Economic and jobs news thread

User avatar
caltrek
Posts: 6509
Joined: Mon May 17, 2021 1:17 pm

Re: Economic and jobs news thread

Post by caltrek »

Why Apple Can Hold the Line on iPhone Prices, as Smartphones Defy Soaring Inflation and Keep Getting Relatively Cheaper
by Jay L. Zagorsky
September 14, 2022

Introduction:
(The Conversation) Inflation in the U.S. is surging to near a 40-year high, with prices on food, fuel and pretty much everything seeming to rise more every month.

Smartphones may be an exception.
Conclusion:
With a gross profit margin of over 40% – meaning that’s how much it makes over the cost of producing all its products and services – Apple can probably afford to absorb increased chip and other component costs.

My best guess, since the smartphone market is fairly competitive, is that Apple is keeping prices the same to build market share in the U.S. – beyond the record 50% it recently hit – so the iPhone remains one of the best-selling smartphones.

So while the cost of almost everything we buy is rising, you can take some comfort in knowing at least one item is getting both better over time and not succumbing to an inflationary price spiral.
Read more here: https://theconversation.com/why-apple- ... er-190590
Don't mourn, organize.

-Joe Hill
User avatar
caltrek
Posts: 6509
Joined: Mon May 17, 2021 1:17 pm

Re: Economic and jobs news thread

Post by caltrek »

Nasdaq Drops More Than 1% as Market Comeback Stumbles, Dow Closes at Lowest Level in Two Months
by Jesse Pound and Tanaya Macheel
September 15, 2022

Introduction:
(CNBC) U.S. stocks dropped in choppy trading on Thursday as investors mulled over several economic reports that showed a muddy picture of the U.S. economy.

The Nasdaq Composite shed 1.43% to close at 11,552.36, while the S&P 500 fell 1.13% to 3,901.35. The Dow Jones Industrial Average outperformed but still dropped 173.27 points, or 0.56%, to 30,961.82 for its lowest close since July 14.

Shares of Adobe weighed on the Nasdaq and S&P 500. The software stock lost more than 16% after the company announced a $20 billion deal to buy Figma. The weakness spread to other tech stocks, with Apple falling 1.9% and Salesforce sliding 3.4%.

Bank stocks were a bright spot, with Goldman Sachs and JPMorgan rising more than 1% apiece. UnitedHealth Group rose 2.6%.

Wall Street is still trying to find its footing after a surprise increase in August’s consumer price index report sparked a decline of more than 1,200 points for the Dow on Tuesday. A minor rebound on Wednesday was wiped out by Thursday’s declines.
Read more here: https://www.cnbc.com/2022/09/14/stock- ... news.html
Don't mourn, organize.

-Joe Hill
weatheriscool
Posts: 12967
Joined: Sun May 16, 2021 6:16 pm

Re: Economic and jobs news thread

Post by weatheriscool »

Fed raises rates by another three-quarters of a percentage point, pledges more hikes

Source: CNBC

The Federal Reserve on Wednesday raised benchmark interest rates by another three-quarters of a percentage point and indicated it will keep hiking well above the current level. In its quest to bring down inflation running near its highest levels since the early 1980s, the central bank took its federal funds rate up to a range of 3%-3.25%, the highest it has been since early 2008, following the third consecutive 0.75 percentage point move.

Stocks had given up earlier gains after the announcement, with the Dow Jones Industrial Average dropping more than 200 points. But have since cut losses as Fed Chairman Jerome Powell discussed the outlook for interest rates. Traders have been concerned that the Fed is remaining more hawkish for longer than some had anticipated. Projections from the meeting indicated that the Fed expects to raise rates by at least 1.25 percentage points in its two remaining meetings this year. The increases that started in March and from a point of near-zero mark the most aggressive Fed tightening since it started using the overnight funds rate as its principal policy tool in 1990.

The only comparison was in 1994, when the Fed hiked a total of 2.25 percentage points; it would begin cutting rates by July of the following year. Along with the massive rate increases, Fed officials signaled the intention of continuing to hike until the funds level hits a “terminal rate,” or end point of 4.6% in 2023. That implies a quarter-point rate hike next year but no decreases. The “dot plot” of individual members’ expectations doesn’t point to rate cuts until 2024. Fed Chairman Jerome Powell and his colleagues have emphasized in recent weeks that it is unlikely rate cuts will happen next year, as the market had been pricing.

Federal Open Market Committee members indicate they expect the rate hikes to have consequences. The funds rate on its face addresses the rates that banks charge each other for overnight lending, but it bleeds through to many consumer adjustable-rate debt instruments, such as home equity loans, credit cards and auto financing. In their quarterly updates of estimates for rates and economic data, officials coalesced around expectations for the unemployment rate to rise to 4.4% by next year from its current 3.7%. Increases of that magnitude often are accompanied by recessions.
Read more: https://www.cnbc.com/2022/09/21/fed-rat ... 2022-.html
User avatar
caltrek
Posts: 6509
Joined: Mon May 17, 2021 1:17 pm

Re: Economic and jobs news thread

Post by caltrek »


Markets Seesaw After the Fed Lifts Rates
by Jacob Sonenshine and Jack Denton
September 21, 2022

Introduction:
(Barron’s) The stock market wavered Wednesday after the Federal Reserve raised short-term interest rates. The central bank also signaled its intention to remain aggressive in lifting rates going forward.

