Market Update Newsletter 3/21/23

Markets rallied yesterday as investors digest the fallout from the SVB disaster. Investors are torn about the interest rates, while many want Jerome Powell to hold off on raising rates, some say he should be cutting rates as we already overshot our goals. Bitcoin (BTC) is sitting at $21k.

We see this scenario all the time, the Fed bases its decisions on data, and all the complaining and scolding from Billionaires and pundits only makes the Fed more steadfast in their policy because they don't want to look like they are beholden to the financial brass of the country. Behind the scenes, the Fed is of course seeing and listening to the markets but it is not the only thing they look at.

Futures are indicating a higher open with all indexes up. A pleasant sign this morning is seeing First Republic Bank (FRB) is up over 20% as the banking armageddon seems to be contained.

Stocks to Watch

Amazon (AMZN) is laying off another 9,000 workers in an attempt to cut more costs. The company clearly overextended during the pandemic and is now trying to optimize.

Tesla (TSLA) is up in early trading after receiving a Baa3 rating from its junk-rated credit.

Nvidia (NVDA) CEO Jensen Huang is delivering a keynote at the GTC developers conference today at 11 PM.

Emmerson Electric (EMR) upgraded to overweight (Buy from Hold).

Happy Investing!

The Punkrock Capitalist