Summary Of the Markets Today:
- The Dow closed down 147 points or 0.46%,
- Nasdaq closed down 1.73%,
- S&P 500 down 1.06%,
- WTI crude oil settled at $88 down $1.85,
- USD $112.99 up $1.64,
- Gold $1634 down $16.00,
- Bitcoin $20,258 down 0.92% – Session Low 20,199,
- 10-year U.S. Treasury 4.134% down 0.007
*Stock data, cryptocurrency, and commodity prices at the market closing.
Today’s Economic Releases:
Yesterday, the Federal Reserve (FOMC) raised the federal funds rate again and potentially offered some relief from future federal fund rate increases: “…the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments…”. Powell in the press conference later threw cold water on relief saying “We have some ways to go.” The graph below shows answers your questions – showing historically that the federal funds rate usually has to rise higher than the CPI to affect the inflation rate.
According to NFIB’s monthly jobs report, small business owners continue to struggle with labor issues as 23% of owners report labor quality as their top business problem, second to inflation. Ten percent of owners report labor cost as their top business problem, a historically high reading. “The labor shortage remains a challenging problem for small business owners,” said NFIB Chief Economist Bill Dunkelberg. “Because of staffing shortages, small business owners are less able to take full advantage of current sales opportunities and continue to make business adjustments to compensate.”
U.S.-based employers announced 33,843 job cuts in October a 13% increase from the 29,989 cuts in September. It is 48% higher than the 22,822 cuts announced in the same month last year.
In the week ending October 29, the unemployment insurance weekly claims 4-week moving average was 218,750, a decrease of 500 from the previous week’s revised average. The labor market continues strong.
Non-farm business productivity has declined 1.4% year-over-year whilst labor costs have increased 6.1% year-over-year. Not good news for exports.
The U.S. Census Bureau and the U.S. Bureau of Economic Analysis announced today that the goods and services deficit was $73.3 billion in September, up $7.6 billion from $65.7 billion in August, revised. Exports declined 1.1% month-over-month whilst imports increased 1.5%. Most of the decline in exports came from food and the increase in imports came from capital goods.
A summary of headlines we are reading today:
- Will The LME Ban Trading Of Russian Metals?
- The Informal Economy Could Get A Boost From Fintech
- Jeff Bezos is interested in bidding for the NFL’s Washington Commanders, reports say
- Starbucks earnings beat expectations as consumers spend more in its U.S. stores
- New-Car Loan-Rates Set To Hit 14-Year High As Affordability Crisis Worsens
- Nikola cuts production guidance, sending stock down despite strong earnings report
- MSNBC Meltdown: “Our Children Will Be Arrested & Conceivably Killed” If The GOP Wins Midterm Elections
- Market Snapshot: Dow attempts to snap 3-day losing streak ahead of jobs data as investors continue to weigh Powell remarks
These and other headlines and news summaries moving the markets today are included below.
The Market in Perspective
| Here are the headlines moving the markets. | |
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Will The LME Ban Trading Of Russian Metals?Via AG Metal Miner According to the latest metal news, the London Metal Exchange (LME) is in a quandary over how to handle metal supply from sanctioned Russia. Their frustrations continue to be enhanced by the fact that some nations, led by China, remain interested in buying up Russian stock. Following Russias invasion of Ukraine, formal and voluntary sanctions came into effect. These mainly focused on Russian exports of crude oil, refined fuels, and other goods. However, the world has been a bit slow to impose punitive Read more at: https://oilprice.com/Metals/Commodities/Will-The-LME-Ban-Trading-Of-Russian-Metals.html |
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The EUs Collective Defense Capability Is LackingEuropes significant though incomplete security response to Russias war in Ukraine suggests that the achievement of European strategic autonomy exists on an extended timeline. In the near-term, deepened defense integration between the European Union (EU) and NATO will support capability modernization and interoperability while expanding European equipment procurement networks. The NATO 2022 Strategic Concepts cooperative security provisions and the EUs 2022 Strategic Compass provide a practical framework for Read more at: https://oilprice.com/Energy/Energy-General/The-EUs-Collective-Defense-Capability-Is-Lacking.html |
