Mackenzie. Global stocks set for a record high has investors await data. Jerome powell reiterates Interest Rates will be higher for longer. China is considering buying homes as it shores up earnings. A focus on big banks. Including alley yachts. It is today beats for the Insurance Company with pimco in the mix. Profit is above estimates. Essentially 4 billion euros. Estimates had been 3. 86, total revenues are shy of 50 billion euros. A beat when it comes to operating profit. 4 billion euros, estimates had been for 3. 6. I will be speaking to the cfo, that interview at 6 30. 15 year to date up. German lender coming out with earnings. Beating estimates at Commerce Bank, above estimates in the interest, estimates were for above 2 billion. Net income above estimates comfortably. Net income in the First Quarter, estimates i been millions. 2. 7 5 billion in revenues. Above estimates of 2. 7 4 billion. In terms of the outlook for income, 8. 1 billion euros for the full year. Estimates where
On big profits. We have comments from j. P. Morgan saying the slide and equities is part of a deeper correction. It is not over if you look at how yields are rising and strength of the dollar. Yen weakness has been kept in check by comments from the finance minister. We are seeing among japanese stocks that have been recovering, extending gains, not for racing losses. Singapore outperforming, you get the sense that those indices are benefiting amid the rout in the sector. Chinese tech is doing well. Divergence between the csi and the hang seng as one Bank Upgrades its call for chinese stocks. Haslinda it is from a low base. Ubs analysts have upgraded china and hong kong to overweight. Cutting taiwan and korea stocks to neutral, lets dig deeper with our equities reporter. Take us through the reasoning behind the move . Guest the key reason behind upgrading is resilient earnings. Msci china is trading at nine times. You look at the estimates there is better than the growth s p is suppose
More turbulent if not volatile period for stocks or yet another blip on the road higher . I think you have to look at it two separate ways yeah, the seasonal patterns which will take you higher into year end i believe, but whats added that element of volatility is clearly the tax plan. If its going to happen, its not. The market trades up and down on that, and my personal view is that that volatility will persist. They gave a christmas deadline for getting it done. I dont think it happens so these are buying opportunities that we saw with tech, alibaba, for example you have an opportunity to buy them down, and i still think that the underlying trends specific to these companies is so powerful thats when you want to get the buy. We mentioned this quiet correction, josh, that doesnt seem to be getting much attention at all 184 companies out of the s p 500 are in correction territory or worse. 36 of the index. Where i come from we call that rotation, and let me give you something that may
Has us asking the question is tech now firmly out of favor, or is this just a rest and people will come screaming back in. So firmly would probably be a bridge too far but out of favor today, sure, and by the way, this looks like a repeat of an episode that we saw on wednesday of last week, so you look at, like, for example, s p value index, which just breaks out the value stocks within the s p, up 1. 2 and s p growth up 0. 4 or flat. This is more than a oneday thing, right the banks listen. This is tech down 3. 5 in a week. Amazon in a 6 drawdown which slashes its yeartodate gain to a pitiful 52 . Thats what were talking about here these are stocks that have gone up by orders of magnitude all year and within the last week or two people are falling in love with other sectors like financials and industrials and transportation, and then have you this other thing going on which is only tangentially related which is a big bounce in retail names i think a lot of that has to do with seasonal
The nasdaq and small caps. Steve, now weve got to Pay Attention to this move in rates and how quickly they are going to rise. Thats the quickly they are going to rise. Rates going up alone, particularly when youre in such an accommodative environment they matter, but dont matter all that much, but the rate of increase, like the rate of anything is really whats hitting the markets. So youre also having right now europe is sort of not back away completely from qe, visibly that much that you can see, but they have cut back on the buying. Youll see a press Conference Tomorrow interesting to see what they say because the strength there is very, very strong. So i think overall when were done with this, that with the rapidity of it, that the market is a buying opportunity because it always has been and still the best place to put dough and you have to be crazy enough to have a cautionary outlook on it and maybe cash. You look at the lows of the day now for the dow down 132 and it really is a