Driving financial news: Next week’s Federal Reserve Open Market Committee (FOMC) meeting, Personal Consumption Expenditures (PCE) data, as well as Q2 earnings and the European Central Bank (ECB) hiking for the first time in ten years.
(Some) tech earnings beating expectations. Tesla’s earnings per share were $2.27 (adjusted) vs $1.81 expected, according to Refinitiv. Tesla has been going through “supply chain hell“ but has “the potential for a record-breaking second half of the year,” Musk said on a call with analysts Wednesday. Netflix lost close to a million subscribers but its equity rallied, as its earnings also beat expectations – $3.20 vs $2.94 per share, according to Refinitiv.
ECB raises rates, temporarily propping up the euro, while the EU announces energy rationing. On Thursday, the European Central Bank raised its deposit rate by 50 basis points, the first hike in ten years, in an attempt to quell rising inflation stemming from the recent spike in energy prices. The ECB also laid out its Transmission Protection Instrument (TPI) plan, a mechanism engineered to preserve monetary policy transmission amidst a projected increase in the spread between core and peripheral rates in the eurozone. In the meantime, the European Commission approved a plan to cut energy consumption by 15% to face a potential cut in Russian gas flows.
Waiting for PCE. Key data will be released next week. On Monday, June new home sales are likely to show a slowdown in the housing market. On Tuesday, June inventories and durable and capital goods orders are expected to give some additional clarity about business confidence. Wednesday will be “Fed day,” with the FOMC now widely projected to raise rates by 75 basis points. On Thursday, the first Q2 GDP preliminary number is expected to give additional clarity about the potential slowdown. The GDPNow nowcast currently points to a 1.6% contraction. Finally, on Friday, the heavily anticipated June PCE data will likely show whether inflation is actually peaking – or has peaked.
Yieldstreet’s launches
Yieldstreet continues to offer private market investment opportunities as investor sentiment appears to be marginally improving. This past week, we launched Charlotte Multi-Family Equity I, a garden-style multi-family property that fits into a value-add investment strategy, as well as Short Term Notes Limited Edition IV, a short-term liquidity product that is expected to earn target annualized interest payments of 6%.
Learn more about the ways Yieldstreet can help diversify and grow your portfolio
Published:
07/22/2022
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