Wall Street Today | Morgan Stanley’s Wilson Says Stock Risks Rarely Been Higher

Moomoo Recap US wrote a column · Jun 26, 2023 15:43

MACRO

Morgan Stanley’s Wilson Says Stock Risks Rarely Been Higher

One of Wall Street’s most bearish strategists said US equities are facing a wall of worry, which could fuel a sharp selloff in the near future.

Morgan Stanley’s Michael Wilson, whose outlook for a market slump in 2023 has yet to materialize, sees the S&P 500 at risk of a near-term drawdown. He expects the benchmark index to end this year at 3,900 -- about 10% below Friday’s close -- before rising to 4,200 in the second quarter of next year.

Source: Bloomberg

Traders Bet Bull Market Is Just Getting Started

Traders are piling into bullish options bets that would profit if the recent stock rally continues.

Bullish bets on artificial intelligence have boomed. More than 1.3 million call contracts on chip makers $NVIDIA (NVDA.US)$, $Intel (INTC.US)$ and $Advanced Micro Devices (AMD.US)$ changed hands on an average day in June, on track for the highest monthly total on record. Those volumes surpass the exuberance seen in November 2021, when the Nasdaq Composite reached its peak. Trading activity has more than doubled since the start of the year, Cboe Global Markets data show.

Source: WSJ

SECTORS

Russia Raises Oil Processing to Highest Levels in 10 Weeks

Russian refineries raised their crude-processing volumes to highest levels in 10 weeks as the nation’s downstream maintenance season nears its end.

Russia processed over 5.6 million barrels of crude a day in the week ending June 21, according to a person familiar with the matter. That’s nearly 115,000 barrels a day more than the week before. It’s also the highest weekly processing rate since April 6-12, historical data show.

COMPANY

Tesla Stock Falls After Goldman Downgrade

Shares of $Tesla (TSLA.US)$ fell about 6% on Monday after Goldman Sachs downgraded the stock, the latest on Wall Street to cut its rating.

Goldman analyst Mark Delaney changed his rating on Tesla to "neutral" from "buy," saying shares now price in his long-term positive view for the stock after a run-up this year. Shares of Tesla have roughly doubled this year.

Pfizer Sells Off After Discontinuing Weight Loss Drug

$Pfizer (PFE.US)$ stock is selling off after the pharma giant announced it's discontinuing development of an experimental weight loss drug.

Pfizer said it halted development of the drug, lotiglipron, and would continue developing a separate experimental weight loss drug, danuglipron.

Carnival Stock Falls Despite Record Cruise Bookings

$Carnival (CCL.US)$ stock fell hard Monday despite the cruise company posting a slightly smaller-than-expected fiscal second-quarter loss amid what it called “continued acceleration of demand.”

Carnival recorded a second-quarter loss of 32 cents a share—narrower than the loss of 33 cents expected by analysts, according to FactSet. In the same period last year, it posted a loss of $1.61 a share.

Meta Unveils New Subscription Service for VR Headsets

Facebook parent $Meta Platforms (META.US)$ on Monday introduced a new subscription service, called Meta Quest+, for its VR headsets. The service, unveiled by company Chief Executive Mark Zuckerberg on his Instagram channel, costs $7.99 per month for access to two gaming titles each month.

Apple Reportedly Plans New Apple Watch Ultra With iPhone 15 This Fall

$Apple (AAPL.US)$’s year-ahead product roadmap includes the new Apple Watch Ultra with iPhone 15 this fall, according to a Bloomberg report.

The company is also reportedly beginning work on a second-generation Vision Pro, as well as a lower-end model.

Source: Bloomberg, Dow Jones, CNBC

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