Share to Twitter Share to Linkedin Topline The stock market selloff resumed on Wednesday amid reinvigorated fears about surging inflation weighing on economic growth, as several major retailers have now reported that quarterly profits took a hit due to rising cost pressures. Key Facts The selloff on Wall Street intensified: The Dow Jones Industrial Average fell 3.6%, over 1,100 points, while the S&P 500 lost 4% and the tech-heavy Nasdaq Composite 4.7%. Markets tanked after disappointing quarterly earnings from major retailers: Shares of Target plunged over 25% after the company warned of rising costs and supply chain issues impacting profits, with the stock on pace for its worst single-day drop in roughly 25 years. The news followed a gloomy outlook from Walmart, with the nation’s largest retailer badly missing earnings expectations due to rising costs, causing shares to fall 11% on Tuesday in their largest one-day drop since 1987. … [Read more...] about Dow Falls 1,100 Points, Stock Market Selloff Continues As Major Retailers Warn Of Rising Cost Pressures
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A lone bear, black magic and a $235 billion stock market crash
What does it take to trigger a crash in the stock market? A once-in-a-century pandemic? The biggest war in Europe in 70 years? The US Federal Reserve instantaneously cutting off the supply of the opium of record liquidity and low interest rates? Multi-year high inflation? How about black magic? The Oxford Dictionary defines black magic as a type of magic that is believed to use the power of the devil in order to do evil. In a world where boring financial data, profit and loss statements, and complex macroeconomic events sway the everyday movement of stock prices and stock indices, one Rajkot-based stockbroker claimed last week that he spent more than Rs 8 crore to engineer a multi-day crash in the stock market with the help of esoteric black magic. Close “We are responsible to a great extent for today’s fall and the fall of the past few days in the market. You won’t believe it, but we have spent over Rs 8.5 crore today in kala jadu (black magic) to create … [Read more...] about A lone bear, black magic and a $235 billion stock market crash
Melvin Capital to shut after heavy losses on meme stocks, market slump
- A + A (May 18): Melvin Capital, once one of Wall Street's most successful hedge funds which then lost billions in the meme stock saga, will shut down after it was hit again by this year's market slump. Gabe Plotkin, widely regarded as one of the industry's best traders after posting years of double digit returns, told investors that the last 17 months have been "an incredibly trying time." Plotkin had been trying to turn around the firm after being caught out in early 2021 betting against retail favorite GameStop and after being wrong footed again by tumbling markets this year. "The appropriate next step is to wind down the Funds by fully liquidating the Funds' assets and accounts and returning cash to all investors," Plotkin wrote in a letter reviewed by Reuters on Wednesday. Melvin Capital had $7.8 billion in assets at the end of April. The fund lost 23% in the first four months of 2022, a person familiar with the fund's finances said. This year's losses … [Read more...] about Melvin Capital to shut after heavy losses on meme stocks, market slump
Daily Voice | FIIs will be the biggest buyers in Indian markets in FY23, says Amit Jain of Ashika Group
Amit Jain is the Chief Strategist - Global Asset Class at Ashika Group The market so far has discounted 70 percent of inflation risk but only 30 percent of possible geo-political risk at current levels, Amit Jain, Chief Strategist - Global Asset Class at Ashika Group said in an interview to Moneycontrol. He feels the world power equation is going to change significantly in next three years. After more than Rs 2.75 lakh crore of FII outflow in FY22 so far, FIIs will be the biggest buyers in Indian markets for next financial year 2022-23, says Jain, who has more than 18 years of experience in the banking and financial services. Edited excerpts: The second half of FY22 was a tough period for equities. As we are soon going to enter FY23, what are the biggest risk factors that the market can face? As we see, Nifty has generated return on investment (ROI) of 19 percent in last 1 year compared to (-0.63 percent) in last 6 months. Even from hereon, market may be volatile in both … [Read more...] about Daily Voice | FIIs will be the biggest buyers in Indian markets in FY23, says Amit Jain of Ashika Group
Daily Voice | Another 10% fall unlikely, but markets will go through some consolidation: Divam Sharma of Green Portfolio
Divam Sharma is the Founder of Green Portfolio Divam Sharma, founder at Green Portfolio believes the Indian market will go through a consolidation phase before moving a leg higher. But another correction of 10 percent is not on the cards considering most risk factors and negative sentiments are priced in, he says. Divam Sharma, who has more than 15 years of experience of investment management in stock markets, says now is not the time to look at consumer discretionary stocks as the increase in raw material prices, interest rates will lead to a pinch on margins of these companies. Edited excerpts: Given the signs of progress in Ukraine-Russia peace talks and hope that the war could end soon, do you think sanctions imposed on Russia could get lifted? It is rather quicker to sanction a country than to repel them of the same. We have witnessed this throughout history - may it be with Venezuela, Iran, or North Korea. Hence, the ultimate lifting of these sanctions will … [Read more...] about Daily Voice | Another 10% fall unlikely, but markets will go through some consolidation: Divam Sharma of Green Portfolio