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The Informal Economy Could Get A Boost From FintechLong viewed as a barrier to market development and fiscal sustainability, a dynamic informal economy is increasingly being recognised as an important source of resilience and a target for financial technology (fintech) services. The informal economy accounts for approximately one-third of economic activity in emerging markets, compared to 15% in more mature markets, underscoring its outsized impact. Also known as the shadow or grey economy, the informal sector comprises legal activities that contribute to the economy Read more at: https://oilprice.com/Finance/the-Economy/The-Informal-Economy-Could-Get-A-Boost-From-Fintech.html |
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Researchers Report Renewable Jet Fuel BreakthroughNational Renewable Energy Laboratory researchers report success in using lignin as a path toward a drop-in 100% sustainable aviation fuel. Lignin makes up the rigid parts of the cell walls of plants. Other parts of plants are used for biofuels, but lignin has been largely overlooked because of the difficulties in breaking it down chemically and converting it into useful products. Lignin is an underutilized natural resource that could be just what the airline industry needs to curb carbon emissions. Researchers at three institutions the Read more at: https://oilprice.com/Latest-Energy-News/World-News/Researchers-Report-Renewable-Jet-Fuel-Breakthrough.html |
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Alleged Iran-Linked Telegram Post Simulates Attack On Saudi OilAn article published on the blog of international Arabic news television channel Al Arabiya on Thursday claims that an Iran state-linked Telegram channel has posted a video purportedly showing a simulated attack on Saudi Arabia. Al Arabiya says the video was posted by an IRGC-affiliated Telegram channel with over 350,000 subscribers, and shows a simulated drone attack against Saudi Arabia national oil company, Saudi Aramcos, oil facilities. On Tuesday, the Wall Street Journal reported that Saudi Arabia had shared intelligence with Read more at: https://oilprice.com/Geopolitics/Middle-East/Alleged-Iran-Linked-Telegram-Post-Simulates-Attack-On-Saudi-Oil.html |
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Austria Looks To Ban Oil And Coal Heaters From 2023Austria’s government is looking to ban the use of new fossil fuel heaters as of next year and replace very old oil and coal heaters with climate-friendly options by 2025, Euractiv reports. Austria, like the other EU countries, aims to cut its reliance on Russian gas as soon as possible. The government says that abandoning Russian gas should happen simultaneously with adopting renewable heat options. Before the Russian invasion of Ukraine, Austria received around 80% of the natural gas it consumed from Russia. As of August, this high Read more at: https://oilprice.com/Latest-Energy-News/World-News/Austria-Looks-To-Ban-Oil-And-Coal-Heaters-From-2023.html |
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Pilot contract negotiations with airlines turn sourAirlines are facing the dual challenge of combatting a shortage of pilots while keeping a lid on costs. Read more at: https://www.cnbc.com/2022/11/03/us-airlines-pilot-contract-negotiations-turn-rocky.html |
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Jeff Bezos is interested in bidding for the NFL’s Washington Commanders, reports sayJeff Bezos is interested in bidding for the NFL’s Washington Commanders, possibly alongside Jay-Z, reports say. Read more at: https://www.cnbc.com/2022/11/03/jeff-bezos-jay-z-may-bid-on-washington-commanders.html |
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Starbucks earnings beat expectations as consumers spend more in its U.S. storesShares of Starbucks have fallen nearly 28% this year, dragging its market value down to $97.11 billion. Read more at: https://www.cnbc.com/2022/11/03/starbucks-sbux-q4-2022-earnings.html |
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Inflation to dampen holiday spending, retail trade group forecastsThe National Retail Federation said it expects holiday sales to rise between 6% and 8% from last year — a decline when factoring in the effect of inflation. Read more at: https://www.cnbc.com/2022/11/03/inflation-to-dampen-holiday-spending-retail-trade-group-forecasts.html |
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NBA Commissioner Adam Silver speaks out against Kyrie Irving’s antisemitic postIn a statement, Silver called the decision to post the video “reckless” and said he will be meeting with Irving in person next week to discuss the situation. Read more at: https://www.cnbc.com/2022/11/03/nba-commissioner-adam-silver-speaks-out-on-kyrie-irvings-antisemitic-post.html |
