Good morning investors!
The S&P ended flat after a quiet news day.
I wouldn’t expect the same outcome today as the CPI, a key inflation report, is scheduled to be released this morning. The results will be a huge catalyst for today’s price action.
Investors are hoping for the trend of cooling inflation to continue so the Fed can finally end the rate hiking cycle and the Santa rally can keep going. If there are any signs otherwise, things could get ugly quick.
On top of the CPI, Home Depot reports earnings before the bell. The home improvement company is a bellwether for the economy and consumer spending. You can bet investors will be watching this report as well.
Don’t miss a thing - head to the Discord to get full breakdowns of all earnings and economic reports.
Market Recap
It was a mixed day for the markets.
Consumer spending fell in October, according to new Retail Monitor tracking card transactions
The consumer took a spending break ahead of the holiday season, with October retail sales, excluding autos and gas, falling by 0.08%, and core retail, which also removes restaurants, declining by 0.03%, according to a new Retail Monitor. The new Retail Monitor, debuting Monday, is a joint product of CNBC and the National Retail Federation based on data from Affinity Solutions, a leading consumer purchase insights company. The data differs from the Census Bureau’s retail sales report as it is the result of actual consumer purchases, while the Census relies on survey data. The government data is frequently revised as additional survey data becomes available. The CNBC/NRF Retail Monitor is not revised as it’s calculated from actual transactions during the month. Read more
U.S. retailers stuck with excess stock offer bargains as holiday season nears
As the holiday shopping season approaches, major U.S. retailers from Dollar General DG 0.00%↑ to Walmart WMT 0.00%↑ and Macy's M 0.00%↑ could be saddled with too much stock for a second straight year, jeopardizing retailers’ profit margins and generating steep discounts for shoppers. Stuffed stockrooms are especially challenging for retailers this year because American shoppers are expected to spend just 3% to 4% more this season, roughly on par with inflation. That would represents the slowest pace of growth in five years, according to industry estimates. Carrying too much inventory is a problem for many retailers because it drives up retailers' expenses for handling, storing and transporting products. "The undeniable reality in retail is that 15-20% of products occupying store shelves need to go," said Jeff Bornino, North America President at TMX Transform, said. Read more
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Starbucks Unionized Baristas Plan Largest-Ever Strike for Red Cup Day
Unionized Starbucks SBUX 0.00%↑ baristas plan to hold their biggest strike yet this week, accusing the coffee giant of refusing to fairly negotiate at cafes that voted to organize. Thousands of employees at hundreds of sites will mount one-day work stoppages on Thursday, according to the union Starbucks Workers United. The strike is pegged to the company’s Red Cup Day, a popular promotional event when Starbucks gives out holiday-themed reusable cups. The union says Starbucks has illegally refused to negotiate in good faith over issues including staffing and scheduling that are particularly onerous during such promotions. Read more
Amazon cuts more than 180 jobs in gaming division
Amazon on Monday announced it will cut more than 180 jobs in its Amazon Games division as it refocuses its efforts on Prime Gaming. The company will close its Game Growth and Crown Channel initiatives as part of the restructuring. Now, Amazon will focus on upcoming launches such as “Throne and Liberty” and “Blue Protocol,” as well as future initiatives such as “Tomb Raider” and “The Lord of the Rings” games, Christoph Hartmann, vice president of Amazon Games. The latest job cuts at Amazon come as CEO Andy Jassy has been in cost-cutting mode over the past year as the company has battled high interest rates and inflation. As a result, Amazon has carried out the largest layoffs in its history, cutting 27,000 jobs since last fall. Read more
Top 10 Most Popular ETFs in 2023
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Chris
CMG Venture Group
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Happy inflation day! 🥳🎂