Pre-market actions: Tech stocks rush towards a correction | News Today

Is this a turning point as the pandemic economy enters a new era? Since 2020, technology companies have generated huge market gains, increasing their influence and generating substantial returns for shareholders.

Not quite, according to analysts. They see the declines as a short-term adjustment rather than the start of a long period of weakness.

“We have braced for heightened volatility as markets assimilate signals from the Fed that the tightening will come both earlier and faster than expected,” said Mark Haefele, chief investment officer at UBS Global Wealth Management on Wednesday. . “But while we think the Fed is likely to raise rates as early as March, with three hikes in 2022, that shouldn’t derail the economic expansion or the rally in equities.”

A rebound in tech stocks is likely, but likely not before the Fed meeting next week, Beauchamp said. Investors are also awaiting the results of the biggest players in the sector for the last three months of 2021.

This means those who want to buy tech stocks at a cheaper price can wait a bit longer to pick them up. Beauchamp is convinced that time is coming – it’s just a matter of when.

Microsoft buys Activision Blizzard for nearly $70 billion

The deal still needs approval from Activision Blizzard shareholders and regulators, who may be skeptical.

The strategy: Microsoft has intensified its focus on gaming in recent years, especially as the pandemic meant more people were staying home and using gaming systems. A year ago, its gaming revenue topped $5 billion for the first time thanks to huge demand for its Xbox consoles.

Activision owns popular franchises such as Call of Duty, World of Warcraft, and Candy Crush. Its games have 400 million monthly active players. Microsoft would also acquire Activision’s global game studios and its nearly 10,000 employees.

But the deal is not without controversy. Activision’s shares have plunged since the state of California filed a lawsuit against the company last summer, alleging that a “frat boy” work culture subjected female employees to discrimination, sexual harassment and to unequal pay.

“We believe that creative success and autonomy go hand in hand with treating each person with dignity and respect. We hold all teams and leaders to this commitment,” Phil Spencer, chief gaming officer at Microsoft, said Tuesday. , in a press release. “We look forward to extending our culture of proactive inclusion to major Activision Blizzard teams.”

Activision shares rebounded 26% on Tuesday, while Microsoft closed more than 2% lower amid a sell-off in tech stocks.

Watch this space: Sony shares fell on Wednesday as investors assessed a new competitive landscape. The Japanese console maker PlayStation fell nearly 13% in Tokyo, its worst one-day performance since 2008.

Why orange juice prices have jumped

Frozen orange juice futures prices jumped more than 50% during the pandemic, with disease and severe weather limiting supply at a time of high demand. Last week, they hit a two-year high, my CNN Business colleague Danielle Wiener-Bronner reports.

“You have your classic supply-demand mismatch,” said Shawn Hackett, president of agricultural commodities specializing Hackett Financial Advisors. For this reason, consumers should expect “much higher prices at the supermarket”, he added.

Last week, the US government said it expects Florida to produce 44.5 million cases of oranges this year as it continues to battle a disease known as “greening of the citrus”, which leads to smaller oranges and fewer fruits per tree. It would be the smallest crop since the 1944-45 season. The effects of the drought that hit Brazil last year are also being felt in the system.

On the radar: The anticipated spike in orange juice prices comes as consumers digest widespread inflation, especially for groceries. Over the past year, the cost of food consumed at home in the United States has increased by 6.5%.

Following

Also today: US housing starts and building permits for December at 8:30 a.m. ET.