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The Investing Club’s top 10 things to watch in the stock market Monday

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The U.S. Treasury yield curve has been inverted since mid-2022, a historically strong recession indicator. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. Finally, Chewy is looking to expand internationally for the first time, starting with Canada.

In summary, pet owners love their pets, they’re spending more for their pets, and consumer spending is still generally shifting from stores to the internet. Factor in the cost benefits of running an e-commerce business compared to a brick-and-mortar operation, and investors can clearly see all the things working in Chewy’s favor. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer.

Investors remain worried about the Russia-Ukraine crisis, rising oil prices and broader inflation pressures. The major indexes all fell more than 3% during February, their second straight month of losses. US stocks were mixed Monday morning, rebounding off their premarket lows after oil prices soared to a 14-year high how to become a trader on wall street above $120 a barrel due to Russia’s invasion of Ukraine. More major Western companies, including streaming giant Netflix, are suspending business in Russia as sanctions from the US and Europe against the Vladimir Putin regime continue. It’s more like March sadness, as opposed to madness, for stock market investors.

In other words, the looming shutdown is “more of a headline event than a bottom-line event,” according to Sam Stovall, chief investment strategist at CFRA Research. Past shutdowns, he said, left “angered tourists more than disappointed traders.” A government shutdown is looking increasingly likely to begin this Sunday, a development that has been rattling some investors. Analysts at Goldman Sachs estimate that a shutdown could reduce GDP growth by 0.2 percentage points for every week that it lasts, though growth could bounce back once a deal is reached and the government reopens. Federal pay, which would be severely curtailed in a shutdown, accounts for roughly 2% of U.S. Stocks had been on a four-day winning streak prior to Tuesday’s plunge.

Week of Oct. 2:

Several Russian-based stocks have been halted for trading in the United States. The next possible move could be for top Russian companies to be removed from major market indexes, according to an executive from index giant MSCI. Investors are worried about Russia’s invasion of Ukraine and what that will do to the global economy, especially oil prices. The Dow, S&P 500 and Nasdaq were all lower in midday trading Monday, the final day of the month.

While “mandatory” government spending, such as Social Security and Medicare, are disrupted by shutdowns, about 27% of the government’s budget is considered non-mandatory “discretionary” spending. Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, is anticipating financial instrument types an economic downturn ahead. So far, the most convincing argument a soft landing may be possible has been the resilience of the U.S. labor market. The Labor Department reported the U.S. economy added 187,000 jobs in August, exceeding economist estimates of 170,000 jobs added.

  • Finally, Chewy is looking to expand internationally for the first time, starting with Canada.
  • Congress will have to come to a decision about the current 2024 budget once again in mid-November.
  • The Russell 2000, an index of smaller American companies, was also up Monday.
  • Nike accounted for 75% of its sales in 2020 according to Foot Locker’s (FL) most recent annual report.
  • Investors had already been nervous about inflation, which has been the highest in decades in the United States and Europe after the pandemic shut factories and left supply chains snarled.

Just a month ago, before Fed chair Jerome Powell gave a speech that suggested more big rate increases were coming, the Fear & Greed Index was indicating levels of Greed, a sign of complacency. Investors are incredibly anxious about inflation, which refuses to go away. The Dow plummeted more than 1,050 points, or 3.3%, in late afternoon trading Tuesday. The S&P 500 and Nasdaq fared even worse, tumbling 3.6% and 4.5% respectively. As stocks settle after the trading day, levels might still change slightly. “The stock market is currently in correction mode, as we have seen a sizable decline in the broader indexes since their end of July high,” Corey says.

And Wall Street is worried the Federal Reserve will have to raise rates aggressively to fight inflation — which could slow the economy and hurt corporate profit growth. Certain market sectors generate more stable and less cyclical earnings than others and can make for better defensive investments during economic downturns. Utility stocks, consumer staples stocks and healthcare stocks are typically considered defensive investments and may be relatively insulated from cyclical declines in the economy and consumer confidence. Tech stocks have taken a particularly hard hit in recent weeks as the market has digested expectations interest rates could remain higher for longer than anticipated. The Technology Select Sector SPDR Fund (XLK) dropped 6.8% in September, while the VanEck Semiconductor ETF (SMH) fell 7.6%. Shares of tech giants Oracle (ORCL), Nvidia (NVDA) and HP (HPQ) each declined more than 11% for the month.

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The S&P 500 and Nasdaq are now slightly higher for the week while the Dow is nursing a small loss. The Dow was up nearly 700 points, or 2%, in midday trading. The Dow had its best day of the year and managed to finish the holiday-shortened trading week flat while the S&P 500 and Nasdaq Composite both ended the week with gains.

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On the natural gas front, the IEA warned that “any disruption to Russian supplies via Ukraine would put further pressure on Europe, with flow on effects to the rest of the world.” The International Energy Agency held an emergency meeting Friday to strategize a response to Russia’s invasion of Ukraine. Investors are optimistic because of reports that Russia plans to send representatives to the Belarusian city of Minsk to have talks with Ukraine following Thursday’s invasion.

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Monster Beverage (MNST) was another big S&P 500 winner Friday, with its stock up more than 6% after reporting revenue that beat analysts’ estimates. Monster has fallen about 10% this year, but its shares have gotten a boost lately from takeover chatter. Shares of Etsy (ETSY), the popular e-commerce site for arts and crafts, surged 11% Friday thanks to strong earnings and sales that topped Wall Street’s forecasts. Democrats in Congress are calling for the White House to take new steps to blunt the impact of soaring gasoline prices in the wake of Russia’s attack on Ukraine. Stocks soared Friday, building on Thursday’s huge late-day rally that lifted stocks into positive territory that day. Constellation Brands and Levi Strauss will report earnings next week.

Instead, prices rose, giving investors a collective heart attack over the Fed’s plans to curb inflation. The US Consumer Price Index Tuesday showed prices in August rose a bit. Although annual inflation fell compared to July, it didn’t fall as much as economists expected. That could give the Fed license to hike interest rates even faster and higher than forecast. The market is worried that hotter-than-expected inflation will prompt the Federal Reserve to raise interest rates more aggressively, inflicting serious damage to the US economy in the process. During a shutdown, more than 2 million civilian federal employees can be furloughed or continue working without pay, while roughly 1.3 million U.S. military personnel also go without paychecks until the shutdown ends.

Nasdaq announced trading halts for Moscow-based Internet company Yandex, Russian payment firm QIWI, e-commerce platform Ozon and Moscow-based HeadHunter Group. Yandex has lost a staggering 69% of its value so far this year. The national average market capitalisation for regular gasoline already stands at $3.61 a gallon, according to AAA. Goldman Sachs warned late Sunday that Brent crude is likely to spike to $115 a barrel in the coming weeks, in large part because of the Russia-Ukraine crisis.

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