How the Fed is ‘collapsing’ real estate activity with higher interest rates
U.S. real estate has undergone a dramatic slowdown in transaction activity in the months since the Federal Reserve began jacking up interest rates. Sales of existing homes plunged from peak pandemic levels to about 4.1 million in November (see chart) from over 6 million units sold per year in 2021 as the Fed has dramatically […]
Why value stocks may not repeat their vast 2022 outperformance in 2023
Are so-called value stocks still living up to their name? Some aren’t so sure. After more than a decade of lackluster returns, the value factor beat the broader market and outperformed rival growth stocks in 2022 by the widest margin since 2000. Still, both broad categories suffered sizable declines during a bear market that sent […]
Gold hits fresh 8-month high on China reopening hopes
Gold futures touched a fresh 8-month high Wednesday as traders bet that China’s decision to drop COVID-19 restrictions on its economy would continue to boost prices of precious and industrial metals. Price action Gold futures for February delivery GC00, +0.23% GCG23, +0.23% rose by $5, or 0.3%, to $1,889 per ounce on Comex, according to […]
Treasury yields slip after World Bank warning adds to global growth concerns and traders eye inflation data
U.S. bond yields fell on Wednesday as concerns about global economic growth lingered and traders looked ahead to U.S. inflation data, while an auction of 10-year notes met strong demand.What’s happening The yield on the 2-year Treasury TMUBMUSD02Y, 4.224% slipped 0.8 basis point to 4.249%. Yields and debt prices move opposite each other. The yield […]
Oil ends higher on China’s reopening, but traders watch for signs of a global recession
Oil futures settled higher on Tuesday, with U.S. prices up a fourth straight session, finding support as investors continue to monitor China’s reopening and look for signs of a potential global recession. Price action West Texas Intermediate crude for February delivery CL.1, +0.56% CL00, +0.56% CLG23, +0.56% rose 49 cents, or 0.7%, to settle at […]
Morgan Stanley’s Mike Wilson warns U.S. stocks could slump another 22% if recession arrives in 2023
U.S. equities could face a sharper-than-expected selloff in 2023 from a recession shock that pushes stocks down another 22% from the current levels, according to Morgan Stanley’s Michael Wilson. The chief equity strategist, who correctly predicted the 2022 stock-market selloff, which saw all three major indexes cement their worst annual losses since 2008, suggested on […]
Look for a big cut to TSMC’s 2023 outlook as a bullish sign for chips, one analyst says ahead of earnings
The best thing Taiwan Semiconductor Manufacturing Co. can do in its earnings report Thursday is to cut its outlook for 2023 big, indicating a bottoming in the first half of the year, according to one analyst Monday. TSMC TSM, +3.87% is scheduled to report fourth-quarter earnings on Thursday at 1 a.m. Eastern Time. Needham analyst […]
Treasury yields pull back to mid-December levels
Treasury yields fell across the board Monday, with the 10-year rate declining to its lowest yield in about three weeks, as investors monitored China’s reopening and awaited remarks this week by Federal Reserve Chair Jerome Powell and a round of U.S. inflation data.Price action The yield on the 2-year Treasury note TMUBMUSD02Y, 4.220% fell 6.3 […]
Globalization is not dead, but it is facing a big tail-risk, expert says
Reports that globalization is dead are overstated, a top economist says. Conventional wisdom has it that globalization will suffer in the aftermath of the pandemic and Russia’s war in Ukraine. The Biden White House’s move to reshore manufacturing and to deny China access to advanced technologies are seen as further steps away from a robust […]
‘Markets are going to get rocked’ as Fed is likely to push rates higher, economist warns
The Federal Reserve is likely to raise interest rates more than the markets now expect, says Ricardo Reis, an economist at the London School of Economics. “Markets are going to get rocked,” Reis told MarketWatch on the sidelines of the American Economic Association annual meeting in New Orleans. “All the risks are on the upside. […]