What we’re reading (1/6)
“Dow Closes 700 Points Higher on Signs Of Slowing Wage Growth” (Wall Street Journal). “The Labor Department’s monthly jobs report showed that employers added 223,000 jobs in December, the smallest gain in two years but more than the 200,000 expected by economists. The ability of U.S. companies to keep hiring shows that the job market has held up even as the Fed’s rate increases have sparked worries about a potential recession.”
“The Bubble Has Not Popped” (Cliff Asness, AQR). Value spreads are still near 30-year highs.
“Got A Stash Of Bed Bath & Beyond Coupons? You’d Better Use Them Soon” (CNN Business). “The struggling home goods retailer issued a dire prediction on Thursday, calling into doubt its ability to stay in business much longer and said it was exploring a path forward that includes filing for bankruptcy. A bankruptcy filing, which reportedly could come in a matter of weeks, might spell the end of its iconic coupon programs, especially if the company pursues a bankruptcy process that involves liquidation rather than just restructuring.”
“St. Louis Fed’s Bullard Presents ‘The Prospects for Disinflation in 2023’” (Federal Reserve Bank of St. Louis). “Federal Reserve Bank of St. Louis President James Bullard presented ‘The Prospects for Disinflation in 2023’ on Thursday at an event hosted by CFA Society St. Louis. Bullard noted that GDP growth appears to have improved in the second half of 2022 and the labor market performance remains strong. Inflation remains too high but has declined recently, he added.”
“In 2022, The IRS Went After The Very Poorest Taxpayers” (Reason). “‘The taxpayer class with unbelievably high audit rates—five and a half times virtually everyone else—were low-income wage-earners taking the earned income tax credit,’ reported TRAC [Syracuse University’s Transaction Records Access Clearinghouse], noting that the poorest taxpayers are ‘easy marks in an era when IRS increasingly relies upon correspondence audits yet doesn't have the resources to assist taxpayers or answer their questions.’”
