10 hours ago
Rebecca Patterson looks defensively at T-Bills for near-term market insurance
Rebecca Patterson, known for her previous leadership at Bridgewater, is preparing for a near-term market downturn.
For the Federal Reserve to ease its interest-rate hike campaign, Patterson said, there would have to be a lot more economic weakness and inflation would have to be at or below the central bank’s target level—both of which scenarios are “low. Probabilities.”
“I think as we see a stock market rebound later this year, I’ll be looking at the interactions between consumers, firms and the labor market and, of course, the Fed and borrowing costs,” former Chairman Patterson said. investment strategist at Bridgewater Associates said on CNBC’s “Fast Money” on Tuesday.
The strategist said consumers are growing cautious, which could be bad for companies — increasing the risk of layoffs and hurting earnings if they start spending less.
For near-term insurance, Patterson said he would invest in six-month US Treasury bills and start investing modestly in defensive stocks. The six-month Treasury yield rose to 5.14% on Tuesday, hitting its highest rate of return since 2007.
Patterson published an op-ed on CNBC.com on Tuesday about three drivers he thinks could shape the future of the U.S. economy.
— Biya Singh
10 hours ago
How Major Indices Performed in February
Tuesday’s close marked the end of February’s trading month. Here’s how the three major indices performed this month:
It marks a reversal from January’s rally as investors look to shake off the 2022 downturn. February’s slide pushed the Dow back down from where it started the year, while the S&P 500 and Nasdaq Composite still hold some of what they gained in January.
– Alex Haring
10 hours ago
Stocks that make the biggest moves after hours
The stocks that made the biggest moves after the bell were:
- First Solar – Solar shares rose 3.6%. According to FactSet, the company reported a loss of 7 cents per share for the fourth quarter, compared with the 17 percent loss per share predicted by analysts. Revenue came in at $1 billion as expected. The company issued full-year guidance that beat expectations on earnings per share and revenue.
- Shares of AMC Entertainment — the meme-stock darling — fell less than 1%. The company posted a better-than-expected loss of 26 cents per share in the fourth quarter, compared with a loss of 21 cents per share predicted by analysts polled by Refinitiv. AMC reported fourth-quarter revenue of $991 million, while analysts were expecting revenue of $978 million.
- Novavax — The biotechnology company fell 24%, raising doubts about the company’s ability to stay in business. The company lost $2.28 per share, much larger than the $1.01 per share loss expected by analysts polled by FactSet. Revenue also came in at $357.4 million, compared to the expected $383.1 million.
See the full list here.
– Alex Haring
11 hours ago
Stock futures are opened
All three major futures indices opened in the red.
Nasdaq 100 futures fell 0.3%, leading lower. Composite futures for the S&P 500 and Dow fell 0.2% and 0.1%, respectively.
– Alex Haring
