Stansberry Research

Friday Morning Market Headlines

C. Scott GarlissStansberry NewsWire

Five Stories Moving the Market:

Fed’s Brainard sees inflation decline as notable improvement – WSJ. A top Federal Reserve official said the recent decline in inflation was an important development that could raise questions over the extent to which the Fed needs to cool off the labor market to bring down inflation.

McConnell assures against financial crisis with debt-limit vow – Bloomberg. Senate Republican leader Mitch McConnell (R-KY) dismissed concerns about the U.S. government defaulting on its obligations later this year when the Treasury Department risks running out of money.

Boston Fed’s Collins says a measured approach to rate rises makes sense – WSJ. Federal Reserve Bank of Boston President Susan Collins said the U.S. central bank must continue raising interest rates to battle inflation, but that a more measured pace of rate increases makes sense as the effects of previous Fed rate moves take hold.

The U.S. hits debt ceiling amid a standoff between Republicans and Democrats – Reuters. Treasury Secretary Janet Yellen informed congressional leaders that her department had begun using extraordinary cash management measures that could stave off a potential default until June 5.

U.S. mortgage rates drop to 6.15%, lowest level since September – Bloomberg. The average for a 30-year, fixed loan fell to 6.15% from 6.33% last week, reaching a four-month low, Freddie Mac said in a statement Thursday.

Market Headlines:

Global Macro:

Japan’s inflation hit 4% for the first time in more than four decades, accelerating to double the Bank of Japan’s target pace and underscoring the strength of price growth – Bloomberg.

Former Russian President Dmitry Medvedev warned NATO on Thursday that a defeat of Russia in Ukraine could trigger a nuclear war, while the head of the Russian Orthodox Church said the world would end if the West tried to destroy Russia - Reuters.

British consumer sentiment fell for the first time in three months in January, returning near to historic lows as concerns about the economy and the soaring cost of living tightened the squeeze on household finances, research showed on Friday – Reuters.

China will help support global commodity markets this year as advanced economies struggle, the head of Anglo-Australian mining giant BHP said Thursday as the company reported record iron ore production – Nikkei Asia.

New Zealand's manufacturing sector contracted for the third consecutive month in December, while the negative mindset of manufacturers has picked up pace – Reuters.

The U.S. signaled growing impatience with Turkey over its resistance to ratifying NATO’s expansion to Sweden and Finland – Bloomberg.

The Treasury Department began taking special measures to keep paying the government’s bills on Thursday as the U.S. bumped up against its borrowing limit, kicking off a potentially lengthy and difficult debate in Congress over raising the debt ceiling – WSJ.

Federal Reserve Bank of New York President John Williams said officials have not completed their aggressive tightening campaign to reduce stubborn price pressures – Bloomberg.

Jobless claims declined last week to the lowest level since September, suggesting the labor market remained tight at the start of the year - WSJ.

Company Specific:

KKR joined rivals including Blackstone in limiting withdrawals from a real estate investment trust after investors sought to pull out more money - Bloomberg.

After lifting prices to new heights, Procter & Gamble reported lower quarterly profit and declining sales volumes as the rising costs of Tide detergent and other staples prompted consumers to cut back on purchases at the end of 2022 - WSJ.

Nintendo plans to increase production of its six-year-old Switch console in the coming fiscal year after shipping roughly 21 million Switch consoles in the year ending March, according to people familiar with the matter – Bloomberg.

Nordstrom slashed its annual profit forecast after heavy discounting failed to sway people shopping at its off-price Rack stores, leading to weak holiday sales and pushing its shares down 6% in after-hours trading on Thursday – Reuters.

Netflix co-founder Reed Hastings is stepping aside as chief executive officer of the company he’s led for more than two decades, leaving the position to his two longtime associates, Ted Sarandos and Greg Peters – Bloomberg.

FTX’s new chief executive, John J. Ray III, said he is looking into the possibility of reviving the bankrupt crypto exchange as he works to return money to the failed company’s customers and creditors - WSJ.