Summary Of the Markets Today:
- The Dow closed down 256 points or 0.77%,
- Nasdaq closed down 0.61%,
- S&P 500 closed down 0.73%,
- Gold $1,962 down $12.50,
- WTI crude oil settled at $74 up $0.95,
- 10-year U.S. Treasury 3.738% up 0.04 points,
- USD Index $103.88 up $0.40,
- Bitcoin $26,267 down $915,
*Stock data, cryptocurrency, and commodity prices at the market closing.
Click here to read our Economic Forecast for May 2023
Today’s Economic Releases Compiled by Steven Hansen, Publisher:
The Federal Reserve’s FOMC meeting minutes:
Economic activity expanded at a modest pace in the first quarter. Job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated.
The U.S. banking system is sound and resilient. Tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation. The extent of these effects remains uncertain.
The Committee seeks to achieve maximum employment and inflation at the rThe Committee remains highly attentive to inflation risks.ate of 2 percent over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 5 to 5-1/4 percent. The Committee will closely monitor incoming information and assess the implications for monetary policy. In determining the extent to which additional policy firming may be appropriate to return inflation to 2 percent over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans. The Committee is strongly committed to returning inflation to its 2 percent objective.
In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals. The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.
Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Lisa D. Cook; Austan D. Goolsbee; Patrick Harker; Philip N. Jefferson; Neel Kashkari; Lorie K. Logan; and Christopher J. Waller.
Quite a shock to the pundits who thought the FOMC would not raise rates. But there was a caveat that the Fed would stop raising rates if “risks emerge that could impede the attainment of the Committee’s goals” – and I assume this means they will stop if banks start going belly up or a recession hits or ????
Here is a summary of headlines we are reading today:
- Clean Energy Megaprojects Face Iron Law
- Poland Steps Up Gold Buying
- UBS Predicts Lower Gasoline Prices In The U.S. This Summer
- Oil Moves Higher As EIA Reports Huge Crude Draw
- U.S. Natural Gas Prices Climb Nearly 3% On Robust Demand
- Goldman Sachs Predicts An Oil Price Rally
- Fed officials less confident on the need for more rate hikes, minutes show
- Debt ceiling talks hit a snag over spending levels with eight days until default deadline
- Dow drops for a fourth straight day on U.S. default worries as debt ceiling talks stumble: Live updates
- Bitcoin sinks to $26,000, and OFAC sanctions crypto wallets tied to North Korea: CNBC Crypto World
- The Fed: ‘Several’ Fed officials said more rate hikes may not be needed and other key takeaways from May minutes
Click on the “Read More” below to access these, other headlines, and the associated news summaries moving the markets today.
The Market in Perspective
| Here are the headlines moving the markets. | |
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The Problem With Converting CO2 Back Into FuelHelmholtz-Zentrum Berlin für Materialien und Energie researchers are working through the clogging problem in CO2 electrolysis. The greenhouse gas carbon dioxide can be converted into useful hydrocarbons by electrolysis. The design of the electrolysis cell is crucial in this process. The so-called zero-gap cell is particularly suitable for industrial processes. But there are still problems: The cathodes clog up quickly. The team’s research paper has been published in Nature Communications. The combustion of oil, coal or natural gas produces… Read more at: https://oilprice.com/Energy/Energy-General/The-Problem-With-Converting-CO2-Back-Into-Fuel.html |
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Clean Energy Megaprojects Face Iron LawDevelopers looking to build thousands of wind turbines off the Mid-Atlantic and New England coast are coming up against a force even more relentless than the Atlantic winds: the Iron Law of Megaprojects, offering a warning of the trouble ahead for green-energy projects. The Iron Law, coined by Oxford Professor Bent Flyvbjerg, says that “megaprojects” — which cost billions of dollars, take years to complete, and are socially transformative — reliably come in over budget, over time, over and over. From Boston’s… Read more at: https://oilprice.com/Alternative-Energy/Renewable-Energy/Clean-Energy-Megaprojects-Face-Iron-Law.html |
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UK Expected To Win Battle With Spain For Jaguar-LandRover EV GigafactoryThe UK is set to win a battle with Spain for the production of a multi-billion pound Jaguar Land Rover (JLR) electric vehicle battery plant, which could create up to 9,000 jobs. The reports, revealed by the BBC today, say that although a deal has yet to be signed, sources have said that the engagement has moved from negotiations to drafting. The flagship gigafactory would produce electric car batteries for Jaguar Land Rover (JLR) and has been touted as critical for the UK in staying competitive in the EV race. Tata – JLR’s parent… Read more at: https://oilprice.com/Latest-Energy-News/World-News/UK-Expected-To-Win-Battle-With-Spain-For-Jaguar-LandRover-EV-Gigafactory.html |