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Interest rate hikes have made financing a car pricier — especially if you have bad credit. How much you could payWith the Federal Reserve’s latest interest rate hike — the sixth this year — auto loans are poised to become even more expensive. Read more at: https://www.cnbc.com/2022/11/03/how-your-credit-score-affects-the-cost-to-finance-a-car.html |
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CNBC cancels ‘The News with Shepard Smith’ to refocus on business newsCNBC has canceled “The News with Shepard Smith” after two years as CNBC’s 7 p.m. ET general news program. Read more at: https://www.cnbc.com/2022/11/03/cnbc-cancels-the-news-with-shepard-smith-after-two-years.html |
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Outgoing Charter CEO Tom Rutledge says in an exclusive CNBC interview that there’s ‘pain to come’ as linear TV gives way to streamingCharter CEO Tom Rutledge gives his exit interview in a CNBC exclusive as he prepares for retirement. Read more at: https://www.cnbc.com/2022/11/03/charter-ceo-tom-rutlege-says-pain-to-come-as-tv-gives-way-to-streaming.html |
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Jeep-maker Stellantis expects raw material inflation to ease next yearThe spiking costs of raw materials have been largely offset by record pricing of new vehicles. But as price increases slow, costs have yet to follow. Read more at: https://www.cnbc.com/2022/11/03/jeep-maker-stellantis-expects-raw-material-inflation-to-ease-next-year.html |
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Altice USA stock sinks after tough third-quarter earningsAltice USA’s stock sunk more than 20% Thursday after a weak earnings report Read more at: https://www.cnbc.com/2022/11/03/altice-usa-stock-sinks-after-tough-third-quarter-earnings.html |
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Trump Media deal partner DWAC adjourns shareholder meeting for sixth time as it seeks votes to delay mergerDWAC, which aims to take Truth Social parent Trump Media public, adjourned its shareholder meeting until Nov. 22. Read more at: https://www.cnbc.com/2022/11/03/trump-media-deal-partner-dwac-adjourns-shareholder-meeting-for-sixth-time-as-it-seeks-votes-to-delay-merger.html |
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Nikola cuts production guidance, sending stock down despite strong earnings reportNikola trimmed its production guidance for the full year and declined to provide guidance for 2023. Read more at: https://www.cnbc.com/2022/11/03/nikola-nkla-earnings-q3-2022.html |
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Toho plans to release a new Japanese Godzilla film next year as the monster’s audience growsGodzilla made its mark on the film industry 68 years ago, and the monster’s reign is growing more powerful due to streaming. Read more at: https://www.cnbc.com/2022/11/03/godzilla-day-toho-to-release-new-japanese-film-next-year.html |
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Watch: Alleged Iran-Linked Telegram Post Simulates Attack On Saudi OilAuthored by Alex Kimani via OilPrice.com, An article published on the blog of international Arabic news television channel Al Arabiya on Thursday claims that an Iran state-linked Telegram channel has posted a video purportedly showing a simulated attack on Saudi Arabia.
Al Arabiya says the video was posted by an IRGC-affiliated Telegram channel with over 350,000 subscribers, and shows a simulated drone attack against Saudi Arabia national oil company, Saudi Aramco’s, oil facilities. On Tuesday, the Wall Street Journal reported that Saudi Arabia had shared intelligence with Washington warning of an imminent attack from Iran against the Kingdom. … Read more at: https://www.zerohedge.com/geopolitical/watch-alleged-iran-linked-telegram-post-simulates-attack-saudi-oil |
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Aldi, Walmart Unleash ‘Thanksgiving Price Rewind’ As Battle For Consumer BeginsConsumers are receiving a much-needed break this holiday season as multiple retailers are rolling back the prices on Thanksgiving items. This move is in response to the highest inflation in forty years, crushing household finances as negative real wage growth for 18 months wipes out personal savings and balloons credit card balances. We reported early Thursday that Walmart announced it would roll back prices on Thanksgiving food to 2021 levels. Then later in the day, the Washington Examiner reported that the budget supermarket chain Aldi “will discount Thanksgiving season grocery items up to 30% to match pre-inflation price points (2019 levels).” Aldi called their discounting program the “Thanksgiving Price Rewind.”
