Bull run in stock market

Share to Twitter Share to Linkedin Topline The stock market fell on Tuesday—reversing a comeback rally a day earlier—as the months-long selloff on Wall Street persists with investors continuing to offload shares amid a gloomy profit outlook from Snap, which sent tech stocks plummeting and led to rising recession fears. Key Facts The Dow Jones Industrial Average was down 0.5%, nearly 200 points, while the S&P 500 lost 1.3% and the tech-heavy Nasdaq Composite 2.6%. The relentless market selloff resumed on Tuesday—despite a rebound led by financial stocks a day earlier, with seven straight weeks of losses briefly pushing the S&P 500 into bear market territory last Friday. “Stocks are getting hit hard” and the “main culprit is the Snap warning” from Monday evening, says Vital Knowledge founder Adam Crisafulli, after the social media company warned that it expects both quarterly sales and profit to fall short of its own estimates. … [Read more...] about Stock Market Selloff Resumes As Snap’s 40% Plunge Drags Tech Shares Lower

- A + A (May 24): The sell-off of equities will reach a bottom once the US Federal Reserve (Fed) signals the end of tightening, which may not happen until a recession is apparent, according to Goldman Sachs Group Inc. “It may be necessary for the market to become more confident than it is that financial condition tightening has been sufficient and that the Fed has delivered and signalled enough tightening,” Goldman strategist Vickie Chang wrote in a note. “Monetary policy has historically stopped tightening about three months before equities bottom, and shifted to easing about two months afterwards.” US equities have slumped this year amid investor concerns that the Fed will plunge the economy into a recession with its active monetary tightening amid soaring inflation. The S&P 500 flirted with a bear market last Friday (May 20), while the Nasdaq 100 is down more than 25% in 2022 as frothy technology shares have led the sell-off on worries about higher rates … [Read more...] about Goldman strategist says stocks will bottom once Fed signals shift

Share to Twitter Share to Linkedin Topline Fresh off the S&P 500's brief plunge into bear-market territory, financial stocks led a staggering market rally on Monday after bullish news from the nation's largest lender, but with uncertainty around interest rate hikes still posing a risk to stocks, experts aren't breathing a sigh of relief just yet. Key Facts The Dow Jones Industrial Average soared 633 points, or 2%, to 31,896 by 3:30 p.m. ET Monday, while the S&P jumped 1.85% and the tech-heavy Nasdaq, 1.4%—setting the market up for its first daily increase in a week. Heading up the Dow and S&P's gains, shares of JPMorgan—though still down 22% this year—surged 7% after the bank raised its outlook for net interest income this year to $56 billion, up from guidance of $50 billion in January, due to expectations that the Federal Reserve will raise rates to 3% this year. "Strong economy, big storm clouds," JPMorgan CEO Jamie Dimon said … [Read more...] about Dow Soars 600 Points As JPMorgan Rallies—But ‘Vicious’ Bear Market Risks Keep Experts On Edge

- A + A (May 24): Social media stocks are on course to shed more than US$100 billion in market value after Snap Inc’s profit warning, adding to woes for the sector which is already reeling amid stalling user growth and rate-hike fears. Shares in digital ad-dependent Snap are set for a record one-day drop, down 30% in premarket trading. If that move holds, the company will lose about US$10 billion in market value. Added to the value of premarket declines for peers including Facebook-owner Meta Platforms Inc, Google-owner Alphabet Inc, Twitter Inc and Pinterest Inc, the group may see about US$100 billion wiped out. “At this point, our sense is this is more macro and industry-driven versus Snap specific,” Piper Sandler analyst Tom Champion wrote in a note. Others on Wall Street agreed, with RBC Capital Markets analyst Brad Erickson saying that implications for the digital advertising space are broadly negative, with Meta and Alphabet likely best insulated among … [Read more...] about Social media stocks set to erase US$100b on Snap warning

So far in this eight part series titled "8 Reasons Subscribers Are Better Than Customers," we've seen how subscribers boost the value of your company , increase the life time value of a customer and smooth out demand . Today, we look at how the subscription business model gets you closer to your customers--for free. In a traditional business, the customer buys your product or service once and it is up to you to try and convince them to buy again in the future. You often have no idea if they liked what they bought and what would have made them buy more so you're left having to guess or invest in costly market research. In a subscription business, you have what I call "Automatic Customers" who agree to purchase from you into the future as long as you keep providing your service or product. Through the research for my new book , I've discovered there are nine different subscription models that are leveraged by everyone from accounting firms to art teachers to better … [Read more...] about The Surprising Way Companies Like Netflix and Amazon Do Market Research