The Dow Jones Industrial Average had declined 203 points, or 0.7%, while the S&P 500 had fallen 0.6%, and the Nasdaq Composite had dropped 0.7%. All three indexes were solidly in the green to start the day.

The Fed lifted the federal funds rate by three quarters of a percentage point, in line with the expectation. A slight majority of Fed members see the rate going to at least 4.5% in 2023, a touch higher than the peak fed funds rate that markets had expected prior to the announcement.

The move is sending bond yields to new heights. The rate hike, itself, was expected, but the Fed’s indication that it will remain aggressive in lifting rates is causing a sell-off in the bond market, moving yields higher.

The announcement “shows the very high level commitment on the part of the Fed to cut the inflation rate sharply from here and that is what markets are responding to,” wrote Peter Boockvar, chief investment officer of Bleakley Advisory Group.
Read more here: https://www.barrons.com/livecoverage/s ... ay-092122
Don't mourn, organize.

-Joe Hill
weatheriscool
Posts: 12967
Joined: Sun May 16, 2021 6:16 pm

Re: Economic and jobs news thread

Post by weatheriscool »

caltrek wrote: Wed Sep 21, 2022 8:14 pm
Markets Seesaw After the Fed Lifts Rates
by Jacob Sonenshine and Jack Denton
September 21, 2022

Introduction:
(Barron’s) The stock market wavered Wednesday after the Federal Reserve raised short-term interest rates. The central bank also signaled its intention to remain aggressive in lifting rates going forward.

The Dow Jones Industrial Average had declined 203 points, or 0.7%, while the S&P 500 had fallen 0.6%, and the Nasdaq Composite had dropped 0.7%. All three indexes were solidly in the green to start the day.

The Fed lifted the federal funds rate by three quarters of a percentage point, in line with the expectation. A slight majority of Fed members see the rate going to at least 4.5% in 2023, a touch higher than the peak fed funds rate that markets had expected prior to the announcement.

The move is sending bond yields to new heights. The rate hike, itself, was expected, but the Fed’s indication that it will remain aggressive in lifting rates is causing a sell-off in the bond market, moving yields higher.

The announcement “shows the very high level commitment on the part of the Fed to cut the inflation rate sharply from here and that is what markets are responding to,” wrote Peter Boockvar, chief investment officer of Bleakley Advisory Group.
Read more here: https://www.barrons.com/livecoverage/s ... ay-092122

The rich really don't like to lose money to the customer that is for sure. Bastards.
User avatar
caltrek
Posts: 6509
Joined: Mon May 17, 2021 1:17 pm

Re: Economic and jobs news thread

Post by caltrek »

The 1% Move Report for September 23, 2022


Introduction:
(Morgan Stanley)
What Happened in the Markets?

• The S&P 500 Index dipped 1.7% Friday to end the trading day well in bear-market territory at 3,693, just shy of its June 16, 2022 low of 3,667.

• …WTI oil declined 5.4% to $79 per barrel (a low last seen in January 2022) as fears of a hard landing in the US heightened and as the dollar met multi-year highs relative to other currencies due to the relative strength of the US economy.

• The fight against global inflation led many central banks to raise interest rates nearly 650 basis points this week, according to FactSet, showing a willingness to push ahead into an economic slowdown to win the battle. Meanwhile, Japan's decision to hold rates flat drove the need for currency intervention. Subsequently, today in the UK, the finance minister's announcement of significant tax cuts to stimulate growth led to growing concerns regarding the level of funding these measures require when rates are headed higher. UK markets responded with a sharp pull-back; the British pound tumbled to $1.09 (a 37 year low) while UK bond yields surged the most in years. Markets priced in a Bank of England rate increase of 100-basis-points in November, following the Bank of England's 50-basis-point increase yesterday.

• As the end of the third quarter nears, we believe U.S. equity markets will continue to weigh the effect of elevated inflation, higher rates, and slowing growth on corporate earnings and valuations.

• All 11 S&P 500 sectors declined, with Health Care (-0.5%) and Utilities (-1.2%) the relative outperformers, while Consumer Discretionary (-2.3%) and Energy (-6.7%) underperformed.
Read more here: https://www.morganstanley.com/content/ ... move-2022
Don't mourn, organize.

