Great market expectations for the Tuesday after a long holiday weekend in summer are destined for disappointment. Apart from the hazy, lazy effect, China rate moves that fell short of hopes aren’t helping the mood, as investors wait for Fed Chairman Jerome Powell to appear on Capitol Hill later this week.
One point Wilson makes is that investors are rushing into stocks just as fiscal support, helping to hold up consumer spending, fades. The bank’s rates strategists estimate that has amounted to $1 trillion in aid over the past 12 months — measures including the Inflation Reduction Act and those student-loan repayment moratorium.
The Barclays analysts say their monthly estimate is on the conservative side, given it only takes into account federal student debt, which is 87.2% of total student debt. The least risk is seen for those retailers with a customer base that targets lower income or lower educational levels, or are potentially older shoppers. Those stocks include National Vision EYE , Burlington Stores BURL , Ross Stores ROST Old Navy at Gap GPS and TJX TJX .
Alibaba BABA 1060 has shaken up its leadership, with Daniel Zhang stepping down as chairman and chief executive, but staying on to lead the cloud business, which is expected to be spun off. The stock is down over 2%.Warren Buffett’s Berkshire Hathaway BRK.A BRK.B has again boosted stakes in five Japanese trading companies — Mitsubishi 8058 , Mitsui 8031 , Itochu 8001 , Marubeni 8002 and Sumitomo 8053 — to more than 8.