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Even with Friday's sell-off, the S & P 500 and Nasdaq scored gains for the week. The S & P 500 rose 1.4%, compared to a tiny loss of 0.2% in the Dow . "If the U.S. economy is going into a recession, they're going to be buying less cloud service. On Friday, durable goods for February is reported, and there are releases of flash S & P Global PMI data for services and manufacturing. Durable goods 9:30 a.m. St. Louis Fed President James Bullard 9:45 a.m. S & P Global Manufacturing PMI 9:45 a.m. S & P Global Services PMI
The consumer price index rose 6.0% year-over-year in February, less than January's year-over-year change of 6.4%. The cooldown should be welcome news to the Fed as it prepares for its interest rate decision next week. According to Tuesday's consumer price index (CPI) report from the Bureau of Labor Statistics, CPI soared 6.0% year-over-year in February. More specifically, the change for the index for food at home was 10.2%, higher than the year-over-year change of 8.4% for food away from home. The Fed will also have to confront a new round of financial turmoil after regulators recently closed Silicon Valley Bank and Signature Bank.
In this article SIVBSBNY Follow your favorite stocks CREATE FREE ACCOUNTPeople line up outside of the shuttered Silicon Valley Bank (SVB) headquarters on March 10, 2023 in Santa Clara, California. Justin Sullivan | Getty ImagesThis report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. What you need to know todayThe bottom lineThe February jobs report was supposed to be the news event of Friday. And not just any regional bank, but Silicon Valley Bank, the go-to for venture-backed tech startups.
CNBC Daily Open: What SVB means for markets
  + stars: | 2023-03-13 | by ( Yeo Boon Ping | ) www.cnbc.com   time to read: +1 min
In this article SBNYSIVB Follow your favorite stocks CREATE FREE ACCOUNTEmployees stand outside of the shuttered Silicon Valley Bank (SVB) headquarters on March 10, 2023 in Santa Clara, California. Justin Sullivan | Getty Images News | Getty ImagesThis report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. What you need to know todayThe bottom lineThe February jobs report was supposed to be the news event of Friday. And not just any regional bank, but Silicon Valley Bank, the go-to for venture-backed tech startups.
A trader works on the floor during morning trading at the New York Stock Exchange (NYSE) on March 10, 2023 in New York City. "In all, the data do not argue for a 50 [basis point] rate hike by the Fed on March 22 despite the strong payroll advance," said Kathy Bostjancic, chief economist at Nationwide. "The Fed can take comfort in the rise in the supply of labor and the easing of upward pressure on wages to maintain a 25 [basis point] rate increase," Bostjancic added. A basis point is 0.01 percentage point. "The move down on 50 basis point odds was hard to separate from the collapse of SVB," said Liz Ann Sonders, chief investment strategist at Charles Schwab.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSVB is clearly an example of something breaking, says Charles Schwab's Liz Ann SondersCharles Schwab's Liz Ann Sonders joins 'Closing Bell' to discuss the Fed rate hikes, the scale of contagion from Silicon Valley Bank's collapse and the potential for future breakage.
Sonders touted stocks that can weather inflation, recession, and higher interest rates. "You've got recessions in areas like certain segments of consumer goods, certainly in housing," Sonders said during a recent episode of "The Prof G Pod with Scott Galloway." Recession, inflation, and winning stocksSonders sounded the recession alarm during the interview. She singled out the housing market as particularly vulnerable, given valuations and mortgage rates are closely tied to interest rates. She suggested they look for companies that can thrive during periods of inflation, recession, and elevated interest rates.
This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Liz Ann Sonders, chief investment strategist at Charles Schwab, thinks that they're the markets skimming off speculative froth. "Markets will likely stay choppy during these months where higher rates have yet to materially cool consumer spending," wrote Roach. Subscribe here to get this report sent directly to your inbox each morning before markets open.
This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Liz Ann Sonders, chief investment strategist at Charles Schwab, thinks that they're the markets skimming off speculative froth. "Markets will likely stay choppy during these months where higher rates have yet to materially cool consumer spending," wrote Roach. Subscribe here to get this report sent directly to your inbox each morning before markets open.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailYou still want to look for companies with decent growth prospects, says Charles Schwab's Liz Ann SondersLiz Ann Sonders, Charles Schwab chief investment strategist, joins 'Squawk on the Street' to discuss her thoughts on the recent uptick in the 10-year yield, rising interest rates and more.
New York CNN —The labor market ballooned in January when the US economy added an astonishing 517,000 jobs, blowing past Wall Street’s expectations. “It’s tough to say that… Some of those people making those layoffs are our clients.”Alaska Air Group noted a smaller number of tech workers and tech companies using their airline. In San Francisco, apartment rents have fallen and tech layoffs have further weakened the housing market. Manufacturing layoffs: While tech layoffs may not be a leading recession indicator, a decrease in manufacturing hiring could be an ominous sign of things to come. What’s next: Investors looking for clarity on a confusing labor market are unlikely to find it in the frequently revised, high-frequency weekly jobless claims data on Thursday.
Yet US manufacturing has likely already contracted into a recession, housing sales have plummeted, tech layoffs keep coming and corporate earnings growth is souring. “We continue to think the economy will suffer from rolling recessions, evidenced by the fact that corporate earnings growth is now entering its downturn,” wrote Sonders in a note on Wednesday. For five straight weeks, the bank’s clients have been big buyers of individual stocks and sellers of ETFs, she wrote. Disney revenue in the quarter rose 8% to $23.5 billion, edging past estimates of $23.4 billion from analysts surveyed by Refinitiv. The company reported revenue of $8.6 billion for the quarter, beating Wall Street’s estimates and marking a 49% increase from the prior year.
