Wall Street Today | Musk sees US as 'probably' in recession lasting up to 18 months

Moomoo Recap US wrote a column · May 16, 2022 19:25

MACRO

· Musk Sees US As 'probably' in Recession Lasting Up to 18 Months

$Tesla(TSLA.US)$ CEO Elon Musk said that the US economy was "probably" in a recession -- a judgment at odds with economists and available data -- and cautioned companies to watch costs and cash flows.

"These things pass and then there will be boom times again," Musk told the All-In Summit in Miami Beach, according to a live-streamed video of his remarks posted by a Twitter user. "It'll probably be some tough-going for, I don't know, a year, maybe 12-18 months."
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· Stock Markets Are Overpricing Recession Risk, JPMorgan Strategist Says

Equity investors' anxiety about a potential recession isn't showing up in other parts of the market, which is giving $JPMorgan(JPM.US)$strategist Marko Kolanovic confidence in his pro-risk stance.

"Our view remains that the probability of a recession over the next 6-12 months is low and thus stay with a pro risk stance," Kolanovic wrote.

· Bernanke Says He Thinks Inflation Will Come Down Later This Year

"I guess that I still tend to believe that some of these forces pushing up inflation like the supply chains, like the preference for durable goods or services and some of the commodity price increases gas prices and so on, that they will at least stabilize and begin to moderate sometime during this year which would mean that inflation will come down to some extent, not saying by itself, but without the Fed's direct intervention," former Fed Chairman Ben Bernanke said.
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SECTORS

· For Tech Startups, the Party is over

Many big money managers have fled startups. Venture capitalists are steering clear of high valuations and demanding that companies spend less and improve their margins—an about-face after years of profitability taking a backseat to growth. The pressure, combined with uncertainty over where the next investor check will come from, has prompted startups that seemed to be soaring just months ago to fire staff members, cut marketing spending, cancel projects and do whatever they can to make their money last.

COMPANIES

· Warren Buffett Spends Big As Stock Market Sells off

Mr. Buffett's $Berkshire Hathaway-B(BRK.B.US)$ has used the slump as an opportunity to increase spending on stocks, deploying tens of billions of dollars the past couple of months after ending 2021 with a near-record cash pile.
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· The Market is Losing Confidence Elon Musk Will Buy Twitter at $54.20

Twitter shareholders, as well as arbitrage traders, appear to be building in a bigger margin of safety. The same market move that would put Twitter shares between $32 and $33 would adjust Musk's original bid price to about $44 or $45 a share. Twitter stock is about $7, or almost 20%, below that level.
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· Twitter CEO Fires Back at Elon Musk, Who Responds with Poop Emoji

$Twitter (Delisted)(TWTR.US)$ CEO Parag Agrawal breaks down how the company detects spam accounts following Musk's criticism. But the latest explanation did not appear to sit well with Musk, who replied with a poop emoji and a suggestion that Twitter's bot activity impacts how advertisers can measure the value of their spending.
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· Trump's SPAC Deal Leaves Door Open for His Return to Twitter

The merger deal bringing Donald Trump's media venture public carries a range of risks for its investors, including permission for the former president to resume tweeting about politics on rival social media platforms he has denounced like Twitter. $Digital World Acquisition Corp(DWAC.US)$
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Source: Bloomberg, WSJ, MarketWatch

Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more

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