Stocks Rise, Ben Bernanke Talks Economics, Intel CEO on Chip Crisis

Symbol Price Switch %Switch
Me: DJI $31,261.90 +8.77 +0.03%
SP500 $3,901.36 +0.57 +0.01%
I: COMP $11,354.62 -33.88 -0.30%

U.S. stocks rose slightly early Monday morning before the opening bell on Wall Street as another busy week of retail earnings reports was about to kick off.

Costco, Best Buy, Macy’s, Nordstrom, Gap and AutoZone are among two dozen major retailers expected to report quarterly earnings.

The group will be in for a lot of attention, especially after disappointing numbers and forecasts from Walmart, Target and Ross Stores. expensive items just to make ends meet.

Target, whose shares plunged 25% on Wednesday in the worst day since the 1987 crash, noted that purchases of the big TVs and appliances that consumers have been loading up on during the pandemic have dwindled, n doesn’t bode well for Best Buy when it reports on Tuesday.

Investors were awaiting minutes from the Federal Reserve’s latest policy-setting meeting and consumer price updates, due later this week.

On Friday, the S&P 500 fell more than 20% below its peak reached at the start of this year before buying late in the day to give it a small gain. He finished 18.7% below his record. It capped a seventh consecutive week of losses, the longest since 2001, when the dotcom bubble was bursting.

Inflation and rising interest rates, the war in Ukraine and the slowdown in the Chinese economy are hurting equities and raising fears of a possible recession in the United States.

Many big tech stocks, considered among the most vulnerable to rising interest rates, have already fallen more than 20% this year. This includes a 37.2% drop for Tesla and a 69.1% drop for Netflix.

It’s a sharp turnaround from the powerful run Wall Street enjoyed after emerging from its last bear market in early 2020, at the start of the pandemic.

With inflation at its highest level in four decades, the Fed has moved from keeping interest rates extremely low to support markets and the economy to raising rates and taking other actions to curb inflation. The concern is that it might go too far or too fast.

Goldman Sachs economists recently put a 35% chance of a US recession in the next two years.

Inflation has been painfully high for months. But market concerns grew after Russia’s invasion of Ukraine, which drove up prices at grocery stores and gas pumps, as the region is a major source of energy and grain.

The mounting pressure on equities is a sign that corporate earnings are slowing and could ultimately suffer from inflation.

Meanwhile, stocks were mostly higher in Asia in cautious trading after Wall Street rumbled on the edge of a bear market on Friday.

Tokyo and Sydney were up on Monday while Hong Kong and Shanghai were unchanged.

The Nikkei 225 in Tokyo gained 1% to 27,001.52. The South Korean Kospi rose 0.3% to 2,647.38.

Australia’s S&P/ASX 200 edged up 0.1% to 7,148.90.

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