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[192.64.237.46]) by mx.google.com with ESMTPS id w17-20020adfec51000000b002165c2e52bfsi3493952wrn.91.2022.06.23.04.38.59 for (version=TLS1_2 cipher=ECDHE-ECDSA-AES128-GCM-SHA256 bits=128/128); Thu, 23 Jun 2022 04:39:00 -0700 (PDT) Received-SPF: pass (google.com: domain of delivery_20220623073843.28147746.830334@bouncest.seekingalpha.com designates 192.64.237.46 as permitted sender) client-ip=192.64.237.46; Authentication-Results: mx.google.com; dkim=pass header.i=@seekingalpha.com header.s=sailthru header.b=Ao4VkRpu; spf=pass (google.com: domain of delivery_20220623073843.28147746.830334@bouncest.seekingalpha.com designates 192.64.237.46 as permitted sender) smtp.mailfrom=delivery_20220623073843.28147746.830334@bouncest.seekingalpha.com; dmarc=pass (p=QUARANTINE sp=QUARANTINE dis=NONE) header.from=seekingalpha.com DKIM-Signature: v=1; a=rsa-sha256; c=relaxed; s=sailthru; d=seekingalpha.com; h=Date:From:Reply-To:To:Message-ID:Subject:MIME-Version:Content-Type: List-Unsubscribe; i=account@seekingalpha.com; bh=EY783JRvmcYJirbb6fgY3ryCQCF/ka0JQWfu3r0dBbU=; b=Ao4VkRpuC+b2XjP9sv1+faDrjsasqdpGECysLnCwIRXYiaJ/I1w4YCSfMQ4in86Ov5EVNQ4FSy5D 7TN5h2nlt06QZ/w/Ym0e9BnMMJp1BsV01EwmCnXaJvZS8fKtyG8uDSL9VDiTmyLyrxvmWhdYfoBP wxfCdu/XQW8Iw1qYrxY= Received: from njmta-53.sailthru.com (173.228.155.53) by pmta19.sailthru.com id hmh8d82tkt0d for ; Thu, 23 Jun 2022 07:38:43 -0400 (envelope-from ) Received: from nj1-wetmaroon.flt (172.18.20.22) by njmta-53.sailthru.com id hmh8c61qqbs2 for ; Thu, 23 Jun 2022 07:38:43 -0400 (envelope-from ) Date: Thu, 23 Jun 2022 07:38:43 -0400 (EDT) From: Seeking Alpha Reply-To: wsbfeedback@seekingalpha.com To: sterlingwhg@gmail.com Message-ID: <20220623073843.28147746.830334@sailthru.com> Subject: Wall Street Breakfast: Stressed Out MIME-Version: 1.0 Content-Type: multipart/alternative; boundary="----=_Part_79238906_1790755428.1655984323721" Precedence: bulk X-Feedback-ID: 9033:28147746:campaign:sailthru X-TM-ID: 20220623073843.28147746.830334 X-Info: Message sent by sailthru.com customer Seeking Alpha X-Info: We do not permit unsolicited commercial email X-Info: Please report abuse by forwarding complete headers to X-Info: abuse@sailthru.com X-Mailer: sailthru.com X-JMailer: nj1-wetmaroon.flt X-Unsubscribe-Web: https://email-st.seekingalpha.com/oc/60c1e5c4dba83e59149ff347graxu.hsou/fb8f9994 List-Unsubscribe: , X-rpcampaign: stnjl28147746 X-Spam-Status: No, score=2.5 X-Spam-Score: 25 X-Spam-Bar: ++ X-Spam-Flag: NO ------=_Part_79238906_1790755428.1655984323721 Content-Type: text/html; charset=utf-8 Content-Transfer-Encoding: quoted-printable
Stressed out - Later this afternoon, the Federal Reserve will release the r= esults of its 2022 bank stress tests, which were established under Dodd-Fra= nk regulations following the global financial crisis. All 34 U.S. banks wit= h over $100B in assets will be checked against a series of doomsday scenari= os to ensure their balance sheets can withstand a hypothetical downturn. Th= e results - which will particularly focus on stress in commercial real esta= te and corporate debt markets - come amid growing fears of a looming recess= ion, meaning an economic spiral may not be all that hypothetical.Snapshot: = In the first session of a two-day testimony on Capitol Hill, Fed Chair Jero= me Powell emphasized that the central bank plans to keep raising interest r= ates until it sees clear proof that inflation is slowing, even if that mean= s causing a recession. "It's not our intended outcome at all, but it's cert= ainly a possibility," he told the Senate Banking Committee. "We are not try= ing to provoke and do not think we will need to provoke a recession, but we= do think it's absolutely essential" to bring down price pressures. Stocks = edged lower following the testimony, while U.S. equity index futures wavere= d between gains and losses overnight."The events of the last few months aro= und the world have made it more difficult for us to achieve what we want," = Powell continued. "We've never said it was going to be easy or straightforw= ard." The messaging is a notable departure from his stance on March 2, when= Powell stated it is "more likely than not that we can achieve what we call= a soft landing." The Fed has already raised rates three times since then, = and most recently upped the federal-funds benchmark by 75 basis points in t= he largest hike since 1994.More on stress tests: The annual health checks d= ictate the required size of each bank's "capital buffer," which refers to t= he extra cushion of capital that's set aside on top of the regulatory minim= um needed to support daily business. The checks also determine how much len= ders can return to shareholders in the form of share buybacks and dividends= (which could only be announced from June 27). This year's tests might be h= arder because the actual economic baseline is healthier, while spikes in un= employment or a drop in GDP would be felt more acutely. However, all of the= banks are still expected to pass, but could be told to set aside slightly = more capital than last year. (10 comments)
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<= /a> Read in Browser
 
