Jefferies Profit Drop
Jefferies Financial Group Inc (NYSE: JEF) announced that its profits fell by 57% in Q4, with total investment banking revenue dropping by about 52% in the period ending November. However, fixed-income revenue rose by 71% as central banks, inflation, and economic uncertainty continue to make macro trading a priority for clients.
Additionally, the firm did not announce any changes to the stake held by Sumitomo, following reports last week that the Japanese company was considering increasing its investment.
Interest Rates Topping
Hedge Funds, on the other hand, are starting the year betting that US interest rates are close to peaking. The fall of tech stocks in 2022 has also helped fuel a recovery for short sellers.
Corporate News
In other corporate news, Lululemon (NASDAQ: LULU) reported that selling yoga gear has become less profitable, leading to a drop in its shares.
Microsoft (NASDAQ: MSFT) is reportedly considering a $10 billion investment in the owner of the popular AI service ChatGPT.
AstraZeneca (NYSE: AZN), meanwhile, has announced plans to acquire US biotech firm CinCor in a $1.8 billion deal.
Tesla (NASDAQ: TSLA) faced protests in China from owners over price cuts, but there are also reports that wait times for Tesla cars in China have lengthened, suggesting that the price cuts may be boosting demand.
Salesforce (NYSE: CRM) CEO Marc Benioff has warned that job cuts could be more aggressive than expected, expressing concern about productivity.
Warren Buffett's company, Berkshire Hathaway (NYSE: BRK.B), has continued to sell off its shares in Chinese electric car maker BYD (OTCMKTS: BYDDF), despite positive comments made about the company in the past by Buffett.
Dig a little deeper into the market update:
Buffett's firm keeps selling BYD shares despite past praise
China economy recovering but hampered by virus outbreaks
Companies reporting earnings today include TD SYNNEX Corp. (NYSE: SNX), Bed Bath & Beyond, Inc. (NASDAQ: BBBY), AZZ, Inc. (NYSE: AZZ), VOXX International Corp. (NASDAQ: VOXX), and Inotiv, Inc. (NASDAQ: NOTV). Check out this week’s earnings preview.
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