🍗 Is Inflation Finally Under Control?
Morning Tendies
April 12, 2023
One economist seems to think inflation is finally under control, Albertsons and CarMax’s earnings, economic events today, and more…
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Market Overview 📈
IMF Suggests Global Inflation is Under Control? 🌎
What Else is Happening? 🔮
Tendie Time 🍗
Market Overview 📈
Market Movers:
Earnings 💰
Albertsons
EPS $0.79 beats $0.67 estimate
Revenue $18.30B beats $18.22B estimate
Declares $0.12 per share dividend for Q1
Albertsons finished the trading session down -1.60%
CarMax
EPS $0.44 beats $0.22 estimate
Revenue $5.72B misses $6.04B estimate
Affirms target of generating $33B-$45B in Revenue by FY26
CarMax finished the trading session gaining +9.64%
The Rest of the Week:
Thursday has a couple of companies to pay attention to: Delta Airlines and Progressive. But Friday is where the real actions at. Friday will be a HUGE day for earnings releases.
Economic Events Today 🏛:
8:30 AM - March CPI Inflation Data
CPI, Consumer Price Index, measures the average change over time in consumer prices based on a representative basket of consumer goods and services.
The CPI is one of the most widely used gauges to measure inflation.
Previous was 6.0%
Expectation is 5.2%
2:00 PM - Fed Minutes
The Fed Minutes are released three weeks after each FOMC meeting, and it provides a summary of the discussion during the FOMC meeting and the decisions taken at the meeting.
IMF Suggests Global Inflation Is Under Control? 🌎
From April 10th - April 16th, the IMF and the World Bank Group will hold the Spring Meetings in Washington, DC.
April 11th is the day they hold the ‘World Economic Outlook’ briefing, and these are the main takeaways from the briefing:
First, What’s the IMF?
The International Monetary Fund is an international organization focused on promoting global economic growth, financial stability, and encouraging international trade.
The IMF is based in Washington, DC and is comprised of 190 member countries.
Yesterday, the IMF released the following forecast:
Global growth of 2.8% this year, down from 3.4% in 2022 and down from 2.9% forecast that was made back in January.
Gourinchas, French economist and the IMF’s director of research, also said “Inflation is unlikely to return to target before 2025”.
Most countries target inflation is in the region of 2%
When Gourinchas was asked: “In this scenario, we’re in at the moment, Is there sufficient tightening both through the policy rate and through a possible credit crunch to bring down inflation sufficiently, or do you think higher rate rises will be necessary?”
Gourinchas responded: “Well, right now, given where we are, we have rates in the U.S. peaking a little above 5% and in the Euro area around 3.75%, that is what would bring inflation to our targets by 2024 or 2025.”
However, he also includes, “There could be surprises to inflation, as it’s been proving more persistent, and so that may require a little bit more tightening.”
Key Takeaway:
Very interesting stuff today from the IMF. As you can see, they believe that we are finally getting control of the global inflation problem and that, at worst, only a few more rate hikes may be necessary.
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What Else is Happening? 🔮
💵 Bank of America clients withdraw $2.3 Billion from U.S. securities. The bank recorded biggest real estate outflows since mid-2021.
🏠 Blackstone completes $30.4 Billion raise for Real Estate drawdown fund. Blackstone has been raising the fund since 2021 and finally closed it. The fund is ‘Blackstone Real Estate Partners X’ and is the largest real estate drawdown fund ever.
🎬 Discovery Plus and HBO Max will merge and create ‘Max’. Warner Bros proposes to combine classic HBO series like “The Sopranos” and "Succession” with Discovery series lke “Dr. Pimple Popper” and “Fixer Upper”.
💉 Moderna falls over 2% after its flu vaccine trial fell short of the criteria for early success in a late-stage trial. However, the company will continue the tests as it says there weren’t enough cases of influenza among participants to determine, statistically, whether the vaccine met the goals of the study.
💰 WisdomTree gains 3% after reporting monthly metrics for March.
Net Inflows of $1.9 Billion In March
Assets Under Management grew 3.7% to $90.7 Billion
Tendie Time 🍗
The Best Roundup of Random Stuff from Around the Web:
🌉 Is Safe Francisco Safe Anymore? In the last week, we’ve seen:
Whole Foods flagship store in San Francisco, closing one year after opening due to safety concerns
Founder of Cash App, Bob Lee, dies from stabbing attack in San Fransisco
🏡 We’re Moving in Together: Cohabiting reaches record-high for young Americans.
Quote of the Day:
“Go to bed smarter than when you woke up”
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