Every Friday I recap “news you can use” from the week: a handful of quotes from major (and often expensive) news sources, so you can stay up to date on the news that affects your money without spending a dime and in less than a minute.
Here’s an overview of what happened this week.
Investors Brace for More Market Tumult as Interest Rates Keep Rising (Jan. 2, Wall Street Journal):
Analysts at some of the biggest U.S. banks predict the stock market will retest its 2022 lows in the first half of the new year before beginning to rebound. …
The Fed is set to keep raising interest rates and has indicated that it plans to keep them elevated through the end of 2023. Many economists forecast a recession ahead, while Wall Street remains fixated on whether inflation will recede after repeatedly underestimating its staying power.
Mortgage demand plunges 13.2% to end 2022, as interest rates head higher again (Jan. 4, CNBC):
Mortgage applications to purchase a home dove 12.2% from two weeks earlier and were down 42% year over year. They ended the year at the lowest level since 1996.
No Fed official expects an interest-rate cut to be appropriate this year, meeting minutes show (Jan. 4, MarketWatch):
None of the 19 top Federal Reserve officials expect it will be appropriate to cut interest rates this year, according to the minutes of the central bank’s December policy meeting, which were released Wednesday.
Amazon to Slash More Than 18,000 Jobs in Escalation of Cuts (Jan. 4, Bloomberg):
Amazon.com Inc. is laying off more than 18,000 employees — the biggest reduction in its history — in the latest sign that a tech-industry slump is deepening.
Bed Bath & Beyond shares plummet after company warns of potential bankruptcy (Jan. 5, CNBC):
The retailer, citing worse-than-expected sales, issued a “going concern” warning that in the upcoming months it likely will not have the cash to cover expenses, such as lease agreements or payments to suppliers. The company said it is exploring financial options, such as restructuring, seeking additional capital or selling assets, in addition to a potential bankruptcy.
Corporate Insiders Aren’t Betting on a Market Rebound (Jan. 5, Wall Street Journal):
Insiders typically have greater insight on the business outlook, and the fact that they haven’t been scooping up their own stocks as the market tumbles suggests they believe that it might not have bottomed just yet.
Nonfarm payrolls rose 223,000 in December, as strong jobs market tops expectations (Jan. 6, CNBC):
Payroll growth decelerated in December but was still better than expected, a sign that the labor market remains strong even as the Federal Reserve tries to slow economic growth. …
Stock market futures rose following the release as investors look for signs that the jobs market is cooling and taking inflation lower as well.
My take on the markets
I periodically share my thoughts and advice on stocks and other investments, including actions I’m considering and taking in my personal portfolio.
In the past, these market missives appeared here, but now they’re separate and available to members only.
If you’re not already a member of Money Talks News, please join. Not only does your membership support our journalism, you also get lots of additional benefits, like ad-free reading, free books, course discounts and much more. And it’s cheap: just $5/month. I hope my column alone is worth that much! Learn more here.
Check out my podcast
My weekly Money Talks News podcasts are brief, casual conversations with news recaps, as well as tips and tricks to make you richer.
You can listen right here on the Money Talks News website, or download them wherever you get your podcasts. Just look for Money Talks News: The Podcast with Stacy Johnson.
Check them out: You’ll be glad you did!
About me
I founded Money Talks News in 1991. I’m a CPA, and I have also earned licenses in stocks, commodities, options principal, mutual funds, life insurance, securities supervisor and real estate.