Wall Street Today | Elon Musk Warns Against Margin Debt on Risk of Market 'Mass Panic'
MACRO
Consumer Spending Tapered Off Ahead of the Holidays
The U.S. economy showed fresh signs of slowing late this year as consumer spending and business demand softened and inflation eased.
Personal spending increased 0.1% in November from the prior month, the Commerce Department said Friday, marking a pullback from a robust 0.9% increase in October. Households boosted spending on services last month while cutting spending on goods, including autos. When adjusted for inflation, consumer spending was flat.
Japan Inflation Hits Four-Decade High, Pressuring Central Bank in 2023
Japan's core inflation rose at the fastest pace in nearly 41 years in November, fueling market speculation that the Bank of Japan would look to tighten monetary policy in 2023. Core consumer prices—a measure that covers all prices except fresh food—rose 3.7% from a year earlier in November, the fastest pace since December 1981, government data showed Friday.
SECTORS
SPAC Boom Ends in Frenzy of Liquidation
With few prospects for deals soon and a surprise tax bill looming next year, special-purpose acquisition companies are closing at a rate of about four a day this month, nearly the same pace they were being launched when the sector peaked early last year.
Roughly 70 SPAC have liquidated and returned money to investors since the start of December. That is more than the total number of SPAC liquidations in the market’s history, according to data provider SPAC Research. SPAC creators have lost more than $600 million on liquidations this month and more than $1.1 billion this year, the data show.
Winter Storm Is Freezing Pipes and Hammering Natural Gas Output
US natural gas production suffered its biggest one-day drop in more than a decade on Friday as the massive winter storm battering much of North America froze liquids in pipes and forced wells to shut down. Supplies across the Lower-48 states shrank by nearly 10 billion cubic feet, or roughly 10%, from the previous day as temperatures across key producing areas including in top supplier Texas fell below freezing, according to BloombergNEF data.
Russia May Raise Crude Oil Exports if EU Ban Cuts Refining
“If there are problems with the sale of petroleum products, oil refining to some extent can be replaced by additional volumes of oil exports,”Russia vice prime-minister Alexander Novak said in an interview to Tass. There's still a possibility that the EU ban won’t affect Russian oil refining at all, he said.
COMPANY
Elon Musk Warns Against Margin Debt on Risk of Market 'Mass Panic'
Billionaire Elon Musk is warning against something he himself has done — borrowing against the value of securities one owns — because of the risk of “mass panic” in the stock market.
"I would really advise people not to have margin debt in a volatile stock market and you know, from a cash standpoint, keep powder dry," Musk said in the All-In podcast released Friday. “You can get some pretty extreme things happening in a down market.”
Here's More Evidence Tesla's Cybertruck Could Soon Move Into Production
$Tesla(TSLA.US$ has taken delivery of a large order of Kuka robots, Electrek reported, citing a bill of lading spotted by a Twitter user.
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FedEx and UPS Warn Storm Could Delay Holiday Packages, Airlines Cancel Thousands of Flights
"FedEx Express experienced substantial disruptions at our Memphis and Indianapolis hubs last night due to severe winter weather that has been moving across the United States," $FedEx(FDX.US$ said Friday. $United Parcel Service(UPS.US$ said severe weather "across several regions of the U.S. are impacting the UPS Air and Ground network, including UPS hubs in Louisville, Kentucky and Rockford, Illinois. As a result, some delivery and pickup services in these areas will be affected.”
Source: Bloomberg, Dow Jones, CNBC
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lightfoot : My concern Raising Intetest Rates is good and bad. We are facing a severe recession in 20.23 for sure. Not sure what action to take . Cov'd along with Biden 's lack of understanding economics will have an impact on this nation greater than an asteroid.. Now is the time to reduce debt asap while hoarding cash. Banks do it, people must as well.
sTone83 : Musk's mouth requires reverse thinking from a historical point of view
Bobby Spencer lightfoot: "Greater than an asteroid" says a random moron who understands neither science or economics.