Hey Gotraders,
The Federal Reserve dropped interest rates to zero in March 2020. Yesterday, Chairman of the Federal Reserve Jerome Powell announced that they would be raising interest rates by a quarter-percentage point – for the first time in more than three years. They also forecast 6 more rate hikes this year. CNN published a great article to explain what this means.
Alright, moving on to our headline article…
Up, up, and away! Shares of U.S.-listed Chinese firms are soaring.
Earlier this week, JP Morgan (JPM) downgraded 28 Chinese stocks that were listed in the U.S. and Hong Kong over geopolitical risks. And within a couple of days, some of these stocks have now rallied, and are up nearly 40% even! Mind-blowing!
Let’s take a look at a few of them.
Alibaba (BABA): $104.98 (+36.76%)
XPeng (XPEV): $27.53 (+28.71%)
JD.com (JD): $64.08 (+39.36%)
Li Auto (LI): $26.05 (+31.90%)
Nio (NIO): $18.75 (25.59%)
Baidu (BIDU): $150.87 (39.20%)
Tencent Music (TME): $4.68 (28.79%)
EHang (EH): $10.85 (26.16%)
Futu (FUTU): $36.63 (39.54%)
Weibo (WB): $25.52 (+20.66%)
Investors were getting nervous about the differences between China and the West in the Russia-Ukraine war. China's Vice Premier Liu He then announced that Beijing wanted to keep the markets stable, and that they will be rolling out support for the economy.
Also, the constant threat of potential delisting by the U.S. has weighed on U.S.-listed Chiense stocks for a while now. China’s securities regulator has said that they will continue to work with U.S. regulators to reach an agreement ASAP.
Both of these developments were positive catalysts for Chinese stocks.
Why is this important? It looks like the appetite for China ADRs has picked up. Net purchases over the last 10 trading sessions has exceeded $500 billion - the highest level in over six months!
"Although it is still a volatile and somewhat opaque market, I think this is the right moment to look at Chinese stocks because valuations are good and macro data are recovering" - Giuseppe Sersale, Fund Manager at Anthilia in Milan.
📈 Each Berkshire Hathaway share is worth over half a million dollars 🤯
Half a million whopping bucks! That’s how much EACH class A share of Warren Buffett’s Berkshire Hathaway costs as of yesterday’s closing price. To be more specific, each Class A share closed at a whopping $504,036 yesterday.
Berkshire Hathaway is a company that has consistently outperformed the S&P 500 year after year. I guess investing in the world’s most famous investor’s company comes at a premium!
While we don’t have Berkshire’s Class A shares on Gotrade, we do have Berkshire’s Class B shares (BRK.B) which are much more affordable!
Class B shares closed at $336.11, up 11.74% year-to-date.
📈 Kohl's shares close over 17% higher ⏫
Shares of Kohl’s (KSS) are soaring. How high are they soaring you ask? So, so high! Shares are up over 17% in one day. Mind-blowing!
Shares started to lift off when news of Hudson's Bay Co. making a bid for Kohl's made the headlines.
Kohl's is the largest chain of U.S. department stores, while Hudson's Bay Co. is a Canadian department store chain, and the owner of Saks Fifth Avenue.
Kohl’s mentioned that they will assess any potential bids against its own plans for the company, and will "choose the path that it believes maximizes shareholder value."
Shares of Kohl’s closed at $63.11, up 17.26% for the day.
Top movers & shakers 🎢
What else is making headline news 📰
Netflix (NFLX) tests a new feature that will raise prices for account sharing.
Meta (FB) takes down deepfake of Ukraine’s President Zelensky surrendering.
Tech CEOs to face faster criminal liability under UK online safety law.
Apple (AAPL) supplier Foxconn says it has resumed some production in Shenzhen after Covid outbreak.
Netflix (NFLX) makes Volodymyr Zelenskyy’s show ‘Servant of the People’ available to U.S. streamers.
American Express (AXP) CEO says the shift to remote work made a new segment of business travelers.
Federal Reserve hikes interest rates for the first time since 2018.
Starbucks (SBUX) CEO Kevin Johnson announces retirement, Howard Schultz to return as interim CEO.
Disney (DIS) employees are staging walkouts over company's response to the 'Don't Say Gay' bill.
Tesla (TSLA) says it is trying to keep production going at Shanghai factory.
Lyft (LYFT) to charge 55 cents as fuel surcharge due to rising gas prices.
Biogen (BIIB) publishes Alzheimer's drug data in lesser-known journal.
Popular companies releasing earnings this week 💰
Thursday: Accenture (ACN), FedEx (FDX), Dollar General (DG), AEGON (AEG), GameStop (GME), Warby Parker (WRBY), Expensify (EXFY)
A company’s market value may fluctuate considerably around the time that the earnings report is expected to be published. Stock prices may rise or fall according to analysts' speculative estimates, released prior to the actual earnings announcement.
The earnings season can be a time of great opportunity since better-than-expected figures could cause a company’s stock to greatly increase in value. Worse-than-expected results could have the opposite effect.
That’s all from us for now.
Signing out,
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The legal stuff 🤓
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