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Poland Steps Up Gold BuyingPoland is buying gold again. The National Bank of Poland added nearly 15 tons of gold to its reserves in April, according to data published by the bank last week. It was the largest increase in the country’s reserves since June 2019 when the bank boosted reserves by almost 100 tons. The purchase increased the value of Poland’s gold reserves from $14.55 billion to $15.52 billion. Poland’s official gold holdings rank as the 22nd largest in the world. Gold makes up about 8.5% of the Bank of Poland’s total reserves. In the fall… Read more at: https://oilprice.com/Metals/Gold/Poland-Steps-Up-Gold-Buying.html |
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Petrobras To Appeal Amazon Oil Rejection In Lula Litmus TestBrazil’s state-run oil giant Petrobras is preparing to file a request to appeal a decision to reject the environmental license for exploratory drilling in the deep waters of the Amapa at the mouth of the Amazon. Claiming that it has already met the project’s technical needs, Petrobras said it would comply with additional requirements from the country’s Ibama environmental agency to gain approval for the drilling of an exploratory well in bloc FZA-M-059. Last week, Ibama ruled to block the drilling in a major blow to the government… Read more at: https://oilprice.com/Energy/Crude-Oil/Petrobras-To-Appeal-Amazon-Oil-Rejection-In-Lula-Litmus-Test.html |
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Commission Recommends EU To Stop Energy Bills Support By Year-EndEuropean Union member states should end financial support for energy bills by the end of 2023 in order to keep budget and fiscal targets within the recommended limits, the European Commission said on Wednesday. Since the energy crisis escalated last year after the Russian invasion of Ukraine and the soaring commodity and power prices, many EU countries have adopted various temporary relief measures to support households and businesses with their surging energy bills. But as prices, especially natural gas benchmark prices, have recently… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Commission-Recommends-EU-To-Stop-Energy-Bills-Support-By-Year-End.html |
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Russia Says Warship Guarding Pipelines Attacked By UkraineA Russian warship guarding pipelines in the Black Sea has been attacked by three Ukrainian speedboats, Russia’s Defence Ministry said on Wednesday. This, after Russia is still reeling from the attack last September that damaged Nord Stream 1 and 2 pipelines, which remain out of service to this day. Wednesday’s attack on the Russian warship Ivan Hurs took place as it was approaching the Bosphorus strait, Russia said. At the time, the Ivan Hurs was in that location guarding the TurkStream and Blue Stream natural gas pipelines that carry… Read more at: https://oilprice.com/Geopolitics/Europe/Russia-Says-Warship-Guarding-Pipelines-Attacked-By-Ukraine.html |
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UBS Predicts Lower Gasoline Prices In The U.S. This SummerUBS is forecasting stronger demand for gasoline year-on-year in the United States this summer, coupled with lower gas prices compared to the same period. The bank noted that consumer “resiliency” and a rise in travel for the coming Memorial Day weekend would boost demand but prices would be below the $4.34 per gallon average price from Memorial Day in 2022. Prices at the pump in the U.S. saw a national average of $3.561 on Wednesday, according to the AAA, up slightly from $3.532 a week ago, but down some 20% from the year-ago… Read more at: https://oilprice.com/Latest-Energy-News/World-News/UBS-Predicts-Lower-Gasoline-Prices-In-The-US-This-Summer.html |
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Oil Moves Higher As EIA Reports Huge Crude DrawCrude oil prices jumped higher today after the U.S. Energy Information Administration estimated inventories in the country had shed 12.5 million barrels in the week to May 19. A day earlier, the American Petroleum Institute had estimated that crude oil inventories in the U.S. had gone up/down by a sizable 6.7 million barrels, which surprised traders and prompted increased oil buying that boosted prices. A week earlier, the EIA had estimated a crude oil inventory build of 5 million barrels, which, however, failed to… Read more at: https://oilprice.com/Energy/Crude-Oil/Oil-Moves-Higher-As-EIA-Reports-Huge-Crude-Draw.html |
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Australia And India To Boost Clean Energy CooperationAustralia and India on Wednesday pledged to work closer to advance renewable energy, increase cooperation in the critical minerals sector, and study green hydrogen development during a visit of Indian Prime Minister Narendra Modi to Australia. “Renewable energy was once again a focus and an important topic in our discussions,” Australian Prime Minister Anthony Albanese said. Australia and India also signed an agreement to create an Australia-India Green Hydrogen Taskforce, which will comprise Australian and Indian experts in renewable… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Australia-And-India-To-Boost-Clean-Energy-Cooperation.html |
