Wall Street Today | Ray Dalio No Longer Thinks 'Cash Is Trash'
MACRO
Fed Should End Tightening After One More Rate Hike, Yardeni Says
"I'm totally stumped, mystified, surprised that Fed officials do not seem to acknowledge that just focusing on the Fed funds rate, which is a part of the monetary tightening cycle, is a mistake," Yardeni, a market veteran who coined terms like "Fed Model" and "bond vigilante", told Bloomberg Television on Monday.
"When you also have QT2 and a soaring dollar, there are very restrictive monetary developments," he added. "I think they have one more rate hike coming in November and that will be it, because the financial stability issue will pop up as a primary concern."
Ray Dalio No Longer Thinks 'Cash Is Trash'
Ray Dalio, the founder of Bridgewater Associates, has changed his mind, saying he no longer thinks "cash is trash" and that the short-term interest rate is "now about right."
Due to the levels of existing interest rates and the Fed's shrinking of the balance sheet, cash "is now about neutral" and "neither a very good or very bad deal."
US Home Prices Now Posting Biggest Monthly Drops Since 2009
Median home prices fell 0.98% in August from a month earlier, following a 1.05% drop in July, mortgage-data provider $Black Knight(BKI.US$ said in a report Monday. The two periods mark the largest monthly declines since January 2009.
"Together they represent two straight months of significant pullbacks after more than two years of record-breaking growth," said Ben Graboske, Black Knight Data and Analytics president.
SECTORS
Supreme Court Agrees to Hear Challenges to Tech Immunity
The Supreme Court has agreed to decide whether social-media platforms can be held liable for terrorist propaganda uploaded by users, opening a new challenge to the broad legal immunity provided to internet companies by the law known as Section 230.
The court on Monday took up a set of cases in which families of terrorism victims allege $Twitter (Delisted)(TWTR.US$ , $Meta Platforms(META.US$'s Facebook and $Alphabet-A(GOOGL.US$'s YouTube bear some responsibility for attacks by Islamic State, based on content posted on those sites.
Airlines Face a Shortage of New Boeing, Airbus Jets
$Boeing(BA.US$ and $AIRBUS SE(EADSY.US$ are months behind handing over new single-aisle jets often used for U.S. domestic flights or other short-haul trips, constraining carriers' ability to add flights to meet resurgent demand and plan their schedules, according to company executives and industry officials.
"It makes it really hard for our team to plan," $Southwest Airlines(LUV.US$ Chairman Gary Kelly said at an aerospace industry event in Washington, D.C., last month.
COMPANY
Warren Buffett's Successor Is Building an $68 Million Berkshire Holding
Greg Abel, who is in line to eventually succeed Warren Buffett as chief executive officer of $Berkshire Hathaway-A(BRK.A.US$ $Berkshire Hathaway-B(BRK.B.US$, has been building his stake in the conglomerate he expects to oversee one day. Abel acquired about $68 million of stock late last month, according to filings Monday. The Class A shares closed at $413,300 Monday in New York.
Credit Suisse Market Turmoil Heightens After Memo Backfires
$Credit Suisse(CS.US$ was plunged into fresh market turmoil after Chief Executive Officer Ulrich Koerner's attempts to reassure employees and investors backfired, adding to uncertainty surrounding the bank.
The stock, which had already more than halved this year before Monday's sell-off, fell as much as 12% to a record low before clawing back most of those losses. That was accompanied by a spike in the cost to insure the bank's debt against default, which jumped to its highest ever.
Disney Reaches Deal to Restore Its Channels on Dish Network
TV channels owned by $Disney(DIS.US$ are back on $Dish Network(DISH.US$ 's satellite broadcasting and streaming platforms after the two companies reached a tentative agreement on a new contract.
Rivian Climbs After Ramping Up Production, Reaffirming Annual Goal
Shares of $Rivian Automotive(RIVN.US$ rose 7.2% in late trading after the automaker reported an increase in production and reaffirmed its goal to build 25,000 electric vehicles this year.
Source: Bloomberg, Dow Jones
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