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Wall Street Today | Don't Get Blindsided By Cooling Prices, JPMorgan's Michele Says

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Moomoo Recap US wrote a column · Jan 18, 2023 08:34
Wall Street Today | Don't Get Blindsided By Cooling Prices, JPMorgan's Michele Says
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Don't Get Blindsided By Cooling Prices, JPMorgan's Michele Says
The chief investment officer at $JPMorgan (JPM.US)$ Asset Management Bob Michele is warning that the Fed could continue the fight against inflation in the second half, pushing terminal rates to as high as 6%. That defies a growing consensus that interest rates will peak in June.
“It’s still a one-in-three chance, but it’s a legitimate risk,” Michele said in an interview. “It is possible the Fed will not initially do enough because the labor market proved more resilient. This is one thing that can unravel the market, and it’s my biggest concern.”
ECB Is Pondering Slower Hikes After Half Point in February
European Central Bank policymakers are starting to consider a slower pace of interest-rate hikes than President Christine Lagarde indicated in December, according to officials with knowledge of their discussions. While the 50 basis-point step in February she signaled remains likely, the prospect of a smaller 25-point increase at the following meeting in March is gaining support.
SECTORS
Wall Street Banks Slammed, As Execs Cautiously Hope For More Confidence Ahead
Wall Street banks showed deep falls in their investment banking businesses in the fourth quarter, prompting thousands of job cuts, but executives are looking for signs that corporate CEOs are regaining confidence in doing deals again.
$Morgan Stanley (MS.US)$ and $Goldman Sachs (GS.US)$ reported a plunge in fourth quarter profits on Tuesday, as Wall Street dealmakers handling M&A and IPOs faced a sharp drop in their businesses in 2022. Banks are looking for a peak in the Fed's aggressive rate hiking for confidence to return in boardrooms, along with a reduction in sharp swings in market prices.
Investors Seek to Pull $20 Billion From Core Real Estate Funds
A group of property funds for institutional investors ended last year with $20 billion in withdrawal requests, the biggest waiting line since the Great Recession, according to IDR Investment Management. Institutional investors sought to cut their exposure to some of the biggest funds at managers including $JPMorgan (JPM.US)$, $Morgan Stanley (MS.US)$ and $Prudential Financial Inc 5.625%Junior Subordinated Notes Due 2058 (PRS.US)$, according to people familiar with the matter.
COMPANY
Microsoft Plans to Slash Thousands of Jobs
$Microsoft (MSFT.US)$ appears to be the latest tech giant to wield a big ax: The company is preparing to chop thousands of jobs in engineering and human resources, according to published reports Tuesday.
>>Read more
United Airlines' Profit Lifted by Strong Demand for Air Travel
$United Airlines (UAL.US)$ reported stronger than expected fourth quarter profit as consumers continued to shell out for airline tickets despite broader economic worries. The airline's fourth-quarter operating revenue of $12.4 billion rose 14% from the same period in 2019, even though the carrier flew 9% less.
>>Read more
Roblox Rallies More Than 10% as Holiday Numbers Top Street
$Roblox (RBLX.US)$ shares surged Tuesday after the youth-centric virtual-world platform forecast that holiday bookings had swelled above most expectations on Wall Street.
>>Read more
SpaceX Prepares for a Breakout Year With Elon Musk Focused on Twitter
SpaceX is preparing for a watershed year, aiming for as many as 100 flights. That pace of one roughly every three and a half days compares to the every-six-days clip the company pulled off in 2022. As soon as March, it will attempt the first-ever commercial spacewalk, where astronauts will dangle from a Dragon vessel approximately 700 kilometers (435 miles) above Earth. And it will soon try to reach orbit for the first time with what it hails as the most powerful rocket ever: Starship, the launch vehicle intended to one day reach the moon and Mars.
Source: Bloomberg, Dow Jones, Yahoo Finance
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
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