Disney shares rise after Iger replaces Chapek as CEO (2 min read)
Walt Disney shares jumped more than 6% on Monday after the company brought back former leader Bob Iger to replace his successor Bob Chapek as CEO. Iger was previously Disney’s chief for 15 years. Chapek took over the role three years ago and had come under criticism over the company’s poor performance since the pandemic started. Iger is in charge of reversing the decline in the business and its share price which have fallen about 28% since Chapek was appointed.
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Tesla recalls another 321,000 vehicles for tail light issue (2 min read)
It was revealed in a filing that Tesla is recalling 321,000 vehicles due to a safety issue. This is the 19th time and a total of nearly 3.77 million vehicles that Tesla has recalled this year. The increasing number of recalls will likely take a toll on resources as the company is ramping up production across the globe. Investors are concerned that Twitter will distract Elon Musk from the issues at Tesla. Shares of Tesla dropped 7% after the news and reached a new 2-year low.
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The bear market is not over according to Goldman Sachs (2 min read)
Amid signs of slowing inflation, the US equity markets have rallied from its October lows, but Goldman Sachs warned that this momentum will likely fade soon. Goldman Sachs said the bear market is not over and the real recovery won’t begin until interest rates have peaked, which is expected to be in 2023. As a result, the equity markets will remain volatile and trend downwards before reaching a final low next year. Other banks have also made similar comments recently.
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Stocks and oil prices slips as China returns to lockdown (3 min read)
China reinstated lockdowns as the country had a surge in Covid cases and newly recorded deaths. Major indexes dropped after the news as investors are concerned about the impact it would have on the global economy. Oil prices touched its lowest level since January this year as the demand from the world’s largest crude importer might become lower than it already is. The dollar rose as traders ditched riskier currencies amid possible weaker global economic outlook.
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Pimco ETF makes history with move to open outcry pit (4 min read)
Pimco’s Active Bond ETF (BOND) has become the first ETF in the last 15 years to be traded in an open outcry pit. Open outcry is when floor traders shout and exchange hand movements to execute orders. This form of trading may benefit ETFs that are actively managed or with an extremely large/small size volume. BOND will utilize a combination of open outcry and electronic trading for execution with the goal of enhancing liquidity and reducing trading costs.
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Recent shift in ETF flows might only be temporary (2 min read)
Up until the last quarter, most of the ETF flows were in defensive strategies as investors searched for downside protections. After the recent slower than expected inflation numbers, investors rotated back into higher growth and high beta sectors over the anticipation of a possible soft landing. However, experts said the current shift in asset flows is only temporary and how the market will shape ultimately depends on the Fed’s rate decision in December.
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That's it for today! You can reply to this email if you have any comments or feedback.
Thanks,
Thomas
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