The AP on the Street 17th week of 2023
The AP on the Street 17th week of 2023
The last week, again, was primarily neutral, with slightly better returns compared to the previous one.
This week we have a quite busy and important week. We have the ISM Manufacturing PMI, JOLTs, Services PMI, ISM Non-Manufacturing PMI, Unemployment rate, and FED Interest Rate Decision. So, let’s take a look at what happened last week:
- Credit Suisse saw an outflow of around $60 billion.
- Bed Bath & Beyond shares sunk around 50% after filing for bankruptcy protection.
- First Republic Bank shares plunged 20% after deposits fell more than expected.
- UBS’s net profit drops around 50%.
- US President Biden launches his re-election campaign.
- US Consumer Confidence came out 101.3 —2.7 points worse than expected. A 9-month low in April.
- First Republic Bank shares plunge 50% after the terrible results.
- LVMH becomes the first European company to surpass $500 billion in market capitalization.
- Microsoft jumped after the earnings report.
- Google jumped after the earnings report.
- First Republic Bank expected to be seized by US Government.
- UK blocked the Microsoft/Activision-Blizzard acquisition deal.
- First Republic Bank shares tumbled even more by around 30% after the massive 50% drop.
- Oil dropped after recession fears grew.
- Meta platforms surged more than 14% after the earnings beat.
- Samsung’s Q1 profit tumbled 95%.
- US 2023 GDP Q1 rose 1.1% quarter-on-quarter —90 basis points lower than expected. Suggesting a worse economic outlook than expected —igniting recession fears.
- US Core PCE Price Index 4.6% year-on-year —10 basis points higher than expected.
- An awkward thing happened, Federal Reserve Chairman Powell was tricked by Russian pranksters posing as Ukrainian President Zelensky.
- In this prank call: FED Chairman Powell admitted that a US recession is likely, and there are two 25 basis points hikes incoming.
- Lyft announced a layoff for around a quarter of its workforce.
- Snapchat shares tumbled 20% after the earnings report.
- Amazon shares soared after a better-than-expected earnings report and, thereafter, erased the gains and even declined due to an uncertain outlook.
- Bank of Japan kept the interest rates at the same level, -0.1%, as expected. Also, they decided to conduct a policy review.
- Japan Tokyo Core CPI rose 3.5% year on year —30 basis points higher than expected.
- France’s GDP rose 0.2% quarter on quarter, as expected.
- France’s CPI rose 5.9% year on year —20 basis points higher than expected.
- Spain’s CPI rose 4.1% year on year —30 basis points lower than expected.
- Germany’s GDP declined 0.1% quarter on quarter —40 basis points lower than expected. Staying in the technical recession zone after three consecutive negative quarterly growth rates.
- Euro Zone GDP rose 0.1% quarter on quarter —10 basis points lower than expected.
- US Officials are leading urgent rescue talks for First Republic Bank.
- Germany’s CPI rose 7.2% year on year —10 basis points lower than expected.
- JP Morgan says the S&P500 could hit 3500 points by early summer, suggesting a 16% drawdown —4169.48 points in the last closing.
- First Republic Bank shares plunged more than 40% again after two consecutive days of enormous losses, due to the fact that the bank is most likely to enter FDIC receivership.
- FED blames SVB’s failure on management and inadequate supervision, according to the latest FED report.
- According to a Reuters report, First Republic Bank is set for „imminent“ government rescue.
- First Republic Bank shares sunk around 50% in after-hours trading, after the closing bell on Friday.
- According to a Wall Street Journal report, JPM and PNC are bidding to buy First Republic Bank. However, the report also suggests that the sale will happen after the FDIC takeover.
- First Republic Bank will be removed from the S&P500 as the market capitalization fell below $1 billion.
- US3M hit its highest level since the Great Recession —closed with 5.08%.
- Chicago PMI came out as 48.6 points —5.1 points better than expected.
Overall Market Indexes & Commodities Moves (Weekly) (By taking the opening price on Monday and closing price on Friday, using MSN Money)
DOW = 0.5%
S&P 500 = 0.5%
NASDAQ = 0.8%
RUSSELL 2000 = -1.3%
Gold = 0.2%
Silver = -0.2%
Oil = -2.4%
The weekly performance of S&P 500 Stocks
TIL: What is FDIC?
The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by Congress to protect and reimburse deposits up to $250,000 per depositor, per insured bank, in case they fail. The FDIC also examines and supervises financial institutions for safety, soundness, and consumer protection, and makes large and complex ones resolvable. The FDIC regulates banks that are chartered by the states that do not join the Federal Reserve System and is the backup supervisor for the rest. The FDIC does not insure all account types.
Important data/ decisions that will be published next week:
ISM Manufacturing PMI, JOLTs, Services PMI, ISM Non-Manufacturing PMI, Unemployment rate, and FED Interest Rate Decision
This week we have a lot of important data and decisions that will affect the market outcomes significantly.
We will see how the investors will behave after all of the data and decisions. Stay tuned.
DISCLAIMER: THIS TEXT CONTAINS NO INVESTMENT ADVICE.