Stock futures were up on Monday following declines during the earlier trading session for all three major U.S. indexes as investors set their sights on a prolific week in Washington that includes the Federal Reserve’s final policy-setting meeting of 2021 and the release of new prints on retail sales, housing starts and other economic data.
Contracts on the S&P 500 edged higher, turning positive after the blue-chip index retreated from a rally last week that helped the index post its sharpest gains since February. Research from Goldman Sachs showed the S&P 500 is powered by five stocks that have accounted for 51{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of its return since the end of April. Microsoft, Google, Apple, Nvidia and Tesla account for more than one-third of the S&P 500’s 26{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} return this year, according to Goldman.
Futures for the Dow and Nasdaq were also up.
Traders are awaiting a decision from the Fed on how quickly the central bank will tighten monetary policy amid a backdrop of fresh inflation numbers that reflected the fastest annual increase in nearly four decades. The Labor Department’s Consumer Price Index (CPI) soared 6.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in November compared to last year, according to figures published last week.
The Federal Open Market Committee (FOMC) is scheduled to hold its two-day policy-setting meeting starting on Tuesday, followed by the release of the monetary policy statement and remarks from Federal Reserve Chair Jerome Powell Wednesday. An updated Summary of Economic Projections outlining individual members’ outlooks for economic conditions and interest rates is set to accompany the statement.
The Fed has been under pressure to control rising inflation levels, as investors watch for clues of a faster taper that could set the stage for earlier rate hikes.
“Because inflation expectations do appear to be adaptive, our view is that the longer inflation stays elevated, the greater the risk that consumers adjust their behaviors in a way that contributes to persistently elevated inflation” wrote PIMCO economist Tiffany Wilding in a recent note to clients.
“We believe the Fed will want to manage this risk by shortening the time over which it winds down its purchases of U.S. Treasuries and agency mortgage-backed securities (MBS), aiming to end the program in March 2022, while also signaling a June rate hike is likely,” said Wilding.
PIMCO managing director and portfolio manager Sonali Pier also separately told Yahoo Finance Live that the firm expects to see two hikes in 2022, three hikes in 2023, and potentially four in 2024, with the Fed trying to bring the policy rate to neutral.
“Amid proliferating signs of solid growth and a robust job market, various measures depict a deeply troubled economy,” wrote Oxford Economics senior economist Bob Schwartz in a new report. “Households are downbeat, according to sentiment surveys, and the so-called ‘misery index‘ that adds together inflation and unemployment hovers around recession levels.”
Markets await a trove of fresh economic data this week. November retail sales, out on Wednesday, are expected to rise by 0.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, according to Bloomberg consensus estimates. And November housing starts are forecasted to see a month-over-month increase of 3.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
Meanwhile, Morgan Stanley projects the U.S. unemployment rate will drop to 3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in 2022.
“It’s stunning to see how much the rate has fallen in the last five months,” Morgan chief U.S. economist Michael Feroli told Yahoo Finance Live. “We expect that pace of decline to slow, but it doesn’t take much to get below 4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, even with a tick up in the labor participation rate which has been depressed over the last year and a half.”
6:00 p.m. Monday ET: Stock futures edge higher
Here were the main moves in markets in late trading on Monday:
S&P 500futures (ES=F): +5.50 points (0.12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,674.25
Dow futures (YM=F): +46.00 points (0.13{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,691
Nasdaq futures (NQ=F): +10.75 points (0.07{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,092.75
—
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
Read the latest financial and business news from Yahoo Finance
BEIJING (AP) — Financial markets can cope with the impact of a Chinese real estate developer that is struggling to avoid defaulting on $310 billion in debt, the central bank governor said Thursday, in a new effort to assure the public the economy can be shielded from fallout.
Yi Gang’s comments by video to a seminar in Hong Kong added to indications Beijing has no plans to bail out Evergrande Group. Fears of a default have rattled financial markets, but economists say the ruling Communist Party wants to avoid sending the wrong signal at a time when it is trying to force companies to cut high debt burdens.
“The short-term risks of individual real estate companies will not affect the normal financing function of the medium- and long-term market,” Yi said, according to a transcript released by the central bank.