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U.S. Natural Gas Prices Climb Nearly 3% On Robust DemandCooler temperatures this week and a dip in available wind power this month are boosting the demand outlook for June for U.S. natural gas, leading to nearly 3% price gains on Wednesday. At 9:45 a.m. EST on Wednesday, U.S. natural gas futures were trading up 2.93% at $2,389 per million British thermal units (Btu). While the weather is a big driver of prices on Wednesday, natural gas is also gaining on a downturn in renewable energy from wind farms, which has increased usage of natural gas over the past few weeks. Counterbalancing a further… Read more at: https://oilprice.com/Energy/Energy-General/US-Natural-Gas-Prices-Climb-Nearly-3-On-Robust-Demand.html |
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South Africa Considers Countering Its Energy Crisis With CoalSouth Africa, which is going through an energy crisis, is weighing the possibility of extending the operational lives of two of its largest coal-fueled power plants to boost energy security, sources with knowledge of the plans told Bloomberg. The plants Kendal and Lethabo, which account for around a fifth of the power capacity of state-owned utility Eskom, could see their lives extended, according to Bloomberg’s sources. However, extensions of the lives of coal power plants could be a challenge to both the financially troubled Eskom… Read more at: https://oilprice.com/Latest-Energy-News/World-News/South-Africa-Considers-Countering-Its-Energy-Crisis-With-Coal.html |
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European Natural Gas Prices Drop To The Lowest Level Since 2021Benchmark natural gas prices in Europe continued to fall on Wednesday, extending several weeks of losses amid weak demand in the spring and higher-than-normal inventories after the end of the winter. The front-month futures at the TTF hub, the benchmark for Europe’s gas trading, fell by 1.5% to $30.84 (28.68 euros) per megawatt-hour (MWh) as of 10.33 a.m. GMT on Wednesday. That’s the lowest price since November 2021, when the energy crisis in Europe started ahead of the 2021/2022 winter season, with the crisis reaching… Read more at: https://oilprice.com/Energy/Energy-General/European-Natural-Gas-Prices-Drop-To-The-Lowest-Level-Since-2021.html |
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Goldman Sachs Predicts An Oil Price RallyGoldman Sachs continues to be bullish on crude oil and other major commodities, expecting a rally after the biggest-ever destocking in commodities that is currently underway. Should major economies, including the U.S., avoid deep recessions, the foundations for a rally across the commodity complex remain intact, Goldman Sachs analysts wrote in a note, although they admitted their price calls have been wrong so far this year. “Bulls, like ourselves, find comfort in the fact that end-use demand across the commodity complex has not shown recessionary… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Goldman-Sachs-Predicts-An-Oil-Price-Rally.html |
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Oil Prices Rise On Signs Of A Tightening MarketOil prices rose in Asian trade early on Wednesday, following estimates of a large U.S. inventory draw and a warning from the Saudi energy minister for short sellers. In early morning trade in Europe, Brent Crude was up above $78 per barrel, at $78.06, rising by 1.63%. The U.S. benchmark, WTI Crude, had risen by more than 1.81% and traded at $74.23. Crude oil prices rose for a third consecutive day early on Wednesday, after gains on Monday and Tuesday, as the American Petroleum Institute (API) estimated late on Tuesday that… Read more at: https://oilprice.com/Latest-Energy-News/World-News/Oil-Prices-Rise-On-Signs-Of-A-Tightening-Market.html |
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Fed officials less confident on the need for more rate hikes, minutes showThe Federal Reserve on Wednesday released minutes from its May 2-3 policy meeting. Read more at: https://www.cnbc.com/2023/05/24/fed-officials-less-confident-on-the-need-for-more-rate-hikes-minutes-show.html |
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Debt ceiling talks hit a snag over spending levels with eight days until default deadlineConcerns are growing about whether President Biden and House Speaker McCarthy can reach a deal and pass a bill to raises the debt ceiling before June 1. Read more at: https://www.cnbc.com/2023/05/24/debt-ceiling-negotiations-updates-between-joe-biden-kevin-mccarthy.html |
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Not just Disney: DeSantis brings history of business battles to the presidential campaignRon DeSantis is slated to launch his presidential campaign on Twitter during a conversation with Elon Musk, becoming Donald Trump’s top rival. Read more at: https://www.cnbc.com/2023/05/24/desantis-business-fights-disney-esg.html |
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Dow drops for a fourth straight day on U.S. default worries as debt ceiling talks stumble: Live updatesInvestors are watching talks in the nation’s capital around the debt limit. Read more at: https://www.cnbc.com/2023/05/23/stock-market-today-live-updates.html |
