Traders on the floor of the NYSE, September 28, 2022.
Here are the most important information investors need to start their trading day:
1. A bang or a moan?
The third quarter ends Friday, and it couldn’t have come sooner for battered stock markets. It was a terrible month for equities. Federal Reserve policymakers have made it clear that they are seriously considering raising rates until price increases subside, sending bond yields higher and stocks lower. Central bank critics say much of the turmoil is the result of the Fed waiting too long to fight inflation, then doing too much, too quickly, to fight it. The economic mess in the UK and nuclear-tinged anxiety over Russia’s war in Ukraine haven’t helped either. Earnings season is also approaching, which could add even more pressure to markets that have already fallen below their previous 2022 lows. Follow live market updates here.
Read more: Eurozone inflation soars again
2. Not Great, Apple
Apple CEO Tim Cook introduces the new iPhone 14 during an Apple event at its headquarters in Cupertino, California, United States, September 7, 2022.
carlos barria | Reuters
A somewhat surprising name led Thursday’s big selloff in tech stocks: Apple. While the top gadget maker is down 20% so far this year, it has outperformed the tech-laden Nasdaq, which has fallen an even worse 31% since the end of 2021. Tech stocks are generally considered riskier and more vulnerable to rising interest rates, so in times of volatility, investors turn to safer securities. In this case, it was a Bank of America downgrade that triggered Apple’s decline, dragging other big names, like Alphabet and Microsoft, in its wake. “Equities have significantly outperformed year-to-date … and have been seen as a relative safe haven,” BofA analyst Wamsi Mohan wrote Thursday, downgrading Apple to a hold. “However, we see a risk to this outperformance over the next year, as we expect significant negative estimate revisions due to weaker consumer demand.” Still, a large majority of analysts on the street have Apple at a buy rating.
Read more: Apple executive leaves company after vulgar comment goes viral on TikTok
3. Toyota CEO backs EV plan
Akio Toyoda, chairman of Toyota Motor Corp., gestures as he poses for photos during a news conference at the company’s showroom in Tokyo, Japan, December 14, 2021. Toyota announced plans for its electric vehicles .
Kiyoshi Ota | Bloomberg | Getty Images
Akio Toyoda has heard your complaints that his company, Toyota, isn’t moving fast enough to get into electric vehicles, but he’s not moving. “That’s our strategy and we’re sticking to it,” the CEO said. While Ford and General Motors have announced to investors, customers and politicians that they are going all-electric, Toyota is taking a holistic approach. That means producing gas-electric hybrids, like the Prius, as well as hydrogen-electric vehicles and plug-ins. The company has increased its investments in electric vehicles, but it does not see electric vehicles as the only solution. “It’s up to the customers to decide everything,” Toyoda told reporters on Thursday.
4. Nike has an inventory problem
A man wearing a protective mask walks past a Nike brand store in central Kyiv, Ukraine, December 10, 2020.
Valentin Ogirenko | Reuters
It looks like people will be getting a lot of heavily-marked Nike gear for holiday gifts this year. The sneaker and sporting goods company said in its earnings report on Thursday that it was overwhelmed with products from multiple seasons due to supply chain issues. Some shipments for previous seasons have arrived after taking too long, Nike said, while the company is also receiving products for the holiday shopping season, which it ordered early to guard against shipping delays. . Overall, the company’s inventory jumped 44% in the prior quarter and 65% in North America, its biggest market. So that left Nike with no choice but to “aggressively liquidate” large chunks of its inventory, chief financial officer Matthew Friend said. Nike isn’t alone in selling: the company’s shares have fallen during off-hours trading.
More from CNBC PRO: Nike results offer clues to dollar strength and earnings season
5. Ian goes from strength to strength after beating Florida
A man takes photos of boats damaged by Hurricane Ian in Fort Myers, Florida on September 29, 2022.
Giorgio Viera | AFP | Getty Images
Ian became a hurricane again after crossing Florida and hitting the Atlantic Ocean. Now the storm is on a collision course with South Carolina, where it is expected to make landfall Friday afternoon. Parts of the state could receive 8 inches of rain while experiencing severe flooding and winds, weather officials said. Ian has already left a wide path of destruction in Florida and knocked out millions. President Joe Biden has warned of a “substantial loss of life”. The images from Fort Myers, Florida were particularly terrifying: persistent flooding, boats abandoned in the streets, houses destroyed. “Watching the water from my apartment in the heart of downtown, watching that water rise and flood all the stores on the first floor, it was heartbreaking,” Fort Myers Mayor Kevin Anderson told “Today.” NBC.
– CNBC’s Alex Harring, Jordan Novet, Michael Wayland and Lillian Rizzo contributed to this report.
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