🗳🐦 Twitter to Hold a Vote on Elon's Offer
Hey everyone,
We would like to introduce our new take on the Sunday letter: the Sunday Primer. Our objective is to offer you a forward look into what’s to come this week so you can have a heads-up before it makes major headlines. We also wanted to include some of our favorite memes at the end to get your week started right!
Hope you enjoy!
- Humphrey, Rickie & Tim
Market Report
Applications for U.S. unemployment insurance fell for a fourth straight week to the lowest since May, which suggests that demand for workers continues to remain incredibly healthy despite an uncertain economic outlook. In addition, we saw the 30-year mortgage rate shoot back up to 2008 levels (5.89%).
The European Central Bank decided to raise interest rates by 75 basis points, its second hike this year. They signaled that there would be more rises over the coming months even as an energy crisis puts Europe on recession watch.
All eyes will be on the inflation data for the month of August. The expectation is that inflation stays flat to negative. Any gains in inflation could lead to some market volatility.
Forecast Ahead
Twitter to hold a shareholder vote on Elon Musk’s offer (Tuesday, Sept. 13th)
On Sept. 13th, Twitter shareholders will be asked to consider and vote on Musk’s $54.20-a-share offer at a special meeting. At the meeting, shareholders will also be asked to vote on a proposal to approve compensation to certain executive officers in connection with the buyout deal.
August Inflation Data (Wednesday, Sept. 14th)
On Wednesday, the Bureau of Labor Statistics will release inflation data for the month of August. Inflation in July reportedly stayed flat at 0.0% month-over-month, and Wall Street expects much of the same for August (-0.1% estimate).
Not only does inflation affect the day-to-day spending habits of everyone, but it also affects how the Federal Reserve will approach monetary policy. The Fed is set to raise rates on the 21st and this inflation print will be a crucial data point for their decision-making.
“Triple Witching” Day (Friday, Sept. 16th)
Four times a year, contracts for stock options, stock index options, and stock index futures all expire on the same day, resulting in much higher volumes and volatility.
With both the inflation data release and “triple witch” next week, expect a volatile week to come.
What We Read Last Week
White House says crypto mining could hinder ability to battle climate change
Jeep unveils it’s first three EVs coming to market, starting in 2023