London (CNN Business) One of the many buzzwords percolating around Davos this week is "fragmentation," the force economists there warned could have "devastating human consequences." By "fragmentation," they are referring to a breakdown of the kind of free-wheeling, border-crossing trade and investment that's defined the global economic order over the past three decades. It is a form of deglobalization — rebuilding fences around national or regional fiefdoms. "Fragmentation is the sense that we may be having economies protect themselves a little more domestically, and that could slow things down," Josh Lipsky, director of the Atlantic Council's GeoEconomics Center, told me. "And then it may make things more expensive in return." It's not a new issue, of course — supply-chain upheaval was turbocharged by the start of the pandemic more than two years ago — but the war in Ukraine, growing political divides and lingering trade disputes are renewing concerns … [Read more...] about Here’s another troubling reason inflation will be hard to fight

This article first appeared in The Edge Malaysia Weekly, on May 16, 2022 - May 22, 2022. - A + A COMMODITIES may still be riding an upward trend, but metal prices have melted to pre-Russia-Ukraine conflict levels. Aluminium, for one, has seen year-to-date gains erased on demand headwinds, especially the slowdown in China’s manufacturing activity due to Covid-19 lockdowns. Since surging past US$3,800 a tonne in March this year — the highest in more than 13 years — aluminium prices have retreated 30% to a five-month low of US$2,700 a tonne. Copper prices have also contracted to a more than seven-month low of US$9,000 a tonne as at last Thursday on fears of a global economic slowdown. Attributing the fall to a strong US dollar and weak Chinese demand, Fitch Solutions expects further weakening in metal prices in the second quarter before stabilising in the second half of the year. Local analysts are not overly concerned about softer aluminium prices as they … [Read more...] about Trailing demand a temporary blip for aluminium players

- A + A KUALA LUMPUR (May 24): Logistics and express carrier provider GDEX Bhd posted a net loss of RM1.9 million in the first quarter ended March 31, 2022 (1QFY22), the first time since it was listed in 2005, amid tough competitions at home and higher operating costs. The group reported a 13.16% decline in revenue during the quarter to RM91.89 million, compared with RM105.81 million a year ago, amid lower contributions from its courier services segment. Geographically, Malaysia and Vietnam collectively made up the majority, or 99.6%, of GDEX's revenue, while Singapore contributed the balance 0.4%, according to GDEX. GDEX managing director Teong Teck Lean said in a statement accompanying the results that the group continues to face headwinds in Malaysia due to predatory pricing. "The competitive pricing environment is destructive, with some players offering free delivery service to grow their volume. However, this practice seems to be slowing down and we … [Read more...] about GDEX falls into the red for the first time ever amid stiff competitions in 1QFY22

- A + A KUALA LUMPUR (May 24): KNM Group Bhd has sold its entire stake in Borsig GmbH, a German-based process equipment manufacturer, to GPR Siebzigste Verwaltungsgesellschaft mbH (GSV) for €220.8 million (RM1.03 billion), but is expected to make an estimated loss of RM490.55 million from the disposal. In a bourse filing on Tuesday (May 24), the group said its wholly-owned indirect subsidiary Deutsche KNM GmbH entered into a conditional sale, purchase and transfer agreement with GSV on Monday. KNM is a multinational group with core businesses in project management, engineering, manufacturing and construction for the renewable energy, power, utilities, refining and petrochemical industries. GSV is a special investment vehicle wholly-owned by Vorsprung Industries SCSp, incorporated for the acquisition of Borsig. The price tag represents an enterprise value (EV) over earnings before interest, taxes, depreciation and amortisation (ebitda) of 6.63 times, compared with … [Read more...] about KNM to sell Borsig at a loss for RM1 billion

Brazil's right-wing president Jair Bolsonaro fired the chief executive of oil producer Petrobras -- the second in two months -- after the company refused to sell fuels at a discount to consumers warning it would l ead to diesel shortages . Bolsonaro also called for the election of a new board, according to a statement released close to midnight local time on Monday by the state-controlled company, opening the way to a full executive management shake-up. José Mauro Ferreira Coelho is the third Petrobras CEO fired by Bolsonaro over fuel prices. The president, who is seeking re-election in October but lagging in polls, says Petrobras should use its profits to reduce fuel prices and help control inflation. Bolsonaro, who also fired an energy minister earlier this year, appointed Caio Mario Paes de Andrade to replace Coelho. The government controls Petroleo Brasileiro, as the firm is formally known, with a majority of the voting shares, even if private … [Read more...] about Bolsonaro fires Petrobras CEO who warned of diesel crisis