Inflation Weary Americans Find Some Relief as Prices Fall for Dozens of Products
Prices were lower last month for dozens of products including airline tickets, chicken and shoes, providing some modest relief to Americans who faced historically high inflation in 2022.
Overall consumer prices fell a seasonally adjusted 0.1% in December from November-the first monthly decrease since May 2020, the Labor Department said. But the annual inflation rate remained high. The consumer-price index rose 6.5% from December 2021.
Oil Prices Are Likely to Stay Steady This Year-With a Couple of Big Ifs
Oil prices generally aren't expected to change dramatically this year, but two big questions loom over that outlook: Will China have the workers needed to rev up its economy as the country loosens its Covid restrictions? And will American energy companies focused on fracking stick to their recent reluctance to bankroll another expensive oil boom?
Brent, the international oil standard, peaked above $127 a barrel last year but has since tumbled, trading around $84 a barrel Thursday. Around two-thirds of energy executives surveyed by the Federal Reserve Bank of Dallas late last year expected West Texas Intermediate oil prices-which tend to fluctuate a few dollars a barrel below Brent-to end 2023 between $70 and $90 per barrel. The forecast is based largely on the fact that analysts expect global oil supply to outpace demand this year as economic growth slows.
When Executives Stop Selling Stock, a Big Deal Might Be Ahead
Investors learned of Amgen Inc.'s $28 billion bid for Horizon Therapeutics PLC in December. But a clue to a potential deal emerged months earlier, when insiders in the target company stopped selling stock.
The halt to stock sales by executives and directors at Horizon has been mirrored at some other big companies involved in recent deal making. The pattern shows why some hedge funds and other investors scrutinize activity by corporate insiders in the hope of identifying candidates for mergers and acquisitions, generating outsize gains in the process.
The Nasdaq Has Had a Hot Start to 2023. It Still Has Room to Run.
The Nasdaq has gotten out of the gates quickly in 2023. It's got more room to run for now.
For the year, the Nasdaq is up 5%, outpacing the S&P 500's gain so far. The main driver has been expectations that the rate of inflation will continue to decline, a thesis that Thursday's Consumer Price Index validated. That means the Federal Reserve could soon pause its interest rate hikes, which are meant to squelch inflation by reducing economic demand. That expectation has dragged the 10-year Treasury yield down to just over 3.4% from just over 3.8% to end 2022. Lower long-dated bond yields provide a particular boost to valuations of fast-growing technology stocks because they are valued on the assumption that a bulk of their profits will come in the long-term.
Economic Uncertainty Weighs on Cyber Chiefs
Companies across sectors are responding to this year's economic uncertainty with layoffs, hiring freezes, and budget cuts, amid fears that a potential recession could heavily impact their bottom lines.
While cybersecurity is expected to be spared the brunt of the belt-tightening, owing to its critical function and enhanced profile after years of increasing cyberattacks, corporate security chiefs and technology industry researchers say cyber won't escape entirely unscathed. Some chief information security officers are looking for ways to be more efficient.
Venture Capitalist Tomasz Tunguz Seeks $200 Million for His New Firm
Tomasz Tunguz, a cloud-software investor who recently left Redpoint Ventures, is raising capital for his new venture-capital firm, according to people familiar with the situation.
Portola Valley, Calif.-based Theory Ventures is looking for about $200 million for its first fund that will focus on investing in enterprise-software startups, the people said. The firm will make seed and Series A investments.
China's Housing Market Will Revive but Might Not Thrive
China's sudden shift to pro-growth policies will finally lift its struggling housing market in the Year of the Rabbit. A much stronger 2023 seems assured-but the longer term outlook remains muddy at best.
In a short space of time, Beijing has made an abrupt U-turn on almost every policy that had been clouding the economy for the past couple of years. Its strict "zero-Covid" policy is gone. The crackdown on powerful private enterprises, especially in the internet technology sector, has eased. And the campaign to curb property-sector indebtedness is also reversing.
Meeting Between Biden, Kishida to Focus on Boosting Security Cooperation
President Biden will meet at the White House on Friday with Japanese Prime Minister Fumio Kishida as the U.S. and Japan increase security cooperation to counter China's military buildup.
U.S. officials said the meeting between the two leaders will follow up on meetings in Washington earlier this week between Defense Secretary Lloyd Austin, Secretary of State Antony Blinken and their Japanese counterparts. Following that meeting, the two countries announced plans to protect Japanese satellites, equip Tokyo with long-range missiles and upgrade U.S. Marine forces in the country.
Trump Organization to Be Sentenced Friday in Tax-Fraud Case
Donald Trump's family business is set to be sentenced Friday following its criminal tax-fraud conviction for using an off-the-books compensation scheme to pay some employees in perks, such as cars, rent-free apartments and cash.
