Knife River Corporation CFO Nathan Ring, rings the bell on the floor of the New York Stock on June 01, 2023 in New York City.
Spencer Platt | Getty Images News | Getty Images
This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
- Advanced economies will grow by a mere 0.7% in 2023, down from 2.6% last year, estimated the World Bank. On the bright side, the institution expects emerging and developing economies to expand 4%, a 0.6% increase from its January projection.
- Sequoia Capital, one of the world’s largest venture firms, announced it would split into three separate and independent units because of an “increasingly complex” dynamic. One will focus on the U.S. and Europe; another on China; and the last on Southeast Asia and India.
- PRO Jeffrey Gundlach, CEO of DoubleLine Capital, said the U.S. looks like it’s bound for a recession. In such circumstances, the traditional 60-40 portfolio doesn’t work — this is the portfolio mix Gundlach prefers instead.
The bottom line
Despite stumbles in some big-name stocks yesterday, markets managed to climb as the uncertainty of previous weeks dissipated.
Apple shares dipped 0.2% as investors digested information on the technology giant’s new mixed-reality headset. While that’s a tiny loss in the grand scheme of things, it’s the first time since 2016 the technology giant’s shares fell a day after its Worldwide Developers Conference, reflecting the uncertainty over the $3,499 Vision Pro’s appeal.
Still, analysts from firms like Goldman Sachs and JPMorgan remain optimistic about Apple. “While Vision Pro might not drive significant volumes given its premium price point, it could be the potential catalyst for the AR/VR market,” JPMorgan analyst Samik Chatterjee said.
Elsewhere, Boeing shares edged down 0.7% after the company said it would delay deliveries of its 787 Dreamliner planes because of a new defect, while Coinbase plummeted double digits.
Nevertheless, investors weren’t fazed. The CBOE Volatility Index, typically seen as Wall Street’s fear gauge, dropped to 13.96 yesterday, the first time since February 2020 — right before the pandemic hit everyone — it closed below 14.
Major indexes had a positive day, too. The S&P 500 rose 0.24% for its highest close since August — and BMO Capital Markets thinks the broad-based index could surge further and break the 4,500 barrier. The Nasdaq Composite added 0.36% to hit a high for the year. The Dow Jones Industrial Average was flat.
It should be noted, however, that trading volume yesterday was lower than average. Investors are taking a breather from the frenzied tech rally of last week — not a bad idea, considering the upcoming Fed meeting next week has the potential to upend interest rate expectations all over again.
For all the latest World News Click Here
For the latest news and updates, follow us on Google News.