Walmart calle … Read more at: https://www.zerohedge.com/markets/inflation-no-thanks-walmart-rolls-back-thanksgiving-food-2021-prices |
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MSNBC Meltdown: “Our Children Will Be Arrested & Conceivably Killed” If The GOP Wins Midterm ElectionsAuthored by Jonathan Turley via jonathanturley.org, Last night, President Joe Biden returned to his earlier claim that his political opponents are fascists seeking to establish authoritarianism in the United States. While the hellish red background is gone from his controversial Philadelphia address, the message remains: a vote for the GOP is a vote for tyranny. Despite polls showing citizens view the President as inciting political unrest and potential violence with such attacks, the theme was quickly picked up and magnified in the media. Presidential historian Michael Beschloss actually suggested on MSNBC that we could be just days away from an authoritarian hellscape if the GOP prevails in midterm elections — raising the specter of our children being taken away and killed. Read more at: https://www.zerohedge.com/political/msnbc-meltdown-our-children-will-be-arrested-conceivably-killed-if-gop-wins-midterm |
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New-Car Loan Rates Set To Hit 14-Year High As Affordability Crisis WorsensAuto loan interest rates are rising, have hit the highest level since 2019, and will soon jump to 14-year highs. New data from Edmunds showed the average annual percentage rate on new-car loans was 6.3% in October, the highest since April 2019, according to Bloomberg. The Federal Reserve is expected to raise interest rates Wednesday again by 75 basis points for the fourth straight meeting in an unprecedented move — the most since the early 1980s to quell rampant inflation. This means the federal funds rate will have a new range of 3.75-4% — the highest level since 2007, and since APRs for new vehicles track the fed funds rate, expect it to hit highs not seen since early 2009 in the near term.
“New-vehicle inventory might finally be improving, but the automotive industry is still on a long road to recovery because rising interest rates are creating a major barrier to entry for … Read more at: https://www.zerohedge.com/markets/new-car-loan-rates-set-hit-14-year-high-affordability-crisis-worsens |
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Bank of England expects UK to fall into longest-ever recessionThe Bank of England raises interest rates to 3%, marking the biggest rise for 33 years. Read more at: https://www.bbc.co.uk/news/business-63471725?at_medium=RSS&at_campaign=KARANGA |
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Is it right to raise interest rates in a recession?An economic downturn would usually mean an easing of rates, but there’s inflation to tackle too. Read more at: https://www.bbc.co.uk/news/business-63498306?at_medium=RSS&at_campaign=KARANGA |
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Bank of England: Five things we now know about the UK economyThe Bank of England’s outlook for the UK is grim, but some things might not be as bad as first expected. Read more at: https://www.bbc.co.uk/news/business-63497379?at_medium=RSS&at_campaign=KARANGA |
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Tech View: Nifty forms bullish candle. What traders should do on FridayThe current market texture is non-directional. Perhaps, traders are waiting for either side to breakout. For the bulls, now 18,150/61,100 would be the fresh breakout level and above which the index could rally till 18,250-18,300/61,300-61,500. On the flip side, a fresh round of selling is possible only after the dismissal of 17950/60500. Below which, the index could slip till 17850-17800/60300-60150. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/tech-view-nifty-forms-bullish-candle-what-traders-should-do-on-friday/articleshow/95281526.cms |
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India’s crypto taxes may ‘kill the industry,’ Binance CEO says“India has high tax which is probably going to kill the industry,” Zhao said in live-streamed remarks during panel at a fintech conference in Singapore on Thursday. Read more at: https://economictimes.indiatimes.com/markets/cryptocurrency/indias-crypto-taxes-may-kill-the-industry-binance-ceo-says/articleshow/95277156.cms |
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Vijay Kedia increases stake in multibagger smallcapElecon Engineering is a multibagger smallcap with a market capitalization of around Rs 4,100 crore. Established in 1951, the company was the pioneer in manufacturing industrial geared motors and reducers, material handling equipment, mining equipment, casting processes etc. The company is among the largest manufacturers of material handling equipment and industrial gears in Asia. Read more at: https://economictimes.indiatimes.com/markets/stocks/news/vijay-kedia-increases-stake-in-multibagger-smallcap/articleshow/95273548.cms |
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BT stock sees worst day in two years as U.K. telecom flags rising costsWhile normally a push to trim costs gets rewarded by investors, the stock sank even as BT announced its saving target would be boosted to £3 billion ($3.35 billion) by end-fiscal 2025 from £2.5 billion ($2.79 billion). Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-714A-3A00390152D8%7D&siteid=rss&rss=1 |
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Market Snapshot: Dow attempts to snap 3-day losing streak ahead of jobs data as investors continue to weigh Powell remarksU.S. stocks trade mostly lower on Thursday afternoon as investors absorb Federal Reserve Chairman Jerome Powell’s comments from a day earlier. Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-714A-25D1A3C22463%7D&siteid=rss&rss=1 |
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The Moneyist: ‘He implied he was financially secure’: My husband was always hesitant about his finances. Now I know why.‘He keeps hinting at wanting to take care of the finances when we finally buy a house together’ Read more at: http://www.marketwatch.com/news/story.asp?guid=%7B20C06575-04D4-B545-7145-F9828869824D%7D&siteid=rss&rss=1 |
