What we’re reading (4/26)
“This Awfully Fragile Narrow No-Good Rally” (Financial Times). “The S&P 500 is up nearly 8 per cent this year, but unease around the underlying strength of the rally is almost palpable. People really bloody hate it, basically. JPMorgan’s equity analysts are among the haters. They estimate that the breadth of the US equity rally is ‘by some measures is the weakest ever’, with the narrowest leadership in a rising stock market since the 1990s. Microsoft and Apple alone are behind about 2.3 per cent of the S&P 500’s gain this year and now account for a record 13.4 per cent of the index — the most ever for the top-two stocks.”
“The Problem With Apple’s Big Banking Push” (Vox). “Do you want the company that makes your phone to be your bank, too? That’s the question some people are surely asking themselves now that Apple has rolled out its new Apple Card savings account, which comes with a 4.15 percent interest rate — well above what most traditional banks are offering. It’s also not traditional because, unlike any other savings accounts out there, this one is baked into the operating system of your phone, as is the Apple Card, the credit card you must have in order to get the savings account.”
“SPACs Delivered Easy Money, But Now Companies Are Running Out” (Wall Street Journal). “Shares of many of these companies trade under $1, more than 90% below where they did when they went public, and are in danger of being delisted. Those that have raised cash typically have done it on onerous terms.”
“First Republic May Not Survive, Even After Two Multibillion-Dollar Bailouts” (CNN Business). “‘It’s becoming clearer each day’ that First Republic is “toast,” said Don Bilson at Gordon Haskett, in a note Wednesday. ‘The only question that really needs to be answered is whether the [Federal Deposit Insurance Corporation] moves in before the weekend or during the weekend, which is when it usually does its thing.’”
“Meta Stock Jumps Toward Highest Price In A Year As Facebook Parent Predicts Renewed Revenue Growth” (MarketWatch). “Meta Platforms Inc.’s stock soared 11.6% higher in extended trading Wednesday after the social networking company’s profit declined less than expected in the first three months of 2023, and a revenue forecast pointed toward reinvigorated sales growth.”