“Evergrande’s hazard is a market event that will be properly handled in accordance with market principles and law,” Yi said. Investors’ interests “will be protected in accordance with the law,” he said.
Political Cartoons
Default is all but certain after Evergrande, the global real estate industry’s most indebted company, warned Friday it might run out of cash. The company says it has 2.3 trillion yuan ($350 billion) of assets but it is struggling to sell them fast enough to pay its debts.
Beijing can keep lending markets functioning if Evergrande defaults, and local officials can mobilize to contain turmoil in real estate markets, economists say. The central bank released 1.2 trillion yuan ($190 billion) from bank reserves for additional lending on Monday.
Evergrande and its creditors have yet to confirm news reports the company failed to make a payment due this week on a U.S.-dollar-denominated bond sold abroad.
Evergrande, headquartered in the southern city of Shenzhen, is the biggest company caught in a campaign launched by Beijing last year to force developers to reduce soaring debt that is seen as a threat to economic stability. Smaller developers have gone bankrupt, missed debt payments or warned they might default.
Total Chinese corporate, government and household debt has risen to about 300{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of annual economic output from 270{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in 2018, unusually high for a middle-income country.
Another developer, Kaisa Group Holdings Ltd., warned it might fail to pay off a $400 million bond due Tuesday. The company has yet to confirm news reports that it missed the payment, but Fitch Ratings on Thursday cut Kaisa’s credit rating to “restricted default” while it waited for confirmation.
The slowdown in real estate sales and construction caused by the debt campaign helped to depress China’s economic growth to an unexpectedly low 4.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} over a year earlier in the three months ending in September. Forecasters expect growth to decelerate further if the financing curbs stay in place.
Copyright 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Markets closed mostly lower on Thursday, ending a mixed trading session that followed record-low initial jobless claims.
The S&P 500 posted a loss of -0.72{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in afternoon trading, erasing gains from a recent rally that brought it near a record. The Nasdaq Composite also lost steam, falling 1.72{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, or 269.62 points, to 15,517.37 as tech stocks took a hit, while the Dow remained flat after choppy trading this week.
The stock moves on Thursday followed the release of fresh data from the U.S. labor department that showed the number of Americans filing initial jobless claims fell to the lowest level since September 1969. Weekly jobless claims fell to 184,000, below the pre-pandemic average of about 220,000 per week, pointing to a tightening labor market as employers seek to retain workers.
“I think what we’ve learned from the jobless claims is that it’s another affirmation that the labor market is increasingly tight,” Principal Global Investors Chief Strategist Seema Shah told Yahoo Finance Live. “We can see clearly that there’s very strong demand for employment. The area which is holding back the full recovery is from the supply side.”
“It looks like employers need to do more,” Shah added. “Wage increases are probably on the agenda for next year, and that’s part of the broadening of inflation pressures that we’ve already started to see come through in CPI data.”
Shah told Yahoo Finance, however, that her firm expects other parts of the inflation picture to fade and the 6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}-7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} consumer price figures likely to be seen in tomorrow’s report release should fall back to 3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}-4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} by the end of next year.
“If COVID gradually improves rather than a major resurgence in 2022, we expect to see a continued recovery in the U.S. economy — continued recovery in services spending,”
The U.S. Food and Drug Administration granted emergency use authorization of Pfizer Inc and BioNTech’s COVID-19 vaccine booster shot for those aged 16 and 17 as the CDC strengthens its recommendations for those who are eligible to get a third dose.
Shares of Pfizer (PFE) were up 0.67{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} on Thursday, trading at $52.07 per share.
Electric vehicle companies slumped Thursday, led by a selloff of shares of Lucid Group (LCID).
The company erased $11 billion in market value following a proposal to offer $1.75 billion of convertible senior notes expected to be sold to institutional buyers in a private offering. The decline also marked the second nosedive this week for shares of Lucid, which hovered around bear market territory Monday following disclosure of an investigation by the SEC of a recent SPAC merger.
