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Important week for inflation statistics, stock prices fluctuate as settlement begins

prosperplanetpulse.comBy No Comments8 Mins Read0 Views


U.S. stocks were volatile on Monday as investors began a crucial week as they looked to new inflation data to test prospects for interest rate cuts and the start of first-quarter earnings season.

The Dow Jones Industrial Average (^DJI), the S&P 500 (^GSPC), and the tech-heavy Nasdaq Composite (^IXIC) moved up slightly after closing, then hovered around the flatline.

Strong employment data helped push stocks higher on Friday, but lingering doubts about the U.S. Federal Reserve’s determination to cut interest rates did not prevent stocks from falling for the week.

This uncertainty led to a sell-off in US Treasuries last week, and the pressure continued on Monday, with the 10-year Treasury yield (^TNX) rising slightly to above 4.45%. Although the benchmark has narrowed its gains, it remains within reach of the key 4.5% level, which some see as a potential tipping point for a rally toward last year’s highs.

Other concerns added to the volatile mood. Divided views on policy among Fed speakers, growing noise over the upcoming U.S. presidential election, and soaring oil prices due to escalating tensions in the Middle East that could fuel inflationary pressures.

All of this brings attention to Wednesday’s release of the consumer price index, a key input in the Fed’s decision-making and a clue to the continued resilience of the U.S. economy. Investors will be watching for signs of a return to a downward trend in inflation in March after showing signs of solidity earlier this year.

At the same time, the market is bracing for another earnings season, with Delta Air Lines (DAL) on Wednesday gearing up for Friday’s big bank results. Wall Street broadly expects the first quarter to set the tone for solid profit growth for S&P 500 companies, raising hopes for a big jump in March’s jobs report.

Against this backdrop, gold rose above $2,350 per ounce, setting a new record. Meanwhile, oil prices were at their highest in months as markets appreciated the easing of tensions in the Middle East. Brent crude oil futures (BZ=F) were slightly lower at $90.80 per barrel, while West Texas Intermediate futures (CL=F) were slightly higher at just under $87.

live7 updates

  • Amazon stock closes near all-time high

    Amazon (AMZN) stock rose on Monday, briefly surpassing its all-time closing price of $186.57 in 2021.

    The stock rose after Morgan Stanley analyst Brian Nowak raised his price target on Amazon from $200 to $215. Shares have risen over the past year as the company has cut costs in many areas of its business, from the cloud service giant Amazon Web Services to the e-commerce giant’s retail operations.

    The stock price has increased about 22% since the beginning of the year.

  • Stock prices are rising little by little, and inflation statistics will be announced this week

    Stocks edged higher on Monday as investors awaited new inflation data later this week. The Dow Jones Industrial Average (^DJI) and S&P 500 (^GSPC) rose slightly. The Nasdaq Composite Index (^IXIC), which has a high proportion of high-tech stocks, rose 0.3%.

    A new Consumer Price Index report released Wednesday may give investors a clue about the Federal Reserve’s determination to cut interest rates this year. A strong monthly jobs report helped lift stocks Friday, but stocks remained depressed this week on concerns that Fed officials will delay cutting interest rates.

    This week, JPMorgan (JPM), Wells Fargo (WFC), BlackRock (BLK), and Citi (C) are scheduled to report earnings, along with Delta Air Lines (DAL).

  • Disney may be lifted from password sharing crackdown

    Disney (DIS) has a lot of password sharers to crack down on.

    The media giant is expected to begin tightening its controls over password sharing for Disney+ and Hula this June, CEO Bob Iger teased in a television interview Friday.

    A new graph (below) from EvercoreISI analyst Vivant Jayant reveals how a crackdown on password sharing could impact the streaming sector’s profitability.

    Disney will likely follow Netflix's lead in cracking down on password sharing.Disney will likely follow Netflix's lead in cracking down on password sharing.

    Disney will likely follow Netflix’s lead in cracking down on password sharing. (Evercore ISI)

  • Jamie Dimon talks about why the number of publicly traded companies continues to decline

    Gold nuggets for investors continue today on page 35 from Jamie Dimon’s latest annual letter.

    The head of JPMorgan (JPM) points out that the role of public companies in the US financial system is declining, as evidenced by the fact that the number of public companies in the US has reached 4,300. In 1996, that number was 7,300.

