People walk down Fifth Avenue in Manhattan, one of the nation’s premier shopping districts, in New York City on February 15, 2023.
Spencer Pratt | Getty Images News | Getty Images
This report is from today’s CNBC Daily Open, our new international market newsletter. CNBC Daily Open provides investors with everything they need to know, wherever they are. like what you see?can subscribe here.
What you need to know today
- we Retail sales jumped 3% in January, versus the expected 1.9%. The figure easily surpassed his 1.1% decline in December. Separately, industrial production was flat in January. Analysts had estimated a rise of 0.4%.
- US stocks rising on wednesdayregained momentum after a brief decline following retail sales reports.Asia Pacific market traded higher on thursday, Hong Kong’s Hang Seng Index rose 2.31%. Japan’s Nikkei 225 rose 0.71%, even as Japan’s trade deficit surged to his record 3.5 trillion yen ($26 billion). Bitcoin jumps to $24,633.31, the highest since August 2022.
- “BYD is far ahead of Tesla in China Charlie Munger, vice chairman of Berkshire Hathaway, said Chinese electric car maker Charlie Munger was his all-time favorite stock. almost 86% damping of these stocks through Q3-Q4 2022
- Professional Investors say, “We don’t just fight, make fun of the FedJP Morgan’s Marko Kolanovic, who precisely called the March 2020 bottom, warned that stock selling could happen soon.
Conclusion
It’s as if investors don’t care about inflation or rising interest rates. The strength of the US economy, which suggests further interest rate hikes, has helped the market rise.
Yesterday, I mentioned that sustained private consumption may be supporting the economy. In fact, the 6.4% year-on-year growth in retail sales in January is exactly the same as the year-on-year growth in the consumer price index. The outlook for sustained economic growth seems to have brought optimism to equities as well. The Dow Jones Industrial Average was up 0.11%, the S&P 500 was up 0.28% and the Nasdaq Composite was up 0.92%.
Recent economic activity and market movements are forcing economists and investors to rethink the impact of interest rates. Rising borrowing costs typically slow economic growth by reducing spending and increasing unemployment, which drives down stock prices. “Monthly reports on industrial production, retail sales and employment have generally beaten expectations, pointing to a rebound in economic activity in early 2023 after a slowdown in late 2022,” said Bill Adams, chief economist at Comerica Bank. showing,” he said. that.
This confusing relationship between rising interest rates and a pick-up in economic activity has led some investors, such as Satori Fund founder Dan Niles, to believe the Fed could raise interest rates above 6%. I am predicting. What if all prices keep going up? It’s hard to imagine what the Federal Reserve will do next.
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