Legal Disaster Leads To AMC Boom

WORD ON THE STREET 

• Bank of America Tells Investors to Get a Grip – Analysts from Bank of America warned investors that it is unlikely the Fed will cut interest rates anytime soon. “The overhang of last year’s inflation fight and elevated data volatility and macro uncertainty may keep the Fed from cutting rates,” said analysts from Bank of America Global Research. The stock market has mostly rallied this year even as the Fed continues to increase interest rates – and it’s not clear that it will be done raising them anytime soon.

• CAVA Booms In After-Hours – Despite dropping 3% during the trading day, CAVA stormed back in after-hours trading after the Mediterranean restaurant reported a profit of 21 cents a share. Analysts had been expecting a loss of 2 cents a share. CAVA also significantly topped predictions when it came to revenue.

• Homebuilder Confidence Declines – Homebuilders are finally getting nervous as mortgage rates continue to increase. The National Association of Home Builders/Wells Fargo Housing Market Index hit a three-month low as it dropped six points to 50. It’s the first time confidence among builders dropped this year.

• Burry Joins The Bears Again –Is it time for another Big Short? Michael Burry has reportedly bet $1.6 billion on a stock market downturn, with Scion Asset Management buying $866 million in put options for the S&P 500 and $739 million in put options against the NASDAQ 100.

HOT SPOTS: What’s Going on in Geopolitics

• Global Wealth DECLINES – For the first time since 2008, the world is a poorer place. According to a report from UBS and Credit Suisse, total private wealth declined by 2.4% in 2022 to $454.4 trillion. “Much of the decline in wealth in 2022 was driven by high inflation and the appreciation of the U.S. dollar against many other currencies,” said the report.
  
• Russian Central Bank Hikes Interest Rate – The Russian central bank raised interest rates by 3.5%, bringing the interest rate to 12 points. The bank said the move was justified by “steady growth in domestic demand surpassing the capacity to expand output,” but the real reason is that the ruble has been plummeting against the dollar and other currencies in recent weeks.

• British Inflation Cools – Good news for the United Kingdom (and the governing Tories) as inflation was down to an annualized 6.8%. It was in line with expectations. However, there was one major problem, as core inflation (excluding food, energy, and a few other goods) was higher than expected. The cost-of-living crisis for the British continues

CUTTING EDGE: What‘s Happening In Tech

• Tesla Rolls Out Cheaper Models – I mean, they are still ridiculously expensive, but it is something. The new “standard range” Model S will go for $78,500 and the Model X “standard range” is $88,500. The “standard range” models are about $10,000 cheaper than the next range up, but that comes at the cost of mileage.

• Singapore Regulates Stablecoins – Singapore has become one of the first regions in the world to regulate stablecoins, a pillar of the crypto market that makes trading possible. Rules include requiring reserves to be based in “low risk and highly liquid” assets, being ready for swift redemption upon request, and providing various disclosures. No word on if you get caned if you break the rules.

• Chinese Regulators Stop Intel’s Big Deal – Intel was all set to buy Tower Semiconductor Inc. for $5.4 billion, but Chinese regulators have destroyed that plan. The deal makes it far harder for Intel to compete with companies like Taiwan Semiconductor Manufacturing and greatly undermines the company’s plan to expand its own chip manufacturing capabilities.

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