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Tom Lee highlights the top picks in his market-beating portfolioThe Fundstrat Global Advisors founder introduced Super Grannies, or the five stocks he ranks the best of the best in his Granny Shots portfolio. Read more at: https://www.cnbc.com/2023/05/24/tom-lee-highlights-the-top-picks-in-his-market-beating-portfolio.html |
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Florida Gov. Ron DeSantis joins presidential race, taking on Trump for GOP nominationThe move sets DeSantis against former President Donald Trump in the race for the GOP nomination. Read more at: https://www.cnbc.com/2023/05/24/ron-desantis-launches-white-house-bid.html |
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Microsoft warns that China hackers attacked U.S. infrastructureThe state backed group, “Volt Typhoon,” is working to disrupt communications in case of a future crisis, Microsoft said. Read more at: https://www.cnbc.com/2023/05/24/microsoft-warns-that-china-hackers-attacked-us-infrastructure.html |
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Alphabet CEO promises ‘AI pact,’ discussed concerns about pro-Kremlin propaganda in meeting with top EU officialsThe European Parliament earlier this month greenlighted rules for AI, including measures for generative AI tools like ChatGPT and Google’s Bard chatbot. Read more at: https://www.cnbc.com/2023/05/24/alphabet-ceo-promises-ai-pact-in-meeting-with-top-eu-official.html |
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Ukraine war live updates: Russia issues stern warning on border attack; U.S. distances itself from incursion that involved American equipmentRussian President Vladimir Putin said Russia is going through “difficult times” as its invasion of Ukraine continues, but added that national pride is growing. Read more at: https://www.cnbc.com/2023/05/24/ukraine-war-live-updates-latest-news-on-russia-and-the-war-in-ukraine.html |
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Bitcoin sinks to $26,000, and OFAC sanctions crypto wallets tied to North Korea: CNBC Crypto WorldCNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what’s ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry. On today’s show, Leo Mizuhara of Hashnote discusses the state of crypto markets as bitcoin and ether prices fall. Read more at: https://www.cnbc.com/video/2023/05/24/bitcoin-sinks-ofac-sanctions-wallets-tied-north-korea-crypto-world.html |
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How New Balance went from the ‘underdog’ to $5 billion fashion favorite: ‘It’s a cooler brand today than it was 10 years ago’What was once commonly viewed as a favorite of boring dads across America is now a fashion-forward brand in its own right. Read more at: https://www.cnbc.com/2023/05/24/suddenly-obsessed-how-new-balance-built-a-5-billion-brand.html |
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Iconic singer Tina Turner dies at 83Singer Tina Turner has died at the age of 83 after a long illness, a spokesperson said Wednesday. Read more at: https://www.cnbc.com/2023/05/24/tina-turner-dies-at-age-83.html |
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These financial stocks were most loved—and hated—by hedge funds during the banking crisisThe banking crisis wreaked havoc in the industry, and hedge funds have been picking winners and losers among financial stocks. Read more at: https://www.cnbc.com/2023/05/24/these-financial-stocks-were-most-lovedand-hatedby-hedge-funds-during-the-banking-crisis.html |
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Fed Builds Real-Time Financial Twitter Sentiment IndexFed Builds Real-Time Financial Twitter Sentiment IndexWhat could go wrong? Given the ‘transitory’ snafu and endless blind bubble-creation – and the accompanying banquet of unintended consequences – no lesser mortal than Mohamed El-Erian has been highly critical of the Fed for the past year, asserting that the institution “has slipped in its analysis, forecasts, policymaking and communication” and has made “one mistake after another.”
So, how do they plan to help regain that credibility? Fed researchers have developed a new measure of real-time credit and financial market sentiment from Twitter data that they say can help forecast changes in the stance of monetary policy, and can help estimate next-day stock-market returns. Read more at: https://www.zerohedge.com/markets/fed-builds-real-time-financial-twitter-sentiment-index |
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Boris Johnson Sent To Texas To Lobby Republicans To Keep Arming UkraineAuthored by Dave DeCamp via AntiWar.com, Former Prime Minister Boris Johnson met with a group of Republicans in Texas on Monday to urge them to continue supporting Ukraine in its war with Russia, Politico reported. The Center for European Policy Analysis (CEPA), a pro-Ukrainian think tank based in Washington, decided to enlist Johnson to push Republicans to support Ukraine as more and more GOP members have questioned the policy of flooding weapons into the country with no clear goal.
