DIRS.INFO The most relevant business & tech news

☆ Markets Trade Cautiously Ahead of Pivotal Fed Meeting
▼ + stars: | 2023-07-26 | by ( Joe Rennison | More About Joe Rennison | ) www.nytimes.com time to read: 1 min

Stock markets slipped on Wednesday morning, as cautious investors parsed mixed earnings reports and prepared for the Federal Reserve to resume raising interest rates. The S&P 500 fell 0.2 percent ahead of the Fed’s announcement. The index has gained nearly 20 percent since the start of the year, but the rally has slowed this month from its earlier breakneck pace. The Dow Jones industrial average, a collection of 30 stocks that are intended to track the broader economy, was on course for a 13th consecutive day of gains, posting a small gain in early trading Wednesday. Stock markets often exhibit caution ahead of major events like Fed meetings, waiting until there is clarity over the central bank’s next move.

Organizations: Federal Reserve, Dow, Stock

As Russia resumes its blockade of ships carrying food from Ukraine, its military bombarded Odesa and an adjoining port late Tuesday and early Wednesday — specifically targeting the ability to export grain, Ukrainian officials said. Hours later, Russia’s Ministry of Defense issued a warning to ship operators and other nations suggesting that any attempt to bypass the blockade might be seen as an act of war. As of midnight, “all ships en route to Ukrainian ports in the Black Sea will be considered as potential carriers of military cargo,” it said in a statement. “Accordingly, the flag countries of such vessels will be considered involved in the Ukrainian conflict on the side of the Kyiv regime.” The ministry added that even parts of the Black Sea in international waters “have been declared temporarily dangerous for navigation.”Ukrainian officials accused Russia of using food as leverage in the war, in an attempt to extend Ukraine’s pain to the rest of the globe.

Organizations: Russia’s Ministry of Defense Locations: Russia, Ukraine, Odesa, Kyiv

Carvana, the troubled used-car retailer, on Wednesday announced that it had reached a debt restructuring agreement with most of its bondholders in an effort to lower interest payments over at least the next two years and put its business on more solid financial footing. But Carvana took on a lot of debt, made a big acquisition and was unprepared for falling used car prices and rising interest rates. Carvana said its restructuring agreement covered more than $5 billion of senior, unsecured bonds and included the participation of Apollo Global Management, its largest bondholder. The interest on that new debt will be paid in kind for the next two years, meaning the principal Carvana owes will increase but the company won’t have to make about $430 million in interest payments in cash. The new debt will also come due later than the old notes.

Persons: Carvana Organizations: Wednesday, Apollo Global Management

As companies prepare to open their books to investors over the coming weeks, in the quarterly ritual known as earnings season, market watchers are balancing relatively weak estimates for past profits with brighter forecasts for future performance. Stock prices tend to follow expectations of earnings to come rather than react to details about the past, and markets have risen in step with investors’ improved outlook for the economy. The S&P 500 index has gained more than 20 percent since October. But much of that decline is concentrated in a few sectors, like energy, that recorded outsize profits last year, making for difficult comparisons to this year. And corporate executives also have a habit of lowering investors’ expectations ahead of earnings announcements, so that they can beat projections.

Persons: ”, Binky Chadha Organizations: Companies, Deutsche Bank

☆ Wall Street’s Recession Warning Is Flashing. Some Wonder if it’s Wrong.
▼ + stars: | 2023-07-12 | by ( Joe Rennison | More About Joe Rennison | ) www.nytimes.com time to read: +1 min

Some investors believe that a recession warning that has been flashing on Wall Street for the past several months is wrong and that the Federal Reserve will be able to tame inflation and still escape a deep downturn. The signal — called the yield curve — began suggesting last year that the economy was headed for a slump. Typically, investors expect to be paid more interest for lending for longer periods of time, creating an upward sloping curve. The inversion suggests that investors expect interest rates over time will fall from their current high level. And that usually only happens when the economy needs propping up and the Fed decides to help by lowering interest rates.

Organizations: Federal Reserve, Fed

Search resuls for: "More About Joe Rennison"

5 mentions found