The looming inflation crisis
Plus, Deere: The Tesla of farming & Synaptics expands to Internet of Things
The Fed will begin to carefully raise interest rates but would move aggressively if inflation does not cool as expected.
Why it matters: With inflation being the highest since the 1980s, it is the key fight before the Fed right now. Concerning the Russia war, the Chairman said “We will proceed carefully as we learn more about the implications of the Ukraine war on the economy”. “I think it’s going to take the Fed a long time to get right-sized,” said Nancy Tengler, chief investment officer at Laffer Tengler Investments. Analysts and investors wait to see the outcome of the March 15-16 meeting. (Yahoo)
Deere: The Tesla of farming
The company said it expects fiscal year 2022 net income to be between $6.5 billion and $7 billion, higher than fiscal 2021.
Why it matters: It is not often that farming gets attention on Wall street/Wall Street’s attention, but Deere (DE) not only did that but also earned a nickname: “Tesla of farming”. The shares of the farming equipment maker are currently up 15% with an all-time high and soaring the S&P 500. In January, Deere unveiled an autonomous tractor that can operate by itself and also at all hours, thereby saving both time and labour. Analysts expect the tractor to garner lots of consumer interest when it hits the market. (Barrons)
Synaptics expands to Internet of Things
Once a low-key provider of chips used for PC touchpads, Synaptics (SYNA) sales are forecast to jump 29%, to $1.73 billion in the fiscal year, ending in June.
Why it matters: Thanks to a series of acquisitions, California-based chip maker Synaptics will now be expanding into making parts for virtual-reality headsets, security cameras, voice-recognition systems and a range of other applications. “Demand is insanely hot, and supply is very, very tight,” CEO Michael Hurlston says. Hurlston says that revenue in the last quarter was held back by capacity constraints at the company’s foundry partners. The Internet of Things now accounts for more than 60% of the company’s revenue, with an annual run rate of more than $1 billion. (Barrons)
That’s it from us today,
See you next week.