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Wall Street Today | The Worst Fears for Global Growth May Be Subsiding

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Moomoo Recap US wrote a column · Jan 22, 2023 18:37
Wall Street Today | The Worst Fears for Global Growth May Be Subsiding
MACRO
The Worst Fears for Global Growth May Be Subsiding
Grounds for more hope that the global economy can avoid a major slump may emerge in the coming week in business surveys showing gradual improvement across much of the advanced world. Purchasing manager indexes for both the US and the euro zone are anticipated by economists to tick higher. While several gauges will still suggest contraction, the upward direction of travel could add to a growing narrative that a soft landing is achievable.
Investors Aren't Sure When to Dive Back Into US Stock Market
“The S&P 500 has never bottomed before the start of a recession, but it’s not clear yet whether the US economy will actually fall into a downturn,” said Ed Clissold, chief US strategist at Ned Davis Research, whose firm forecasts a 75% chance that the US will slump into an economic slowdown in the first half of 2023. “Some indicators are telling us that a soft landing isn’t off the table. All of these cross currents do make it challenging for investors to position in US stocks.”
Cathie Wood Sees Fed Pivot Boosting Growth Stocks This Year
ARK Investment Management founder Cathie Wood says inflation has peaked and the Federal Reserve will stop tightening financial conditions soon, a move that will boost the growth stocks her funds favor.
>>Read more
SECTORS
EU’s Looming Gas Price Cap Could Trigger Abrupt Market Changes
The European Union’s temporary gas price cap could result in a reduction of market liquidity, yet significant effects on trading activity couldn’t be identified so far, according to conclusions from the bloc’s financial market regulator seen by Bloomberg.
The European Securities and Markets Authority will say on Monday that while effects of the cap — due to start from Feb. 15 — can’t be enumerated, that doesn’t mean that there won’t be any. It’s likely trading could move off-market when the cap is put in place, they added.
Video Game Industry Feels Pain of Big Tech Job Cuts
Executives overhire ahead of a big game’s release, work employees to the bone, and, once the fruits of their labors line the walls of GameStop, fire employees en masse.
There was a time when the games industry was considered immune to recession. A high unemployment rate seemed to correlate with more people with their hands free to hold a controller. Recent trends have exploded that idea. “Games are not a recession-proof industry,” says Laine Nooney, Assistant Professor of Media Industries at New York University. “Games are really reactive to markets.”
COMPANY
Google Employees Scramble for Answers After Layoffs Hit Long-Tenured and Recently Promoted Employees
On Friday, Alphabet -owned $Alphabet-A(GOOGL.US)$ announced it was cutting 12,000 employees, roughly 6% of the full-time workforce. While employees had been bracing for a potential layoff, they are questioning leadership about the criteria for layoffs which surprised some employees, who woke up to find their access to company properties cut off. Some of the laid-off employees had been long-tenured or recently promoted, raising questions about the criteria used to decide whose jobs were cut.
Apple Timed New Macs and HomePod to Boost Its Spring Quarter
$Apple(AAPL.US)$ timed the launch of the new MacBook Pro, Mac mini and HomePod to shore up its current quarter’s revenue — while preventing the recently ended holiday period from suffering supply headaches.
Apple had already told investors and analysts that year-over-year holiday quarter revenue growth would slow, in part, because there wouldn’t be a major MacBook Pro update in 2022 (as there was in 2021). Launching a MacBook Pro upgrade with limited supply in the quarter would only compound that issue.
GM, LG End Plans for Fourth U.S. Battery Cell Plant as Automaker Seeks New Partner
$General Electric(GE.US)$ and LG Energy Solution have indefinitely shelved plans to build a fourth battery cell plant in the U.S., as talks between the two sides recently ended without an agreement, a person familiar with the plans confirmed to CNBC.
GM and LG initially announced the joint-venture for a $2.3 billion plant in Ohio in December 2019, followed by other plants near GM operations in Michigan and Tennessee. Only the Ohio plant is currently operating, while the others are under construction.
Source: Bloomberg, Dow Jones, CNBC
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