(KRON) – Loser: Investors brace for half-point hike from the Fed
Investors are awaiting the Federal Reserve’s monetary policy later this morning. The central bank is widely expected to raise interest rates by 50 basis points for the first time since 2000.
The old Wall Street adage that investors should “sell in May and go away” has had a spotty track record in recent years. Over the past 10 years, stocks delivered positive returns during the six-month period between May and October.
Moderna blew out first-quarter earnings expectations, tripling COVID-19 vaccine sales.
In 2021, U.S. retail sales of toys reached $28.6 billion.
Ford reported a smaller sales decline in April while chip shortages weighed on supply.
Winner: Uber reports surging revenue
Uber reported surging revenue during the quarter. But it also reported a $5.9 billion loss during the period that was largely attributed to the revaluation of equity investments.
Uber said it expects to generate “meaningful positive cash flows” for full-year 2022, which would mark a first for the company.
April mobility gross bookings exceeded 2019 levels across all regions and use cases.
Equity investments in Southeast Asian mobility and delivery company Grab, autonomous vehicle company Aurora and Chinese ride-hailing giant Didi.
Here’s how Uber’s largest business segments performed in the first quarter of 2022:
• Mobility (gross bookings): $10.7 billion, up 58% year over year
• Delivery (gross bookings): $13.9 billion, up 12% year over year
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Its mobility segment reported $2.52 billion in revenue. Gross revenues strips out additional taxes, tolls and fees from gross bookings.
Uber reported 1.71 billion trips on the platform during the quarter, up 18% from the same quarter a year ago. Monthly active platform consumers reached 115 million, up 17% year over year.
Winner: What does a recession mean for you?
Recessions are normal to the tune they happen once every 4 years.
The odds that the U.S. economy will go into a recession are increasing recently.
Deutsche Bank economists predict there will be “a major recession” beginning in late 2023 or early 2024.
Then there are some economists who think a recession is totally out of the cards at this point.
A recession is a significant decline in economic activity resulting from several factors, including high unemployment, a slowdown of goods produced and sold, and wages falling in addition to negative GDP readings.
Job Losses: During the last recession, more than 22 million people were laid off. People make less wages and commissions. There won’t be the same bargaining power you’d want.
Health insurance coverage: During the last recession, 7.7 million Americans lost employment-based insurance that covered 6.9 million dependents.
If you lose your employment-based health insurance, you usually have 60 days to decide if you want to continue with COBRA.
Banks make loans tougher: During recessions, lenders have to be more selective about borrowers because there’s a greater risk that they will default. If you’re going to need a loan, get it in order now before a job is lost.
Stocks and housing tend to underperform: Yet you don’t know when the recession will end so you likely should try to ride it out.