NYSE Traders September 28, 2022
Here are the most important news investors need to start the trading day:
1. Roaring or whining?
The third quarter ends on Friday, and it couldn’t come sooner for battered stock markets. It’s been a terrible month for stocks. Federal Reserve policymakers have made it clear they are serious about raising rates until rising prices cool, sending bond yields soaring and stocks tumbling. Critics of the central bank say much of the turmoil is the result of the Fed waiting too long to address inflation and then doing too much, too quickly, to fight it. The UK’s economic mess and nuclear-tinged anxiety over Russia’s war in Ukraine haven’t helped either. Earnings season is also just around the corner, which could further pressure markets that have already fallen below their previous 2022 lows. Follow the market live here.
Read more: Inflation in the Eurozone is rising again
2. Not really, Apple
Apple CEO Tim Cook unveils the new iPhone 14 at an Apple event at their headquarters in Cupertino, California, the United States, on September 7, 2022.
Carlos Baria | Reuters
A somewhat surprising name led to a big selloff in tech stocks on Thursday: Apple. While the top-tier gadget maker is down a whopping 20% this year, it has outperformed the tech-heavy Nasdaq, which has fallen another 31% since the end of 2021. Technology stocks are generally considered riskier and more vulnerable to rising interest rates, so when there’s volatility, investors turn to safer securities. In this case, it was Bank of America’s downgrade that caused Apple to fall, which led to the fall of other big names like Alphabet and Microsoft. “The stock has outperformed year-to-date performance … and has been seen as a relative safe haven,” BofA analyst Vamsi Mohan wrote Thursday, downgrading Apple to a hold. “However, we see a risk to this outperformance next year as we expect a significant downside revision driven by weaker consumer demand.” Still, the vast majority of analysts on the street rate Apple as a buy.
Read more: An Apple executive is leaving the company after a vulgar comment went viral on TikTok
3. Toyota CEO backs EV plan
Akio Toyoda, president 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 has announced plans to build its electric vehicles.
Kiyoshi Ota | Bloomberg | Getty Images
Akio Toyoda has heard your complaints that his company, Toyota, isn’t moving fast enough to go all-in on electric cars, but he’s not giving up. “This is our strategy and we are sticking to it,” said the CEO. While Ford and General Motors have been telling investors, customers and politicians that they are moving to an all-electric vehicle, Toyota is taking an all-of-the-above approach. That means producing gas-electric hybrids like the Prius, as well as hydrogen-electric vehicles and plug-ins. The company has increased its investment in electric vehicles, but does not see electric vehicles as the only solution. “Everything will be decided by the customer,” Toyoda told reporters on Thursday.
4. Nike has an inventory problem
A man wearing a protective mask walks past a Nike store in Kyiv, Ukraine, on December 10, 2020.
Valentin Ogyrenko Reuters
It looks like people will be getting a lot of heavily discounted Nike gear as holiday gifts this year. The sneaker and sporting goods company said in its earnings report Thursday that it is overwhelmed with seasonal products due to supply chain issues. Some shipments intended for earlier seasons arrived after it took too long, Nike said, while the company is also receiving holiday shopping season merchandise it ordered earlier to insure against shipping delays. Overall, the company’s inventory rose 44% in the previous quarter and 65% in North America, its largest market. That leaves Nike with no choice but to “aggressively liquidate” large chunks of its inventory, said CFO Matthew Friend. Nike isn’t alone in selling mode, with the company’s shares falling in after-hours trading.
More from CNBC PRO: Nike’s results hint at a strong dollar and earnings season
5. Ian is getting stronger after the Florida debacle
A man photographs boats damaged by Hurricane Ian in Fort Myers, Florida on September 29, 2022.
Giorgio Viera | AFP | Getty Images
Ian became a hurricane again after passing through Florida and making landfall in the Atlantic Ocean. The storm is now approaching South Carolina, where it is forecast to make landfall on Friday afternoon. Some parts of the state could get as much as 8 inches of rain as they suffer from severe flooding and winds, weather officials said. Ian has already left a wide path of destruction in Florida, and has disabled up to millions. President Joe Biden warned of “significant loss of life.” The images from Fort Myers, Florida, were particularly horrifying: extended flooding, boats abandoned in the streets, destroyed homes. “Looking at the water from my apartment in the heart of the city, watching it come up and just flood all the stores on the first floor, it was heartbreaking,” Fort Myers Mayor Kevin Anderson told NBC’s “Today.”
— CNBC’s Alex Haring, Jordan Naveth, Michael Wayland and Lillian Rizzo contributed to this report.
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