Analysts expect companies in the S&P 500 to report a second consecutive decline in quarterly earnings. First-quarter profits are projected to drop 6.8% from the same period a year earlier, according to FactSet. That would mark the steepest earnings decline since the second quarter of 2020, when the onset of the Covid-19 pandemic resulted in a 32% profit contraction.
Stock Pickers Failed to Take Part in First-Quarter Rally
Stock pickers missed out on the first-quarter rally, failing to extend their recent winning streak.
Only one in three actively managed large-cap mutual funds beat their benchmarks in the first three months of the year, the worst performance since the three-month period ended December 2020, according to data from Bank of America Global Research.
Food Prices Are New Inflation Threat for Governments and Central Banks
Energy prices are falling back more than a year on from Russia's invasion of Ukraine. But the other big cost of the war for households around the world continues to rise: food.
In 12 months through March, prices of food, alcohol and tobacco were up 15.4% in the eurozone, while energy prices were down 0.9%. Food prices were up 10.2% in the U.S. in the 12 months through February, well ahead of energy at 5.2%.
Private Equity's Food Binge Goes Sour
Private-equity funds went on a buying binge for food companies before markets crashed in 2022. Now they have indigestion that is contributing to rising prices at the grocery checkout.
The funds snapped up a record 786 makers of food and beverages worth $32 billion in 2021, using bundles of debt to pay for their purchases, according to data from S&P Global Market Intelligence. The financiers projected that staple goods would keep making profits no matter how the economy fared. But that forecast changed, with the food industry soon hammered by higher labor costs, supply-chain disruptions and surging inflation.
America Is Back in the Factory Business
Production at U.S. factories rose last year, but few things were produced at a more furious pace than factories themselves.
Construction spending related to manufacturing reached $108 billion in 2022, Census Bureau data show, the highest annual total on record-more than was spent to build schools, healthcare centers or office buildings.
China's New IPO Rules Tipped to Speed Up Listings, Boost Pricing Efficiency
The first stocks to list on China's main boards under a new mechanism had strong debuts Monday, amid enthusiasm for a revamped system analysts say could bring the country's equities markets more in line with international standards and speed up the listing process.
Shares in 10 companies from a variety of sectors, including dental services and commodities trading, soared in their first day of trading on the main boards of the Shanghai and Shenzhen exchanges under the new registration-based listing system.
Recession threat may mean stock-market investors no longer see bad news on economy as good news
Investors are suddenly worried about a potential recession. That means "bad news" on the economy might no longer be "good news" for the stock market.
Until recently, investors welcomed signs of a slowing economy, figuring it meant the Federal Reserve would soon stop raising interest rates, presumably in time to avert a recession as inflation cooled. Following last month's banking troubles, investors appear more fearful of a potential downturn, market watchers said.
Saudi Arabia-Led Oil Cuts Run Into Gusher of Alternative Supplies
A burst of supply from a grab bag of smaller oil-producing countries threatens to undermine efforts by Saudi Arabia and its allies to keep prices high.
Iran, Guyana, Norway, Kazakhstan, Brazil and Nigeria have pumped more oil since the fall, boosting the world's supplies even as some of the biggest producers throttled back. Nigeria in particular has seen output bounce, with help from armed guards protecting barges in the vast creeks and waterways of the oil-rich Niger Delta.
EPA to Propose Tougher Tailpipe-Emissions Standards
WASHINGTON-The Biden administration is expected to propose extensive new limits on vehicle tailpipe emissions in a bid to move U.S. auto makers toward majority electric-vehicle sales, according to people familiar with the matter.
The new standards for light-duty vehicles, which are likely to be announced by the Environmental Protection Agency in Detroit next week, are expected to cover model years 2027 to 2032 and include the country's most stringent curbs on car pollution to date, the people said.
Why Stock-Market Investors Can No Longer Count on the 'Index Effect'
A new study concludes that-at least in the case of the S&P 500-the small rise in share value that once accompanied a stock's addition to the index has disappeared on average over the past decade.
This disappearance of the well-known "index effect" has occurred despite an increase in the amount of money tracking the S&P 500 over the period, says Robin Greenwood, professor of finance and banking at Harvard Business School. He co-wrote the working paper, "The Disappearing Index Effect," with Marco Sammon, assistant professor of business administration at Harvard Business School.
