Stocks rose on Monday as traders rebounded after the S&P 500 and Nasdaq Composite suffered their worst weekly declines in nearly two months.
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The Dow Jones Industrial Average rose 291 points (0.86%). The S&P 500 Index rose 0.89% and the Nasdaq Index rose 1%.29%.
Microsoft and Salesforce led Dow’s growth, up 3.6% and 1.8% respectively. The technology sector is the most successful sector in the S&P 500, up more than 1%.
All three major indices are ending the week losing money.
Last week, the Dow fell 0.17%. Meanwhile, the S&P 500 was down 1.11% and the high-tech Nasdaq was down 2%. 41%, representing the largest weekly loss since December.
These actions come after Fed Chairman Jerome Powell said there was still a long way to go in the fight against inflation.
Powell also noted that if inflation figures do not ease, interest rates could rise more than the market expects, which will change the market’s initial optimism that rate hikes will ease soon.
Investors will receive additional data on inflation this week. On Tuesday, the CPI report for January will be released, which will show whether inflation continues to slow amid the central bank rate hike.
“The market is starting to sense that the very comforting disinflation story is more complex than we’d like it to be,” Mohamed El-Erian, chief economic advisor at Allianz.
The final leg of earnings season also continues this week, with Coca-Cola, Marriott, Cisco, Marathon and Paramount.
So far, companies have reported worse-than expected results, making this year the worst earnings season in more than two decades, excluding recessions, according to Credit Suisse.
Bank of America upgrades Ralph Lauren:
Bank of America upgraded Ralph Lauren to buy from neutral, saying the apparel brand can pull away from its peers as retailers deal with a promotional backdrop.
“We are upgrading Ralph Lauren (RL) to Buy to reflect our confidence in strong revenue trends continuing given the brand’s global diversification and management’s ability to pull cost levers in this choppy environment (the new norm),” analyst Christopher Nardone wrote in a Monday note.
Earnings calls highlighting ‘resilient’ consumer spending at odds with recession narrative
Give “resilience” a chance, not “recession.”
That’s one of the messages of recent corporate earnings conference calls, where references to “resilient” consumer spending is at least as prominent to references to a looming recession.
Look at these:
MasterCard — “Consumer spending has remained resilient…From an overall consumer spending standpoint, we expect the consumer to be relatively resilient. Spending patterns have largely normalized relative to the effects of the pandemic with the notable exception of China.”
Ralph Lauren — “Our core consumer remains quite resilient.
This is true globally and across all channels.”
Mondelez — “Consumers are still robust and resilience is still well below normal levels.”
Kellogg — “Consumers in our space are surprisingly resilient.
Kimberly-Clark — “Consumer demand in our category remains very strong across the board.” is currently solid. Our brand is very sustainable.”
Goodyear Tire — “[Tire] replacement volume was helped by US consumers and remained solid in the fourth quarter.”
Dow — “Declining inflation, albeit at a low level at the end of 2022, boosts consumer confidence while consumer spending remains resilient.”
Merck — “Consumer is truly a resilient business, very strong through this cyclical environment, January is off to a really good start.”
JPMorgan resumes coverage of Disney with an overweight rating:
JPMorgan resumed coverage of Disney with an overweight rating, and a December 2023 price target of $135 that implies shares could advance more than 20% through year-end.
“While we are cautious on the media landscape overall due to sustained streaming losses and advertising headwinds, Disney is our favorite name among the group due to the company’s strong asset mix and what we expect to be a rapid decline in streaming losses in the next year,” analyst Philip Cusick wrote in a note Monday.
Stocks rise to start the week:
Stocks rose slightly at Monday’s open as traders regained their footing after the S&P 500 and Nasdaq Composite suffered their worst weekly declines in nearly two months.
The S&P 500 climbed 0.17%. The Dow Jones Industrial Average rose 41 points (0.12%) and the Nasdaq Composite Index rose 0.29%.
Credit Suisse says it’s “worst reporting season” in 24 years excluding recession: Contract 2.
2% as a result of weak margins.
The EPS estimate is down 1.7% since the fourth quarter ended December 31st. The company stated that, on average, earnings estimates increase by a factor of 2.
