Like banks, nonbank investment giants are also subject to funding worries-just in different forms, and not to the same degree. That is a big reason these firms might continue to outperform their deposit-taking peers.
Alternative-asset managers of private-equity and private-debt funds such as Apollo Global Management, Blackstone and KKR & Co. appear poised to capitalize on recent disruptions in banking. Private credit-backed buyouts jumped last year, and some managers have recently said they are looking at picking up the lending slack from regional banks.
Why Are Markets So Calm? It's Revenge of the Quant Funds
The U.S. stock market is surprisingly calm right now, especially in the face of the debt-ceiling fight. A key reason: a growing divide between mainstream investors, who have largely been sitting out the 2023 stock rally, and the machines whose buying has been driving it.
Only days remain until the U.S. blows past its debt-ceiling deadline. On Saturday, President Biden and Republican House Speaker Kevin McCarthy reached a tentative agreement to prevent a destabilizing default. But passage of the plan, which could face some opposition in the House or Senate, isn't yet assured and procedural hurdles could delay final legislation even if they don't scupper it.
Wall Street Dreads Biden-Trump Rematch
On a farm in upstate New York last weekend, Wall Street types groused about the coming presidential election in between bites of roast pig.
Billionaire money manager Mario Gabelli and banker Ralph Schlosstein were among the guests at former Honeywell Chief Executive David Cote's Carnivore's Ball-a celebration of all things meat-that featured lively discussions of potential business-friendly candidates who could shake up the 2024 race. A few meat-lovers spent the evening urging Ray McGuire, the Lazard president and former New York City mayoral candidate, to run.
China Rebuffs Pentagon Chief, Blunting Push for Rapprochement
WASHINGTON-China has rebuffed a U.S. request for a meeting between their defense chiefs on the sidelines of an annual security forum in Singapore this weekend, the Pentagon said Monday, showing the limits of a tentative rapprochement between the two rival powers.
The decision by China formally to inform the Pentagon shuts the door for now on a meeting between Defense Secretary Lloyd Austin and Li Shangfu, China's new defense minister, which the U.S. had proposed on the sidelines of the annual Shangri-La Dialogue security forum.
DeSantis, Trump and Other 2024 GOP Campaigns Take Notice of Moms for Liberty
NORTH CHARLESTON, S.C.-In recent weeks, Tara Wood has introduced Florida Gov. Ron DeSantis at a gathering of conservative activists, brought people to South Carolina Sen. Tim Scott's campaign launch and is talking to the Trump campaign about meeting with the former president.
Wood is president of the Charleston County, S.C., chapter of Moms for Liberty, a nationwide organization that has become an influential force in the GOP presidential primary. The group, which didn't exist during the 2020 race, has become the loudest voice advocating for greater parental involvement in schools. Members are helping shape a new education platform for the Republican Party in 2024.
Write to paul.larkins@dowjones.com TODAY IN CANADA
Earnings:
Canopy Growth 4Q
Coveo Solutions 4Q
Economic Calendar (ET):
0830 1Q Balance of Payments
Expected Major Events for Tuesday
00:30/JPN: Apr Detailed Import & Export Statistics
08:00/ITA: Apr PPI
08:30/UK: Apr Capital issuance statistics
09:00/ITA: Mar Industrial turnover
12:30/CAN: 1Q Balance of Payments
13:00/US: 1Q U.S. Quarterly House Price Index
13:00/US: Mar U.S. Monthly House Price Index
13:00/US: Mar S&P CoreLogic Case-Shiller Indices
14:00/US: May Consumer Confidence Index
14:30/US: May Texas Manufacturing Outlook Survey
23:50/JPN: Apr Preliminary Retail Sales
23:50/JPN: Apr Preliminary Industrial Production
All times in GMT. Powered by Onclusive and Dow Jones.
Expected Earnings for Tuesday
Ambarella Inc (AMBA) is expected to report $-0.86 for 1Q.
Arrow Financial (AROW) is expected to report $0.66 for 1Q.
Athenex Inc (ATNXQ) is expected to report for 1Q.
BQE Water Inc (BQE.V) is expected to report for 1Q.
Box Inc (BOX) is expected to report $-0.03 for 1Q.
California First Leasing Corp (CFNB) is expected to report for 3Q.
Canopy Growth Corp (CGC,WEED.T) is expected to report $-0.21 for 4Q.
Crossroads Impact Corp (CRSS) is expected to report for 1Q.
Drive Shack Inc (DSHK) is expected to report $-0.06 for 1Q.
FTI Consulting (FCN) is expected to report $1.65 for 4Q.
HP Inc (HPQ) is expected to report $0.56 for 2Q.
Hewlett Packard Enterprise Co (HPE) is expected to report $0.29 for 2Q.
Nicholas Financial (NICK) is expected to report for 4Q.
Rubius Therapeutics Inc (RUBY) is expected to report $-0.50 for 1Q.
Skyline Champion Corp (SKY) is expected to report $0.94 for 4Q.
Sportsman's Warehouse Holdings Inc (SPWH) is expected to report $-0.37 for 1Q.
TESSCO Technologies Inc (TESS) is expected to report for 4Q.
Transphorm Inc (TGAN) is expected to report for 4Q.
U-Haul Holding Co (UHAL) is expected to report for 4Q.
iMedia Brands Inc (IMBI) is expected to report for 1Q.
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ANALYST RATINGS ACTIONS
Annexon Cut to Neutral From Buy by B of A Securities
Centerspace Cut to Market Perform From Underperform by Raymond James
Dollar General Raised to Positive From Mixed by OTR Global
eFFECTOR Therapeutics Raised to Buy From Hold by Stifel
Equity Residential Cut to Underperform From Market Perform by Raymond James
Guardant Health Raised to Buy From Neutral by Citigroup
Hamilton Lane Raised to Outperform From Perform by Oppenheimer
Hibbett Cut to Sell From Hold by William Blair
Hibbett Cut to Sell From Hold by Williams Trading
MongoDB Cut to Sell From Neutral by Guggenheim
New Relic Raised to Outperform From Sector Perform by RBC Capital
Paramount Global Raised to Hold From Sell by Loop Capital
Pinnacle West Capital Raised to Neutral From Underperform by B of A Securities
RingCentral Raised to Buy From Hold by Needham
Snowflake Cut to Peer Perform From Outperform by Wolfe Research
Terran Orbital Cut to Underperform From Buy by B of A Securities
UWM Holdings Raised to Buy From Hold by Jefferies
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
05-30-23 0614ET
