Mounting speculation that the Federal Reserve would cut interest rates as soon as the first quarter of 2024 is lifting the futures market. Billionaire hedge fund manager Bill Ackman said on The David Rubenstein Show that risks are rising for people who have to reprice their debt.
Ackman said that the real risk of a hard landing increases unless the Fed starts cutting rates soon. This view is highly speculative. The Fed is unlikely to cut rates when home prices are still rising. Inflation targeted at 2.0% is not achievable until late 2024.
Beat-up automobile firm General Motors (GM) is up 9.45%. It reinstated its guidance for its full year of 2023 and increased its dividend. It is also buying back shares.
In the tech sector, Workday (WDAY) gained over 9%. The office software supplier posted strong Q3/2023 revenue of $1.87 billion or $1.53 a share. For FY 2024, Workday expects subscription revenue of $6.6 billion, up from a prior view of $6.57 billion - $6.59 billion.
NetApp (NTAP) jumped by 11.71% in pre-market after raising its full-year forecast. Despite expectations of sales falling by 2% Y/Y to $6.23 billion, investors are bullish on the Q3 earnings outlook. NetApp expects EPS of $1.64 on revenue of up to $1.67 billion.
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