8% per quarter.
Credit Suisse’s US equity strategist Jonathan Golub said it was “the biggest drop in 24 years outside the 2001 recession, financial crisis and the first quarter of the pandemic.” The company said it expects earnings-per-share growth to decline in the first quarter of 2023 as well.
Morgan Stanley downgrades logistics stock XPO:
Morgan Stanley downgraded XPO to equal weight from overweight following what he considered a lackluster quarter for the less-than-truckload (LTL) shipping company. LTL refers to the transportation of smaller freights that often don’t require the use of an entire trailer.
“The 4Q print was tougher than expected and we believe the stock could be in a ‘penalty box’ for a while, as the market seeks more evidence on execution and traction toward LT targets,” analyst Ravi Shanker wrote in a Monday note.
Bowman sees Fed ‘far from’ inflation goal, indicates more rate hikes:
Federal Reserve Governor Michelle Bowman expects interest rates to continue to rise until the central bank makes more progress against inflation.
In a speech Monday morning, Bowman did not provide a specific forecast for rates.
But she indicated that there’s more work to be done, following eight increases since March 2022.
“We are still far from achieving price stability, and I expect that it will be necessary to further tighten monetary policy to bring inflation down toward our goal,” she said in remarks before the American Banking Conference in Orlando, Fla.
“While there are costs and risks to tightening monetary policy to lower inflation, I see the costs and risks of allowing inflation to persist as far greater,” she said.
Bowman also spoke on banking regulation, saying she does not think it’s the Fed’s place to direct institutions on which sectors where they should be allowed to lend. Congressional Democrats have pushed the Fed to discourage lending to fossil fuel companies.
Recent pullback in stocks could be a pause that refreshes growth; Oppenheimer:
Last week’s dismal stock performance could be a pause that ultimately refreshes the market’s upward trajectory, according to John Stoltzfus at Oppenheimer. It may also be a good opportunity for investors to bolster their portfolios with winners poised to gain.
“We remain positive on equities and consider the current retracement as an opportunity for investors to seek out ‘babies that got thrown out with the bathwater’,” Stoltzfus wrote in a Monday note, referring to good-quality stocks that get sold off in market downdrafts.
“In our experience of nearly four decades in the markets, fed fund cycles that take time to work out are never easy to experience but can be rewarding for investors who practice diversification and exercise patience,” he added.
One of the firm’s favorite investment mantras during such periods is “know what you own and why you own it relative to your investment goals, objectives and tolerance to risk and right size your expectations.
According to the memo, this advice is particularly useful at a time when markets are adjusting to new normals.
Morgan Stanley, XPO Logistics Share Downgrade:
Morgan Stanley downgraded XPO stock from Overweight to Equal Weight, citing a disappointing fourth quarter report.
Morgan said in a memo, “Q4 results were weaker than expected, and we believe stocks may be in the “penalty box” for some time as the market seeks more evidence of execution and long-term commitment,” Stanley Monday said. .
Q1 Equity Highs, JPMorgan Report:
Stocks have been rising since October, with the S&P 500 up 14.4% since closing at 3577 in October 12 . But JPMorgan doesn’t think the boom will last.
“Overall, we think we hoped the rally in equities that started last October was fueled by top bond/CPI yields, China’s opening up and falling gas prices in Europe,” equity strategist Mislav Matejka said in a note on Monday. “In our view, Q1 is likely the peak for the market,” he wrote.
Matejka also noted a preference for international stocks over U.S, especially as a technology, will likely continue to struggle in the future.
Originally published at https://businessdor.com on February 13, 2023.
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ChatGPT Reaches 100 Million Users Two Months After Launch
With unprecedented adoption, AI chatbots could become the fastest-growing consumer internet app ever, analysts say.
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There were about 590 million visits from 100 million unique visitors in January, according to data firm Similarweb analysis. Analysts at investment bank UBS said the growth rate is unprecedented for a consumer app. UBS analysts said, “In the 20 years since the Internet space was born, we cannot recall the rapid expansion of consumer Internet apps.
By comparison, apps It took TikTok about nine months from global launch to reach 100 million users, while Instagram took more than two years, according to data from analytics firm Sensor Tower.
