After Monday's trading session with extremely low volume yesterday, cash flow continues to stall in the first half of this morning's trading session with investors mostly selling tech stocks and regional bank stocks.
Apple begins selling corporate bonds attracting massive investor interest, pulling money out of government bonds and pushing 10Y yields up to 3.53% this morning, putting heavy pressure on small caps. Not only that, selling pressure continues in regional banks after Paypal's unimpressive earnings report. Specifically, Paypal reported revenue and profit beating expectations, however competition is starting to eat into the company's margin, causing Paypal to cut its 2023 margin growth forecast from 1.25% to 1.00%. Overall, Wall Street has mixed views on Paypal's ER but according to Viet Hustler, this ER is not that bad, just showing pressure from competition as well as various external factors affecting margin.
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