6th Consecutive Month Of Lower Inflation But Still High
Benzinga – Good Morning Everyone!
We finally have a taste of deflation. Thanks to a -0.1% month-over-month CPI reading.
Prices as of 4 pm, EST, 1/11/23; % YTD
MARKET UPDATE
U.S. CPI year-over-year in 2022
- January 7.5%
- February 7.9%
- March 8.5%
- April 8.3%
- May 8.6%
- June 9.1%
- July 8.5%
- August 8.3%
- September 8.2%
- October 7.7%
- November 7.1%
- December 6.5% street at 6.5%
6th consecutive month of lower inflation but 6.5% still well above Fed’s 2% goal
- 3 year average before the pandemic was 2.1%
Q4 earnings begin tomorrow
- JP Morgan (NYSE: JPM) Bank of America (NYSE: NYSE:) Wells Fargo (NYSE: NYSE:) Citi (NYSE: C)
- United Healthcare (NYSE: UNH)
10yr flat on the day
10 a.m. Biden speech on inflation and the economy
Fed speakers today Bullard and Barkin
China
- Ahead of the Chinese New Year holiday (the highest period for travel)
- China will stop reporting daily Covid cases and deaths
Crude 78.67 +1.2%
Disney (NYSE: DIS)
- Mark Parker (former Nike (NYSE:) CEO) elected to Board
Google (NASDAQ: NASDAQ:)
- Alphabet’s life sciences unit (which is small) cutting 15% of jobs
- 200 jobs impacted
Earnings
-
Taiwan Semiconductor
- Guides Q1 revenues $16.7-$17.5 billion vs street at $17.64
- Gross margins to be negatively impacted due to lower utilization rate
- 2023 Capex = $32 billion to $36 billion
-
KB Home (NYSE: KBH) -3%
- Orders down 50-60% year-over-year vs. street at down 35%
- Cancellations up 68%
CRYPTO UPDATE
Gensler: crypto industry is the “Wild West”
- Spoke during Twitter Spaces held by US Army yesterday
- “Most of these 10 or 15,000 tokens will fail … history tells us that there’s not much room for micro currencies”
- Says most not complying with securities laws (which remain unclear…)
Coinbase (NASDAQ: NASDAQ:) debt downgraded
- S&P Global (credit agency) downgraded Coinbase corporate debt to “BB-” from “BBB”
- From investment grade to speculative grade
- Downgrade follows large wave of layoffs
US taxpayers foot bill for $4.3 billion loan to help Silvergate (NYSE: SI) stay afloat
Crypto bank Silvergate is facing a bank run after working closely with FTX
But US taxpayers just footed the bill for a $4.3 billion loan to help the bank stay afloat
Is this really something the government should be doing?
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