Today is Thursday, June 16, 2022.
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Elon Musk's Twitter Meeting
Shares of Twitter (NYSE: TWTR) jumped 5.26% in after-hours trading on Wednesday after a report said that Elon Musk was going to confirm his desire to own Twitter in a meeting on Thursday.
Details: The Wall Street Journal reported Wednesday evening about the meeting on Thursday with Twitter employees. Twitter has not confirmed the report.
All-Hands: Thursday’s all-hands virtual meeting will reportedly include pre-submitted employee questions. Musk will clarify recent comments about remote work and his plans for Twitter. The meeting is expected to be an hour.
Background: Musk first expressed his desire to own Twitter weeks ago, but after not getting requested information about spam bots, Musk hinted that he may walk away from the deal.
Numbers: Twitter’s stock is down 11% this year, but up over 1% in the past month.
Final Thoughts: Investors are hoping that Twitter’s stock pops if a deal for Musk gets done. Meanwhile, social media stocks have not performed well in 2022, Twitter included.
Notable Earnings Today: Kroger (NYSE: KR), Adobe (Nasdaq: ADBE), Commercial Metals (NYSE: CMC), Beyond Air (Nasdaq: XAIR), Jabil (NYSE: JBL), Profrac Holding (Nasdaq: PFHC).
Notable IPOs Today: Aimfinity Investment Corp. I Subunit (Nasdaq: AIMBU), Alvotech Ordinary Shares (Nasdaq; ALVO), Global Blockchain Acquisition Corp. Common Stock (Nasdaq: GBBK), Feutune Light Acquisition Corporation Unit (Nasdaq: FLFVU).
Notable Equity Crowdfunding Campaigns Ending Today: N/A.
Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Building Permits (8:30 a.m. ET), Housing Starts (8:30 a.m. ET), Philadelphia Fed Manufacturing Index (8:30 a.m. ET).
Fed Interest Rate Hike Boosts Crypto
Cryptocurrency prices showed signs of life for the first time in days shortly after the U.S. Federal Reserve announced higher interest rates on Wednesday afternoon.
Details: The Fed will raise interest rates by 0.75% and increase its short-term federal funds rate to a range of 1.50% to 1.75%. Overall, it is the largest single increase from the Fed since 1994. The rate hike was done to combat rising inflation.
Prices: On Wednesday, Ethereum ticked up 0.5%, Bitcoin grew 1%, Cardano went up 7%, Solana increased 15%, and Dogecoin went up 9%.
Background: Inflation has decimated many asset prices, including stocks and crypto. Investors don’t trust crypto in today’s environment, with some favoring safer investments such as bonds. Some view crypto as too risky, while others are still bullish.
Final Thoughts: Most stocks also went up after the Fed’s rate hike on Wednesday.
Worst 2022 Housing Stocks, So Far
Most housing stocks are down this year. Here’s a list of the biggest losers of 2022 so far.
Across the Map Bad: Hovnanian Enterprises (NYSE: HOV), which builds and sells houses across most of the country, is down 62% in 2022.
Technically Bad: Zillow Group (Nasdaq: ZG), the technology-based real estate company, is down 49% this year.
Final Thoughts: These stocks have suffered in 2022. Can they go up?
Trends to Watch
Smackdown: WWE Board Probes Secret $3 Million Hush Pact by CEO Vince McMahon (The Wall Street Journal)
Spotty Reception: Spotify will reduce hiring by 25 percent (The Verge)
A Tale of Two Types of Crypto Companies: What Slowdown? Binance, Kraken are Still Hiring While Others Slash Employee Headcount (Crowdfund Insider)
You Can’t Win Them Oil: Biden tells oil companies in letter ‘well above normal’ refinery profit margins are ‘not acceptable’ (CNBC)
Not a Big Deal: Here's why crypto experts are shrugging off the bitcoin crash (CNN)
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