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☆ Yen gives up ground vs dollar following surge on suspected intervention
▼ + stars: | 2024-05-02 | by ( ) www.cnbc.com time to read: +3 min

An attendant holds a sample of newly-designed Japanese 10,000 yen banknote, with three-dimensional holographic technology to prevent forgery, for a photograph at the National Printing Bureau Tokyo plant in Tokyo, Japan, on Wednesday, June 28, 2023. The yen gave up ground in early trade on Thursday, reversing direction after a sudden surge against the dollar overnight that traders and analysts were quick to attribute to intervention by Japanese authorities. The dollar was 0.9% higher at 155.98 yen as of 0100 GMT, retracing about half of its late Wednesday surge from around 157.55 to exactly 153 over a period of about 30 minutes. "The 'sneak attack' element really is the MOF (Japan's Ministry of Finance) looking to punish speculators and send a warning about shorting the yen." That helped lift the dollar to a 34-year peak of 160.245 yen on Monday and also spurred a sharp reversal which official data suggested was due to Japanese intervention totalling about $35 billion.

Persons: Jerome Powell, Masato Kanda, Kyle Rodda, Sterling, Powell, Jack Mclntyre Organizations: National Printing Bureau, Federal Reserve, Reuters, Capital.com, Japan's Ministry of Finance, Bank of Japan, Brandywine Locations: National Printing Bureau Tokyo, Tokyo, Japan, U.S, Melbourne

☆ How real estate's pain could be Wall Street's gain as Blackstone, Goldman, and others dive back in.
▼ + stars: | 2024-03-19 | by ( Alex Nicoll | ) www.businessinsider.com time to read: +12 min

That's not to say predictions of a commercial real estate rebound are a sure bet. Here are four signs that support Gray's prediction that the commercial real estate market may be bottoming. (New York Community Bank had previously purchased $2.7 billion in Signature's loans and deposits, but not the real estate loans.) According to David Seifert, partner at private equity real estate firm Velocis, there are some sweet deals to be had in secondary sales of private-equity funds tied to real estate. The road aheadWhere Gray sees signs of bottoming, others think commercial real estate has much further to fall.

Persons: Warren Buffett, Buffett, Paul Getty, Getty, Steve Mnuchin —, Blackstone, Mnuchin, Donald Trump's, George Soros, John Paulson, It's, Jonathan Gray, Jim Garman, That's, Barry Sternlicht, Gray, Tracy Chen, Chen, BGO, secondaries There's, Ares, Brian King, King, David Seifert, Seifert, Velocis, Goldman Sachs, Dan McNamara, McNamara, Scott Rechler, wallop, Janet Yellen, Rechler, there's Organizations: Business, Goldman, Reuters, Starwood, Brandywine Global, Federal Reserve, . Bank, New York Community Bank, FDIC, Signature Bank, Community Bank, Fund Management, Community Preservation, New, Commercial Observer, Blackstone, Homes, Digital Realty, Polpo, RXR Locations: Blackstone, , New York, New York, BREIT, Real, Velocis

☆ Premarket stocks: Why it’s not all doom and gloom for commercial real estate
▼ + stars: | 2024-03-04 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +9 min

New York CNN —After decades of growth bolstered by low interest rates and easy credit, commercial real estate has hit a wall. I take that as a signal of a potential turn in the CMBS market in terms of the market sentiment. It’s not just all gloom and doom in the CRE market. Richmond Federal Reserve President Tom Barkin echoed the idea that the central bank may not cut interest rates this year. OPEC+, a coalition of the world’s top oil producing countries, had announced voluntary oil cuts of 2.2 million barrels per day in November.

Persons: Tracy Chen, Chen, that’s, Bell, Banks aren’t, CMBS, We’ve, they’ve, —, Jerome Powell, Torsten Slok, “, Tom Barkin, ” Barkin, “ I’m, Eva Rothenberg, Brent, Goldman Sachs Organizations: CNN Business, Bell, New York CNN, New York Community Bancorp, Brandywine, Intercontinental Exchange and Bank of America, outperformance, Fed, New York Community Bank, York Community Bank, Federal, Apollo Global Management, Richmond Federal, CNBC, OPEC, AAA Locations: New York, Japan, Switzerland, Germany, New, New York City, Richmond, OPEC, Saudi Arabia, Russia, Iraq, United States

☆ Fed rate hikes are creeping back into the conversation
▼ + stars: | 2024-02-21 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

This story is available exclusively to Business Insider subscribers. AdvertisementExperts maintain that any hikes this year are unlikely, but say it's notable how they have creeped back into the policy conversation once again. "You can't say zero probability for something to break in the event of another rate hike," Jason Draho, head of asset allocation in the Americas for UBS Global Wealth Management, told Business Insider. "That last mile [of inflation] will be harder to obtain," Anthony Saglimbene, Ameriprise Financial's chief market strategist, told Business Insider. "The Fed's erring on the side of hawkishness," Hunter told Business Insider.

