Top Story
All Eyes on the Fed as Stocks Fall, Housing Starts Unexpectedly Rise, Permits Plummet
• US stocks fell Tuesday ahead of today’s key rate hike decision. Investors are bracing for what is expected to be an at least 75-basis-points hike. The Fed is tightening its monetary policy in a bid to fight inflation, which has weighed on equities all year.
• Government bond yields fell in price all while yields rose. Bond prices and yields move in opposite directions. This points to the market’s diminished appetite for risk at the moment.
• Housing starts rose unexpectedly while single-family permits fell dramatically. The surprising housing starts metric was boosted by growth in multi-family housing construction. Single-family housing construction has been under pressure amid falling demand, due to rising mortgage rates.
What to Be on the Lookout for Today
• Investors will be paying close attention to the Federal Reserve as its rate hike decision will be announced. Fed Chair Jerome Powell will hold a press conference afterwards. Most analysts are predicting between a 75-basis-point or full-point hike, with inflation at its highest level in decades.
• August Existing Home Sales are due from the National Association of Realtors®. Existing home sales fell 5.9% in July from the previous month, representing a 20.2% year-over-year decline.
• KB Home (KBH) will report earnings. Operators and investors in the real estate sector are contending with rising rates as well as increased costs. Heading into colder months, which is when construction often slows, analysts will be eager to hear thoughts about the space over the next six to 12 months.
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A Few Headlines That Should Be on Your Radar
After becoming an industry leader in music streaming and podcasts, Spotify (SPOT) is expanding into a new audio category. Executives see it as a major step forward for the company. Spotify’s new audiobooks platform features 300,000 titles that you pay for on a per download basis. Authors and publishers are excited about the possibilities. What does it mean for Apple (AAPL) and Amazon (AMZN)? Read more >> Everywhere you look on social media and elsewhere, companies are advertising about solar panels. But how do you know if it’s a cost-effective move? It’s important to factor in the cost of equipment, installation, and any recurring fees. Your location and type of roof are also variables. The most important thing to consider is your monthly savings – over the long term. Read more >> For celebrities, the front of the Wheaties (GIS) box is no longer enough. Instead, they want creative control in the brands that they are partnering with. Kanye West recently split with Gap (GPS) because he felt he was being stifled creatively. Is the balance of power finally shifting away from massive corporations, in favor of celebrities? Read more >> Becoming familiar with the top credit card scams can increase your awareness and help you better protect your identity from fraud. Here are some of the most common credit card scams to look out for. Read more >>Not-So-Breaking News
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Chinese EV maker Xpeng (XPEP) announced a new feature that allows its cars to drive semi-autonomously along city streets. Called City NGP, the program is intended to rival Tesla’s (TSLA) Full Self Driving Beta, which is currently undergoing testing with US customers.
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According to a memo sent to Amazon (AMZN) employees, this past week’s Thursday Night Football debut led to a record number of signups for Prime within a three-hour period. Amazon is paying the NFL around $1 billion annually to secure the exclusive rights to Thursday night games.
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Peloton (PTON) is expanding its fitness equipment lineup with a $3,195 rowing machine. Now available for preorder, the at-home fitness company expects deliveries of the Peloton Row will begin in December. Peloton is undergoing a corporate restructuring amid mounting losses.
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Online real estate platform Compass (COMP) announced it will cut jobs in a bid to reduce costs. While the total number of layoffs wasn’t confirmed, the company says the majority of the separations are in the product and engineering teams. It’s been a challenging past three months for Compass, as its share price fell over 29% during that time as of Monday.
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Apogee Enterprises (APOG) posted record sales and profit in its fiscal second quarter, beating analyst expectations in the process. The provider of architectural products and services said its framing business is a source of strength at present.
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