Elon Musk joins the growing chorus of fear of an economic recession in the United States. But there is stock for that.

See above, buyers are back in town.

Stocks are up – for now – as Wall Street returns from a long weekend, with Federal Reserve Chairman Jerome Powell testifying before Congress this week. The buying mood comes after the S&P 500’s worst week since March 2020, including its fall into a bear market and the Fed’s biggest increase since 1994.

But while bargain hunters are on the lookout, the same is true for the US economy.

Enter Tesla TSLA,
+ 8.07%
CEO Elon Musk, who in our Today’s call He joins a growing chorus of Wall Street voices, including Nouriel Roubini of Roubini Macro Associates and several banks warning of troubled times ahead.

I think a recession is inevitable at some point. In terms of whether there is a recession in the near term, I think that is more likely than others,” Musk told Bloomberg in an interview early Tuesday at the Qatar Economic Forum.

Musk’s comment aligns with an email he reportedly sent to company executives earlier this month, in which he spoke of “a very bad feeling” about the global economy and said 10% of Tesla jobs needed to be cut, denting the company’s shares in that time .

is reading: Stocks are still expensive and a price hike could shock the financial system, warns Seth Klarman

Musk has confirmed via a video to 10% distillers that the number of Tesla heads will be scrapped in the next three months, although the salary a year from now and the hourly staff will be higher.

On a bearish economic view, Wall Street bank expectations are dropping like flies. Goldman Sachs now sees a 30% chance of an economic slowdown over the next 12 months, from the previous 15% due to concerns that the Fed will “feel compelled to respond aggressively” to higher inflation.

Goldman Sachs Global Investment Research

Nomura was even more pessimistic, telling clients on Monday that “a mild recession beginning in the fourth quarter of 2022 is now more likely than others,” lowering the GDP forecast to 1.8% from 2.5% for 2022 and to 1% from 1.3%. for 2023. Deutsche Bank expects growth of less than 1% in the first half of 2023 and negative first-quarter growth in the third quarter of 2023.

is reading: This stagnation call is coming from inside the house. Why the New York Fed’s model is so bad.

On stocks, David Kostin, US equity strategist at Goldman, said separately that “investors worried about tightening financial conditions, slowing economic growth, and higher market volatility, should have stable stocks” — low stock price volatility and stable earnings growth.

High Sharpe Ratio Basket “also takes volatility into account, but maximizes risk-adjusted potential returns.” The average stock in that basket is expected to generate twice the return on the average S&P 500 stock with slightly higher implied volatility, Kostin said.

Here’s a sneak peek at that basketball:

FactSet, Goldman Sachs Global Investment Research

commotion

SAVE SOUL SHARES,
+ 7.38%
up 12% after JetBlue JBLU,
+ 0.76%
She raised her bid for the airline to $33.50 in cash each, at $31.50.

Kellogg K,
+ 2.08%
Shares jumped after the grain group said it would split into three companies

Stock in AI Symbotic SYM Supply Chain Group,
+ 14.14%
is increased after Walmart WMT,
+ 1.67%
It said it is acquiring a 62.2% stake in the company.

Street. Lewis Fed President James Bullard played down fears of a growing recession in the coming months. Former US Treasury Secretary Larry Summers said unemployment needed to rise to curb inflation. President Joe Biden said a recession could be avoided.

Biden will also decide by the end of the week whether to request a holiday on a federal gasoline tax that can save up to 18.4 cents a gallon.

Existing home sales are due after the market opens, and we’ll hear from Cleveland Fed President Loretta Meester and Richmond Fed President Tom Barkin.

Italian helicopter maker Leonardo LDO,
+ 5.36%
It will integrate its business in the United States with the Israeli defense group Rada Electronic Industries RADA,
-6.53%
In an all-share deal to create a new company, it will be listed in New York and Tel Aviv.

markets

The Dow DJIA,
+ 1.69%And the
S&P 500 SPX,
+ 2.36%
and Nasdaq Compound,
+ 2.88%
They climb, using CL.1 ore,
+ 1.91%

BRN00,
+ 1.11%
Highest Bond Yields TMUBMUSD02Y,
3.211%

TMUBMUSD10Y,
3.280%
Also on the rise. Bitcoin BTCUSD,
+ 5.47%
Above $21,000 after a volatile weekend that saw prices drop below $20,000.

is reading: Tom DeMark identified the downside to bitcoin in March. He has good news and bad news.

graph

Goldman’s chief global equity strategist, Peter Oppenheimer, said markets are likely heading into a cyclical bear market – triggered by higher interest rates and a looming recession. But that’s not quite priced, so the sale is likely to increase. (See chart for the day below).

Datastream, Haver Analytics, STOXX, Worldscope, Goldman Sachs Global Investment Research

Indications

These were the most searched indicators on MarketWatch as of 6AM ET:

ribbon

Safety name

TSLA,
+ 8.07%

Tesla

GME,
+ 4.97%

Jim Stop

AMC,
+ 1.60%

AMC Entertainment

NIO,
+ 9.00%

NIO

AAPL,
+ 3.61%

apple

AMZN,
+ 3.52%

Amazon

Mullen,
+ 12.87%

Mullen

TWTR,
+ 2.01%

Twitter

rdbx,
+ 1.27%

Redbox Entertainment

Baba ,
+ 4.26%

Ali Baba

random readings

The famous floating restaurant in Hong Kong plunges, where Tom Cruise and other celebrities dined.

Not being able to balance on one leg for 10 seconds could mean a shorter life.

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