Home Business General Motors And Ford Get Double Downgrades From Wells Fargo

General Motors And Ford Get Double Downgrades From Wells Fargo

When you purchase through our sponsored links, we may earn a commission. By using this website you agree to our T&Cs.

In his Daily Market Notes report to investors, while commenting on General Motors and Ford, Louis Navellier wrote:

Testing S&P Correction

Official S&P correction is being tested, but bounces back.

The S&P 500 Index has broken below 3,900 this morning and is approaching the 20% drop from the high. The mega-techs continue to sell down with Apple symbolically no longer the most valuable public company in the world as Saudi Aramco is now worth more.

Get Our Activist Investing Case Study!

Get The Full Activist Investing Study In PDF

Q1 2022 hedge fund letters, conferences and more

It feels like we may have hit a near-term bottom as stocks gapped down on the open and have rallied back strongly, heading to green. Crypto currency had an awful night with Bitcoin hitting a 16-month low as the disruption of the failure of stablecoins has caused a turmoil. 

PPI was reported before the opening and like yesterday's CPI, it was higher than forecast but still slightly less than the March numbers.

Counterintuitively, despite the high inflation numbers, U.S. interest rates continue to fall, still miles away from underlying inflation expectations, likely reflecting the growing concerns regarding stagflation of a global economic slowdown.

Double Downgrade

This morning, Wells Fargo issued a "double downgrade" on General Motors (NYSE:GM) and Ford (NYSE:F), forecasting that 2022 may be the peak earnings for traditional automakers as they transition into electric vehicles.

Disney (NYSE:DIS) reported last night and initially rose on strong park trends and good growth on their streaming service but then pulled back on comments about challenging growth trends ahead.

High P/E Under Pressure

High multiples continue to be under pressure and the VIX has risen as stock bounced off the initial morning lows as investors took advantage to buy additional put protection.

The strategy remains the same: buy quality on the dip, and sell vulnerable names on rallys.

Coffee Beans

A Rhode Island waitress said a "stressful morning" turned into an "awesome day" when a pair of customers left her an $810 tip on a $48.17 bill. Jennifer Vernancio, a North Providence resident who has worked at The Big Cheese & Pub in Cranston for about three and a half years, said she did not get the couple's names, but she will always remember their generosity. Source: Statista. See the full story here.

Our Editorial Standards

At ValueWalk, we’re committed to providing accurate, research-backed information. Our editors go above and beyond to ensure our content is trustworthy and transparent.

Louis Navellier
Editor

Want Financial Guidance Sent Straight to You?

  • Pop your email in the box, and you'll receive bi-weekly emails from ValueWalk.
  • We never send spam — only the latest financial news and guides to help you take charge of your financial future.