Investor

The Daily Chase: Rate hikes weigh on investor sentiment; Cisco expects strong sales growth

North American stock market futures point to a lower open amid growing concerns about the outlook for economic growth and rising rates. At last check, we’re looking at around 0.6% decline on the S&P 500, Nasdaq and Dow Jones Industrial Average, roughly in line with what we’ve seen in Europe. I won’t pretend to know all the catalysts, but we heard from a group of US Federal Reserve officials, including San Francisco Fed President Mary Daly, who said a pause in rate hikes is not was “not possible”. To add to that, Goldman Sachs has strengthened its view of peaking US rates at 5.25% from its earlier view of 5% – higher rates generally trim the wings of growth stocks.

CISCO OFFERS A BULLISH OUTLOOK

Shares of Cisco Systems emerge in the pre-market up about 4.5% after the company announced a bullish outlook through the end of the year. The company says sales for the quarter ending January will rise between 4.5 and 6.5 percent, beating Wall Street forecasts. The darker side, in terms of the job outlook – Cisco says it will undertake a restructuring plan that will affect 5% of its workforce, joining Meta, Amazon and Salesforce in cutting jobs.

XI TACKLES TRUDEAU ON THE LEFT OF THE G-20

Chinese President Xi Jinping confronted Prime Minister Justin Trudeau on the sidelines of the G-20 summit in Bali, accusing Trudeau of leaking details of a private meeting. Now, we can only read this so far – it’s not that unusual for Xi to be blunt in his criticism – but it comes in the wake of soured relations between Canada and China, most notably the Huawei and the holding of the two. Michaels.

OTHER NOTABLE STORIES

  • Brookfield Asset Management is opening an office in Saudi Arabia, tapping into the country’s significant wealth while expanding access to foreign companies.
  • Kohl’s shares are down about 4% in pre-market after the company withdrew its full-year outlook, underscoring volatility in the retail market.
  • Flipside – Macy’s shares rallied around eight percent after the company beat quarterly profit expectations and raised its outlook.

NEWS RELEASES / NOTABLE EVENTS

  • Notable Data: Initial US Unemployment Insurance Claims, US Housing Starts and Building Permits, Phila. Fed Index
  • Notable Earners: Kohl’s, Applied Materials, The Gap