Top Story
The Final Quarter of 2022 Starts With Green on the Screen
• US stocks rose on Monday, starting the new quarter on a positive note. Conversely, after topping 4% at one-point last week, the 10-year US Treasury note fell, hovering around 3.6% yesterday. Investors breathed a sigh of relief after a tough month. In September, the Dow and S&P 500 posted their biggest monthly losses since March 2020.
• The S&P 500 energy sector helped lead the market higher after reports suggested that OPEC+ is considering a big production cut. The S&P 500 energy sector helped lead the market higher after reports suggested that OPEC+ is considering a big production cut.
• Manufacturing PMI fell to 50.9 in September from 52.8 in August. A print above 50 points to an expansion, which is good, however, the gauge appears to be trending in the wrong direction.
What to Be on the Lookout for Today
• The Bureau of Labor Statistics will publish its Job Openings and Labor Turnover Summary for August, also known as the JOLTS report. Job openings came in at 11.2 million in July, which was little changed from the previous month. Investors will be looking to see if the job market is holding strong as the Fed continues its rate hike campaign. August factory orders are also due.
• Acuity Brands (AYI) will report its third-quarter earnings. The company makes lighting products and provides building services. Last week, Acuity Brands announced the creation of a job training program in partnership with the city of Atlanta and Atlanta Tech. Investors will be paying close attention to the company’s results given the building industry and real estate in general have come under pressure as rates rise.
New Podcast Episode: The Link Between Advertising and Investing
How much weight should an investor put on a company’s advertising strategy? According to this week’s guest, quite a lot.
Joe Marchese, Executive Chairman at Human Ventures and previous President of Advertising Revenue for Fox Networks Group, sit down with Liz Young to talk about looking at ads — specifically ones that aim to acquire a customer vs. ones that simply acquire a transaction — can give investors a lot of insight into how a company may fare in the long run.
Liz and Joe also talk about advertising trends and what that could mean for the consolidation of a business, or M&A, through the business cycle. Listen and subscribe wherever you get your podcasts.
A Few Headlines That Should Be on Your Radar
Research shows while lunch and dinner sales are down at fast food restaurants, breakfast daypart traffic is up. That’s important for several reasons, and consumer habits are driving the trend. They say breakfast is the most important meal of the day. But for fast food restaurants like McDonald’s (MCD) and Wendy’s (WEN) that’s especially true — and it’s all thanks to trends that kicked in during the pandemic. Read more >> The name of the game in rideshare appears to be diversification. Uber (UBER) is pushing into travel booking and taxis, after experiencing success with Uber Eats. So far, Lyft (LYFT) has not done as much branching out, although they do have Lyft Media, to take advantage of digital advertising. There’s data suggesting ride-hailing alone won’t get these companies where they want to go. Read more >> Your credit score is like an adult report card. Except, instead of getting A’s in physics, history, or english – you’re displaying how good of a borrower you are. Before applying for a mortgage, starting a business, or financing the purchase of a car, you need to have a good credit score. Try using these four strategies to start “improving your grades” today. Read more >> There are many different ways for identity theft to occur. One hazard to look out for is the credit card skimmers that are most commonly lurking at ATMs or gas station pumps. To help protect yourself against theft, keep reading to learn what credit card skimmers are, how to spot a credit card skimmer, and what to do if your credit card is skimmed. Read more >>Not-So-Breaking News
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Credit Suisse (CS) saw its share price fluctuate as it attempts to reassure the market against ongoing concerns tied to its financial health. Reports have indicated the Swiss lender is in talks with some of its major investors and also looking to raise capital.
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Peloton (PTON) is taking more steps aimed at getting its products in front of consumers, agreeing to put its bikes in all of Hilton’s (HLT) 5,400 US locations. This includes the hotel chain’s 18 subsidiaries such as Doubetree and Hampton Inn.
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Tesla (TSLA) announced it delivered 343,000 vehicles in its third quarter. During Q3 2021 the EV leader reported 241,300 deliveries. That said, analysts had been expecting 364,600 deliveries of cars. Tesla blamed the miss on soaring commodity prices as well as some growing pains at new factories in Texas and Germany.
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Intel’s (INTC) self-driving company Mobileye is looking to go public and has filed for an IPO. Reports say Intel was initially eyeing an IPO value at over $50 billion but has since downgraded that to around $30 billion. Mobileye makes what are essentially the brains behind self-driving vehicles.
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Reality TV megastar and social media influencer Kim Kardashian agreed to pay more than $1 million to settle SEC charges involving her promotion of a cryptocurrency on her Instagram (META) in 2021. Regulators say Kardashian failed to disclose she received a payment for touting the digital asset. As part of the agreement she won’t promote crypto for the next three years.
Financial Planner Tip of the Day
“Working to improve a credit score before applying for a home loan could save a borrower a lot of money in interest over time. Lower rates will keep monthly payments lower or even provide the ability to pay back the loan faster.”
Brian Walsh, CFP® at SoFi