Poor financial results mean CPI is expected to peak
The dollar remains strong, and the broader market still depends on the face of the exchange rate. The earnings report was nothing unexpected, and the direction of the CPI statistics remains consistent.
The British Prime Minister's departure, the yen fell below $150 for the first time since 1990 are making the dollar strong again, 112 may have to continue, and the two-year U.S. bond has reached a new high of 4.6.
The Tesla weakness fits well with CPI's statistics for spending on cars.
Yesterday Ally, the largest U.S. auto lender, said the number of new loans to buy cars was lower than expected. The auto industry has struggled with several issues this year, including supply chain shortages and rising raw material costs. several auto companies have sounded the alarm since the start of the Q3 earnings season, with Ford saying inflation has caused costs to soar, followed by a sharp drop in profits at CarMax, which said the ability of potential buyers to buy cars has become a challenge as interest rates continue to rise and consumer confidence is low.
Earnings or CPI is a trade-off issue, with good earnings reflecting poor CPI, as in the case of Lowe's; conversely, poor earnings indicate that CPI has topped out and improved.
The following auto-related companies can consider shorting or avoiding the high: LAD AN CVNA KMX PAG VRM ALLY F GM
Another major CPI-sustaining service item, rent, is also expected to top out (although it will be reflected in the next year according to statistical calculations)
Yesterday the U.S. announced a drop in new housing starts data, leading to a big drop in the construction sector, the biggest declines in stocks: LGIH, GRBK, TMHC, MTH, PHM
Meanwhile analysts downgraded their ratings on HD and LOW.
Retail still needs to be avoided, or shorted. According to UBS retailer inventories are at the highest level since the outbreak.
The only exceptions are discounters like TJX, whose finance officer said on a conference call last quarter that they "will have the best branded merchandise in some time."
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Great ariticle, would you like to share it?
可以关注