Just the Facts
And the dreaded D sell signal
Just the Facts: And the dreaded D sell signal……
Stocks finished Friday with strong gains after weaker wage growth was viewed as more important than the lower unemployment rate and stronger jobs. Soft landing?
1) Auto industry posts worst U.S. sales year in over decade: reports down 8%
2) Tesla owners in China protest against surprise price cuts they missed
3) MSFT CEO Satya Nadella sounded quite cautious on CNBC India overnight calling for two difficult years before improvement. Worth a watch and this dovetails with a competitor downgrade today.
'The next two years will be the most challenging … We saw a lot of acceleration during the pandemic, and there's some amount of normalization of that demand, and on top of it there is a real recession in large parts of the world'.
'The combination of pull-forward and recession means we will have to adjust .. that will cycle through .. and come out of it in what can be another massive growth cycle'.
He repeats that MSFT will not be 'immune' from macro, said there are 'clearly many, many challenges' around the world, and that the US & EU will be tough in 2023.
4) Analog Devices sees book to bill below 1.0 this qtr while Skyworks $SWKS had seen the inventory correction ending in 1Q but now expects it to extend another quarter.
If you read this far and aren’t saying ouch, keep reading.