First Republic Bank trading opens in May, but it’s not really celebrated across Wall Street. That’s because investors face a week full of potentially market-moving events, including Fed meetings, jobs data, Apple’s earnings, and ongoing debt ceiling negotiations.
The S&P 500, which closed last week at 4,169, also hit its highest level since February. And clearly, the mantra of “sell in May and walk away” is circulating. MarketWatch’s Mark Hulbert advises investors to stay in safer stock market sectors.
above us today’s call From the team at Evercore ISI, Senior Managing Director Julian Emmanuel says that after the final 25 basis point rate hike this week, prepare for the Fed’s moratorium on its playbook and debt ceiling battles.
“The Fed paused on May 3, and that ‘rumor’ was priced by the SPX
SPX
/VIX
VIX
Given that inflation remains an issue and the SPX 4,200 cap clashes with the debt ceiling, the collapse will ‘sell the news,'” Evercore’s team said.
“Hawkish moratoriums, a slowing economy and controversial debt ceiling discussions have led to increased volatility, resulting in a rotation back to former defensive leaders, all outperforming in April. I did,” they said, noting that they like healthcare and essentials.
And just as the Fed has paused, investors should do the same. This is due to the heightened risks surrounding the unprecedented surge in U.S. sovereign CDS prices and the debate over the debt ceiling, which is manifested through his one-year spreads on 1- to 3-month Treasury bills. But it’s not.
Because, until the stock market started to notice. It is hard to imagine politicians being compelled to act. Political brinkmanship fuels market volatility — VIX
VIX
It will trade to 40 in 2023. SPX retests 3,800 floors. The parallels to 2011 (where Democrats and Republicans were arguably more “rational” than his 2023) are striking,” says Emanuel and team.
Evercore says May 2nd, when the S&P 500 hit a 2011 high and VIX trough, could be a big day to watch for equities.
“Buying healthcare, staples and portfolio convexity is the best way to deal with the ‘summer heat’ starting in May, as well as the 2011 debt ceiling.” Consists of option calls (the right to purchase an asset at a set price by a specified date) on the S&P Biotech ETF.
XBI
Grants sale rights to Invesco QQQ Trust Series I
QQQ.
For the so-called “pause rebounders”, the Evercore team screened the Russell 1000.
Louis
Health care, biotech, and consumer goods stocks have lagged their sector medians, but their earnings per share growth in 2023 is ahead of their sector medians.They say these stocks could outperform in the second quarter and beyond, partly focused on Seagate Technology
STX
biomarine pharmaceutical
BMRN
Here’s the full list of them:
read: Stock market investors hope the Fed will answer this key question at this week’s meeting
market
stock futures
ES00
YM00
NQ00
flat, government bond yields stable
BX: TMUBMUSD10Y
BX:TMUBMUSD02Y
and dollar
DXYMore
Slightly higher.oil price
CL
is low and gold
GC00
Tilt to the south and silver
SI00
Head in another direction. European and London markets are closed for international labor and his May bank holiday.
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Buzz
JP Morgan
JPM
First Republic Bank’s ‘Very Competitive’ Auction Shows Winner
FRC,
The FDIC made the announcement early Monday. All 84 branches of First Republic will reopen under the Wall Street Bank name, giving depositors full access to their money.
Berkshire Hathaway Vice Chairman Charlie Munger, 99
BRKMore
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warned U.S. banks are “overwhelmed” with nonperforming loans in commercial real estate.
Even if the week’s earnings frenzy eases, some heavyweights such as Apple will continue to offer.
AAPL
thursday starbucks
SBUX,
ford
debt,
AMD
AMD
and Pfizer
PFE.
Expedia on Mondays
experience
and MGM
MGM
It’s in the name with a tap.
read: Amazon Appears to Improve Earnings – Can Apple Keep Up the Momentum?
Astellas Pharma Japan
JP:4503
Said it would acquire Iveric Bio
Really
$5.9 billion in a transaction valued at $40 per share to enhance its capabilities in the ophthalmology field.
British chip maker Arm Ltd., owned by Japan’s SoftBank, finally filed for an IPO over the weekend. A Nasdaq listing worth $8 billion to $10 billion is rumored.
The results of the two-day Fed meeting will be released on Wednesday. 84% chance of a price increase of 25 basis points. The S&P’s Manufacturing PMI will be released at 9:45am, followed by the Supply Management Institute at 10am, followed by construction spending. The highlight of this week’s data is Friday’s employment data.
best web
New month, new choices: What’s worth streaming in May 2023, with HBO Max rebooting, Netflix rolling out big names, and Apple making big moves
Pope says working on secret peace ‘mission’ to help Ukrainian children abducted by Russia
Convicted Sex Offender Jeffrey Epstein’s Private Calendar Reveal celebrities such as the CIA director and top Goldman Sachs lawyers.
ticker
As of 6am, MarketWatch’s most searched tickers were:
| ticker | Security name |
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FRC |
First Republic Bank |
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TSLA |
Tesla |
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bbee |
Bed Bath & Beyond |
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Murun |
mullen automobile |
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Up |
TOP Finance |
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Hudi |
Hanachi International Group |
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AMC |
AMC Entertainment |
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AAPL |
apple |
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GME |
game stop |
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AMZN |
Amazon.co.jp |
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