MarketBites: Apple Turns Market Negative, Europe's Energy Crisis Rages On
MARKET PERFORMANCE:
Portfolio Manager Commentary:
Stocks traded higher Monday morning thanks to Goldman Sach's better-than-expected earnings results. However, the gains quickly soured into losses by market close. The selloff was led by the technology sector after Apple announced plans to slow hiring and spending next year. The move followed similar announcements from Google and other tech giants.
In Europe, the energy crisis is reaching new heights. The Nord Stream Pipeline remains shut as the standoff between Europe and Russia intensifies. The pipeline is currently shut for standard maintenance and is expected to resume operation in the coming days. However, Gazprom (the pipeline's Russian operator) declared a force majeure on several European natural-gas buyers, which may signal limited supplies in the future.
Oil prices rose above $100 a barrel after Saudi Arabia declined to make any promises regarding future output increases, which President Biden had asked for.
Over the weekend, the federal reserve signaled that it is leaning towards raising interest rates by 0.75% at the next Fed meeting at the end of the month. The signaling eased investors’ concerns of a full 1% hike.
Chart of the Day:
Foreign investors remain cautious about investing in Chinese companies due to ongoing covid lockdowns, regulatory uncertainty, and the Chinese housing crisis.
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