Other electric vehicle companies extended losses following a three-day rally along with a broader market slump. Rivian (RIVN) was down by 7.26{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $114.89 per share, Tesla (TSLA) fell 4.94{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $1,016.12, and Workhorse Group (WKHS) slid 5.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $5.18. Nikola (NKLA) was down 0.44{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $9.92, Lordstown (RIDE) fell 5.93{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $4.20, and Canoo (GOEV) dropped 7.18{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $9.44 in intraday trading.
4:01 p.m. ET: Stocks end lower after three days of gains
Here were the main moves in markets as of 4:01 p.m. ET:
S&P 500 (^GSPC): -33.68 (-0.72{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,667.53
Dow (^DJI): +0.53 (+0.00{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,755.28
Nasdaq (^IXIC): -269.62 (-1.71{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,517.37
Crude (CL=F): -$1.75 (-2.42{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $70.61 a barrel
Gold (GC=F): -$8.90 (-0.50{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,776.60 per ounce
10-year Treasury (^TNX): -2.2 bps to yield 1.4870{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
Shares of electric vehicle maker Lucid Group (LCID) wiped out $11 billion in market value following a proposal by the company to offer $1.75 billion of convertible senior notes expected to be sold to institutional buyers in a private offering.
The decline marks the second nosedive this week for shares of Lucid, which hovered around bear market territory Monday following disclosure of an investigation by the SEC of a recent SPAC merger.
Other electric vehicle companies extended losses following a three-day rally along with a broader market slump. Rivian (RIVN) was down by 7.26{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $114.89 per share, Tesla (TSLA) fell 4.94{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $1,016.12, and Workhorse Group (WKHS) slid 5.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $5.18. Nikola (NKLA) was down 0.44{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $9.92, Lordstown (RIDE) fell 5.93{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $4.20, and Canoo (GOEV) dropped 7.18{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $9.44 in intraday trading.
2:09 p.m. Nasdaq extends decline to 1.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
The tech-focused Nasdaq composite extended its decline on Thursday, falling as much as 1.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in afternoon trading to 15,611.08 after a volatile week for U.S. stocks as they climbed in a three-day recovery rally.
Markets were mostly lower in the second half of the day, with the S&P 500 also down 13.08 points to 4,688.47. The Dow gained 87.34 points, turning positive earlier in the day after a dip in morning hours.
1:49 p.m. Brazil’s Nubank debuts on Wall Street
Shares of Nu Holdings (NU), the Warren Buffet-backed Brazilian financial technology that does business as NuBank, jumped as much as 36{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} on its inaugural trading day Thursday.
Nubank’s U.S. initial public offering makes it the most valuable financial institution in Latin America, surpassing Itau Unibanco Holding SA, with a $38 billion market value. The company’s IPO follows a record wave of Brazilian listings, adding to nearly 50 companies that raised more than 65 billion reais ($12 billion) this year.
The company’s backers include Warren Buffet’s Berkshire Hathaway, which is reported to have taken a $500m stake in NuBank in June, valuing the company at $30 billion at the time.
Morgan Stanley, Goldman Sachs Group Inc. and Citigroup Inc. led the IPO. Shares began trading midday Thursday under the ticker NU.
12:42 p.m. ET: Dow rebounds after opening dip
The Dow Jones Industrial Average bounced back in midday trading on Thursday following a slide by all three major U.S. indexes at the open.
The Dow was up slightly by 13.08 points, while the S&P 500 continued to edge lower, down 10.95 points to 4,690.26. The Nasdaq composite also remained in the red, falling by as much as 0.75{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
Markets shrugged off data from the U.S. Labor Department released Thursday morning that showed the number of Americans filing initial jobless claims fell to the lowest level in half a century, opening lower in early trading and concluding a recovery rally that spanned three trading sessions.
US wholesale inventories climbed above estimates in October as companies stock up for holiday season demand.
Latest figures from the Commerce Department released Thursday showed wholesale inventories rose 2.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, slightly more than the 2.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} estimated last month and 14.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} up from a year earlier.
The rise in inventories at wholesalers suggests restocking of warehouses could support economic growth this quarter. U.S. businesses recently struggled to hold inventories on hand due to supply chain delays and strong sales.