ChatGPT can generate articles, essays, jokes, poems and resumes in response to text prompts. His OpenAI, a private company backed by Microsoft, opened to the public for free in late November.
OpenAI also developed an AI-powered image generator, Dall-E, which is at the forefront of generative AI, a technology that can be trained on large amounts of text and images to create content from simple text input.
On Thursday, OpenAI announced a $20 monthly subscription, initially only for US users. The company says this will not only provide a more stable and faster service, but will also allow new features to be tried out first.
Analysts believe ChatGPT’s viral launch will give OpenAI a first-mover advantage over other AI companies. The increased usage cost OpenAI a significant computational cost, but also provided valuable feedback for training chatbot responses.
San Francisco-based OpenAI says subscription revenue helps cover computing costs.
Last month, Microsoft announced another multi-billion dollar investment in his OpenAI in cash and cloud computing deployments.
On Wednesday, Microsoft announced a premium version of its Teams product powered by ChatGPT and offering additional AI-powered features such as auto-generated meeting notes. This tool can also divide the meeting summary into sections based on the minutes.
Understand short-term investment strategies:
Short-term investment strategies are ideal for storing and accumulating cash that you will need within five years. They rely on lower-risk assets that provide more liquidity, such as bonds and interest-bearing accounts. It doesn’t generate huge returns like you see in the stock market, but it can generate some income because it’s less risky and more flexible.
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If you want to learn about Investing from scratch go to Investing Basics
Examples of short-term investment strategies:
Current assets include bonds, cash and cash equivalents. Many combine features such as overdraft programs, letter and deposit confirmations, bill payments, money transfers, and even his FDIC or NCUA insurance.
High Yield Savings Accounts:
High Yield Savings Accounts pay higher interest rates and generate more income than regular bank accounts. These guaranteed liquid assets often offer benefits such as writing checks, paying bills, and transferring money. However, monthly withdrawal limits or minimum balance requirements may occur.
Money Market Accounts:
Money Market Accounts combine the features of savings and checking accounts (insurance, interest income, debit cards, etc.). However, you may face monthly withdrawal or deposit requirements. Interest rates may also fluctuate depending on the average balance.
Certificate of Deposit (CD):
Think of a CD as an insured savings account that locks cash against guaranteed earnings. CD deposits earn fixed interest rates over months to years. (The larger the deposit and the longer the maturity, the higher the interest rate usually.) Unfortunately, you won’t have access to the cash until maturity, and you’re out of luck when interest rates rise.
Cash Management Accounts:
Some investment firms offer cash management accounts to consolidate investors’ financial services in one place. Many of them pay higher interest rates than regular bank accounts, have check-issuing privileges, savings programs, and even lines of credit. But be aware of maintenance fees and minimum balance requirements.
Money Market Funds:
Money Market Funds are uninsured products issued by investment companies and brokers. These funds pool investors’ capital to purchase high-quality, low-risk securities such as bonds, government bonds and cash equivalents. While generally easy to withdraw, these are not risk-free investments and management fees can hurt your profits.
Government Bonds and Pension Funds:
Government bonds are essentially loans made to the government in exchange for interest income. You can choose from a variety of maturities and interest rates, or (preferably) sell your bonds on the open market for a profit. Alternatively, you can buy bond funds with spread maturities and interest rates.
However, bonds are not without risk. When interest rates rise, bond values typically fall. Also, while corporate bonds offer higher yields, they also carry a higher risk of default.
Treasuries:
Treasuries are short-term bonds that either accrue interest or can be sold for less than their actual value to be redeemed later. The Treasury does not raise state or local taxes, but they typically have low yields and carry interest rate risk.
How do short-term investments affect you?
Short-term investments provide flexibility, liquidity, and benefits in short-term money accounts. It also promotes diversification to complement long-term strategies.
A Wise Investing Guide: Things To Consider When Investing in Your 20's
Investing in your 20s: Investing plays an important role in determining one’s lifestyle and future, and it is considered ideal to invest early.Therefore, investing wisely in your 20s Planning and executing a strategy is a great idea because it allows you to invest more money with less responsibility and get a decent return in the future. Helps you keep investing. This is another advantage.
