What we’re reading (3/28)
“US Stocks Edge Higher As Oil Prices Come Down And Bond Yields Waver” (Insider). “US stocks closed higher Monday after the Dow Jones Industrial Average and the S&P 500 reversed losses late in the trading session. The Nasdaq in particular made a strong gain, as Tesla jumped 8% on news of a coming stock-split. The rally came even as the Biden administration is seeking to slow stock repurchases by limiting when executives can sell shares. The proposal is part of a 2023 budget that would also hike taxes on the ultra-rich and add more defense spending.”
“Goldman, JPMorgan Strategists Say Equities Can Weather Bond Rout” (Bloomberg). “‘Recessions don’t typically start ahead of the curve inverting, and the lead-lag could be very substantial, as long as 2 years,’ JPMorgan strategists led by Mislav Matejka wrote in a note. ‘Further, over this timeframe, equities tended to beat bonds handsomely,’ they said, adding that the peak in equity markets historically takes place around a year after the inversion.”
“Tesla To Request Shareholder Approval For Stock Split” (Wall Street Journal). “Tesla Inc. said it would request shareholder approval at its annual meeting for an increase in the number of shares of the electric-car maker to enable a stock split, though the company didn’t specify when such a split would take place or what the ratio of shares would be. Tesla shares closed Monday at $1,091.84, up 8%. The auto maker typically holds its shareholder meeting in the fall.”
“Farmers On The Brink” (Doomberg). “While the concept of a perfect storm is often too casually assigned in popular culture, it is difficult to find a more apt description of what has been unfolding in the global agriculture markets over these past several months. The tempest caused by the European energy disaster has merged with the hurricane of consequences flowing from Russia’s invasion of Ukraine, forming the genesis of a generational crisis in food that will leave few unaffected.”
“The Bull Market Turns Two” (LPL Research). “We expect the bull market to continue, but some bumps in the road are normal. As the bull ages, year three could provide some of those bumps.”