File: Getty Images“I just urge you all to stick with it,” Johnson told a group of Texas Republicans in Dallas. “You are backing the right horse. Ukrai … Read more at: https://www.zerohedge.com/geopolitical/boris-johnson-sent-texas-lobby-republicans-keep-arming-ukraine |
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DeSantis Officially Files To Run In 2024, Will Launch Presidential Bid On Twitter SpacesFlorida Governor Ron DeSantis has officially filed his declaration of candidacy for president, entering the 2024 race as former President Donald Trump’s top GOP rival, the Associated Press reports.
Meanwhile, as we detailed yesterday, Ron DeSantis will announce his 2024 presidential campaign in a Twitter Spaces livestream tonight. DeSantis – widely viewed as Donald Trump’s only real competitor for the Republican nomination – will speak with Elon Musk at 6 pm ET Read more at: https://www.zerohedge.com/political/watch-live-desantis-launches-2024-presidential-bid-twitter-spaces |
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Rubino Warns “They’re Willing To Burn Down The World To Get What They Want”Via Greg Hunter’s USAWatchdog.com, Analyst and financial writer John Rubino says this time, the so-called debt ceiling fight could end in a systemic failure.
Rubino points out, “In a well-run society, the debt limit would be zero. Governments should not borrow money in the first place…”
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MP calls for Parliament probe of rate ‘rigging’ evidenceSenior Tory backbencher David Davis says there is ‘damning evidence’ parliament was misled. Read more at: https://www.bbc.co.uk/news/business-65691131?at_medium=RSS&at_campaign=KARANGA |
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Are investors finally nervous about the US debt ceiling?US financial markets falter as debt ceiling talks continue. So is Wall Street getting nervous? Read more at: https://www.bbc.co.uk/news/business-65690303?at_medium=RSS&at_campaign=KARANGA |
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Jaguar Land Rover-owner to pick UK over Spain for giant car battery plantInsiders say the move, revealed exclusively by the BBC, is the most significant investment in the sector since Nissan came to Britain in the 1980s. Read more at: https://www.bbc.co.uk/news/business-65698529?at_medium=RSS&at_campaign=KARANGA |
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Will AI be future financial adviser? Krithika Muthukrishnan answersKrithika Muthukrishnan, Chief Data Science Officer at Scripbox, suggests that AI can play an important role in fund selection based on an evidence-based, objective process. However, AI is not a replacement for human advisers who can provide a personalised touch and an unbiased approach to investment selection while assisting in goal planning, understanding risk and choosing an investment strategy. Read more at: https://economictimes.indiatimes.com/markets/expert-view/will-ai-be-your-future-financial-adviser-what-role-will-humans-play-krithika-muthukrishnan-answers/articleshow/100463567.cms |
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After 2 mnths, Adani Ent moved back to short-term surveillanceExchanges often impose restrictions when there is unusual movement in share prices so as to curb volatility and potential losses to retail investors. Shares of the company fell as much as 8% to a low of Rs 2,425.35 on Wednesday intraday before closing 6% down at Rs 2,475. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/after-2-months-adani-enterprises-moved-back-into-short-term-surveillance-by-bourses/articleshow/100481701.cms |
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Multibagger pharma stock declares Rs 9.25 dividend, 1:2 stock split“The board considered and approved sub-division of existing equity shares of face value Rs 2 each of the company to equity shares of face value Re 1 each of the company, subject to regulatory approvals and the approval of the shareholder,” the company said in a filing Read more at: https://economictimes.indiatimes.com/markets/stocks/news/multibagger-pharma-stock-declares-rs-9-25-dividend-12-stock-split/articleshow/100481698.cms |
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5 retirement lessons from Tina TurnerThe music legend died this week at her home in Switzerland at age 83. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-7200-20F2CF8C8F0F%7D&siteid=rss&rss=1 |
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The Fed: ‘Several’ Fed officials said more rate hikes may not be needed and other key takeaways from May minutesSeveral Fed officials at the May meeting said that further interest rate hikes may not be needed, minutes of the meeting released Wednesday showed. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-71FF-5F54B67820EE%7D&siteid=rss&rss=1 |
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Organized retail crime is definitely a thing, says BJ’s CEO: ‘We see it, and it is material’‘Shrink’ caused by theft and organized retail crime has been a theme of retail earnings season, says CEO Bob Eddy of BJ’s Wholesale Club Holdings Inc. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-71FE-4DFE59F9492D%7D&siteid=rss&rss=1 |
