The real estate market in the United States is undergoing a tantrum, as neither builders nor would-be buyers are happy with how mortgage rates are behaving today. Shares of Realty Income (NYSE: O) have declined by 14.7% during the past two months... Why? As the FED seeks to combat the wild inflation rates the economy experienced during 2020-2022, these higher financing costs act as a wall to bring inflation and demand down. The strategy is working so far since building permits nationwide have been on a steady decline for a couple of quarters now. Permits going down means no traffic on this two-way street; on one side, banks and developers express their flattish outlook for the future; on the other, consumers do not express their desire to purchase homes right now. .
Equity markets rallied on Thursday on stronger-than-expected retail sales. Retail sales accelerated to 0.6% MoM from the prior read and suggest continued resilience in the US economy. Likewise, the latest read on the Fed's GDP shows US GDP advancing nearly 5.0% in Q3, a double-edged sword for the market. With CPI hot, PPI hot, and oil prices up, it's hard not to think the gains are underpinned by higher prices rather than actual demand. This means an increasing chance for additional FOMC interest rate hikes and another nail in this market's coffin.
The S&P 500 increased nearly 1.0% on Thursday's news, but there is a significant hurdle overhead. The market moved higher but is still below the critical 4,545 level, which could provide stiff resistance. The next major catalyst is the FOMC meeting next week; if the market confirms resistance at that level following the policy announcement, a significant correction will likely follow.
The real estate market in the United States is undergoing a tantrum, as neither builders nor would-be buyers are happy with how mortgage rates are behaving today. Shares of Realty Income (NYSE: O) have declined by 14.7% during the past two months... Why? As the FED seeks to combat the wild inflation rates the economy experienced during 2020-2022, these higher financing costs act as a wall to bring inflation and demand down. The strategy is working so far since building permits nationwide have been on a steady decline for a couple of quarters now. Permits going down means no traffic on this two-way street; on one side, banks and developers express their flattish outlook for the future; on the other, consumers do not express their desire to purchase homes right now.
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Shares of U.K. chip designer Arm Holdings rose almost 25% in their stock market debut, in the largest initial public offering of shares in nearly two years.The shares opened at $56.10 on the Nasdaq Thursday after having been priced at $51. They closed at $63.59, giving Arm a market value of $68 billion. Most consumers use at least one product that contains Arm's chips, though many people may not be familiar with the company itself. Its chip design is used in virtually all smartphones, the majority of tablets and digital TVs. More recently, Arm has expanded into artificial intelligence, smart devices, cloud computing, the metaverse and autonomous driving.Arm's offering is an important development for the IPO market, which has seen relatively few companies go public the past two years.
Snacks and cleaning supplies aren’t the only thing on sale at Dollar General Corporation (NYSE:DG). Last week, shares of the discount retailer fell to their lowest level since May 2019 following a dreadful second quarter earnings report. Like a bottle of generic bleach, the move erased all of the stock’s post-pandemic gains and put it $135, or 51%, below its 2022 record peak. Dollar General announced that Q2 profits were down 29% year-over-year, much worse than the 17% decline that Wall Street anticipated. The underperformance was attributed to several factors, including ...
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The average long-term U.S. mortgage rate edged up this week, pushing up borrowing costs for prospective homebuyers already facing a housing market limited by a dearth of homes for sale and rising prices
With Tesla Inc (NASDAQ: TSLA) shares having already rallied close to 200% this year, many investors will understandably be wary about chasing the bid. It’s always nice to feel like you’re getting shares at a discount whenever you decide to buy, but unless you’re one of the most ardent believers in Tesla's future growth trajectory, that’s not the case right now. The price-to-earnings (PE) ratio of the electric vehicle king has already doubled from where it was at the end of last year, as momentum has continued to swing back to the bulls. But ...
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Not very often do investors get the opportunity to buy an industry leader at a discount; today, shares of Shutterstock (NYSE: SSTK) are bringing what could be the deal of the cycle, yet people need to be talking about it. Is there any reason for the secrecy? Perhaps because the top three owners of the company, amounting to a total ownership rate of 51.7% in the entire firm, would rather keep the upside that this stock carries a secret until they feel it is time for the rest of the world to jump in with them. Fortunately for you, the homework has been done, and you, too, can get a chance at success.
The lawsuit alleges Westfield allowed the property to deteriorate and become a hub for criminal activity, resulting in more than 100 security incidents in the American Eagle store between May 2020 and May 2023.
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