The Bank of England announced the largest rate increase in 27 years
Bank of England on Thursday raise interest rates by half a percentage point, The increase is the sixth in a row and the first rise of this size since 1997, in an attempt to cool inflation.
UK inflation at 40 yearsAnd preparing to continue rising. The bank now expects headline inflation to peak around 13% in October, which means the rate hike will likely continue.
– Carmen Renick
Bernstein says another step in falling stocks is coming
Bernstein strategists led by Sarah McCarthy said they expect the market to fall again in the short term.
“While long-term sentiment indicators are bearish enough to take a positive outlook on stocks with a 12-month horizon, we believe in the short term the market is likely to decline again as we are at the start of a profit-cutting cycle so far we haven’t seen inflows yet,” they said in a note to clients on Thursday. Meaningful equity funds.”
These comments come as the market is enjoying a sharp recovery from its mid-June lows. Since then, the S&P 500 is up 14.25%.
Stock futures haven’t changed much after Wednesday’s big rally
US stock futures pointed to a silent open on Thursday, as the market took a breather after a rally in the previous session. Futures related to the Dow Jones Industrial Average rose less than 0.1%, along with futures contracts for the S&P 500 and Nasdaq 100.
European markets are silent; Expect a big Bank of England rise
European stocks were quiet on Thursday as uncertainty returned after gains in the previous session.
pan europe Stokes 600 It was up 0.2% by mid-morning. Retail stocks were the best performers, up 2.2%, while telecoms companies fell 0.5%.
United kingdom FTSE withdrew before Bank of EnglandMonetary policy decision later on Thursday. It is widely expected that the central bank Raising interest rates by 50 basis pointsthe largest single increase since 1995.
Alibaba shares in Hong Kong rose 4% before earnings
Alibaba is expected to report 203.19 billion yuan ($30 billion) in revenue for the June quarter, down 1.2% from a year ago, according to consensus forecasts from Refinitiv.
Alibaba has faced a number of headwinds, from a tighter regulatory environment in China to the resurgence of Covid in the world’s second-largest economy leading to the shutdown of major cities. These factors have weighed on the Chinese economy, leading to a decline in advertising budgets and consumer spending, which is likely to affect Alibaba’s June quarter results.
However, analysts expect the company to return to growth in the coming quarters. Alibaba’s Hong Kong-listed shares rose more than 4% before earnings.
– Arjun Kharbal
Jim Kramer says the charts are pointing up gold
CNBC’s Jim Cramer said: Now is the time to buy gold The signs are pointing higher, according to analysis by commodity trader Larry Williams.
The “mad moneyThe host explained Williams’ analysis by looking at the weekly movement of gold from 2014 and data on the status of small gold speculators from the Commitments of Traders Report from the Commodity Futures Trading Commission.
Gold prices usually peak shortly after petty speculators have surged on the precious metal, and bottom out when petty speculators are bearish, according to Williams.
“The graphs, as interpreted by legendary Larry Williams, indicate that the general public is giving up gold en masse and believes that this makes it the ideal entry time to make some buying,” Cramer said.
Abigail Ng, Crystal Hor
Here’s how to invest for returns to beat a bad year for stocks and bonds – according to the professionals
Stocks are volatile, and bonds have not done better for most of this year, with investment-grade US bonds lowering in 2022.
But analysts have been bullish lately on income investing as returns are starting to rise again.
Here are some of the ways the professionals suggest that investors can position their portfolios in order to diversify and protect against market volatility as well as seek higher returns as inflation continues to rise. Professional subscribers can read the story here.
– Weezin Tan
The fall of the shares of Fortinet
Shares of Fortinet fell more than 9% in extended trading after the cybersecurity company reported its quarterly results, which included free cash flow of $283.5 million, compared to FactSet’s estimate of $337.2 million. Service revenue also missed estimates.
Other cyber security stocks also declined after hours. CrowdStrike is down 1% and Palo Alto Networks is down more than 1%.
– Tanaya Michel
Walmart begins layoffs about a week after its earnings warning
Owns Walmart I started laying off the company’s employees After about a week of the retail giant It lowered its earnings forecast He warned of a decline in consumer consumer spending due to inflation. The company described the layoffs as a way “to better position the company for a strong future,” in a statement to CNBC. Shares are down less than 1% after hours.
– Tanaya Michel
Lucid shares falter about 12%
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