Persons: —, Larry Summers, Summers, Jason Draho, you'd, Goldman Sachs, Anthony Saglimbene, Ameriprise, Paul Mielczarski, Mielczarski, Ameriprise's Saglimbene, Andrew Hunter, Hunter Organizations: Service, Federal, Business, PPI, Fed, Former, Bloomberg, Traders, UBS Global Wealth Management, Capital Economics Locations: Americas, OER, Brandywine, hawkishness

☆ This Morningstar 5-star rated high-yield fund seeks to 'stand out by not fitting in'
▼ + stars: | 2024-02-12 | by ( Michelle Fox | ) www.cnbc.com time to read: +5 min

Their Corporate Credit Fund, which trades under the ticker BCAAX for retail investors, largely focuses on high-yield bonds. The fund currently holds a little over 70% in high-yield bonds, 10% in cash and about 18% in investment-grade bonds. Another inefficiency the managers exploit is the area between low investment-grade bonds and the higher-rated high-yield market, Zox said. Investment-grade portfolio managers are shying away from the lower rated end of the investment-grade market, and high-yield managers are sticking with the higher rated end of the high-yield market, he explained. "We find better values in the lower rated part of the investment-grade market than the higher rated part of the high-yield market," Zox said.

Persons: John McClain, Bill Zox, aren't, Morningstar, McClain, BCAAX, Franklin Templeton, Zox, We're, they're, Wells, it's Organizations: Brandywine Global, Credit Fund, ICE, U.S, SEC, Morningstar, Brandywine, JPMorgan, Citi, Banco Popular, Investment, — Vector, Vector Group Locations: Brandywine, Diamond, Columbus , Ohio, Puerto Rican, Wells Fargo

☆ China's chances of staging an economic rebound this year look slim
▼ + stars: | 2024-02-02 | by ( Phil Rosen | ) www.businessinsider.com time to read: +5 min

China faces severe real estate woes, deflation, and an exodus of global investors. NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. AdvertisementThe world has yet to witness any post-pandemic rebound in China, and Wall Street expects little to change in 2024. The ongoing exodus of global investors is evidence the bear case is intact, and the country's real estate sector continues to look more and more precarious. AdvertisementThat in turn has cratered sentiment, as Chinese households have the majority of their wealth tied to real estate.

Persons: —, DataTrek, Nicholas Colas, Jessica Rabe, Mike Edwards, Weiss, haven't, Edwards, Tracy Chen, Chen, Caesar Maasry, Goldman Sachs, Maasry Organizations: Service, Wall, Tech, Baidu, US, Business, Brandywine, Supply, Seng China Enterprises, Bloomberg Locations: China, Beijing

☆ Thursday's inflation report could challenge the market outlook for big Fed rate cuts
▼ + stars: | 2024-01-10 | by ( Jeff Cox | ) www.cnbc.com time to read: +6 min

"The market seems to have gotten excited that the Fed's going to have to do more than what the Fed thinks in terms of rate cuts now. watch nowThere is certainly a wide gap between what the Fed has indicated in terms of rate cuts and what the market is expecting. It probably means that right now, the market needs to give back some of the rate cuts that they priced in." Fed Governor Michelle Bowman said this week that while she expects rate hikes could be done, she doesn't see the case yet for cuts. Still, Brusuelas thinks the market is too aggressive in pricing in six rate cuts.

Persons: Frederic J, Brown, Dow Jones, Jack McIntyre, McIntyre, they've, Michelle Bowman, Lorie Logan, Logan, Joseph Brusuelas, Brusuelas, Richard Clarida, … There's, Clarida Organizations: AFP, Getty, Federal, Brandywine Global Investment Management, Traders, Dallas, RSM Locations: Rosemead , California

☆ Five defensive stocks to buy now if you think there's recession risk ahead
▼ + stars: | 2023-12-26 | by ( Brian Evans | ) www.cnbc.com time to read: +5 min

CVS YTD mountain CVS stock has fallen 15% from the start of the year. KR YTD mountain Kroger stock has added nearly 2% from the start of the year. AER YTD mountain AerCap stock has rise nearly 28% from the start of 2023. GM YTD mountain General Motors stock has gained 8% in 2023. GPN YTD mountain Global Payments stock has risen 27% year to date.