A New York jury in December found two Trump Organization entities guilty of a total of 17 criminal counts, including tax fraud, conspiracy and falsifying business records. The two defendants face potential criminal fines in Friday's sentencing that could total up to about $1.6 million. State Supreme Court Justice Juan Merchan, who presided over the trial, will determine the penalty.
Shinzo Abe Assassination Suspect Is Charged With Murder
NARA, Japan-Prosecutors on Friday brought murder charges against Tetsuya Yamagami, the suspect in the assassination of former Japanese Prime Minister Shinzo Abe last July 8.
Mr. Yamagami, now 42, shot and killed Mr. Abe at an election campaign rally in the western city of Nara using a homemade gun, according to prosecutors and videos of the event.
Write to ina.kreutz@wsj.com TODAY IN CANADA
Earnings:
Corus Entertain 1Q
Economic Events (ET):
Nothing major scheduled
Stocks to Watch:
Cogeco 1Q EPS C$2.67; 1Q Rev C$789.7M
Cogeco Communications 1Q EPS C$2.44; 1Q Rev C$762.3M
Tourmaline Oil Declares C$2 per Share Special Dividend; Anticipate Paying Further Special Dividends Each Qtr in 2023
Triple Flag Precious Metals Provides Update on Combination With Maverix Metals; Resolution Approving Combination Approved by Over 98% of Votes Cast by Maverix Hldrs; Canadian Competition Bureau Has Cleared Arrangement Under Canadian Competition Law; Completion of Deal Subject to Final Approval of Ontario Superior Court of Justice; Triple Flag, Maverix Working Toward Closing Deal Prior to End of Jan
Expected Major Events for Friday
04:30/JPN: Dec Corporate Insolvencies
07:00/UK: Nov UK trade
07:00/UK: Nov Index of production
07:00/UK: Nov Index of services
07:00/UK: Nov Monthly GDP estimates
07:45/FRA: Dec CPI
09:00/ITA: Nov Industrial Production
09:00/GER: Annual Annual GDP - first provisional calculation
12:30/UK: Dec NIESR Monthly GDP Tracker
13:30/US: Dec Import & Export Price Indexes
15:00/US: Jan University of Michigan Survey of Consumers - preliminary data
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Expected Earnings for Friday
Bank of America Corp (BAC) is expected to report $0.86 for 4Q.
Bank of New York Mellon Corp (BK) is expected to report $1.21 for 4Q.
BlackRock Inc (BLK) is expected to report for 4Q.
Blade Air Mobility Inc (BLDE) is expected to report for 4Q.
Citigroup Inc (C) is expected to report $1.30 for 4Q.
Corus Entertainment Inc - Class B (CJR.B.T,CJREF) is expected to report for 1Q.
Delta Air Lines (DAL) is expected to report $1.17 for 4Q.
First Republic Bank (FRC) is expected to report $1.80 for 4Q.
Flanigan's Enterprises Inc (BDL) is expected to report for 4Q.
JPMorgan Chase & Co (JPM) is expected to report $3.14 for 4Q.
John Marshall Bancorp Inc (JMSB) is expected to report for 4Q.
Schmitt Industries (SMIT) is expected to report for 2Q.
Silver Bull Resources Inc (SVB.T) is expected to report for 4Q.
TRX Gold Corp (TNX.T,TRX) is expected to report for 1Q.
UnitedHealth Group Inc (UNH) is expected to report $4.91 for 4Q.
Video Display Corp (VIDE) is expected to report for 3Q.
Wells Fargo (WFC) is expected to report $1.28 for 4Q.
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ANALYST RATINGS ACTIONS
Advance Auto Parts Cut to Neutral From Outperform by Wedbush
AECOM Raised to Outperform From Neutral by Credit Suisse
Air Products & Chemicals Cut to Hold From Buy by Societe Generale
American Tower REIT Raised to Buy From Hold by Deutsche Bank
Amplitude Cut to Neutral From Buy by Citigroup
Amplitude Cut to Neutral From Buy by UBS
Arvinas Cut to Neutral From Buy by Guggenheim
Bank First Cut to Neutral From Overweight by Piper Sandler
Best Buy Cut to Neutral From Outperform by Exane BNP Paribas
Boeing Raised to Neutral From Underperform by Credit Suisse
CinCor Pharma Cut to Equal-Weight From Overweight by Barclays
Cinemark Raised to Overweight From Neutral by JP Morgan
Clearwater Analytics Cut to Perform From Outperform by Oppenheimer
Cleveland-Cliffs Raised to Overweight From Equal-Weight by Morgan Stanley
CommScope Holding Raised to Buy From Underperform by B of A Securities
ConocoPhillips Cut to Peer Perform From Outperform by Wolfe Research
Crown Castle Cut to Equal-Weight From Overweight by Barclays
CS Disco Cut to Neutral From Buy by Citigroup
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01-13-23 0632ET