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If you want to learn about Investing from scratch go to Investing Basics
- Learn the basics of personal finance
To invest, you need to know personal finance because it helps you manage your money effectively. Various concepts fall under the umbrella of personal finance, including money management, savings, investments, banking, budgeting, mortgages, investments, insurance, retirement planning, and tax planning. Before you start investing, you should have at least a basic knowledge of these concepts. - Choose Your Investment Goals Carefully
Investing with your goals in mind is the best way to go. The goal is as simple as buying a car to build future wealth. It should be understood that goals should be divided into short-term, medium-term and long-term goals. Breaking down your goals and achieving them individually gives you a clear picture of how much you’re investing and how much you’re likely to get in return. - Follow the 50:30:20 Rule
A basic rule that all beginners should follow is the 50:30:20 Rule. According to this regulation, an investor must allocate his 50% of the funds to meet the requirements. - Diversify your investments
Investors in their 20s should always diversify their portfolios, investing in equity instruments as well as debt securities to balance them. This helps us adapt to market conditions. Investors should also try to keep investing for the long term in order to get good returns. - Review and Rebalancing
Given all of the above, young investors should continue to adapt to market conditions and rebalance and rebalance their portfolios to achieve the best returns. There may be scenarios in which investors change their investment goals. In that case, you should review your portfolio and rebalance it to meet your new goals.
Celebrities who passed away in 2023 (So Far)
The entertainment world has said goodbye to many personalities from the worlds of music, film and television in 2023. Scroll down to see all celebrities who have died so far in 2023, including Lisa Marie Presley, Jeff Beck, and more.
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Gangsta Boo
Rapper Gangsta Boo, formerly of the hip-hop group Three 6 Mafia, passed away on January 1, her representative said Variety. She was 43.
Adam Rich
Adam Rich passed away on January 7. He was a former child actor best known for playing the youngest child in the ABC comedy “Eight Is Enough.” He was 54.
Fred White
One of Earth Wind & Fire’s two drummers during the band’s most prosperous decade, 1974–1984, Fred White passed away on January 9 at the age of 67.
Jeff Beck
One of the most inventive and undoubtedly surprising guitar idols of the 1960s, Jeff Beck passed away on January 10. He was 78.
Ben Masters
Ben Masters, who portrayed Julian Crane in the daytime soap “Passions,” passed away on January 11 in Palm Springs, California, from COVID-19 after a protracted battle with dementia. He was 75.
Carole Cook
Carole Cook, a seasoned stage and screen performer who was Lucille Ball’s protege, passed away on January 11 in Beverly Hills, California, from heart failure. She was 98.
Robbie Bachman
Robbie Bachman, a co-founder and drummer for the hard-rocking Canadian band Bachman-Turner Overdrive in the 1970s, passed away on January 12 at the age of 69.
Lisa Marie Presley
Elvis Presley’s only child Lisa Marie Presley, whose turbulent existence also featured a music career, passed away on January 12 at a hospital in Los Angeles. 54 years old.
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United Kingdom & United Arab Emirates reach investment agreement to strengthen energy security.
The UK and UAE governments today confirmed their shared goals for clean energy investment and cooperation by signing the Clean Energy Memorandum of Understanding (MoU).
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The UK and UAE governments have signed a Memorandum of Understanding (MoU) which will help facilitate the sharing of technical knowledge, advice, skills and expertise, opening up new avenues for cooperation on energy and climate, while boosting jobs and investment in the UK.
The Clean Energy MoU, which today was signed by the UK Business and Energy Secretary Grant Shapps and the UAE Minister of Energy and Infrastructure, His Excellency Suhail Mohammed Al Mazrouei, during the Abu Dhabi Sustainability Week, will further reinforce the robust economic links between the 2 countries developed in the nations’ 2018 MoU on Cooperation in the Field of Energy.
The MoU has been expanded to encompass the full scope of bilateral co-operation, including the new low carbon super fuel hydrogen. This builds on ADNOC — the UAE’s largest energy company — taking a 25% stake in the design stage of BP’s blue hydrogen project, H2Teesside, last year. It also acknowledges the progress the UAE has made so far on climate action, their ambition for clean energy investment and their call for finding energy solutions with like-minded partners.
