Thursday,
October 19, 2023
Market recap
Dow Jones
33,665.08
-332.57 (-0.98%)
S&P 500
4,314.60
-58.60 (-1.34%)
Nasdaq
13,314.30
-219.44 (-1.62%)
Top Story
Ozempic, Wegovy, and the weight of the economy
As America is set to shed millions of pounds with the help of these new weight-loss drugs, investors are trying to anticipate how a leaner population might reshape the economy.
US stocks fell on Wednesday as earnings season continued and Treasury yields remained at multi-year highs
• The 10-year Treasury yield surpassed 4.9% for the first time since 2007, adding more pressure to equities.
• Morgan Stanley (MS) beat analyst expectations but its shares dipped 6.8% as its important wealth management division fell short of revenue estimates.
• Procter & Gamble (PG) shares rose 2.6% after topping earnings and revenue expectations. The company saw a decline in overall volume for the sixth consecutive quarter but managed a 7% increase in revenue on the back of higher prices.
• United Airlines shares fell 9.6% after it announced that fuel costs and the ongoing conflict in the Middle East would affect the company’s fourth quarter earnings.
• The average 30-year fixed-rate mortgage rose for a sixth consecutive week to a fresh multi-decade high of 7.7%. Demand for home loans meanwhile fell to a 28-year low.
• The number of building permits obtained in September exceeded expectations but still declined 4.4% from their 10-month high in August. Meanwhile, housing starts rose 7% in September after hitting a three-year low in August.
What to be on the lookout for today
• The Department of Labor will publish its jobless claims report.
• AT&T (T) and Blackstone (BX) are in the earnings spotlight. AT&T continues to slash costs, targeting another $2 billion-plus in savings over the next 3 years.
Liz Looks at: Market Underdogs
Everybody likes an underdog that comes out of left field for the win. That’s also true in investing. But unlike in sports, there are some dynamics at play that you should keep in mind before betting on your favorite underdog.
Today’s top stories
The days of “never taking a sick day” may be behind us It only took a pandemic, and a younger generation to arrive in the workplace for sick days to become more acceptable. Read more >> Apple TV wants you to go to the movies (but also subscribe) With the release of big-budget blockbuster Killers of the Flower Moon, Apple is going all in on the movies. Read more >> What is an amortizing loan? Do you have a mortgage or student loan that you’re paying in installments over time? Then you probably have an amortizing loan. Here’s how they work and what you need to know. Read more >>Other news that caught our eye
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Bye bye, square ply? Procter and Gamble is rolling out a new Charmin toilet paper designed to tear easier, thanks to its scalloped edge.
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NVIDIA and Foxconn are joining forces to build ‘AI factories’ that get smarter over time. These factories’ products will be designed to interpret data in order to improve operations.
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The rate of remote work has hit a post-pandemic low of 26%, as companies urge employees back to the office.
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In related news, Macbook shipments have fallen roughly 30% year-over-year, in part due to declining demand from remote workers.
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X — formerly Twitter — is testing a $1 monthly fee in the Philippines and New Zealand. This fee is reportedly intended to reduce the presence of bots on the social media platform.
Financial planner tip of the day
"A stock is essentially a small piece of a company. Investors can buy stock, and in doing so, become shareholders of that specific company. Money can be earned in two ways, through the stocks value growing over time, as well as dividends, if applicable. Investing in stocks can offer the potential to earn a high rate of return in the long term, but that potential comes with some risk. They’re one of the more volatile forms of investing for the short and medium term."
Brian Walsh, CFP® at SoFi