Traders work on the trading floor of the New York Stock Exchange (NYSE) on November 16, 2023 in New York City, the United States.
Brendan McDermid | Reuters
This report comes from today’s CNBC Daily Open, our new international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see?You can subscribe here.
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Amazon will allow car dealers to sell cars on its site starting next year, forming partnership with South Korean automaker modern. As part of the transaction, Amazon’s Starting in 2025, Hyundai vehicles will be equipped with Alexa voice assistant. Shares of used car dealers fell after the news was announced. (No word yet on whether these cars are eligible for Amazon’s same-day delivery, though.)
China lags behind in electric car race
Hyundai has received a boost in the U.S. market but has lagged along with other global car brands in China. According to CNBC analysis, China’s transition to electric vehicles is so fast that major automakers are struggling to catch up. Volkswagen is expected to have its worst sales year in China since 2012, while Nissan and Hyundai face their worst years in decades.
Hit X
IBM has suspended advertising on X (formerly Twitter).it is in a Report The company’s ads were found to be placed next to anti-Semitic content. IBM Previously, X owner Elon Musk drew attention to anti-Semitic X posts and later accused the “Jewish community,” the Anti-Defamation League and minorities of posting “anti-white” messages. He provided no examples or evidence for his claims.
(PRO) Pre-order on Alphabet
Google Parent alphabetical One of seven stocks soaring this year.But Morgan Stanley equity analyst Brian Nowak told CNBC he has reservations about the stock, especially with Yuan and Amazon. The bank also cut its target price on Alphabet by about 3%, but remained overweight the stock.
bottom line
More evidence shows that inflationary pressures are easing: the number of people applying for unemployment benefits increased more than expected last week; import prices fell 0.8% this month, lower than the 0.3% expected; U.S. oil prices fell 5%. Walmart CEO Doug McMillon even believes that the price of some groceries may “fall in the coming weeks and months.”
Despite this, the stock market’s performance on the day was lackluster, with small fluctuations in both directions, but unconvincing.this S&P 500 Index A slight increase of 0.12% Nasdaq Index up 0.07%.but Dow Jones Industrial Average It fell 0.13%, ending four consecutive days of gains.
Investors may note that they are a little too optimistic about the possibility that the Fed will cut interest rates quickly and that inflation will fall below 2% without the economy slipping into recession.
BTIG analyst Jonathan Krinsky believes a recession may be coming. Signs of a hard landing include “ “Slowing macro data, continued weakness in corporate commentary, and average stocks,” he wrote. Klinsky also warned that stock market rallies tend to precede recessions.
Meanwhile, Cleveland Fed President Loretta Mester told CNBC she wasn’t entirely convinced by this week’s financial data. “We’re going to have to see more evidence that inflation is moving back to 2% in time.”
To this end, Mester does not expect to cut interest rates. Instead, she remains open to raising interest rates. “My sense is that it’s not really about cutting rates. It’s really about how long we’re going to keep our restrictive stance and maybe have to raise rates given what’s going on in the economy,” she said.
All in all, neither situation is pretty. This is not to say that a soft landing is completely impossible. “A soft landing is possible,” Fed Governor Lisa Cook said in a speech in San Francisco. But, like everything else in the market, “it’s not a sure thing.” Maybe investors shouldn’t be so certain about the coming rate cut, either.
Svlook
