Weekend Update 10/23/2022

Weekend Update recaps market highlights and major news from Ursa’s portfolio. Not on Ursa yet? Download Ursa from the App Store!

Market rallies off stronger earnings, but rate hike speculation volatility continues

💪  Earnings strength. More earnings with more companies reporting stronger results compared to September’s #RecessionWatch fears. To be fair, still very early with more layoffs likely ahead and #ConsumerNoConfidence still incoming. Despite midweek hawkish Fed fears, S&P 500 rose +5% for week driven by #RiskOn Growth outperformance.

🤔  Dec hike speculation. Reports that Fed may ease #RisingYields in December calmed markets Friday. While 75bps hike still expected in Nov, 75bps Dec hike chatter spooked markets Wed/Thu. We’d expect a lot of focus to be on November’s CPI readout for #InflationFears.

️🇬🇧  Stabilizing UK. British Prime Minister Liz Truss resigns after 44 days in office. Her brief tenure threw British debt markets into disarray with potential spillover into global markets. Bank of England’s pivot from fighting to inflation to support its markets spurred fleeting sentiment Fed might pivot too if #RecessionWatch cuts too deep.

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The statements, opinions and analyses presented here are provided as general information. This article is the opinion of the author. Anything within this article should NOT be considered an investment recommendation or advice. See Ursa’s full disclosures here.