U.S. stocks fluctuated notably this past week following the collapse of Silicon Valley Bank and Signature Bank as well as the Swiss-government-backed rescue takeover of Credit Suisse by rival UBS.

“The market is very nervous at this point and investors are acting first and looking into the nuances later,” Wei Li, global chief investment strategist at fund giant BlackRock observed. “It’s understandable because it’s not super clear that this is definitely contained.”

While JPMorgan analysts stated on Friday that they are not concerned with liquidity issues as of late, investors continue to express concern, honing in on the performance of Germany’s Deutsche Bank as of late. Deutsche bank shares plummeted by 8.5% on Friday, contributing to a loss of approximately a quarter of their value over the past month.

Observers are also troubled by the lack of uncertainty over the Federal Reserve’s monetary policy going forward. Following the Fed’s 25 basis point hike last week, it hinted that it is considering pausing further increases. Before the start of the banking sector’s turmoil, expectations were for a 50 basis point hike.

The post Investors Exhibit Anxiety Over Banking, Future Fed Decisions appeared first on theprimarymarket.com.

Katai believes the fair value for Costco shares is $579 per share, which was 15 percent more than the value of the stock at the time when the note was sent. However, COST surged more than 4 percent since then to close at 522.95 on Friday.

“Costco is one of the most consistent operators in our group, and its steady traffic gains and high membership renewal rates serve as key differentiators in an increasingly uncertain backdrop,” said Katai in a note sent out on Thursday.

Costco showed its resilience and consistency in a report shared earlier this month that revealed net sales of $22.78 billion for June. This was a 20.4 percent increase in net sales compared to the $18.92 billion in the same period of 2021. Most importantly, the wholesale retailer recorded an increase across all departments. This was a lot better performance than most competitors, who went on to show substantial weaknesses caused by surging inflation and looming recession.

The post Deutsche Bank Upgrades Costco Stock to “Buy” appeared first on theprimarymarket.com.

Deutsche Bank has been warning its clients about the incoming recession as early as April. At the time, the bank forecasted that the recession was coming by end-2023. However, after the recent interest rates hike, DB’s Chief U.S. economist Matt Luzzetti adjusted its original prediction.

“The Fed has undertaken a more aggressive hiking path, financial conditions have tightened sharply, and economic data are beginning to show clear signs of slowing,” said Luzzetti in a note sent to clients late last week. “In response to these developments, we now expect an earlier and somewhat more severe recession.”

Among other things, Luzzetti’s note also addresses the changes in the unemployment rate. As the economy slows down, the unemployment rate is expected to go up and reach 5.5 percent in 2024.

Goldman Sachs recently also made adjustments to their predictions regarding the recession. According to Goldman’s Chief Economist Jan Hatzius, the bank sees “recession risk as higher and more front-loaded.” As a result, Hatzius adjusted his recession probability from 15 percent to 30 percent.

The post Deutsche Bank Predicts “Earlier Than Expected” Recession appeared first on theprimarymarket.com.

U.S. stocks fluctuated notably this past week following the collapse of Silicon Valley Bank and Signature Bank as well as the Swiss-government-backed rescue takeover of Credit Suisse by rival UBS.

“The market is very nervous at this point and investors are acting first and looking into the nuances later,” Wei Li, global chief investment strategist at fund giant BlackRock observed. “It’s understandable because it’s not super clear that this is definitely contained.”

While JPMorgan analysts stated on Friday that they are not concerned with liquidity issues as of late, investors continue to express concern, honing in on the performance of Germany’s Deutsche Bank as of late. Deutsche bank shares plummeted by 8.5% on Friday, contributing to a loss of approximately a quarter of their value over the past month.

Observers are also troubled by the lack of uncertainty over the Federal Reserve’s monetary policy going forward. Following the Fed’s 25 basis point hike last week, it hinted that it is considering pausing further increases. Before the start of the banking sector’s turmoil, expectations were for a 50 basis point hike.

The post Investors Exhibit Anxiety Over Banking, Future Fed Decisions appeared first on theprimarymarket.com.

Katai believes the fair value for Costco shares is $579 per share, which was 15 percent more than the value of the stock at the time when the note was sent. However, COST surged more than 4 percent since then to close at 522.95 on Friday.

“Costco is one of the most consistent operators in our group, and its steady traffic gains and high membership renewal rates serve as key differentiators in an increasingly uncertain backdrop,” said Katai in a note sent out on Thursday.

Costco showed its resilience and consistency in a report shared earlier this month that revealed net sales of $22.78 billion for June. This was a 20.4 percent increase in net sales compared to the $18.92 billion in the same period of 2021. Most importantly, the wholesale retailer recorded an increase across all departments. This was a lot better performance than most competitors, who went on to show substantial weaknesses caused by surging inflation and looming recession.

The post Deutsche Bank Upgrades Costco Stock to “Buy” appeared first on theprimarymarket.com.

Deutsche Bank has been warning its clients about the incoming recession as early as April. At the time, the bank forecasted that the recession was coming by end-2023. However, after the recent interest rates hike, DB’s Chief U.S. economist Matt Luzzetti adjusted its original prediction.

“The Fed has undertaken a more aggressive hiking path, financial conditions have tightened sharply, and economic data are beginning to show clear signs of slowing,” said Luzzetti in a note sent to clients late last week. “In response to these developments, we now expect an earlier and somewhat more severe recession.”

Among other things, Luzzetti’s note also addresses the changes in the unemployment rate. As the economy slows down, the unemployment rate is expected to go up and reach 5.5 percent in 2024.

Goldman Sachs recently also made adjustments to their predictions regarding the recession. According to Goldman’s Chief Economist Jan Hatzius, the bank sees “recession risk as higher and more front-loaded.” As a result, Hatzius adjusted his recession probability from 15 percent to 30 percent.

The post Deutsche Bank Predicts “Earlier Than Expected” Recession appeared first on theprimarymarket.com.