Top News
Stre= ssed out
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Later this afternoon, the Federal Reserve will relea= se the results of its 2022 bank stress tests, which were established under = Dodd-Frank regulations following the global financial crisis. All 34 U.S. b= anks with over $100B in assets will be checked against a series of doomsday= scenarios to ensure their balance sheets can withstand a hypothetical down= turn. The results - which will particularly focus on stress in commercial r= eal estate and corporate debt markets - come amid growing fears of a loomin= g recession, meaning an economic spiral may not be all that hypothetical.
Snapshot: In the first session of a two-day testimony on Cap= itol Hill, Fed Chair Jerome Powell em= phasized that the central bank plans to keep raising interest rates unt= il it sees clear proof that inflation is slowing, even if that means causin= g a recession. "It's not our intended outcome at all, but it's certainly a = possibility," he told the Senate Banking Committee. "We are not trying to p= rovoke and do not think we will need to provoke a recession, but we do thin= k it's absolutely essential" to bring down price pressures. Stocks edged lo= wer following the testimony, while U.S. equity index futures wavered betwee= n gains and losses overnight.

"The events of the last few months aro= und the world have made it more difficult for us to achieve what we want," = Powell continued. "We've never said it was going to be easy or straightforw= ard." The messaging is a notable departure from his stance on March 2, when= Powell stated it is "more likely than not that we can achieve what we call= a soft landing." The Fed has already raised rates three times since then, = and most recently upped the federal-funds benchmark by 75 basis points in t= he largest hike since 1994.

More on stress tests: T= he annual health checks dictate the required size of each bank's "capital b= uffer," which refers to the extra cushion of capital that's set aside on to= p of the regulatory minimum needed to support daily business. The checks al= so determine how much lenders can return to shareholders in the form of sha= re buybacks and dividends (which could only be announced from June 27). Thi= s year's tests might be harder because the actual economic baseline is heal= thier, while spikes in unemployment or a drop in GDP would be felt more acu= tely. However, all of the banks are still expected to pass, but could be to= ld to set aside slightly more capital than last year. (10 comments)

     
Featured
How to succeed= when stocks are static
With a recession looming and inflation stil= l high, concerns about the economy hover over the market. The S&P 500 i= s still in a bearish mood - down 22% year to date.

In a market t= his turbulent, there are opportunities - with some stocks trading at bargai= n levels.

