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Wall Street Breakfast

Catalyst Watch: Fed Speakers, Video Rental Nostalgia

Wall Street Breakfast

Seeking Alpha

Business, Investing, Business News, News

3.8950 Ratings

🗓️ 25 March 2023

⏱️ 15 minutes

🧾️ Download transcript

Summary

Catalyst watch for the week of March 26. Seeking Alpha Managing News Editor, Kim Khan explores the topics Fed speakers will discuss following the FOMC meeting (00:32). Seeking Alpha Associate News Editor, Kevin Curran tells us all eyes will be on Micron Technology, Inc. (MU) and Lululemon Athletica, Inc. (LULU) for their earnings reports (05:02). A hot topic this week was a report that the Blockbuster website is back online. What impact, if any, would the return of a brick-and-mortar video store have on streaming companies like Netflix (NFLX)?(07:23) Finally, do you think the banking crisis is contained? Look out for that survey question in Monday’s Wall Street Breakfast newsletter.

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Show links:

Micron stock climbs 5% as anticipation for memory chipmaker's results grows
Lululemon bulls call out attractive entry point ahead of earnings next week
Citi expects Lululemon stock to pop post earnings
Traders boost bets that Federal Reserve will cut policy rate in June

Transcript

Click on a timestamp to play from that location

0:00.0

Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning.

0:07.0

Thanks for joining us today. I'm Julie Morgan, host of Wall Street Breakfast, Seeking Alpha's Daily flagship podcast.

0:14.3

This is our weekly show all about the catalyst for the upcoming week.

0:18.4

I'm joined by Kim Kahn.

0:19.9

He's the senior managing news editor at Seeking Alpha.

0:23.7

I'm also joined by Kevin Curran.

0:25.6

He's an associate news editor at Seeking Alpha.

0:28.8

Welcome back, Kim.

0:30.3

Thanks, it's good to be back.

0:31.8

As everybody kind of catches their breath recording this day after the Fed meeting and that was a lot of excitement and the most interesting stuff was watching the market react to not just Jerome Powell's press conference, but also Treasury Secretary Janet Yellen sneaking in some major comments exactly at the same time and having watching financial

0:55.2

Twitter battle on what comment was actually moving this market down at that

0:59.7

point. There is a lot of interest that everybody was pretty much spot on including our readers of Wall Street Breakfast to be surveyed about what the Fed would do, which is hike by 25 basis points.

1:11.0

So, where than 70% of our readers thought that, and that was about the same thing as what the markets of price did almost like a 75, 85% chance.

1:20.0

So next week we look ahead to like all the Fed members who are off the leash so to speak

1:26.7

they are no longer in the black up period and they'll get to talk about you know Fed policy and the most interesting thing on that I think will be what exactly they do you address. Do they talk monetary policy, do they talk, you know, tightening cycle like they have been, you know, for the past year or do they pivot and not in the Fed pivot way, pivot and talk about the banking crisis. I mean, that's kind of what you think the questions are going to be more about and

1:54.7

Jay Powell started his press conference with comments about the stability of the banking

1:59.5

system but also then you know saying talking about the speed of which they saw deposits leave S. V.

2:07.0

Which is a little worrying if like the Treasury Department and the Fed are surprised about how fast deposits leave an institution. So you could just hear a lot of talk about that, which actually could be more more of interest to the market. Maybe the market seems to now have moved on from the Fed. They are Fed Fund Futures are pricing in just a slightly 51% chance now that the Fed is just done. And that Mark Gates will start even going down in July by the July meeting.

2:34.3

You know, there's a, there's about 50-50 for a quarter point hike next month, but even if there is that

2:40.3

quarter point hike, then the consensus is pretty much that's it for the tightening cycle and now we look for when rates get cut.

2:47.0

And speaking of the web seekers, there's an interesting comment on Twitter that I saw which really kind of

2:51.0

encapsulated what these, the FOMC might be focused on is like the person said that the Fed really knows you know about as much on inflation and it's about as much on the jobs market as the rest of us, or especially those

...

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