Wall Street Today | Premature for Fed to Call End to Rate Hikes with Inflation Still High, Williams Says

Moomoo Recap US wrote a column · May 10, 2023 08:45

MACRO

Premature for Fed to Call End to Rate Hikes with Inflation Still High, Williams Says

"We haven't said we are done raising rates" and Fed officials have not yet decided what lies ahead with possible increases in short-term borrowing costs, Williams said. "We've made incredible progress" in taking action to lower overly high levels of inflation, but "if additional policy firming is appropriate, we'll do that," he said.

McCarthy Says He 'Didn't See Any New Movement' After Debt-ceiling Meeting With Biden, Other Lawmakers

House Speaker Kevin McCarthy on Tuesday said he "didn't see any new movement" toward ending Washington's standoff over the debt ceiling, as he assessed how a much-anticipated meeting on the issue went.
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Stocks Will Rally If Inflation Data Is Soft, Goldman and JPMorgan Say

A consumer-price index around or below the 5% consensus could spark an equity rally, with the S&P 500 rising at least 0.5%, according to John Flood, a partner at Goldman. Meantime, a surprisingly strong reading would send stocks sharply lower. The benchmark index could drop at least 2% on a reading above 5.9%, he added.

At JPMorgan., a team led by Andrew Tyler echoes that view. The most likely scenario to play out is CPI comes in between 5% and 5.2%, and the S&P 500 adds 0.5% to 0.75%, their analysis shows. In an extreme case where inflation tops 5.5%, stocks may tumble more than 3%.

SECTORS

Oil Recoups Losses on Plans for Spr Refill, Higher Seasonal Demand

Oil prices ticked up on Tuesday, reversing a more than 2% drop earlier in the session, as markets weighed U.S. government's plans to refill the nation's emergency oil reserve and anticipated higher seasonal demand.

COMPANY

Airbnb Drops 12% After Earnings Report Offers Cautious Outlook for Second Quarter

Shares of $Airbnb (ABNB.US)$ fell nearly 12% in extended trading Tuesday despite first-quarter earnings that beat analyst estimates on the top and bottom lines, as it offered slightly weaker-than-expected guidance and a cautious outlook for the current quarter.
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Occidental Petroleum 1Q Earnings Fall Amid Lower Energy Prices

$Occidental Petroleum (OXY.US)$ on Tuesday said first-quarter profit fell on lower energy prices and crude oil volumes.
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Rivian Stock Jumps Nearly 5% as EV Maker Narrows Quarterly Loss, Keeps Guidance Intact

Shares of $Rivian Automotive (RIVN.US)$ rose nearly 5% in the aftermarket Tuesday after the electric-vehicle maker reported a narrower quarterly loss and kept intact its guidance for the year.
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Upstart Stock Soars Nearly 40% After Upbeat Earnings Outlook, Funding Progress

Shares of $Upstart (UPST.US)$ were rocketing nearly 40% higher in after-hours trading Tuesday after the beleaguered financial-services company delivered an upbeat outlook for the current period even as its revenue for the latest quarter came in at a third of what it was a year before.
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Apple is Launching Final Cut Pro and Logic Pro on iPad Later This Month

The tech giant says Final Cut Pro and Logic Pro for iPad bring all-new touch interfaces that allow users to enhance their workflows with Multi-Touch. Final Cut Pro for iPad introduces a set of tools for video creators to record, edit, finish and share, all from one portable device. Logic Pro for iPad gives users a complete collection of tools for songwriting, beat making, recording, editing and mixing. $Apple (AAPL.US)$

Source: Bloomberg, Dow Jones, CNBC

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