The New York Stock Exchange will host executives and guests from Ormat Technologies, Inc. (NYSE: ORA) on September 6, 2023, to celebrate 20 years of trading on the New York Stock Exchange.
This report is from today’s CNBC Daily Open, our new international markets newsletter. The CNBC Daily Open provides investors with everything they need to know, no matter where they are. Like what you see?You can subscribe here.
Preparing for the Fed meeting
U.S. stocks were little changed on Monday as traders awaited the Federal Reserve’s September meeting. Asia-Pacific markets fell on Tuesday. Minutes from the RBA’s last meeting revealed the central bank believes inflation remains “too high”, sending Australia’s S&P/ASX 200 index down around 0.4%. Meanwhile, Japan’s Nikkei Stock Average fell 1.1%, leading the region’s losses.
unusual returns
Early-stage investments in China are not profitable. Only four of the U.S. dollar-denominated venture capital funds launched between 2015 and 2020 returned money to investors, according to data from research firm Preqin. The four companies are Fengshion Capital Investment Fund, LYFE Capital USD Fund II, and GGV Capital V.
top of shelf
Instacart has priced its initial public offering at $30 per share, at the high end of its expected range. This values the grocery delivery company at about $10 billion, or about 3.5 times its annual revenue. In comparison, competitor DoorDash’s stock price is 4.25 times that of the previous one. Instacart is the first venture-backed tech startup to go public after December 2021, which could be a sign of the health of the IPO market.
Monthly payment of X
X, formerly known as Twitter, will charge users a “small monthly fee” to fight “an army of bots,” Elon Musk said. Musk also revealed that X has 550 million “monthly users” and generates 100 million to 200 million posts per day. Separately, Turkish President Recep Erdogan has invited Musk to build the next Tesla factory in Turkey, state media reported.
very expensive olive oil
Olive oil prices have soared to $8,900 per tonne this month due to a severe drought in the Mediterranean. This is more than 100% higher than the previous year and far surpasses the previous record of $6,242 set in 1996. US Department of Agriculture. And as the extreme weather persists and supply dries up, prices may continue to rise.
[PRO] anoint real estate
Oil prices are currently above $90 per barrel and could rise further due to supply cuts by Saudi Arabia and Russia. It’s natural to expect energy and oil companies to benefit from this. But, quite surprisingly, two global real estate stocks could also benefit from rising oil prices, Morgan Stanley said.
Stock prices changed little yesterday. All the major indexes rose, but the increase was so small (1/100th of a percentage point) that it would be better to assume that there was no change. Trading volume was also low. The SPDR S&P 500 and Invesco QQQ, which tracks the Nasdaq 100, both traded about 25% fewer stocks than their 30-day averages.
It’s not that investors aren’t sure what the Fed will do at Wednesday’s meeting. They are almost certain that the central bank will keep interest rates unchanged for some time, the paper said. CME FedWatch Tools. Investors are anxiously awaiting the November meeting. The market currently sees a 28.7% chance of a rate hike, compared to 50.89% in late August (up from 31.3% just 5 hours ago!). These wild swings reflect the uncertainty surrounding the November meeting.
Still, Goldman Sachs said, as the bank’s chief economist Jan Hadzius wrote in a note on Sunday, “The FOMC is unlikely to raise rates for the last time this year, as we ultimately believe. I think there is a possibility that it will be postponed.” But with the U.S. economy heating up, the labor market still tight, strikes continuing to turmoil, and oil prices soaring again, it remains to be seen what inflation, and by extension interest rates, will be like elsewhere in the market. No wonder we don’t actually know. This year’s.
So the Fed’s dotplot, which charts where central bank officials think interest rates will be in the short and long term, will be under intense scrutiny by investors. But Hadzius doesn’t think the Fed will actually pull the trigger, even if its members plan to raise rates one more time this year. It’s “just to maintain flexibility for now,” he wrote.
Perhaps we should give the Fed some benefit of the doubt. Ed Yardeni, president of Yardeni Research, certainly does. “Generally speaking, Fed watchers like to criticize the Fed and imply that the Fed is always wrong in its outlook and what it’s doing,” Yardeni said on CNBC’s “Squawk Box.”
“But I think they actually got it right this time,” Yardeni said. “And I think it’s very likely that we’ll see complete disinflation, where inflation falls without the entire economy going into recession.” That may be a boldly optimistic prediction. But it’s definitely an upbeat idea and one of the few certainties available today.