Elon Musk thinks we’ve passed peak inflation
Elon Musk said he thinks we are past peak inflation and forecast a mild 18-month recession ahead.
Musk’s comments came during Tesla’s 2022 shareholder meeting, held on August 4.
“We have a good idea of how the prices of things change over time, because when you’re making millions of cars, you have to buy products months before they’re needed,” he said. .
Amazon to buy iRobot for $1.7 billion
Amazon will acquire iRobot for $61.00 per share, the consumer robot company announced Friday. The all-cash transaction is valued at approximately $1.7 billion, including iRobot’s net debt.
iRobot shares were halted on the news. The sale price of $61 per share is a 22% premium to Thursday’s close of $49.99. Amazon’s stock rose about 0.2% in premarket trading.
—By Michelle Fox
DoorDash surges after record orders
A Doordash delivery man rides a bicycle in the rain during the coronavirus disease (COVID-19) pandemic in the Manhattan borough of New York City, New York, U.S. November 13, 2020.
Carlos Allegri | Reuters
DoorDash shares rose more than 10% in premarket trading on Friday after the company reported better-than-expected quarterly results after the market closed Thursday. The food delivery service said orders were up 23% from the last quarter of the year and revenue jumped 30%.
The company expects consumer spending to decline in the second half of the year, it said.
Oil is poised for a heavy weekly loss
Oil prices were moderately lower in Friday morning trading on Wall Street and on track for steep weekly losses. Concerns about a slowdown in demand have driven prices down in recent sessions.
West Texas Intermediate crude futures, the US oil benchmark, are down 10.5% for the week, while international benchmark Brent crude lost 14.5%.
Bitcoin and Ether on track for worst week since July 1
Cryptocurrencies fell this week after a tough start to the month. Bitcoin and Ether are both down around 3% since the start of the week and on track to post their first negative week in five.
The performance would also be the worst weekly drop since July 1, when Bitcoin lost 8.71% and Ether lost 13%.
Warner Bros dives
Leslie Grace attends the premiere of Warner Bros. of ‘The Suicide Squad’ at Landmark Westwood on August 02, 2021 in Los Angeles, California.
Axelle/bauer-griffon | Filmmagic | Getty Images
Stifel raises S&P 500 second-half target
Stifel’s Barry Bannister raised his S&P 500 target for the second half to 4,400 from 4,200, noting that he continues to favor cyclical growth stocks in sectors such as software and media.
Here are two reasons Bannister gave for his target:
- The “1H22 S&P 500 selloff is still reversing.”
- “The S&P 500 also discounts the negative S&P 500 EPS y/a in 2022, but we see 2022 EPS holding.”
Bannister’s new target implies a 6% upside from Thursday’s close.
European stocks stagnate ahead of US jobs report
European markets were flat on Friday morning as investors tracked corporate earnings and awaited the key US jobs report.
The pan-European Stoxx 600 was little changed in early trading. Autos gained 0.8% while insurance stocks fell 0.8%.
Earnings continue to drive individual stock prices in Europe. Allianz, Deutsche Post, the London Stock Exchange Group and WPP were among the companies that reported before the bell on Friday.
Asian markets shake fears over military tensions around Taiwan
Asia-Pacific markets rose on Friday as investors dispelled fears over Chinese military exercises near Taiwan, which follow US House Speaker Nancy Pelosi’s visit to the autonomous island this week.
MSCI’s broadest index of Asia-Pacific stocks outside Japan rose 0.74%. Mainland China’s Shanghai Composite gained 0.28% and the Shenzhen Component rose 0.64%.
Taiwan’s Taiex jumped more than 2%, with chipmaker TSMC rising 2.8%.
Fewer jobs doesn’t mean a weaker economy, investor says
While Friday’s jobs report shows the US economy added fewer workers in July than the previous month, that’s not necessarily a sign of economic weakness, according to Brad McMillan, CIO at Commonwealth Financial Network.
“If we see a reduction in hiring, even to the expected number, it seems much more likely to be due to a shortage of workers, rather than a sudden labor demand shock,” McMillan said. in a note. “With high demand, what matters here is the availability of labor.”
Some on Wall Street don’t think the comeback rally can last
The Fed’s commitment to bringing inflation down along with easing recession fears sparked a rally of relief in the market. The S&P 500 is now 14.2% above its 52-week intraday low of 3,636.87 since June 17. The benchmark also just had its best month since November 2020, gaining more than 9% in July.
However, some on Wall Street are skeptical that the rally will last much longer. Max Kettner, chief multi-asset strategist at HSBC bank, said the return was “wishful thinking” and that he would need to see another revision to rate hike forecasts and another sharp drop in real yields. to believe it.
Widely followed Morgan Stanley’s Mike Wilson also called the rally short-lived as corporate earnings begin to deteriorate.
Consumer discretionary leads the gains, with energy the biggest laggard this week so far
Six of the 11 S&P 500 sectors were in the green week so far, led by consumer discretionary, which gained 2.9%.
The most negative sector this week was energy, which fell more than 8% and is on track for its worst week since June 17. The drop in energy names came amid falling oil prices. WTI is down more than 10% this week, on pace with its worst week since April.