Hello readers, today we have some exciting news to share about the latest developments in the stock market. It turns out that Warren Buffett fellow knows a thing or two about stock picking. Shares of Japanese trading house Sumitomo have tripled since Berkshire Hathaway took a stake in it and four other Japanese trading houses a few years ago. Now activist hedge fund Elliott is on the case with its own stake in Sumitomo, whose shares are up by more than 10% since that was reported. Even after that run, the shares of it and the other trading houses are cheap, says Heard on the Street's Jacky Wong —far cheaper than the typical American company. But the reason for the activist's excitement is the wave of ongoing corporate governance reforms that could squeeze more money out of the long-moribund Japanese equity market.
A long moribund furniture retailer had a great day Thursday. Wayfair was a pandemic darling, but it had fallen on hard times. The quarter it reported wasn't as bad as feared, though, says Jinjoo Lee. Credit goes to the company's cost cuts.
A day after a mixed bag of messages from the Federal Reserve, investors will be laser-focused on April jobs report due at 8:30 eastern time on Friday morning. The yield on the benchmark 10-year Treasury note fell again with its yield down by 0.114 percentage point over the past two sessions.
Stocks rallied ahead of that piece of news with the Dow Jones Industrial Average rising 322 points or 0.88% Thursday. The more interest rate sensitive Nasdaq Composite and small cap Russell 2000 both did much better, jumping 1.5% and 1.65%, respectively.
Activist and value investors are converging on Japan. The smart money may be onto something: With U.S. shares suddenly under pressure from high rates again, hitching a ride on a long-term, structural trend like Japan’s corporate-governance reforms may make good sense.
Wayfair’s New Strategy Looks Built to Last. Between weak furniture demand and consumers’ return to bricks-and-mortar shopping, the postpandemic years haven’t been easy for online furniture seller Wayfair. But with some painful cost cuts already behind it, and its first large-format store set to open soon, Wayfair’s new foundation is starting to look pretty solid.
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📰 Today's Markets News:
SEC Ends Probe of Trades Before Activision-Microsoft Merger With No Action.
The Treasurys Market Is Getting Squeezed From All Sides.
ING Groep Shares Lifted by Quarterly Print, Fresh Buyback.
📅 What's Coming Up: Friday will bring the closely-watched jobs report for April.
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