Here are the key updates that investors should know to kick off their day of trading:
1. Mixed Beginnings
The stock markets had a so-so reaction on Monday to Moody’s caution about the U.S. credit outlook. The three main indices showed a mix of results. The Dow just managed to end on a positive note, but the S&P 500 and Nasdaq were a bit down.
Tuesday is expected to be more eventful, as Home Depot’s earnings will give investors an early look at how retail is doing before the holidays, and the consumer price index will provide the latest information on inflation.
2. Home Depot’s Financial Performance
On Tuesday, Home Depot revealed its quarterly results, surpassing what Wall Street had predicted, despite a decrease in sales. This news comes as retailers start sharing their latest earnings reports just before the holiday shopping season starts.
Home Depot’s forecast for the year isn’t very strong, as the company anticipates a decline in both profit and sales. The Chief Financial Officer referred to this as a “period of moderation in home improvement.”
3. Additional Layoffs at Amazon
Amazon, which has already cut around 27,000 jobs since last autumn, made more job reductions on Monday. The e-commerce and tech giant announced a reduction in workforce of over 180 people in its Amazon Games division as it focuses more on Prime Gaming.
Additionally, it is closing down its Crown channel on Twitch and discontinuing its Game Growth initiative, which assisted game producers in promoting their products. The company is now concentrating on a few major projects, including upcoming releases like “Tomb Raider” and “Lord of the Rings,” which are linked to the same intellectual property as two significant Prime Video streaming TV series.
4. Stellantis Offers Buyouts
Stellantis, the owner of Chrysler, recently resolved a strike with the United Auto Workers and is now aiming to reduce expenses in its U.S. operations. On Monday, the company announced its plan to offer voluntary buyouts to approximately 6,400 white-collar workers with over five years of experience.
Stellantis attributed this decision to “challenging market conditions” as it gets ready for the shift towards electric vehicles. This move reflects the ongoing challenges in the U.S. electric vehicle market, where traditional Detroit automakers are working to catch up with Tesla, led by Elon Musk, who has also reduced prices to stimulate demand.
5. SCOTUS Code
After a series of controversies, the Supreme Court has introduced an ethics code. On Monday, the highest court in the nation revealed new guidelines for disclosure, which you can find in this document.
This move follows investigative articles, particularly from ProPublica, that uncovered Justices Samuel Alito and Clarence Thomas accepting gifts and travel from billionaire friends without disclosing them. However, The code’s absence of enforcement mechanisms might be a concern for critics advocating for accountability.
Summary
Monday’s market response to Moody’s U.S. credit outlook was mixed, with Home Depot exceeding expectations despite lower sales. Amazon announced more layoffs, focusing on Prime Gaming. Stellantis offered buyouts amid challenges in the shift to electric vehicles. The Supreme Court introduced an ethics code following controversies, raising concerns about enforcement.
