This Week's Stock Market News: November 13-17
SP500 Gains 2.3% This Week, Despite Economic Forecasts Looking Bleak.
This article is written by Stock Market Poetry (an affiliate of Investor’s Compass), where we turn market commentary into poetry. So, here’s some news and poetry. Enjoy!
Home Depot Grim Economic Outlook - November 14
Summary: Home Depot's financial performance exceeded expectations, but the company cautions about future hurdles. They predict an earnings drop of 9-11% in 2023, which would be their first annual sales decline since the 2009 crisis. High interest rates are impacting big-ticket items like appliances.
The company cites a combination of factors for the decline, including a lack of financing, reduced consumer confidence, and high interest rates hindering borrowing for purchases. Source: GRDecter via X (Twitter)
In poetic form:
Home Depot's forecast, a path unclear, With bumps on the road that soon may appear. Sales may dip low as high rates impede, A challenging journey as caution they heed.
Inflation Comes in Lower Than Expected - November 14
Summary: Stock markets rallied on November 14 with the release of the Consumer Price Index (CPI) data for October, which indicated a stabilization in inflation. The CPI showed no increase from the previous month, and the annual inflation rate was only 3.2%, below the anticipated 3.3% and the lowest since September 2021. Core CPI also rose less than expected, helped by a decrease in energy prices.
In poetic form:
In markets ablaze, the CPI stays, No rise from last month, to traders' amaze. A gentle 3.2 on the yearly scale, Inflation's hot breath turns a cooler gale.
Walmart CEO Warns of Coming Deflation - November 16
Summary: Walmart CEO Doug McMillon indicated on November 16 that the U.S. might experience deflation in food prices after years of substantial increases. He noted that prices for dry groceries and consumables could start to deflate in the upcoming weeks and months, suggesting a potential shift to a deflationary period. Groceries account for over half of Walmart's sales, and the company is a major player in the retail market.
In poetic form:
McMillon speaks, the markets hear, A hint at deflation, rather clear. After hikes that made wallets tight, A softer price in shoppers' sight.
Rising US Recurring Jobless Claims - November 16
Summary: On November 16, reports showed a rise in recurring jobless claims to 1.87 million, the highest in nearly two years. This marks the eighth consecutive week of increases. Initial jobless claims also climbed to the highest since August.
Additional data indicated a cooling in the labor market, factory production declines due to strikes in the auto industry, and decreased homebuilder sentiment because of high mortgage rates. These factors contribute to the speculation that the Federal Reserve may halt interest rate hikes.
In poetic form:
Claims on the rise, the jobless endure, A market less warm, a future less sure. The Fed may now pause, rates to maintain, In hopes that stability will reign again.
Ray Dalio Sounds the Alarm on Looming U.S. Debt Crisis - November 17
Ray Dalio, the billionaire founder of Bridgewater Associates, has warned that the United States is on the brink of a terrible debt crisis. He cautioned that the U.S. is facing a situation where its debt problem will worsen significantly, pointing out that the nation is reaching a point where it will have to sell a lot of debt because the needs for money are much greater than the savings in the country. Dalio also noted that the Federal Reserve's attempts to balance inflation and debt will be a major challenge.
In poetic form:
The man of wealth, with a foresight clear, Warns of debt, the nation's lurking fear.
"Beware," he says, "of the looming plight, Where debts grow vast, beyond our might. Our needs outpace our savings bare, A balance act, a Fed's despair."
He sees a future dim and stark, Where borrowing spirals into the dark. A billionaire's caution to the state, To change the course before too late.
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