The Key Factor Spooking Investors and Sending Stocks Into Freefall
The Dow suffered its worst point drop in history, closing down over 1,000 points. Riva Gold, Markets Reporter at WSJ joined to break down the factors spooking investors.
Gold emphasized that the big scare in the market was triggered by the wage growth in the jobs report. She added that it brought worries of inflation and rates hikes back into the spotlight. Gold said the fundamental backdrop for stocks hasn’t really changed. She points to corporate earnings and credit market as indicators that the market could be in good shape.
Gold said the biggest factor dragging down market is fear of fed raising rates. She thinks it's a a wake-up call for the equity markets that inflation will accompany growth. This means corporations will have to pay employees more, which ultimately weighs on profits, Gold added.
Hershey is cautioning on its 2024 profit growth as the company contends with rising cocoa costs, leading to increased prices for chocolate. The company anticipates its full-year earnings per share being relatively flat, partly due to higher cocoa and sugar costs.
Prince Harry has reached an out-of-court settlement with a tabloid newspaper publisher that invaded his privacy with phone hacking and other illegal snooping. Attorney David Sherborne said that Mirror Group Newspapers had agreed to pay Harry’ “substantial” costs and damages.
An attorney representing passengers of an Alaska Airlines flight that lost a door plug in midair says a “whistling sound” was heard on a previous flight of the same Boeing 737 Max 9.
What do Arnold Schwarzenegger, Aubrey Plaza, and Tom Brady all have in common? You'll see them on Super Bowl Sunday, but not on the field. If you only watch the Super Bowl for the ads, here's a sneak peek.
The Federal Communications Commission knows (to loosely quote Drake) "when that [AI robocall] hotline bling, that can only mean one thing" — deception. The agency says bad actors have been using these voices to misinform voters.
David Stryzewski, CEO of Sound Planning Group, breaks down Disney’s latest results, from adding Taylor Swift to building out ESPN, and why Bob Iger’s leadership is crucial.
