MARKET RECAP → All three major averages closed higher on Friday as the S&P 500 (VOO) hit a new high for the year following the November jobs report that signaled a resilient economy, increasing optimism of a “soft landing” scenario. Bitcoin (BTC) continued on its move higher, closing up ~3% on the day and nearing the $45K level.
U.S. ECONOMY: SOFT LANDING? → ? Despite a promising jobs report hinting at stability, the U.S. economy’s soft landing remains uncertain amid Federal Reserve rate hike concerns and mixed consumer behavior signals. PARAMOUNT EYES TAKEOVER → ? Paramount Global’s (PARA) stock jumps amid takeover buzz, with Skydance and Redbird Capital eyeing the media titan grappling with debt and streaming challenges. |
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| Sean Horgan Head of Investor Relations @ MoneyLion
$shorgan |
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U.S. ECONOMY: SOFT LANDING? |
? November’s jobs report, with a 3.7% unemployment rate and 199,000 new jobs, didn’t scream “recession,” but it didn’t guarantee a soft landing for the U.S. economy either. The job market’s performance, described as “boring in all the right ways” by Glassdoor’s lead economist Daniel Zhao, is a positive sign amidst high inflation and economic uncertainty. ? Despite the solid jobs report, concerns linger that the Federal Reserve’s aggressive interest rate hikes might still trigger a downturn. PNC Financial Services’ chief economist, Gus Faucher, believes a recession in 2024 is more likely, though it’s a close call. The economy’s future hinges on whether job growth slows sustainably or shifts to job losses.
? Consumer behavior and inflation will be crucial in determining whether the economy experiences a soft or hard landing. The University of Michigan’s consumer sentiment survey showed a significant drop in inflation expectations, but other consumer signals remain mixed. Goldman Sachs’ chief economist Jan Hatzius sees a low risk of recession next year, contingent on continued labor market strength and consumer resilience. |
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? Paramount Global’s (PARA) shares saw a significant surge following reports that Skydance and Redbird Capital were considering a takeover of the media giant. Paramount, with a market cap of about $10.5 billion, has experienced a sluggish year, underperforming compared to the S&P 500’s gains. ? Paramount’s controlling shareholder, Shari Redstone, has shown openness to major deals, particularly as the company grapples with declining revenue and streaming losses. RedBird, led by former Goldman Sachs partner Gerry Cardinale, and Skydance, a collaborator on Paramount’s hit “Top Gun: Maverick,” are the potential suitors exploring this takeover.
? Amidst speculation about its future, Paramount faces a substantial long-term debt of $15.6 billion and challenges in TV ad revenue. The company is also reportedly considering bundling its Paramount+ streaming service with Apple TV+ to strengthen its position in the competitive streaming market. |
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And if you want more, be sure to check out the MoneyLion blog for tips, hacks and all things money. (MoneyLife) |
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