US stocks roiled; Dow tanks over 1,000 pts, Nasdaq & S&P sink up to 4%
(Representative image: Reuters) The Nasdaq and the S&P 500 tumbled up to 4% on May 18 in the intra-day trade as a rally in growth shares faded amid economic growth concerns, while Target plunged to the bottom of the S&P 500 after the retailer became the latest victim of surging prices. Target Corp's (TGT.N) first-quarter profit halved and the company warned of a bigger margin hit on rising fuel and freight costs. Its shares fell 25.2% and were tracking their worst day since the Black Monday crash on Oct. 19, 1987. The retailer's results come a day after rival Walmart Inc trimmed its profit forecast. The SPDR S&P Retail ETF declined 8.2%. All of the 11 major S&P sectors declined, with consumer discretionary and technology stocks down 5.7% and 3.5%, respectively till the last update. Rising inflation, the conflict in Ukraine, prolonged supply chain snarls, pandemic-related lockdowns in China and prospects of aggressive policy tightening by central banks … [Read more...] about US stocks roiled; Dow tanks over 1,000 pts, Nasdaq & S&P sink up to 4%
Russia–Ukraine Tensions Soar as Shelling, War Talk Increase; Investors Flee Stocks
U.S. equity markets are falling as tensions ratchet higher between Russia and Ukraine, with U.S. officials saying they expect a Russian attack on its neighbor shortly. Major indexes are heading for weekly declines and the Nasdaq is adding to its nearly 14% drop so far this year. Key Takeaways U.S. equity markets are falling as investors watch developments in the ongoing tensions between Russia and Ukraine. Major indexes are heading for weekly declines and the Nasdaq is adding to its nearly 14% drop so far this year. Roku shares are plunging while FAAMG stocks, Tesla, and Intel all slide. Shares of all the FAAMG tech companies are lower. Tesla Inc. ( TSLA ) shares are declining 3%. Shares of semiconductor companies are dropping after Intel Corp. ( INTC ) warned of lower profit margins this year. Roku Inc. ( ROKU ) shares are plunging on its earnings report (more below). Shares of big industrial firms including Boeing Co. ( BA ), Honeywell International … [Read more...] about Russia–Ukraine Tensions Soar as Shelling, War Talk Increase; Investors Flee Stocks
Daily Voice | Further downside risks exist for Indian market till easing of commodity-led inflation: Soumyo Sarkar of Sumit Capital
Soumyo Sarkar, Chief Executive Officer and Portfolio Manager of Sumit Capital LLC feels that further downside risks exist for the Indian market unless there is a significant easing of commodity-led inflation or a favourable resolution of the Ukraine crisis. The US Fed's so-called dot plot (projection for Fed funds rate) is indicating around seven rate raises of a quarter-point each this year, followed by a few more rate hikes in 2023. "We expect the US Fed to start hiking rates from mid-March. However, the drop in the yields reflects the belief of market participants that Ukraine tensions may cool down the global economy and reduce inflationary pressures over time," says the New York based registered investment advisor. Prior to setting up Sumit Capital, Sarkar worked with Deutsche Bank during 1995-2009 period and Credit Suisse during 1991-1995. Even after more than 10 percent correction from record highs, is the Indian market highly valued considering the corporate … [Read more...] about Daily Voice | Further downside risks exist for Indian market till easing of commodity-led inflation: Soumyo Sarkar of Sumit Capital
Daily Voice | India will be among best markets globally, if inflation cools off: Rajesh Bhatia of ITI Long-Short Equity Fund
"It is difficult to call the trajectory of inflation, especially since the outlook is clouded by the Russian invasion of Ukraine and the spike in COVID cases in China. So we expect volatility in equity markets to continue in the short term as it navigates this inflation direction," says Rajesh Bhatia, Managing Director & CIO, ITI Long-Short Equity Fund, in an interview to Moneycontrol . If the inflation trajectory does cool off, India will be among the best markets in the world to invest in, he believes. Therefore, "earnings growth in double digits will lead to double-digit gains in stocks as well," says Bhatia, who has more than 30 years of investment experience in Indian equities, with the last 14 years in alternative investments (long-short fund management). Considering the current volatility, what could be the drivers for the market, and where could the market be headed in the near term, though most experts are still holding a positive outlook for the medium- … [Read more...] about Daily Voice | India will be among best markets globally, if inflation cools off: Rajesh Bhatia of ITI Long-Short Equity Fund
The Top 10 Stocks to Buy in 2022
There are literally thousands of publicly traded companies you can invest in, not to mention the many ETFs and mutual funds you can buy, so it's not surprising many investors don't know where to begin. While I don't have a crystal ball that tells me what stocks will deliver the best returns, I've tried to do the next best thing here. In this article, I'll discuss 10 stocks that I think could be great buys in 2022 for long-term investors looking to put money to work. Before we get to the stocks you're here for, let's acknowledge three caveats: Choosing the best stocks to buy today heavily depends on your personal financial situation. To get a feel for where you stand, read our guide on how to invest in stocks . It walks you through topics such as establishing an emergency fund, allocating assets, and when it makes sense to buy stocks. I like these stocks for long-term investments. I have absolutely no idea what they'll do over the next few weeks or months. While I ensured … [Read more...] about The Top 10 Stocks to Buy in 2022