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The S&P 500 and the Dow rose, but NASDAQ took a pounding on Wednesday – JPMorgan still sees Amazon as ‘best investing idea’ – US crude exports surge to record – Gates’ energy firm’s new strategy
As of 11:39 AM ET on Wednesday, the Dow Jones Industrial Average rose 1% and the S&P 500 rose 0.6%. In other markets, The Stoxx Europe 600 rose 0.6% and The MSCI World index rose 1.6%, Yahoo Finance reported.
However, the tech-heavy Nasdaq 100 pared losses that topped 2%, falling 0.2% as investors shook off weak tech earnings and assessed the pace of federal rate hikes. It comes on the heels of disappointing results from Microsoft and Alphabet, Morning Star reported.
In currencies, the euro rose 1.2% to $1.0081, the British pound rose 1.3% to $1.1626, the Japanese yen rose 1% to 146.43 per dollar, and the Bloomberg Dollar Spot Index fell 1%.
JPMorgan still believes Amazon is the best investment idea, even though continued supply chain and inflationary pressures are slowing consumer discretionary spending, Yahoo Finance reported. Despite a disappointing Q1 report, JPMorgan’s Doug Anmuth thinks the macro headwinds will still have a large part to play in Q2. The company’s growth has accelerated to sixty-eight percent year-over-year. The company has almost doubled its workforce to 1.6 million, with its fulfillment network now twice as large, due to heavy investments by the company in the past two years.
“Macro factors will take longer to play out,” the analyst said. “But the company has raised Prime prices & introduced a fuel surcharge to offset, & we expect AMZN to grow into its upfront spending more in 2H22.”
Exports of US crude surged to a new weekly record of 5.1 billion per day, while cutting net crude imports to just over 1 million barrels per day – also a record.
Oil stockpiles rose by 2.6 million barrels in the week to Oct. 21 to 439.9 million barrels, nearly triple h analysts’ forecasts in a Reuters poll for a 1-million-barrel rise, Yahoo Finance reported.
Bill Gates’ climate-investing firm, Breakthrough Energy Ventures (BEV), has made over 100 investments in startups primarily focused on reducing greenhouse gas emissions. But the company realizes that it has only three choices: mitigation, adaptation, and suffering. Rather than trying to stop climate change, the firm is changing its strategy toward “adaptation,” CNBC reported.
“It’s time to start accepting reality and that we’re not going to be able to do this fast enough, the ship is too big, it’s too hard to steer,” said Eric Toone, who is one half of BEV’s investing committee.
“It takes a while for the planet to cool down,” said Carmichael Roberts, the second half of BEV’s investing committee.
The company’s new direction will be to invest in companies that are building solutions to adapt to a hotter world, according to the firm’s executives.
