August 12, 2022

News of the Trade

Latest trading, investing, and financial news

Weekend reads: The jobs market isn’t cracking — gloom turns to boom in the economy

So much for all that recession talk. At least for a day.

Friday’s stronger-than-expected jobs report immediately sparked more talk that the Federal Reserve will raise interest rates by 0.75 percentage point, not just 0.50 percentage point, when policy makers next meet in September. As one economist put it, the report “is much too hot for the Fed.” 

How does that reconcile with recent gloomy readings from purchasing managers? As Mark Hulbert explains, those are a good predictor of company earnings — but not of what the stock market will do.

Plus: There was one red flag in a shockingly strong U.S. jobs report. Or was there?

And: Workers are falling behind inflation with every paycheck, but that won’t reassure a Fed determined to quash inflation

All this puts even more focus on next Wednesday’s inflation report. That report won’t reflect this week’s drop in crude oil prices
CL.1,
+1.13%
to below $90 a barrel — you’ll have to wait another month to see how that plays out.

Also read: Why an Arkansas town could provide a grim road map for America if car repos blow up

Five key takeaways from this earnings season

More than 80% of S&P 500
SPX,
-0.28%
companies have reported second-quarter results, and it turns out that Wall Street was way too worried. But inflation, the supply chain and weakening demand have continued to act as headwinds.

See: Inflation is impacting consumers very differently: ‘A little bit of a tale of two cities’

What now for the stock market?

Getty Images/iStockphoto

In a case of good news is bad news, the S&P 500 initially was rattled by that strong jobs report. By midday, however, it had clawed back most of its losses.

Stepping back, these analysts see a new bull market, not a bear bounce. Mark Mobius disagrees.

This chart watcher says the S&P 500 is close to challenging a crucial bear-market trend line.

The ‘Mooch’ weighs in on bitcoin’s decline

Agence France-Presse/Getty Images

Anthony Scaramucci tells MarketWatch that the worst of the crypto
BTCUSD,
+2.25%
bear market has passed.

Fresh ideas for stock pickers

MarketWatch photo illustration/iStockphoto

Apple’s
AAPL,
-0.16%
enviable cash hoard is dwindling — and that’s surprisingly good news for the stock price.

Plus: There are three reasons health care is the market’s best sector today.  These eight stocks are the most worry-free

And: Just do it: Buy these 3 powerhouse consumer stocks that company insiders love

More: Energy stocks have a sustainable future: It’s in their dividends

Read this too: Take a bow, Lisa Su: AMD’s data-center business is a true rival to Intel

This Amazon deal is sparking privacy fears

iRobot makes Roomba vacuum cleaners.


iRobot

“Homes were your last data sanctuary,” says one investor — but what will your Roomba
IRBT,
+19.25%
now tell Amazon
AMZN,
-0.79%
about your home?

A state-by-state guide to tax-free shopping for back-to-school supplies

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Is your state among those offering a tax break?

Debate this: Should workers get time off when a pet dies?

“We’re on the cusp” of pet-bereavement leave becoming a standard benefit, one HR consultant says.

‘We want to travel the world — is buying a home worth it now?’

Getty Images/iStockphoto

This couple spells out their wish list for retirement. What advice would you give?

Plus: How one retired couple is finding adventure working and volunteering at home and around the world

More on retirement: Dream of aging in place? This government program could be a game-changer for seniors

Find happiness in these great midsized cities

Madison, Wisconsin, tops this list.


iStockphoto

Since March 2020, more than 42% of the U.S. population has either moved or considered moving. If you’ve been tempted by a community that will welcome you with open arms, this list from Livability is for you. (By the way, many have been suggested in MarketWatch’s “Where Should I Retire?” column.)

Is trying to get healthier making you feel lousy?

istock

This writer’s attempts at getting “super healthy” usually end in disappointment. So she talked to two of the biggest names in wellness. Here’s what she concluded … just in time for a glass of wine.

From EVs to AVs, stay on top of the massive changes coming to automobiles. Join Tom Fennimore, CFO of Luminar Technologies, at the Best New Ideas in Money Festival on Sept. 21 and Sept. 22 in New York.