Persons: Patrick Kaser, Kaser, Kroger, there's, AerCap, Kaser's, Aengus Kelly Organizations: Brandywine Global, CNBC, CNBC Fed Survey, Federal Reserve, CVS, Kroger, Albertsons, KR, Aerospace, Motors, United Auto Workers, UBS, GM, General Motors, Global Locations: Brandywine, U.S, Walmart's heft

The S&P 500 (.SPX), the Nasdaq (.IXIC) and the Dow (.DJI) registered their third straight week of gains. For the week, the S&P 500 added 2.2% while the Nasdaq composite rose 2.4% and the Dow climbed 1.9%. Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., November 15, 2023. REUTERS/Brendan McDermid Acquire Licensing RightsEnergy, finishing up 2.1%, was the biggest percentage gainer among the 11 major S&P 500 sectors as oil prices settled up more than 4%. The S&P 500 posted 18 new 52-week highs and 1 new lows; the Nasdaq Composite recorded 55 new highs and 97 new lows.

Persons: Michael Barr, Mary Daly, Susan Collins, Robert Phipps, Per Stirling's Phipps, Dow, Jack McIntyre, Brendan McDermid, Russell, Rick Wilmer, Sinéad Carew, Shristi, Maju Samuel, Pooja Desai, David Gregorio Our Organizations: Dow, Nasdaq, Federal, San Francisco Fed, Boston Fed, Applied Materials, U.S . Justice, Stirling, Dow Jones, Brandywine Global, Traders, New York Stock Exchange, REUTERS, Rights Energy, Technology, Microsoft, Ross Stores, Old Navy, ChargePoint Holdings, NYSE, Thomson Locations: U.S, China, Austin Texas, Philadelphia, New York City, New York, Bengaluru

Plenty of bond investors have been burned calling a bottom in a selloff that has taken Treasuries to the cusp of an unprecedented third straight year of losses. One potential near-term pitfall is Friday’s U.S. payrolls data, which could revive expectations of Fed hawkishness if they come in stronger than expected. The rise in Treasury yields has reached far beyond the bond market. The S&P 500 is down nearly 8% from its July high, as rising bond yields offer investment competition to equities while threatening to raise the cost of capital for companies. “The market is running with the idea that the Fed is done hiking, which they may or may not be,” he said.

Persons: Jerome Powell nodded, Bonds, ”, Jack McIntyre, “, ” McIntyre, Stanley Druckenmiller, Duquesne, Bond, Josh Emanuel, Powell, We've, Greg Wilensky, Janus Henderson, ” Wilensky, Noah Wise, Davide Barbuscia, David Randall, Ira Iosebashvili Organizations: Treasury, Federal, Fed, U.S . Treasury, Brandywine, Janus, Janus Henderson Investors, Allspring Global Investments, Thomson Locations: U.S, Wilshire

☆ Analysis: Wall Street's 'Magnificent Seven' face moment of truth as earnings season arrives
▼ + stars: | 2023-10-19 | by ( Lewis Krauskopf | ) www.reuters.com time to read: +5 min

Valuations have swelled, with the Magnificent Seven trading at an average forward price-to-earnings ratio of 33.5, compared with the S&P 500's P/E of 18.3. “Everybody knows these guys are going to make money," said Sameer Samana, senior global market strategist at the Wells Fargo Investment Institute (WFII), referring to the Magnificent Seven. "The reallocation of funds going forward is going to suggest lower returns and more difficulty for the Magnificent Seven to maintain their leadership." The seven companies' combined market capitalization topped 30% of the S&P 500's overall market value earlier this month, according to LSEG Datastream. Some investors are also drawing distinctions among the seven stocks.

