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The stock market takes a dip on a weak holiday retail forecast – Jeff Bezos gives financial warning to consumers – The latest news on cryptocurrency exchange FTX and how it could affect you
Despite retail sales rising 1.4% in October, better than 1% consensus estimates, and above August’s 0% change, stocks fell on a weak holiday retail forecast, particularly from Target, Investor’s Business Daily reported.
The Nasdaq composite fell 1.4%, the S&P 500 dipped 0.5%, while the Dow Jones Industrial Average remained flat.
The 10-year treasury was at 3.73 and crude oil prices fell 2.8% to $84.50 per barrel.
Target reported third-quarter earnings far below estimates, warning on the holiday quarter, citing weakening consumer spending trends. Target stock plunged nearly 15%, and the company is on pace for its largest share price percentage decrease since May 18, when it fell 24.93%. Target sees declining sales in the holiday fourth quarter.
Lowe’s topped third-quarter expectations, a day after rival Home Depot (HD) also beat estimates. Lowe’s stock rose almost 5%, while Home Depot gained 1.2%.
Tesla traded down 3% and the stock is more than 50% off its 52-week high.
Jeff Bezos might seem like an unlikely financial guru, as he made his fortune with a single business that disrupted and then dominated an industry. Amazon was built on the concept of a worldwide one-stop-shop… but now, it seems Bezos is reversing course by telling shoppers to stop buying everything, Reuters reported.
In a recent interview with CNN, Bezos warned consumers they should refrain from making large, expensive purchases such as cars and TVs, and begin saving their money in preparation for a prolonged economic slump.
It begs the question, what does Bezos know that the rest of us may not?
The now bankrupt crypto exchange FTX is under investigation for potential criminal misconduct by authorities in the Bahamas, CNN reported.
“In light of the collapse of FTX globally and the provisional liquidation of FTX Digital Markets Ltd., a team of financial investigators from the Financial Crimes Investigation Branch are working closely with the Bahamas Securities Commission to investigate if any criminal misconduct occurred,” a statement from the Royal Bahamas Police Force read.
In the wake of the FTX scandal, dozens of lawmakers from both parties are giving up contributions they received from top executives of the crypto exchange, Politico reported. Other lawmakers have given donations to local charities that equal the money they received from FTX leaders.
FTX CEO and founder Sam Bankman-Fried was among the most significant donors to Democrats during the cycle, distributing more than $40 million through direct contributions and super PACs, while co-CEO of FTX’s digital markets arm, Ryan Salame gave roughly $24 million to Republicans.