    Conversely, the number of privately held U.S. companies backed by private equity firms has jumped from 1,900 to 11,200 over the past 20 years, Dimon said.

    “This trend is serious and likely to increase as more regulations and lawsuits emerge. We need to take this seriously, along with an honest assessment of the regulatory landscape. Is this the desired outcome?” Dimon wrote.

    Dimon points to several factors for this disparity.

    • Enhanced reporting requirements (see ESG).

    • Litigation costs will be high.

    • Costly regulation.

    • “Root-cookie-cutter” board governance.

    • Active activities of shareholders.

    • Low capital flexibility.

    • Increased public scrutiny.

    • “Relentless pressure” on quarterly profits.

    But I wonder if private companies have been the driving force behind stock price gains since Mr. Dimon became CEO in the early 2000s. Less supply of assets means more competition for those assets – no?

  • Daemon succession watchers may appreciate this.

    I’m very interested in what JP Morgan (JPM) is doing in the area of ​​artificial intelligence.

    Dimon said in today’s annual letter that the company currently has 2,000 AI/machine learning experts and data scientists. He said the company has 400 use cases in production in areas such as marketing, fraud and risk that are “increasingly driving value for retail businesses across our operations and functions.” he added.

    I’m equally fascinated that Dimon included the name of COO Daniel Pinto (long seen as Dimon’s successor) in his key comments on AI. Dimon believes his AI is critical to his JPM’s future success and has created a new role called chief data analytics officer. This role will sit on the company’s steering committee and report directly to Dimon and Pinto.

    Dimon says:

    “Elevating this new role to steering committee level (reporting to Daniel Pinto and myself) is a great example of how important this role will be going forward, and how seriously we anticipate the impact AI will have on our business.” This will ensure that data and analytics are integrated into our decision-making. We are not just looking at the technical aspects of AI, but also how all executives can use AI. The main focus is on where and why they should be used. Each of our business units has a corresponding data and analytics role, so we can share best practices and solve multiple business problems. We will develop reusable solutions to solve problems and continuously learn and improve as AI evolves in the future.”

  • Watch JP Morgan CEO Jamie Dimon’s money-making masterclass in one graph

    Want to know why JPMorgan (JPM) investors want Jamie Dimon to remain CEO for another 50 years?

    Sure, this guy is the face of banking with the best relationships in the game, but at the end of the day, he just knows how to make money for his shareholders.

    Mr. Dimon’s annual letter, published this morning, says it perfectly. See this graph on page 8. It has been shown that JP Morgan’s net income has increased approximately six times since his 2005.

    A money machine called JP Morgan.A money machine called JP Morgan.

    A money machine called JP Morgan. (JP Morgan)

  • Here are Jamie Dimon’s latest thoughts on where interest rates are headed.

    JPMorgan (JPM) CEO Jamie Dimon has withdrawn his latest annual letter to shareholders. You can read the full text here. Yahoo Finance’s David Hollerith provides an analysis of the letter here.

    Mr. Dimon is not wasting any time considering the outlook for interest rates, and appears to be repeating what we’ve heard from some hawkish FOMC members in recent weeks (which has weighed on stock prices).

    “Despite volatile conditions, including last year’s local banking turmoil, the U.S. economy remains resilient, consumers are still spending, and markets are now expecting a soft landing. It is also important to note that as we continue our transition to a green economy, restructure global supply chains, increase military spending, and combat rising health costs, The need to increase spending is also increasing. This could lead to more persistent inflation and higher interest rates than markets expected..

    “Furthermore, there are downside risks to be aware of. Quantitative tightening drains more than $900 billion of liquidity out of the system annually, and we are unlikely to see the full effects of quantitative tightening on this scale.” In addition, there are ongoing wars in Ukraine and the Middle East that could destroy energy and food markets, migration, military and economic ties, in addition to terrible human costs. continues to have.With these significant and somewhat unprecedented impacts, we cautious. ”

    Interestingly, JPMorgan strategists said this morning that they expect bond yields to fall.

    “In terms of the direction of bond yields, our call last October was that bond yields had likely peaked and were going to be here for an extended period of time. Yields are likely to fall again. Our fixed income team expects the US and German 10-year bond yields to be lower than they are now with three-month, six-month, and nine-month terms. We agree in principle with this, especially given the current heightened geopolitical risks, but we need to be mindful of the risk of inflation being too high. ”



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