-Joe Hill
User avatar
caltrek
Posts: 6509
Joined: Mon May 17, 2021 1:17 pm

Re: Economic and jobs news thread

Post by caltrek »

Spain Plans Tax Hike on Millionaires to Help Those in Need
September 23, 2022

Introduction:
MADRID (AP via Courthouse News) — Spain’s Socialist-led coalition government is planning a temporary higher tax rate on the richest 1% of the country from next year, in addition to its windfall taxes on large energy companies and banks.

“We are proposing a redistribution of the effort, among those who have the most, to fund the welfare state, which is everybody’s,” Socialist Prime Minister Pedro Sánchez said in a speech Friday.

Finance Minister María Jesús Montero says the measure targets only millionaires. The expected increase in tax revenue will be used to alleviate hardship brought by higher prices for energy and food, she says. The annual inflation rate climbed to 10.5% in Spain last month.

The exact increase and scope of the tax measure are still being worked out, the government says.

The Socialists’ junior coalition partner, Unidas Podemos (United We Can), is pushing for the new tax to be permanent.
Read more here: https://www.courthousenews.com/spain-p ... -in-need/
Don't mourn, organize.

-Joe Hill
weatheriscool
Posts: 12967
Joined: Sun May 16, 2021 6:16 pm

Re: Economic and jobs news thread

Post by weatheriscool »

Inflation hits record 10% in 19 EU countries using euro

The Associated Press
September 30, 2022, 7:10 AM
FRANKFURT, Germany (AP) — Inflation in the European countries using the euro currency has broken into double digits as prices for electricity and natural gas soar, signaling a looming winter recession for one of the globe’s major economies as higher prices undermine consumers’ spending power.

Consumer prices in the 19-country eurozone rose a record 10% in September from a year earlier, up from an annual 9.1% in August, EU statistics agency Eurostat reported Friday. Only a year ago, inflation was as low as 3.4%.

Price increases were beyond what market analysts had expected and are at their highest level since record-keeping for the euro started in 1997. Energy prices were the main culprit, rising 40.8% over a year ago. Food, alcohol and tobacco prices jumped 11.8%.

“I’m already looking a lot more for special offers,” said Myriam Maierhofer, a 64-year-old trainer and coach for staff development, who was shopping Thursday at weekly outdoor market in Cologne, Germany. “I don’t throw away so much so quickly, so I’ve become more economical with food. And this morning, I also turned down the heating in the rooms again.”
{snip}

Read more: https://wtop.com/europe/2022/09/inflati ... sing-euro/
weatheriscool
Posts: 12967
Joined: Sun May 16, 2021 6:16 pm

Re: Economic and jobs news thread

Post by weatheriscool »

'Evidence of a slowdown': US consumers spurn big-ticket items like cars, couches, cruises

Mehr Bedi
Fri, September 30, 2022 at 1:36 PM · 2 min read
(Reuters) - U.S. consumers are exhibiting fragility ahead of the peak period for corporate results next month, as some are struggling to pay bills and others are slowing purchases of cars, sneakers, and household goods, the week's earnings show. ... Data released on Friday showed U.S. consumer spending increased more than expected in August, but aggressive interest rate hikes from the Federal Reserve as it battles stubbornly high inflation are slowing demand.

{snip}

"We are seeing evidence of a slowdown in spending across a wide swath of the consumer space, with the combination of inflation and rising interest rates pressuring household budgets," said Garrett Nelson, VP and senior equity analyst at CFRA Research. ... Big-ticket items like furniture and cars that are typically financed have been hit particularly hard, he said.

Rent-A-Center Inc, a retailer that rents televisions, sofas and appliances to lower-income customers, cut its profit forecast for the third-quarter on Thursday, citing a weakening economy.

{snip}

Used-car retailer CarMax Inc on Thursday said higher interest rates and inflation were starting to take a toll on vehicle demand, a warning that spooked investors in the wider autos sector.
{snip}

Read more: https://finance.yahoo.com/news/u-consum ... 29852.html
weatheriscool
Posts: 12967
Joined: Sun May 16, 2021 6:16 pm

Re: Economic and jobs news thread

Post by weatheriscool »

US job openings post biggest drop in nearly 2 1/2 years in August

Tue, October 4, 2022 at 10:14 AM
WASHINGTON, Oct 4(Reuters) - U.S. job openings fell by the most in nearly 2-1/2 years in August, though staying at high levels as demand for labor remains fairly strong, which could keep the Federal Reserve on its aggressive monetary policy tightening path.

Job openings, a measure of labor demand, dropped 1.1 million to 10.1 million on the last day of August, the Labor Department said in its monthly Job Openings and Labor Turnover Survey, or JOLTS report, on Tuesday.

August's decline was the largest since April 2020, when the economy was reeling from the first wave of the COVID-19 pandemic. Data for July was revised lower to show 11.170 million job openings instead of 11.239 million as previously reported.

Economists polled by Reuters had forecast 10.775 million vacancies.

Read more: https://finance.yahoo.com/news/u-job-op ... 56384.html
Post Reply