Persons: Aly, Tesla, Sameer Samana, Tajinder Dhillon, Tim Pagliara, CapWealth, Pagliara, Elon Musk, LSEG Datastream, Torsten Slok, Patrick Kaser, Kaser, Lewis Krauskopf, Ira Iosebashvili, Jonathan Oatis Organizations: Apple, REUTERS, Microsoft, Nvidia, U.S, Tesla, Wells, Investment Institute, Google, Facebook, Federal, Treasury, “, Global, Apollo Global Management, Brandywine Global, Thomson Locations: Shanghai, China, Apple

☆ Auto companies could sacrifice stock buybacks to help pay for union demands, analyst says
▼ + stars: | 2023-10-03 | by ( Aruni Soni | ) www.businessinsider.com time to read: +4 min

Auto companies could forgo stock buybacks to pay for the costly union demands, an analyst said. Strikers have pointed out the billions of dollars companies have poured towards buybacks and dividends. Some investors have expressed willingness to sacrifice stock repurchases. Some investors seem ready to sacrifice stock buybacks. "That translates to a couple billion dollars per week of sales, $2 [billion] to $3 billion dollars, potentially.

Persons: —, Ford, Edward Jones, Jeff Windau, Brian Mulberry, Patrick Kaser, Stellantis, Patrick Anderson Organizations: Auto, Strikers, Service, Big Three, SEC, GM, Bloomberg, Stock, UAW, Zacks Investment Management, Ford, Brandywine Global, General Motors, Anderson Economic Group, Anderson Economic Locations: buybacks

The prospect of higher rates put particular pressure on growth stocks with the S&P 500 growth index (.IGX) underperforming the benchmark throughout the session. "Growth stocks have been pricing in the idea that inflation has been well anchored and that the Fed's going to cut. The S&P 500 showed little reaction to the Fed's "Beige Book" snapshot of the U.S. economy a week ahead of the keenly awaited August inflation data and the Fed's rate decision on Sept. 20. The report showed "modest" U.S. economic growth in recent weeks while job growth was "subdued," and inflation slowed in most parts of the country. The S&P 500 posted six new 52-week highs and 25 new lows; the Nasdaq Composite recorded 34 new highs and 174 new lows.

Persons: Lockheed Martin, Carol Schleif, Schleif, Susan Collins, Patrick Kaser, Mike Segar, advancers, Sinéad Carew, Shristi, Vinay Dwivedi, Richard Chang Organizations: Dow, Nasdaq, Institute for Supply Management, Traders, Federal Reserve, Boston, Equity, Brandywine Global, Apple Inc, Wall, New York Stock Exchange, REUTERS, Dow Jones, Energy, Lockheed, NYSE, Thomson Locations: China, Minneapolis, Manhattan, New York City , New York, U.S, New York, Bengaluru

Below are five charts showing what's been moved and/or shaken:1/SHOCK FOR THE STOCKSMSCI's 24-country emerging markets (EM) stocks index (.MSCIEF) is down 6% this month. It is still up for the year, though well below the 13.5% gain this year for MSCI's main global index, which has benefited from a boom in U.S. "mega-cap" stocks. "The markets that have underperformed are the lower-yielding markets like Asia," Mike Arno, a portfolio manager at Brandywine Global, said. "The market doesn't seem to think that China is a major threat," said Aegon Asset Management's head of EM debt, Jeff Grills. Reuters Graphics5/OUT OF AFRICAThe other big trouble spot has been Africa, where debt markets have seen a sharp pullback.

Persons: Jason Lee, what's, Tayyip Erdogan's, Katherine Marney, Mike Arno, Jeff, Erdogan, Van Eck's, Eric Fine, Viktor Szabo, Szabo, Marc Jones, Rodrigo Campos, Alex Richardson Organizations: REUTERS, Reuters, JPMorgan, Brandywine, FX, HK, EMBI, abrdn, Thomson Locations: Beijing, China, Africa, MIWD00000PUS, Hungary, America, Brazil, Argentina, Asia, TURKEY, Gabon, Niger, JPMorgan's Africa, London, New York

☆ Fed Chair Powell calls inflation 'too high' and warns that 'we are prepared to raise rates further'
▼ + stars: | 2023-08-25 | by ( Jeff Cox | ) www.cnbc.com time to read: +6 min

watch nowFederal Reserve Chair Jerome Powell on Friday called for more vigilance in the fight against inflation, warning that additional interest rate increases could be yet to come. Regardless, Powell indicated it's too soon to declare victory, even with data this summer running largely in the Fed's favor. A need to 'proceed carefully'Powell's remarks follow a series of 11 interest rate hikes that have pushed the Fed's key interest rate to a target range of 5.25%-5.5%, the highest level in more than 22 years. He noted progress on all three, but said nonhousing is the most difficult to gauge as it is the least sensitive to interest rate adjustments. Inflation measured over the past three and six months has declined, however, which is encouraging," Powell said.