So which stock= s are becoming attractive to buy now?

On Seeking Alph= a, you can evaluate any stock in seconds with our exclusive stock ratings, = and by the valuation, growth, and profitability grades. Over the last 12 ye= ars, our =E2=80=98Strong Buy=E2=80=99 stock picks have deliv= ered a $163K return vs. the market=E2=80=99s $33K.
<= br />Get =E2=80=98Strong Buy=E2=80=99 stocks= now
Energy
Sounding the alarm

A troublesome energy crisis is escalating across the= globe, as a myriad of factors continues to impact flows, output, supply an= d production. The latest warning bell went off this morning as Germany anno= unced it would move to the so-called "alert stage" of its emergency gas pla= n, seeing a high risk of long-term gas supply shortages. The crunch has bee= n exacerbated by sanctions and Russia's Vladimir Putin turning off the taps= , and comes amid a similar situation in the U.S. that saw President Biden r= elease a fou= r-point plan to lower prices at the pump (including a federal gas tax h= oliday).

Quote: "This will affect industrial production and= become a major burden for many consumers. It's an external shock," German = economy minister Robert Habeck declared. "We will defend ourselves against = this, but it will be a rocky road that we as a country now have to walk. Ev= en if you don't really feel it yet, we are in a gas crisis."

Germany= announced the first phase of its emergency gas plan on March 30, when the = Kremlin's demands for payment in rubles prompted Germany to prepare for a p= otential cutoff in supply. Local suppliers were subsequently invited to adv= ise the government as part of a crisis team and Habeck called on consumers = to reduce their consumption. While the second phase doesn't call for state = intervention measures, it could trigger a change in the law that passes alo= ng price increases to industry and households.

Outlook: Over the past week, Moscow has slashed capacity to Germany via Nord St= ream 1 by 60%, leading to outsized moves for gas contracts as the country a= ttempts to refill its storage before wintertime. If Germany ups its gas pla= n to the third and last "emergency" level, the government would assume cont= rol over the entire nation's distribution network. Germany has already reop= ened several coal-fired power stations to shore up supply, which could dent= European support for climate efforts or push Ukraine into an unfavorable s= ettlement with Russia. (3 comments)

     
Tech
Met= averse spending
How will the economy work in the metaverse? Meta (META) CEO Mark Zuckerberg addressed some of those = questions during an interview with Mad Money's Jim Cramer, emphasizing a big role for crea= tors and their digital goods. That compares to previous strategies executed= by Zuckerberg, in which he tried to build out connected services like Face= book, Instagram, Messenger and WhatsApp that were only followed by company-= orchestrated monetization.

Quote: "We hope to basically get to around a billion pe= ople in the metaverse doing hundreds of dollars of commerce, each buying di= gital goods, digital content, different things to express themselves, so wh= ether that=E2=80=99s clothing for their avatar or different digital goods f= or their virtual home or things to decorate their virtual conference room, = utilities to be able to be more productive in virtual and augmented reality= and across the metaverse overall," he said on the call.

Last Frida= y, Meta launched a digital clothing store for the metave= rse, where users can scoop up designer apparel for their virtual avatars. W= hile initial brand partners included Balenciaga, Prada and Thom Browne, the= store also envelops the creator side of the platform, with a mission to be= open marketplace where developers can make and sell outfits. Earlier this = month, Meta (previously called Facebook) even changed its long-held ticker = symbol of "FB" to "META," as it sheds its identity as a pure social media p= rovider.

Timeline: "Quest 2 has been a hit," continued Zuckerberg. "I've been really hap= py with how that's gone. It has exceeded my expectations. But I still think= it=E2=80=99s going to take a while for it to get to the scale of several h= undreds of millions or even billions of people in the metaverse, just becau= se things take some time to get there. So that's the north star. I think we= will get there. But, you know, the other services that we run are at a som= ewhat larger scale already today." (15 = comments)
     
Outlook
Ge= tting involved?

