What we’re reading (6/3)
“U.S. Stocks Are Trading at a Rarely Seen Discount” (Morningstar). “As of May 31, 2022, the price/fair value of a composite of the stocks covered by our equity analyst team was 0.87 times. Since 2011, on a monthly basis, there have only been a few other instances in which the markets have traded at such a large discount to our intrinsic valuation.”
“Corporate Executives Assess U.S. Economy As Clouds Form” (Wall Street Journal). “Over the past week, business leaders have laid out in the starkest terms yet that a period of universal strength in the U.S. economy has given way to a muddled outlook in which a labor shortage, soaring stock markets and a healthy consumer are no longer givens. Technology companies from Facebook parent Meta Platforms Inc. to Uber Technologies Inc. have sharply slowed hiring in recent weeks, and Elon Musk told staff at Tesla Inc. that he plans to cut 10% of its salaried jobs.”
“What’s Got Economists Rooting For A Slowdown” (DealBook). “Normally, when hiring slows it’s a troubling sign for the economy as a whole, but these are not normal times. With nearly twice as many open jobs as available workers and inflation running at its fastest pace in four decades, many economists and policymakers say a slowdown is just what the economy needs, reports The Times’s Ben Casselman.”
“Antitrust Vs. ESG” (Noahpinion). “if the U.S. moves toward an environment of increased competition, that will put more pressure on companies to focus purely on staying alive. And the recent stock crash and earnings squeeze will only increase this pressure.”
“Amazon CEO Of Worldwide Consumer Dave Clark Resigns” (CNBC). “Clark is one of a handful of the most important executives at Amazon, overseeing the company’s sprawling retail business, and a member of Jassy’s S-Team, a tight-knit group of over a dozen senior executives from almost all areas of Amazon’s business. He took over the role in 2020 after Jeff Wilke stepped down.”