Termed "rolling recessions," the idea is that rather than contract broadly and all at once, the economy could see different sectors decline in succession, one after the other. I think we will see rolling recession in the future." Sonders is a proponent of the "rolling recession" theory and noted that stocks can perform well even in downturns. A traditional recession looms To be sure, there are detractors to the "rolling recession" theory. "Have we ever had a period where both housing and manufacturing were in recession at the same time and we didn't have a recession?"
"FANG" and other big cap tech have faded as favorite trades, but i nvesting in foreign stocks as a way to generate better returns is just beginning. The outperformance in foreign markets has not gone unnoticed by U.S. investors, bruised by the 19.4% decline in the S & P 500 last year. Also, investors in foreign stocks will benefit if their local currencies gain against the dollar. Investors are now monitoring foreign markets much more and focusing on what's happening in currency pairs, like dollar/yen. "I think a lot of investors will play Europe stocks right out of the gate," he said.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full post-market discussion with Schwab's Liz Ann Sonders, Veritas' Greg Branch and Hightower's Stephanie LinkLiz Ann Sonders, Charles Schwab chief investment strategist, joins 'Closing Bell: Overtime' to discuss the markets and whether she sees any signs the Fed is preparing to pivot. With Greg Branch, Veritas Financial managing partner, and Stephanie Link, Hightower Advisors.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFed needs steep downturn before 'green light' to pivot, says Schwab's Liz Ann SondersLiz Ann Sonders, Charles Schwab chief investment strategist, joins 'Closing Bell: Overtime' to discuss the markets and whether she sees any signs the Fed is preparing to pivot.
US stocks closed lower on Thursday, snapping a win streak of three consecutive gains. Weekly jobless claims rose less than expected, signaling the labor market may still be tight. "Strong economic data, especially strong labor market data, keeps the Fed's foot on the economic brake," Charles Schwab's Liz Ann Sonders said. "Strong economic data, especially strong labor market data, keeps the Fed's foot on the economic brake," Liz Ann Sonders, chief investment strategist at Charles Schwab, told Reuters. Billionaire David Tepper said he is going short on the market into 2023 over the Federal Reserve's continued hawkishness.
Stock futures rise on Wednesday evening
  + stars: | 2022-12-21 | by ( Samantha Subin | ) www.cnbc.com   time to read: +2 min
Stock futures rose slightly in overnight trading on Wednesday after better-than-feared earnings and strong consumer confidence data helped boost stocks for a second day. Stock futures tied to the Dow Jones Industrial Averages gained 38 points or 0.1%, while S&P 500 futures added 0.15%. All 11 S&P 500 sectors finished the day with gains, led to the upside by energy. The Dow is down 3.51%, while the S&P 500 and Nasdaq have tumbled 4.94% and 6.62%, respectively. On Thursday, investors await earnings results from Carmax and jobless claims data.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Charles Schwab's Liz Ann Sonders and Wells Fargo's Darrell CronkCharles Schwab's Liz Ann Sonders and Wells Fargo Investment Institute's Darrell Cronk, join 'Squawk on the Street' to discuss markets moving lower after the Fed meeting, the relationship unit demand has with pricing, and trajectory estimates for the 2-year note.
New York CNN —‘Tis the season for Wall Street strategists to pack their clients’ inboxes with market predictions for 2023. Market analysts aren’t alone. “US equity returns will be driven by earnings against a backdrop characterized by elevated market volatility,” write JPMorgan analysts. The effort was initially touted as a “Big Bang 2.0” — a nod to the rapid deregulation of UK financial markets under former Prime Minister Margaret Thatcher in 1986. The changes are a bid to maintain London’s role as a global financial hub after Brexit, which, alongside political turmoil, has boosted uncertainty for companies thinking about where to invest.
In an interview with Insider, Charles Schwab's Liz Ann Sonders explained her economic outlook for 2023. The US is already in the midst of a "rolling recession," she said. Sonders shared her stock investing strategy, as well as her favorite book of all time. That's because it's already arrived — but in the form of a "rolling recession." 'My absolute favorite book of all time'Sonders said her "absolute favorite book of all time" is the 1923 novel "Reminiscences of a Stock Operator" by Edwin Lefèvre, a first-person, fictional tale of a character inspired by the real-life day trader Jesse Livermore.
Today's newsletter features my conversation with Liz Ann Sonders of Charles Schwab, and why she thinks the economy's already in a recession. Charles SchwabLiz Ann Sonders is the chief investment strategist at Charles Schwab. Phil Rosen: Can you explain your "rolling recession" assessment of the US economy? Liz Ann Sonders: Typically when you go into a recession, everything's sort of hit all at once. Read the full interview with Liz Ann Sonders here.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with Charles Schwab's Liz Ann SondersLiz Ann Sonders, Charles Schwab chief investment strategist, joins 'Closing Bell: Overtime' to discuss market expectations ahead of another Fed meeting and potential year-end market rally.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThere's too much market optimism for the time from a Fed pause to pivot, says Liz Ann SondersLiz Ann Sonders, Charles Schwab chief investment strategist, joins 'Closing Bell: Overtime' to discuss market expectations ahead of another Fed meeting and potential year-end market rally.
The US economy is already in a "rolling recession," says Charles Schwab's Liz Ann Sonders. Sonders believes investors should emphasize factor investing over picking sectors. The timeline for the next recession may be the biggest topic of debate amongst investors right now. But Liz Ann Sonders, the chief investment strategist at Charles Schwab, believes that the US economy is already in a recession — whether it's been officially declared or not. She also believes that investors who primarily own US assets and have no exposure to overseas equities may miss out on potential returns.
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