The U.S. continues to be on edge before some upcomin= g Supreme Court rulings, especially following the leak of a draft d= ecision in May to overturn Roe v. Wade. No one really knows the exact date = that a ruling will come down, but today and tomorrow are marked as "opinion= issuance days" on the high court's calendar. The secrecy offers some benef= its to justices by making protests outside the Supreme Court more difficult= to organize, while rulings are less likely to impact the stock market if t= he case is financial in nature.

Snapshot: More than a dozen= opinions will need to be issued before the court departs for its tradition= al summer break, which usually happens by late June or early July. The cour= t also has a history of announcing its most important rulings of the term l= ast, which might center on Roe or other controversial decisions surrounding= religious freedoms, gun rights and asylum-seeking migrants. PR experts are= divided on how businesses should respond to the latest happenings and the = CEOs that listen to them are taking differing approaches as well.

Ma= ny companies have so far been quiet on the draft ruling, like Apple (AAPL), Amazon (AMZN), Citi (C)= , Mastercard (MA), Micros= oft (MSFT), Netflix (NFLX) and Starbucks (SBUX), which have instead chose to offer their U.S.-based employees travel rei= mbursements for out-of-state abortions. The messaging is intended to show s= upport without touching the hot topic, though a handful of firms are urging= them to publicly take a stand. "Given what is at stake, business leaders n= eed to make their voices heard and act to protect the health and well-being= of our employees. That means protecting reproductive rights," Levi Strauss= & Co. (LEVI) decla= red, while similar statements were made at Match Group (MTCH) and Yelp (YELP).

Go deeper: There aren't too many com= panies that have publicly supported the draft opinion and many PR experts c= aution that it is best when Corporate America steers clear of divisive poli= tical issues (at least as much as they can). Most businesses have taken thi= s approach, especially with the "Don't Say Gay" tussle between Disney (DIS) and Florida's legislature remaining f= resh in the minds of corporations nationwide. "There is no upside in speaki= ng out alone on this," added Jeffrey Sonnenfeld, professor and senior assoc= iate dean of the Yale School of Management. "Nobody wants to have 40% of th= e country mad at them." (24 comments)

     
Today's Markets
In Asia, Japan += 1.3%. China +1.6%. India +0.9%.In Europe, at midday, London flat. Paris -0.1%. Frankfurt -0.9%.
Futures at 6:20, Dow +0.1%. S&P +0.3%. Nasdaq +0.7%. Crude -1% to $105.16. Gold -0.4% to $1831.50. Bitcoin +1.6% to $20,747.
Ten-year Treasury Yield= -3 bps to 3.12%
Today's Economic Calendar
8:30 = Initial Jobless Claims
8:30 Current Account
9:45 PMI Com= posite Flash
10:00 Powell testifies before = House Financial Services Committee
10:30 EI= A Natural Gas Inventory
11:00 EIA= Petroleum Inventories
11:00 Kansas City Fe= d Mfg Survey
4:30 PM Fed Balance Sheet<= br>
Companies reporting earnings toda= y =C2=BB
What else is happening...
Apple's (AAPL) Cook says 'stay tune= d,' teasing oft-rumored AR headset= .

Altria (MO) slumps w= ith FDA expected to remove Juul e-cigs from U.S. market.

Crypto bailouts: BlockFi secures cred= it line from Sam-Bankman Fried's F= TX.

Nikola (NKLA= ) founder is charged with another crime ahead of trial= .

JPMorgan Chase (JPM) to lay off hundreds as mortgage rates clim= b.

Tesla (TSLA) halts = production in Shanghai to upgrade Model Y line capacity= .

Factories in Berlin and Austin losing billions of dollars - Elon Musk. <= br>
FDA reports another death linked to Abbott's (ABT) baby for= mula.

Buffett (BRK.B) adds to Occidental (OXY) stake, buying another 9.= 6M shares.

Kohl's (K= SS) plunges on report that bidder may lower offer to $50/share.
Seeking Alpha=E2=80=99s Wall Street Breakfast Podcast
Seeking Alpha's Wall Street Breakfast podcast brings you all the news you n= eed to know for your market day. Released by 8:00 AM ET each morning, it is= a quick listen that you can put on as you get ready to start your working = day.
 
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