Good Evening. On Thursday, the U.S. stock market continued its downward trend as optimism about reducing inflation and a Federal Reserve policy change dimmed, while Wall Street analyzed a variety of business results.
The S&P 500 was down 0.31% after rebounding from a session low of more than 1%, while the Dow Jones was almost flat at 0.02%. The Nasdaq Composite fell 0.35%.
Graphics chip giant Nvidia (NVDA) reported its Q3 results, exceeding analyst estimates for sales but falling short on profits per share. Here are the numbers:
- Earnings Per Share: $0.58 vs. $0.70 expected
- Revenue: $5.93 Billion vs. $5.79 Billion expected
- Data Center revenue: $3.83 Billion vs. $3.7 Billion expected
During the pandemic, Nvidia’s graphics processors were in such great demand that they sold for hundreds of dollars over their retail pricing. But as customers have returned to their pre-pandemic lifestyles, chip demand has decreased and prices have returned to normal levels.
With that said… Nvidia reduced chip manufacturing, with CEO Jensen Huang informing investors that the business is striving to realign inventories with customer demand.
THANKSGIVING AND INFLATION?
According to an annual poll conducted by the American Farm Bureau Federation, the average cost of a Thanksgiving meal has increased by 20% since last year. It will likely be the most expensive turkey dinner since the study began 37 years ago.
While we’re thankful that inflation began to ease this month, food costs continue to soar. The government predicts they might increase by as much as 10.5% this year (compared to an usual increase of 2%). According to the report, classic Thanksgiving side dishes are not an exception.
- This year, a 16-pound turkey costs 21% higher per pound than it did the previous year.
- Ham has only gone up by 9.23% so it might be seen more this year.
- Potatoes, pie crusts, canned pumpkins, and stuffing mix have all seen price increases.
- Cranberries (my favorite) are the only holiday staple whose price has decreased.
On top of that… Broader food inflation is not the only element pushing up turkey costs. An outbreak of avian flu has reduced supply. However, Butterball, which provides one-third of all Thanksgiving turkeys, said that its safety procedures impacted just 1% of its output for turkeys.