Marketbites: Elon Buys Twitter After All
Updated: Oct 18, 2022
MARKET PERFORMANCE:
Portfolio Manager Commentary:
The markets were able to carry Monday’s rally into yesterday with across-the-board gains. The S&P notched a 5.07% rise over the past two days. That is the best two-day gain since 2020 for the index, helped by a 3.06% increase yesterday. The Nasdaq and Dow also performed well with increases of 3.34% and 2.80%, respectively.
“With sentiment toward equities already very weak, periodic rebounds are to be expected,” according to Mark Haefele, CIO at UBS Global Wealth Management. “But markets are likely to stay volatile in the near term, driven primarily by expectations around inflation and policy rates.”
Weaker-than-expected manufacturing and job openings data loosened some fears about hawkish Fed policies moving forward. After a tough day Monday, Credit Suisse rallied 12.22% higher following the news along with the market.
Twitter stock also got a 22.24% rally after Elon Musk agreed to buy the social media giant at the originally agreed-upon price of $54.20 per share. Based on this price, the deal is valued at $44 billion.
Chart of the Day:
U.S. employers pulled back sharply on job openings, and layoffs rose in August, adding to signs of a cooling labor market. In total, job openings fell by 10% in August. This drop could signal that companies are not very optimistic about near-term prospects for the U.S. economy. Even with the decline, job openings are above pre-pandemic levels and exceeding the number of unemployed people looking for work.
Source: WSJ
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