Persons: Jerome Powell, Powell, Jackson, it's, Ryan Detrick, Jack McIntyre, nonhousing Organizations: Kansas City, Fed, Bureau of Labor Statistics, Dow Jones, Carson Group, Federal, Market, Brandywine, Commerce Department, Labor Locations: Jackson Hole , Wyoming, policymaking

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., August 15, 2023. The simplest conclusion is the Fed will not be able to ease again in anything like the way many had assumed or still think. This will lift the 'term premium' embedded in long-term bond yields, which has been so subdued since Fed balance sheet expansion met the crash of 2008, even if the Fed is done tightening policy rates, he said. Fed policy is more neutral than restrictive "if you believe we've returned to a pre-2008 world", he said, and that limits the scope for rate cuts in future. Writing by Mike Dolan; Editing by Susan FentonOur Standards: The Thomson Reuters Trust Principles.

Persons: Brendan McDermid, handwringing, Anujeet, we've, Amanda Lynam, Mike Dolan, Susan Fenton Organizations: New York Stock Exchange, REUTERS, Reserve, Treasury, U.S, AAA, Atlanta, Deutsche Bank, Vanguard, Federal Reserve, Brandywine Global, BlackRock, Reuters, Thomson Locations: New York City, U.S

☆ Soft landing hopes are drawing money back into this risky asset that’s paying 8% yield. How to navigate
▼ + stars: | 2023-08-10 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

High yield mutual funds and exchange traded funds saw inflows of $1.9 billion in July, Barclays said, citing Lipper data. High yield bonds are corporate issues that are rated below BBB, meaning they have a higher risk of default compared to their investment-grade counterparts. "When we are in junk and high yield names, we prefer loans – more senior loan positions rather than high yield." Novak added outside of high yield loans, the firm's other big fixed income play is higher quality investment grade bonds. "We don't think taking a heroic position [in high yield] makes a whole lot of sense in our view," he said.

Persons: Dow Jones, Bill Zox, it's, Zox, Bryan Novak, Novak, Brandywine's Zox, nonbank financials, Bill Ahmuty, Lawrence Gillum, Michael Bloom Organizations: Barclays, Fitch, Management, Brandywine Global, SEC, Astor Investment Management, Corporate, State, LPL

“Most of us have been wrong on the timing of things going bad, and right now there is really not much of a problem. That means it can be years before a company needs to refinance those bonds at higher interest rates. The longer inflation remains elevated, the longer interest rates will also stay high, meaning that an increasing number of companies could be forced to shoulder higher borrowing costs. Their latest economic projections suggested that interest rates could be hovering near 4.6 percent at the end of 2024. That would be lower than where they are now, but still a big change after years of near-zero interest rates.

Persons: “, ”, John McClain Organizations: Brandywine Global Investment Management

Apple Inc (AAPL.O) rose 0.7% to an all-time high, while Amazon (AMZN.O), Alphabet (GOOGL.O) and Tesla (TSLA.O) rose between 1.1% and 3.2%. The S&P banks index (.SPXBK) slipped 0.5% ahead of the results due after markets close on Wednesday. Advancing issues outnumbered decliners by a 1.01-to-1 ratio on the NYSE and a 1.07-to-1 ratio on the Nasdaq. The S&P index recorded 36 new 52-week highs and six new lows, while the Nasdaq recorded 50 new highs and 79 new lows. Reporting by Sruthi Shankar and Johann M Cherian in Bengaluru Editing by Vinay DwivediOur Standards: The Thomson Reuters Trust Principles.

Persons: Brendan McDermid, Dow, Michael Green, Jerome Powell, Patrick Kaser, Oppenheimer, Mills, Sruthi Shankar, Johann M, Vinay Dwivedi Organizations: New York Stock Exchange, REUTERS, Nasdaq, Apple, Microsoft, Federal, Apple Inc, Management, Nvidia, Wall Street Journal, Central Bank, U.S, Brandywine, Traders, Dow Jones, Bank, Netflix Inc, NYSE, Thomson Locations: New York City, U.S, United States, China, bank's, Bengaluru

☆ Why the Fed paused its rate hikes: It’s tired of playing a giant guessing game
▼ + stars: | 2023-06-16 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

Following the policy announcement, Fed Chair Jerome Powell noted that rate hikes typically filter through the economy with “uncertain lags.” In other words, the Fed has been playing an (educated) guessing game, taking action before it understands the results. What’s happening: As much as Federal Reserve officials wish they could, they can’t just wave a wand and lower inflation rates. Here’s how the system works: First, the Fed raises interest rates for overnight loans between financial institutions. Less demand for goods reduces incentives to raise prices and inflation rates will fall. That means they’re able to draw their own conclusions about the trajectory of inflation rates.