In Wake of SVB Collapse, Venture Lending Faces Uncertainty
The demise of Silicon Valley Bank was a shock for the $32 billion venture-debt industry, a critical source of alternative financing for startup companies.
Since its inception, SVB had been a pioneer in the venture-debt field, and a linchpin for venture-backed startups looking for capital to expand their businesses. Last year, SVB had $6.7 billion outstanding in venture loans, according to PitchBook-NVCA Monitor.
China Warns Taiwan, With an Eye on Rest of the World
BEIJING-China is attempting to balance its fury over Taiwan with a desire to play the role of global peacemaker-a delicate two-step that comes as China seeks to sustain a burst of diplomatic momentum and establish itself as a new global counterbalance to Washington.
By sending an aircraft carrier toward Taiwan and launching live-fire exercises, Beijing wants to send a stern message to Taipei after a groundbreaking U.S. meeting. But so far, it has held off on a more aggressive show of force that could tarnish its bona fides as a benign and responsible global power.
Ukraine May Run Out of Air Defenses by May, Leaked Pentagon Documents Warn
Russia could achieve its long-sought goal of air superiority in Ukrainian skies as early as May because Ukraine is running out of antiaircraft missiles, according to purported Pentagon presentations that have leaked on social media.
The Pentagon and the Justice Department began an investigation last week into document leaks when some purported U.S. Department of Defense presentations were posted by Russian propagandists on Telegram on Thursday. The Wall Street Journal, which viewed these documents and a larger trove that emerged on Friday, hasn't been able to independently verify their authenticity.
For Some Trump Voters, Legal Drama Is Latest Reason to Move On
Just hours after Donald Trump became the first former president to be indicted, Republicans filed into a tavern northwest of Milwaukee to commiserate over Tuesday evening's loss of a hard-fought race for a Wisconsin Supreme Court seat.As the clock approached midnight, a heated debate broke out between two men active in the local GOP, said Randy Marquardt, the party chairman in Washington County. One argued for loyalty to Mr. Trump, he said, while the other insisted it is time for the party to pick someone else as their 2024 presidential nominee."It got ugly and people eventually went their separate ways to head home," said Mr. Marquardt. "The other guy argued that Trump came with too much baggage, but there are still quite a few people who are all in with Trump."
Mr. Marquardt, who twice voted for the former president, says he thinks it is time to move on.
Texas Governor Vows to Pardon Man Convicted of Killing BLM Protester
Texas Gov. Greg Abbott said he wants to pardon a man who was convicted Friday of murdering a Black Lives Matter protester.
The Republican said on Twitter Saturday that he requested a state pardon board review the case of Daniel Perry, who was found guilty of murder for killing Garrett Foster at a demonstration in the summer of 2020 in Austin, Texas. Mr. Abbott said he would approve a pardon "as soon as it hits my desk."
Texas Abortion-Pill Ruling Ignites New National Battle
A ruling by a Texas judge suspending approval of the abortion pill sets off a new national fight over women's access to abortion less than a year after the Supreme Court withdrew constitutional protections for the procedure.
In a 67-page ruling on Friday, U.S. District Judge Matthew Kacsmaryk, a Trump appointee who sits in Amarillo, said the U.S. Food and Drug Administration made a series of legal errors in approving the pill, known as mifepristone, for sale. He delayed the impact of his decision for a week while the Biden administration appeals and seeks an emergency stay.
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Earnings:
Tilray Brands 3Q
Economic Calendar:
None scheduled
Expected Major Events for Monday
04:30/JPN: Mar Corporate Insolvencies
05:00/JPN: Mar Consumer Confidence Survey
06:00/JPN: Mar Economy Watchers Survey
14:00/US: Mar Employment Trends Index
14:00/US: Feb Monthly Wholesale Trade
23:01/UK: Mar BRC-KPMG Retail Sales Monitor
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Monday
Autoscope Technologies Corp (AATC) is expected to report for 4Q.
CASI Pharmaceuticals (CASI) is expected to report for 4Q.
DATATRAK International Inc (DTRK) is expected to report for 4Q.
F45 Training Holdings Inc (FXLV) is expected to report for 4Q.
Greenbrier Cos (GBX) is expected to report $0.79 for 2Q.
(MORE TO FOLLOW) Dow Jones Newswires
04-10-23 0604ET
