💰Fed’s work is unfinished; here comes the hawk💸

The equity market turned softer on Monday as comments from the Fed’s officials rekindled the fear of inflation. It gives the market a breather from the rally from the past week. While the October CPI has been weaker than expected, Fed Governor Christopher Waller commented on the long path ahead for the Fed to ensure its mission is accomplished. This signals more rate hikes and dampens risk-on sentiment. 

After all, the 7% inflation rate is still too high for a target of 2%. Hence, Pika World expects Fed governors to begin dampening sentiments of any form of Fed’s pivot. 

💣Amazon: Finally, the cut is here🎯

The e-commerce giant is expected to report a large-scale layoff, estimated to affect 10,000 workers. This comes amidst a review of cost-cutting measures, a familiar theme of tech companies these days. 

Rumours suggest that the cuts will hit the corporate employees the most and will likely spread to Amazon’s device business. Moreover, it comes at a time when many MNCs are grappling with a slowdown in economic demand and facing dual headwinds: a higher interest rate coupled with a strong dollar. 

Pika World will look at possible entry levels for long-term accumulation in the tech sector. 

🎢What is Uncle Warren buying these days? 💎

According to the latest filing on Monday, Berkshire Hathaway is buying more of Taiwan Semiconductor during the third quarter while selling US Bancorp and Bank of New York. The company is also buying Chevron and, unsurprising, Occidental Petroleum. 

The key focus was purchasing 60 million shares in TSM, the world’s leading semiconductor producer. 

Does that tell us something? 

📮What’s on the menu today?📖

At 9.30 pm, we will receive the Core PPI for MoM comparison, which we expect to hit 0.3%. Likewise, the PPI for MoM for Oct is expected to remain constant at 0.4%.