10:45 a.m. ET: Gamestop trades lower following disappointing earnings
Shares of Gamestop (GME) dropped in early trading after the video game retailer posted Q3 earnings Wednesday reflecting widening quarterly losses that disappointed investors. The stock was down by as much as 6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} after markets opened on Thursday.
Wedbush analyst Michael Pachter cut his price target from $45 to $50, attributing the downgrade to lack of clarity from management on a digital transformation plan for the company promised in the past that “has yet to crystalize.”
“Another quarter, still no turnaround strategy in sight,” Pachter wrote in a note to clients.
The video game company and meme-stock darling reported a quarterly loss of $1.39 per share, higher than consensus estimates.
9:36 a.m. ET: Stocks open lower
Here were the main moves in markets as of 9:36 a.m. ET:
S&P 500 (^GSPC): -10.44 (-0.22{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,690.77
Dow (^DJI): -134.51 (-0.38{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,620.24
Nasdaq (^IXIC): -19.58 (-0.12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,767.41
Crude (CL=F): -$0.54 (-0.75{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $71.82 a barrel
Gold (GC=F): -$2.80 (-0.16{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,782.70 per ounce
10-year Treasury (^TNX): -1.7 bps to yield 1.4920{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
8:30 a.m. ET: Jobless claims hit new record low
New weekly jobless claims came in well below expectations and reached its lowest level since September 1969. The Labor Department reported that 184,000 claims were filed for the week ending Dec. 4. Claims are hovering below their pre-pandemic levels.
Continuing claims, which represent the number of individuals still receiving unemployment benefits via regular state programs, have also come down and held below 2 million last week. For the week ended Nov. 27, continuing claims was 1.992 million.
8:30 a.m. ET Thursday: Stock futures slip
Here were the main moves in markets in early trading Thursday:
S&P 500 futures (ES=F): -19.25 points (-0.41{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,679.75
Dow futures (YM=F): -157 points (-0.44{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,589
Nasdaq futures (NQ=F): -67.50 points (-0.41{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,324.75
6:57 p.m. ET Wednesday: Stock futures open flat
Here were the main moves in markets in late trading on Wednesday:
S&P 500futures (ES=F): -1.75 points (-0.04{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,697.25
Dow futures (YM=F): + -8 points (-0.02{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,728
Nasdaq futures (NQ=F): -16.50 points (-0.10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,375.75
—
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
Read the latest financial and business news from Yahoo Finance
This article first appeared in the Morning Brief. Get the Morning Brief sent directly to your inbox every Monday to Friday by 6:30 a.m. ET. Subscribe
Monday, December 6, 2021
Most investors will enter this week confused after battling through another topsy-turvy trading week.
Bitcoin nosedived at its worst by 20{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} over the weekend (more on that below). Last week, the S&P 500 saw five straight losses of at least 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} at one point each day, according to Bloomberg data. Small-cap stocks as measured by the Russell 2000 are officially in a correction.
Does one brave these rockier waters and buy the dip? After all, the strategy has worked wonders in the past five years as markets have been awash in liquidity. What I say is to sit tight. Honestly, you shouldn’t be confused at all given the economic implications of the new Omicron variant (and potentially others) and the Federal Reserve soon pulling back the liquidity punch bowl.
I think the team at Goldman Sachs led by Jan Hatzius nicely summed up this weekend why you should be hesitant to buy dips in the market in the near-term. In other words, the market has been right to hate the Omicron variant:
“First, Omicron could slow economic reopening, but we expect only a modest drag on service spending because domestic virus-control policy and economic activity have become significantly less sensitive to virus spread.
Second, Omicron could exacerbate goods supply shortages if virus spread in other countries necessitates tight restrictions. This was a major problem during the Delta wave, but increases in vaccination rates in foreign trade partners since then should limit the scope for severe supply disruptions.
Third, Omicron could delay the timeline for some people feeling comfortable returning to work and cause worker shortages to linger somewhat longer.”
