Today in the Market (10/27/2022)

Good Evening. As investors anticipated more tech earnings from Apple (AAPL) and Amazon (AMZN), as well as a better-than-expected U.S. GDP report, U.S. stocks were mixed on Thursday.

The Nasdaq Composite and the Dow Jones diverged, with the Dow rising by 0.61% and the Nasdaq falling by 1.63%. The S&P 500, which was also weighed down by tech stocks, declined by 0.61%.

ANOTHER TECH COMPANY DOWN

Amazon (AMZN) shares plummeted over 20% after the company disclosed revenue failures for the third quarter, sales misses for its Amazon Web Services cloud services, and dismal forecast for the fourth quarter.

Here is what the e-commerce behemoth announced after the closing bell:

  • Revenue: $127.1 Billion vs. $127.63 Billion expected
  • Earnings Per Share: $0.28 vs. $0.22 expected
  • Amazon Web Services Net Sales: $20.5 Billion vs. $21 Billion expected

The pain does not stop there… The company’s projection for Q4 net sales proved to be the most noticeable failure. Amazon forecasts revenue between $140 and $144 billion as opposed to the anticipated $155 billion.

Why is all of this happening? The findings of today confirm that Amazon is not immune to the consumer slump. According to both CNBC and Fortune, the company’s second Prime event this month was a disappointment. This month, Bank of America analysts projected that Amazon’s October Prime Early Access Sale generated $5.7 billion, a decrease from the $7.5 billion they calculated Amazon’s July Prime event generated.

THE NUMBERS ARE IN!

The U.S. economy rebounded well in the third quarter as the trade deficit shrank, but the figures inflated the nation’s economic health since domestic demand was at its lowest level in two years due to aggressive interest rate hikes by the Federal Reserve.

Nevertheless, the return to growth after two consecutive quarterly losses in GDP provided proof that the economy was not in a recession, despite the fact that the risks of a recession have increased as the Fed doubles down on rate hikes to combat the fastest-rising inflation in forty years.

Let’s get into the numbers! The gross domestic product expanded at an annualized rate of 2.6% in the third quarter, following a contraction of 0.6% in the second quarter

However… The report will likely have little effect on monetary policy, but Fed policymakers may find solace in the declining demand. Personal consumption expenditures price data for September and third-quarter labor cost data, scheduled for release on Friday, may carry more weight in advance of the Federal Reserve’s policy meeting on November 1-2.

Scroll to Top

Where Are You On Your Investment Journey?

Rise

Run

Relax

All investors are unique.  The above characteristics are examples, but may not reflect your particular investor demographics or situation.  An advisor with Edgar Investment Management, LLC will assist you with finding the best type of account for you. 

Investment advisory services are offered through Edgar Investment Management, LLC, an investment advisor registered with the State of Texas. Edgar Investment Management, LLC only offers investment advisory services where it is appropriately registered or exempt from registration and only after clients have entered into an investment advisory agreement confirming the terms of engagement and have been provided a copy of the firm’s ADV Part 2A brochure document.

The content found on this website is developed from sources we believe provide accurate information and is for educational purposes only. The information on this website is not intended as tax or legal advice. Everyone’s tax and legal situation is different, so please consult trusted and knowledgeable legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided on this website are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Material and information found on this website is not intended as an offer or solicitation for the sale or purchase of any specific security, mutual fund, ETF, bond, or investment strategy.  

Investing is risky!  No guarantee as to performance of any investment is implied by this website.  Make sure you have evaluated your options and spoken with trained professionals before you implement any investment strategy.  Past performance is not indicative of future results.  

Please be advised that Edgar Investment Management, LLC is a financial advisory firm specializing in investment management and financial planning services. We do not offer or provide any CPA-related services, including tax preparation, tax planning, or other accounting services. If you require assistance with tax-related matters, we recommend consulting a qualified CPA or tax professional who can provide specialized advice tailored to your individual needs.

Edgar Investment Management, LLC is not a Public Accounting firm.

 

Contact Us

Name
Best time(s) to contact you?
Best method(s) to contact you?

Contact Us

Name
Best time(s) to contact you?
Best method(s) to contact you?

We would love to hear from you! Please fill out this form and we will get in touch with you shortly.

  • About You

    Tell us a little about yourself. Don't be shy. Let's be friends.
  • How Can We Reach You?

    We would love to chat with you. How can we get in touch with you?
  • What's on your mind?

How much do you want to invest?