3/ Big Bank CEOs Face Capitol Hill Grilling |
4/ Hertz to Buy 175,000 EVs from GM |
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Has the recent selloff got you rattled? Are you dreading higher interest rates? Are you buying the dips? Please fill out our short sentiment survey so we can see how the smartest readers on the planet are handling the uncertainty. Your answers are anonymous, and we’ll share the results with you soon. Thanks so much! |
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1/ FROM THE EDITOR'S DESK |
U.S. stock futures are rising slightly ahead of the Federal Reserve’s decision on interest rates, with the central bank widely expected to hike rates by 75 basis points to curb inflation. Fed Chair Jerome Powell will hold a news conference on the decision at 2:30 p.m. ET, along with commentary and fresh economic projections from Fed policymakers.
Yesterday, stocks closed lower ahead of the anticipated rate hike. Ford (F) shares slumped over 12% after it warned of a bigger-than-expected $1 billion hit from inflation causing parts shortages. Shares of rival GM (GM) also fell more than 5%. The Dow, S&P 500, and Nasdaq dropped about 1%, with every sector in the S&P 500 closing in the red.
In the bond market, the yield on the two-year Treasury note rose to a nearly 15-year high ahead of the Fed decision, now at 3.99%. The last time its yield broke above 4% was in 2007. The yield on the 10-year note is 3.54%.
Oil prices surged more than 2% amid concerns of tighter oil and gas supplies. Light sweet crude is now at $86 per barrel.
Prices of major cryptocurrencies are slightly lower. The price of Bitcoin is just above $19,170, while the price of Ether hovers near $1,350.
Later this morning, the National Association of Realtors will report on existing home sales for August. Economists expect an annual rate of 4.7 million homes sold, about 100,000 fewer than in July. Existing home sales have declined for six consecutive months, as rising mortgage rates and declining affordability have weighed on housing demand.
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Big Bank CEOs Face Capitol Hill Grilling
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CEOs of some of the biggest banks in the country are expected to appear before the House Financial Services Committee today and the Senate Banking Committee tomorrow. The title of the hearings is “Holding Megabanks Accountable.”
JPMorgan’s Jamie Dimon, Bank of America’s Brian Moynihan, Citi’s Jane Fraser, and Wells Fargo’s Charles Scharf will all be in attendance, along with CEOs of big regional banks including USBancorp, PNC Financial, and Truist Financial.
Lawmakers are expected to question the CEOs about how consumer finances are holding up, and how the lenders plan to assist American consumers as borrowing costs rise.
In prepared remarks, JPMorgan’s Dimon will warn Congress of economic “storm clouds,” while Wells Fargo CEO Scharf will urge patience as the bank addresses longstanding regulatory issues. In his testimony, Scharf said the bank is still at risk for setbacks as it prioritizes addressing a number of regulatory concerns.
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General Motors (GM) continues its push into electric vehicles, with Hertz (HTZ) announcing plans to order up to 175,000 EVs from GM over the next five years.
Hertz says it plans to order Chevy, Buick, GMC, and Cadillac vehicles, as well as commercial vehicles. Chevy Bolt deliveries are expected to begin in the first quarter of 2023. The move reflects growing demand from its customers for green vehicles.
Hertz ordered about 100,000 vehicles from Tesla back in October. That sent Tesla (TSLA) shares up more than 12% on the news. Last spring, Hertz also agreed to purchase 65,000 electric cars from Swedish automaker Polestar.
GM hopes to sell 1 million EVs annually in North America by 2025. If the Hertz deal is spread out evenly over the next few years, GM will have met about 4% of its annual goal. Hertz says it plans for one-quarter of its fleet to be electric by the end of 2024.
Shares of GM are slightly higher in pre-market trading, though they've lost about one-third of their value so far this year.
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From automating transactions to finding the right savings vehicle, here are the key things to know about managing your savings. Learn More |
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5/ Wednesday, September 21, 2022 |
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The Express steams through the Future Proof Wealth Festival to bring you conversations from some of the country's top financial advisors and investment strategists on how we should navigate the tumult in the capital markets. Joe McLean, Lindsey Bell, Blair Duquesnay and Michael Antonelli climb aboard with their best advice for investors of all ages as we face rising interest rates and even more uncertainty. Plus, it's a huge week for monetary policy makers as the Federal Reserve and other central banks meet on interest rates. What's likely to happen, and how we should prepare for it now.
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