Stock futures fall after the S&P 500’s third straight day of losses

Morgan Stanley says the “smart” electric car industry is technology’s next big thing. Here are the best stock picks

Morgan Stanley says technology supply chains are about to experience growth in the next big thing: smart technology capabilities – from electric car batteries to chips and self-driving technology.

The investment bank named its best stock picks that will benefit from this trend.

Professional subscribers can read the story here.

— Weizhen Tan

The Fed̵[ads1]7;s Kashkari says his biggest fear is that inflation will be more persistent or hotter than expected

Federal Reserve Bank of Minneapolis President Neel Kashkari says his biggest fear is that markets are underestimating how high inflation will go or how persistent it will be, adding that the Fed may need to be more aggressive than expected.

“The big fear in the back of my mind is if we get it wrong and the markets get it wrong and that this inflation is much more embedded at a much higher level than we appreciate or the markets appreciate,” he said, commenting on the market. expectations that inflation will fall back to 2% over the next two years.

“Then we’re going to have to be more aggressive than I expect, probably for a longer time, to get inflation back down,” he said at an event at the University of Pennsylvania.

Kashkari also pointed to supply-side shocks driving “half to two-thirds” of the country’s high inflation.

“The more help we get from the supply side, the less the Fed needs to do and the better able we are to avoid a hard landing,” he said. However, he added that there is some evidence that supply chains are beginning to normalize.

Already considered the most hawkish of the U.S. central bank’s 19 policymakers, Kashkari expects the Fed to raise its key interest rate — now to a target range of 2.25% to 2.5% — another two full percentage points by the end of next year.

– Jihye Lee

CNBC Pro: Citi names energy stock with ‘strongest balance sheet’

The energy sector has been a big winner in this year’s volatile stock market.

But one stock still stands out for its “strongest balance sheet,” according to Citi. It also delivered a set of second-quarter results that handily beat its biggest publicly traded rivals.

Professional subscribers can read the story here.

— Zavier Ong

Hawkish Fed?

Many expect hawkish talk from Fed officials later this week, which could lead to a sell-off in risk assets. Some fear that the central bank’s continuous and aggressive tightening will tip a slowing economy into recession.

“I fully expect Fed Chair Jay Powell and other Fed officials to remain hawkish,” Invesco global market strategist Kristina Hooper said in an email. “Aggressive rhetoric will be very likely to send stocks down globally in the short term as markets go on eggshells, so asset owners should be prepared for short-term volatility.”

– Yun Li

Nordstrom shares fall

Shares of Nordstrom fell more than 13% in extended trading after the company cut its full-year financial forecast. Nordstrom said it has been challenged by excess inventory as well as a slowdown in demand.

“Customer traffic and demand slowed significantly from late June, primarily at Nordstrom Rack,” CEO Erik Nordstrom said in a press release.

However, the company reported accounting earnings and sales in the second quarter ahead of analysts’ estimates.

– Yun Li

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