They got it right

Heading into 2023, most of Wall Street’s top prognosticators were predicting more pain for the stock market following last year’s disaster. And just like Team Recession when it came to a US soft landing, they were wrong. Only a handful of market observers saw the equities rebound coming. Now, with the S&P 500 Index points away from a record high, these bulls can claim vindication. As for 2024, they see more strength as the labor market remains solid and conviction about Federal Reserve rate cuts rises. “We talked about the market maybe making new highs and people thought we were crazy,” said Carson Group Holdings LLC’s chief strategist, Ryan Detrick. “But we were surprised at the overwhelming negativity that was out there. It’s important for people to remember that the market had priced in a lot of bad news.” —David E. Rovella

Citigroup has decided to exit the distressed-debt trading business, the latest retrenchment in Chief Executive Officer Jane Fraser’s effort to reshape the firm in pursuit of higher returns. The move would remove one of the key players in distressed-debt markets, and follows a recent decision by the New York-based bank to get out of municipal bond trading and underwriting.

Jonathan Hoffman, John Bonello and Jonathan Tipermas share more than just similar first names. They’re the driving force behind a gigantic wager on government debt that’s been giving regulators sleepless nights. They and their teams are top players in the “basis trade,” a bet by a few of the world’s biggest hedge funds that profits from the tiny price gaps between Treasuries and derivatives known as futures. That makes them some of the most important individuals in finance today.

Warner Bros. Discovery Inc. held preliminary talks on a possible merger with Paramount Global, potentially combining two of the biggest media companies in the world. A combination of the companies would unite famous Hollywood properties, including the Paramount and Warner Bros. film and TV studios, and put a number of pay-TV and broadcast stations, such as HBO and CBS, under a single roof. Paramount Global meanwhile is in talks to sell its Black Entertainment Television network to a management-led investor group.

Toyota is recalling about one million vehicles sold in the US that are at risk of having passenger-side air bags fail to deploy properly due to a passenger-seat sensor issue. Sensors installed in some Toyota and Lexus brand sedans and SUVs could improperly classify passenger weight, causing air bags not to deploy as designed in potential crashes. The recall affects certain 2020-2022 model year gas- and hybrid-powertrain vehicles.

Three years ago, Tesla finally started trading on the S&P 500 Index. Since then, the EV company’s stockholders have been on a wild ride to say the least. As Tesla joined the S&P 500 in December 2020, its shares traded at $232. Today they’re at about $247, a 6.7% increase. What’s wrong with that? Well, over the same period, the S&P 500 climbed 27%.

If you’re one of those people who want the Supreme Court to save America from reelecting a president who tried to break democracy in his first term, Noah Feldman writes in Bloomberg Opinion, try not to get too hopeful. Given the unprecedented nature of the case to keep GOP favorite Donald Trump off the ballot in Colorado—not to mention the high court’s Republican-appointed supermajority—it’s likely the justices will overturn this week’s ruling by the state’s supreme court.

Homelessness in the US reached a grim milestone in 2023. A new report from the US Department of Housing and Urban Development registered the largest number of homeless people nationwide since counting began. The federal government’s latest figures paint a stark picture, with a 12% spike in the homeless population from last year to this year. That includes a sharp rise in the number of families with children in shelters. So what’s driving this crisis?

Jack Wilson loves being at the airport, a place most travelers find chaotic and frustrating. In fact, he’s usually there three or four days a week—and typically not to catch a flight. Wilson, 71, started volunteering at Dallas-Fort Worth International Airport after moving to Texas in 2017. Not every airport has volunteers—only 8 of the 10 largest airports in the US do. But airport officials and coordinators say these helpers still provide islands of calm amid hectic airport crowds, offering assistance with everything from finding misplaced items to comforting grieving travelers. At this time of year, you may find them to be the best holiday gift of all.

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