Persons: Jerome Powell, ”, Jack McIntyre, McIntyre, ” Powell, Powell, Yung, Yu Ma, Ma, Biden, Joe Biden, Sam Fossum, you’re, ” Biden, Lael Brainard, Greg Wallace, Sen, John Thune of, Republican Sen, Jerry Moran Organizations: New, New York CNN, Federal Reserve, Brandywine Global, BMO Wealth Management, Ticketmaster, “, Economic, Federal Aviation Administration, FAA, Republican Locations: New York, “, John Thune of South Dakota, Kansas

☆ Analysis: Bearish fundamentals, buoyant charts complicate outlook for US stocks
▼ + stars: | 2023-04-21 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +5 min

Technical indicators such as equity price movement largely show stocks are poised to continue a rally that has seen the S&P 500 climb 8% year-to-date, analysts who track them said. TECHNICALLY SPEAKINGThe S&P 500 (.SPX) has traded in a 9.7 percentage point range year-to-date, its narrowest range for comparable periods since 2017. Johnson, who has a year-end S&P 500 target of 4,625, is encouraged by the reversals in downtrends for many U.S. stock indexes. The S&P 500 has traded higher 83% of the time for the full year, returning an average 13.73%, when it hasn't dropped below the preceding year’s December low in the first quarter, a Piper Sandler analysis showed. The S&P 500 is trading at about 18 times 12-month forward earnings estimates compared to its long-term average P/E of 15.6 times, according to Refinitiv Datastream.

That spread , which has been in negative territory since November, plunged to new lows this week, standing at nearly minus 170 basis points on Thursday. Fed Chair Jerome Powell said last year that the 18-month U.S. Treasury yield curve was the most reliable warning of an upcoming recession. "Powell's curve ... continues to plunge to fresh century lows," Citi rates strategists William O'Donnell and Edward Acton said in a note on Thursday. Refinitiv data showed the curve was the most inverted since at least 2007. But market participants believe tighter monetary policy is already starting to hurt growth and are betting on rate cuts later this year.

☆ Premarket stocks: These are the only stocks that matter right now
▼ + stars: | 2023-04-05 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

Leading the way in growth are tech stocks like Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), Tesla (TSLA) and Meta (FB). That’s been a boon to large cap tech stocks that are more sensitive to interest rates because they tend to borrow more than established companies and rely more on the prospect of future earnings. But it also means that the current market rally is thin, as the major indexes outperform the average stock. Strong outperformance from the largest stocks often power indexes to rise, said Liz Ann Sonders, chief investment strategist at Schwab, in a note Tuesday. But healthy markets should be characterized by greater participation of the “soldiers” — the rest of the stocks, she said.

Big investors including Kyle Bass and Bill Ackman argue the government must take quick action to avoid Silicon Valley Bank's collapse sparking more widespread withdrawals in the banking system. That could be determined by how hard the world's central banks continue to push interest rates higher. The market is signaling contagion could factor into the Fed's calculus, possibly prompting it to slow down the pace of interest rate hikes. Silicon Valley Financial Group was deeply woven into the fabric of the technology industry. Bass and Ackman separately warned that the government would have to move quickly in resolving Silicon Valley Bank to assure depositors.

☆ Premaket stocks: Auto sales are falling — but profits are surging. Welcome to the new normal
▼ + stars: | 2023-01-12 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +6 min

New York CNN —The US auto industry just posted its worst sales in more than a decade — but that’s not necessarily a bad sign for the sector. What’s happening: 2022 was the worst year in more than a decade for the auto industry, largely because manufacturers couldn’t keep up with consumer demand. To put that into historical perspective, auto sales topped 17 million each year between 2015 and 2019, before Covid. But the auto industry saw sky-high profits even as sales plummeted. The auto industry has entered a new era: Less choice, higher prices and larger profit margins.

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