![]() ![]() "Falling bond yields and higher equity prices have complicated the task by easing the financial conditions that the Fed is trying to tighten, necessitating forceful messaging from the FOMC this week." Aggressive tightening in 2022 has led to signs of decelerating inflation but from levels that remain unacceptably high," Lazard chief market strategist Ron Temple said in a note. Still, many strategists have been skeptical of the market's uptrend and Wall Street's anticipations the Fed will pause its interest rate hiking campaign this year. central bank raised interest rates by a smaller hike of 0.25% - even as he asserted more increases were ahead. That view was bolstered by remarks from Federal Reserve Chair Jerome Powell on Wednesday that suggested signs of "disinflation" are building in the economy as the U.S. Stocks have been on a tear to start 2023 as investors bet that weakening economic data will prompt the Federal Reserve to end its rate hiking cycle sooner than expected. Tigard, Oregon, USA - Sep 7, 2019: The entry to a Nordstrom department store in Tigard, a southwestern suburb within the Portland metropolitan area, at night. The move was confirmed to Yahoo Finance by a person familiar with the matter. "We have significant work underway to improve all aspects of our cost structure, in support of our investments in our highest growth priorities to deliver long-term, profitable growth," Alphabet CFO Ruth Porat said in a statement.Įlsewhere outside of technology companies, investors were watching Nordstrom ( JWN) following reports investor Ryan Cohen has built a big stake in the department store. ![]() The numbers come after the company laid off about 12,000 employees in January, a move CEO Sundar Pichai blamed on Alphabet overhiring during the pandemic boom. Amazon's AWS cloud unit grew more than 20% compared to the same period in 2022 but fell short of expectations.Īlphabet's results also missed forecasts on revenue and earnings per share, as advertising declined year-over-year. iPhone sales, a key metric for the company, dropped 8% year-over-year to $65.8 billion, a meaningful miss from estimates of $68.3 billion.Īmazon, meanwhile, unveiled better-than-expected sales growth in the fourth quarter but disappointed on profit - largely the result of big losses from its stake in electric vehicle maker Rivian Automotive. Shares of Apple reversed losses, gaining 2.4% on Friday, while Amazon and Alphabet plunged 8.4% and 2.7%, respectively.Īpple said revenue fell 5% as headwinds from COVID lockdowns in China and worker protests at manufacturer Foxconn’s facility in the nation weighed on shipments during the period. On the earnings side, Apple ( AAPL), Amazon ( AMZN), and Google parent Alphabet ( GOOG, GOOGL) - the market's most heavily weighted companies - all posted quarterly results that underwhelmed Wall Street. "In other words, this print gives the Fed more room to allow for stagnation in the macro economy and risk remains skewed to over-tightening causing a recession.” "The report will make insurance cuts less likely as there are no material signs of stress to force a rate cut," Wilson-Elizondo added. “Assuming there is no irregularity in the data, today’s employment report was unexpected as it showed outsized strength in labor markets across the board," Goldman Sachs Asset Management head of multi-asset retail investing Alexandra Wilson-Elizondo said in a note. ![]()
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