The read here: the market probably hasn’t priced in anything Hatzius discusses above from an economic standpoint. It’s currently in the process of figuring things out. Hatzius slashed his first quarter 2022 GDP estimate to 3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from 4.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} primarily due to the spreading Omicron variant.
Then the other component at play is in fact the new Jerome Powell-led Fed in 2022, one that is more focused on controlling inflation than providing support to asset markets. To that end, Bank of America’s Chief Investment Strategist Michael Hartnett sets the stage very well for 2022 in this new Fed era:
“2021-22 investment backdrop we say similar to early stagflation of late-60s, early70s … period of inflation & interest rates breaking higher from secular low/stable trading ranges on back of high budget deficits, Vietnam, “Great Society” policies, civil unrest, political and acquiescent Fed; late-60s/70s “stagflation” winners were real assets, real estate, commodities, volatility, cash, emerging markets, all of which held their own versus inflation; losers were bonds, credit, equities, tech, all of which ultimately struggled; we think we’re in the ’69-’71 period.”
Harnett is bearish on 2022, and expects a “rates shock” and tightening financial conditions.
Happy trading! And remember, what goes up must eventually come down.
Odds and ends
Cryptocurrency: Yahoo Finance Editor-in-chief Andy Serwer and crypto reporter David Hollerith did expert jobs this weekend covering the rout in bitcoin prices (down 20{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} at one point on Saturday). So I won’t spend a lot of time on it, other than to say exuberant crypto asset prices are about to be put to the test as the Fed moves off peak liquidity. Those asset prices could also be put to the test this week as the CEOs of six major crypto companies testify at a Dec. 8 hearing of the House Financial Services Committee titled “Digital Assets and the Future of Finance: Understanding the Challenges and Benefits of Financial Innovation in the United States.” I am very interested to see if execs from Paxos, FTX, Coinbase, Circle, Stellar Development Foundation and Bitfury tell the likes of Congresswoman Maxine Waters that they want more regulation. Now is the group’s chance to send along that message, which is one I have been hearing from crypto people for over a year. I’ll reiterate: Be careful what you wish for, crytoverse.
Stock market bubble: Berkshire Hathaway’s Charlie Munger’s comments last week on valuations being crazy just like the 2000 dot-com bubble were well taken. I don’t agree 100{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} with the billionaire’s hot take, but it doesn’t take a rocket scientist to see pockets of excess in all sorts of markets at the moment (even in a market off its mid-November record highs). But to push back on Munger’s musings, look no further than this year’s IPO market. Bank of America strategist Jill-Carey Hall points out the number of traditional (non-SPAC) deals year-to-date is tracking the highest since the aforementioned tech bubble of 2000. BUT, as a percentage of market cap, deal value is half of 1999 levels. Sure doesn’t look bubblelicious to me, but then again what do I know, Munger’s net worth is 4,000 times mine (a rough guess).
DocuSign:Friday was a session for DocuSign that falls under the category for me of “wow, I haven’t seen that in a while.” Shares crashed 42{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} by the close of trading as the company is experiencing slowing growth that took execs by surprise. Hat tip to DocuSign CEO Dan Springer for even coming on Yahoo Finance Live to talk with me and Zack Guzman, while the company’s stock plunged 40{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. Having said that, watch DocuSign for a short-term dead cat bounce this week — Springer told us he is buying $5 million in company stock on Tuesday because the market reaction looks very overdone. I suspect he won’t be alone in trying to pick the bottom.
Small-cap stocks: Few sectors have been harder hit during this two week or so sell-off than small caps, or those of companies with outsized exposure to the U.S. economy. The small-cap Russell 2000 has tanked 12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from its recent high on Nov. 8, per Yahoo Finance Plus data. Yahoo Finance’s markets wizard Jared Blikre notes on Twitter the iShares Russell 2000 ETF is now at “old” support levels on the charts. The selling pressure may not yet be over, small-cap experts contend.
“Given the uncertainty around the new variant and the economy, it is hard to see investors wanting to add risk heading into year-end,” says Steven DeSanctis, Jefferies’ small and mid-cap strategist (known on Wall Street as the “SMID” strategist). “When these issues are resolved, and we think that will be sooner rather than later, we see small spiking higher, like it has done numerous times since the low in March 2020. We would not be surprised to see a real January Effect with small leaping higher, beating large, and the cyclicals leading the way,”
Have no clue what the January Effect is? Give this a quick read from our friends at Investopedia.
