelerating” – which will help to ease concerns about stagflation and help European equities.
Graham Secker, chief European and U.K. equity strategist at Morgan Stanley, said his firm remains “overweight” [European] Stocks that offer high and safe dividend yields. “
We have previously emphasized Our Favorite European Dividend Stocksand overall, its output tends to be higher than its U.S. counterparts.
But we also want to focus on Europe’s twist on the US income club: Dividend Aristocrats. S&P Europe 350 Dividend Aristocrats qualify differently than theirs American Brothersbut in general, they have proven their ability to deliver steady and growing dividends over time.
Continue reading as we watch European Dividend Noble.
