High interest rates still haunt consumers and affect retails
Target reported third-quarter profits, crushing analyst sales, margin, and earnings projections after almost two years of operational failures, escalating retail theft, and cautious customer sentiments. Target chairman and CEO Brian Cornell said “resilient” consumers have weathered student loan repayments and inflation. However, the call and Target’s holiday quarter EPS guidance were cautious, with themes like…
Will recession hit the US in 2024?
European bank UBS predicts a US recession next year and a significant reduction in interest rates from the Federal Reserve due to falling inflation and economic recession. The bank expects the Fed to cut rates by 275 basis points, four times the 75-basis-point decrease expected by the market. Analysts are expecting rates to fall to…
The Fed would reduce rates to boost economic
Federal Reserve Chairman Jerome Powell may not discuss interest-rate decreases due to the uncertainty of a recession next year. Goldman Sachs predicts rates to remain below 4%. Higher bond yields and rising real interest rates may prompt the Fed to reduce rates to prevent damaging growth.
CPI were stabilized in October, but inflation grew
The Bureau of Labor Statistics reported that consumer prices remained steady in October due to a decline in oil prices, but “core” inflation grew at the slowest annual rate since September 2021. Prices rose 0% last month and 3.2% over the last year, down from September’s 0.4% monthly increase and 3.7% annual growth. The shelter…
Japan yen rose due to intervention by government
The Japanese yen surged against the dollar on Monday, indicating potential government intervention. The dollar dropped from a one-year high to 151.20 yen, last traded at 151.49. Japan intervened to strengthen in September 2018 and mid-October 2022.
Gas prices drop to under $3 per gallon
Gas prices in 11 states are falling below $3 per gallon due to falling seasonal demand and cheaper winter gas. California’s price has dropped 60 cents in a month to $5.07. The Energy Information Administration expects US gasoline consumption to fall next year due to remote work, improved fuel economy, and high inflation. Gasoline prices…
Stock market slip due to inflation and CPI data
Stocks fell on Monday due to a critical US inflation number and consumer sentiment data amid high borrowing prices. The Nasdaq Composite fell 0.4%, while the S&P 500 and Dow Jones Industrial Average dropped 0.3% and 0.2%, respectively. Concerns over the US government’s finances increased after Moody’s downgraded its debt outlook.
Inflation data causing Wall St crash down
The Federal Reserve’s inflation reading and economic data this week could influence the duration of the Fed’s interest rate hikes, causing Wall Street’s key indexes to fall. Megacap growth stocks suffered as the 10-year Treasury yield climbed, while eight of 11 key S&P 500 sectors fell, with rate-sensitive real estate companies down 1.2%. The expected…