If you don’t have enough money at your hand, you’re going to have a difficult time running your business and fulfilling day-to-day tasks. This is especially important these days when companies worldwide are struggling to stay afloat. Let’s see how you can best obtain quick access to working capital such as a cash advance.
How to Make the Best Choice
Think of a merchant cash advance (MCA) as alternative financing, which isn’t a loan. MCA providers give you an upfront sum of cash in exchange for your future sales. There are certain factors to take into account when applying for a merchant cash advance. Let’s go through them:
Apply for a cash advance from a reputable alternative online lender.
Look for simple and flexible payment schedules. If the MCA provider asks you to provide requirements that are more than usually expected, consider applying to another one with a simpler process.
Make sure the interest rate is among the lowest in the industry.
As a rule, MCA providers automatically charge the amount you owe from the sales you make. However, there are MCA providing companies offering a different process. So, find out all the details and nuances about the payment form to make the right choice for your financial needs.
Make sure the provider doesn’t require any credit check or personal guarantee.
Find out whether there are restrictions on how you can use your funds.
Make sure there are no hidden fees or gimmicks.
Be aware that you can find an MCA provider that approves credit scores below 500 approved. So, if you have low scores, this can be the best option for you.
See whether you can get your funds as soon as possible, e.g. 72 hours from application.
Make sure no tax returns or financials are required.
How to Pick the Best MCA for Your Company
Unlike banks, MCA providers rely on financial technology when making funding decisions. Mostly, they work directly with a payment processor to figure out the amount of money that’s going in and out of your business account. There are some basic factors that you should take into consideration to choose the best MCA for your business.
Author Bio:Michael Hollis is a Detroit native who has helped hundreds of business owners with their cash advance solutions. He’s experimented with various occupations: computer programming, dog-training, accounting… But his favorite is the one he’s now doing — providing business funding for hard-working business owners across the country.
BOULDER, COLO. — Scott Tassani has been named president of Meati Foods, a Boulder, Colo.-based maker of fungi-based whole-cut meat alternatives.
A 30-year veteran of the food and beverage industry, Mr. Tassani will lead Meati as it prepares to launch in early 2022 with a new source of nutrient dense protein made from mycelium, the root structure of mushrooms. He joins the startup from The Pillsbury Co. and General Mills, Inc., where he most recently was president and chief customer officer for the brand’s $11 billion North America business. Before that he was vice president of US grocery sales and vice president of sales strategy at General Mills.
“Our goal is to rapidly scale to drive accessibility across the United States, with plans to achieve a category-leading $1 billion in sales by 2025,” Mr. Tassani said. “I am incredibly energized to join the Meati team as we launch the outstanding portfolio of animal-free meat products. Meati products are far superior to any alternative proteins available, making it possible to deliver a superior consumer experience while driving significant sustainability impact, and partner with our customers to profitably lead industry growth.”
Scott Tassani, new president of Meati Foods
Meati initially plans to offer its products online direct-to-consumer before expanding availability to food retailers. To achieve its goal of widespread accessibility, Mr. Tassani and his team will focus on expanding the availability and affordability of Meati’s initial products, according to the company.
“Scott brings an unparalleled track record of not only driving profitable growth but doing so by establishing premier commercial partnerships in a way that wins for the brand, the partner and consumers,” said Tyler Huggins, co-founder and chief executive officer of Meati. “When creating a new and exciting category, the strategic partnerships that deliver on all fronts is critical, and I couldn’t be more excited to welcome Scott to the team and partner with him to bring lasting change to the broader protein category. I’m already blown away by the trust and relationships he brings, which will enable a new level of speed for Meati to be more widely available.”
Mr. Tassani joins an existing team of executives, investors and advisers, including Walter Robb, former CEO of Whole Foods Market, John Foraker, co-founder and CEO of Once Upon a Farm, and Rose Marcario, former CEO of Patagonia.
