CNBC’s Jim Cramer believes this week is likely to be a “calm before the storm moment.” He believes this week could be relatively calm for Wall Street. However, he said investors should start preparing for trading days ahead, adding that the Evergrande crisis will play a large role in what happens next. In other news, a new survey has found that economists have slashed their forecasts on U.S. growth for 2021. The National Association for Business Economists said the panel now expects a US GDP growth of 5.6%. That number was downgraded from May’s 6.7% growth? The cause? Damage from the Delta variant.
Cramer’s week ahead: ‘We’re now headed into a calm before the storm moment here’
Next week could be a relatively calm stretch for Wall Street, CNBC’s Jim Cramer said Friday, but he advised investors to start preparing for trading days on the horizon.
“Get ready. After next week, the onslaught of earnings and the Labor Department’s all-important non-farm payroll number will strike,” the “Mad Money” host said. “After a crazy up and down … week, we’re now headed into a calm before the storm moment here, and that storm could get a lot worse depending on what happens in China, where there’s no calm to be found at all.”
Read about Cramer’s game plan for the week ahead, here.
CNN Business/Matt Egan
Economists slash their forecasts for America’s growth
Business economists are marking down their forecasts for US growth this year as the Delta variant takes a toll on the recovery, according to a survey released Monday.
The National Association for Business Economists said the panel of 47 economists it surveyed now expects US GDP growth of 5.6%. Although that’s still strong, it marks a downgrade from May when business economists anticipated 6.7% growth. Economists also sharply cut their call for third-quarter growth to an annualized pace of 4%, down from 6.6% in May.
The downgrades reflect the damage from the Delta variant, which has slowed air travel, hotel reservations and office reopenings.
At the same time, economists are bracing for price spikes to continue at the end of this year. Consumer prices are expected to surge by 5.1% during the fourth quarter on a year-over-year basis, according to NABE. That’s up sharply from a forecast for 2.8% inflation as of May and underscores the sticker shock Americans are experiencing in everything from used cars and gasoline to meat.
Read the full story, here.
Reuters via U.S. News
Cost of borrowing Evergrande stock hits new high on debt fears
The cost of borrowing China Evergrande shares rocketed last week, data from research firm FIS Astec shows.
Short-sellers borrow shares, sell them and hope to buy them back for a lower price. They are paying fees equivalent to annualized rates of 92%, FIS Astec figures as of Sept. 23 show.
That is up from 50% two weeks earlier.
Continue reading, here.