Business and Energy Secretary Grant Shapps said:
The UK is immensely proud of its longstanding relationship with the UAE. Today’s latest agreements provide further evidence that not only are we are strengthening our energy security and lowering bills for consumers in the long term, we’re unlocking huge opportunities for investment in British expertise and jobs in the process.
International cooperation on energy and climate with close partners like the UAE is vital and as they take centre stage as hosts of COP28 later this year, they will have our full support every step of the way.
Memorandum of Understanding:
The MoU represents a strengthening of collaboration between the UK and the UAE and follows hot on the heels of the Partnership for the Future (P4F), which was signed during His Highness President Sheikh Mohammed bin Zayed Al Nahyan’s visit to UK in September 2021 and provided a clear statement of our collective energy ambitions.
The P4F is complemented by the existing Sovereign Investment Partnership (SIP), agreed in March 2021 to serve as a coordinated investment framework to grow a future-focused relationship between the two nations, driving economic recovery, jobs and growth.
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Six Good Neighbor Clubs in Metro Atlanta received new technology as part of a special MLK Day of Service event that employees and volunteers concluded a two-day initiative with.
In Atlanta The Atlanta Hawks and State Farm teamed up for a special Innovation Expo and Technology Gifting event at the Bessie Branham Park and Recreation Center in Atlanta’s Kirkwood area to honour Dr. Martin Luther King Jr.’s legacy of ensuring educational resources for all.
With help from Hawks and State Farm volunteers, 50 students were ushered to various demonstration stations where they learned from IT professionals how various technologies are used. The stations included participating in a 3D printing station, drone station, STEM kit station, and a video editing and mirrorless camera station.
“Today, we proudly honor the life and legacy of Dr. Martin Luther King Jr. and celebrate his vision of providing service, education and resources for all,” said Hawks’ Vice President of Corporate Social Responsibility and Basketball Programs Jon Babul. “Together with our partners at State Farm, and through events like today’s Innovation Expo and Tech Gifting, we are committed to advancing Atlanta’s youth and providing safe spaces where they can learn and grow.”
Image: Source
Joining on site to assist were members of Hawks Entertainment including Harry the Hawk, the Flight Crew and the ATL Hawks Dancers.
The event on Friday concluded a larger two-day community service initiative where members of the Hawks and State Farm provided six Good Neighbor Clubs with new technology to increase students’ interest in STEAM (science, technology, engineering, art and math).
“Dr. Martin Luther King Jr.’s influence and legacy continues to inspire us to serve our communities,” said Tanya James, Corporate Responsibility Manager at State Farm. I’m here. “We are honored to work with several State Farm employees and our community partner, the Atlanta Hawks, to honor him.
Hawks and State Farm executives worked with six goodneighbor clubs to determine each club’s technical and equipment needs.
The Clubs that were recipients included Bessie Branham Park and Recreation Center, Coan Park Recreation Center, Lynwood Park and Recreation Center, N.H. Scott Recreation Center, Ron Anderson Recreation Center, and William Walker Recreation Center.
Items requested included 3D printers, cameras, ceiling projectors, charging stations, drones, flat screen TVs, gaming consoles, laptops, STEM Kits, tablets and more.
“We would like to thank the Atlanta Hawks and State Farm for their generous gift of technology equipment for the Good Neighbor Clubs,” said City of Atlanta Department of Parks and Recreation Community Facility Manager, Andre Brown. “This tech gifting will help us better serve the community in a way that Dr. King elevated the mindset of a nation to bring forth educational resources for all.”
The Hawks and State Farm have led efforts in multiple community-focused initiatives to better serve Metro Atlanta.
In addition to today’s Innovation Expo and Technology Gifting at the Bessie Branham Park and Recreation Center, the Hawks and State Farm have previously teamed up to open seven other Good Neighbor Clubs in locations such as: William Walker Recreation Center in Atlanta, Lucky Shoals Park in Gwinnett, Lynwood Park in Brookhaven, Ron Anderson Recreation Center in Cobb County, Welcome All Park in South Fulton, Coan Park Recreation Center in Atlanta, and N.H. Scott Recreation Center in Decatur.
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