What we’re reading (8/22)
“Wall Street Bears Take Revenge After A $7 Trillion Rally” (Bloomberg). “Stocks and bonds are set to tumble anew even though inflation has likely peaked, according to the latest MLIV Pulse survey, as rate hikes reawaken the great 2022 selloff. Ahead of the Jackson Hole symposium later this week, 68% of respondents see the most destabilizing era of price pressures in decades eroding corporate margins and sending equities lower.”
“Dow Falls More Than 600 Points On Fed Worries” (Wall Street Journal). “Fears of additional sharp interest-rate increases by the Federal Reserve sent the Dow Jones Industrial Average down 643 points on Monday, taking some of the wind out of this summer’s stock-market rally.”
“Home Prices Plunging In ‘Pandemic Boomtowns’ As Market Slumps” (New York Post). “Across the US, 21% of home sellers dropped their asking prices in July – the highest share since Redfin began tracking the metric in 2012, according to the firm. The shares of homes with price drops in July compared to one year ago increased in 94 of 97 metro areas surveyed.”
“McDonald’s Orders A Board Shake-Up” (DealBook). “McDonald’s, the world’s largest restaurant chain, today is announcing a major shake-up of its board of directors as the company faces inflation, war in Europe and tensions with franchisees. Sheila Penrose will retire after more than 15 years, and three new executives will join: Anthony Capuano of Marriott International, Jennifer Taubert of Johnson & Johnson and Amy Weaver of Salesforce.”
“Paul Singer Notices Company That Keeps Screwing Up Keeps Screwing Up” (Dealbreaker). “It’s hard to screw up in the drug distribution game. You’ve only got two competitors and you don’t have to spend heavily on developing those drugs. All you have to do is get them from point A to point B and watch the money roll in. That’s why AmerisourceBergen shares are up nearly 80% over the past two years, and why McKesson Corp. shares have more than doubled. It’s also why Paul Singer wants to know why Cardinal Health shares… haven’t.”
