"Instead, it could be a more ominous sign for the US economy," Marold wrote. What's more, the decrease is not due to a smaller set of credit card users as the data had been corrected for any changes, read the note. "This may suggest that the higher-income consumers are feeling the pinch in their wallets from inflation and are in the position where reduced discretionary spending on goods is possible." " spending by high-end consumers is falling fastest, with current goods spending nearly 10% below last year's level," Marold wrote. While consumers across all income levels are lowering their spending, the sharpest pullback comes from higher income shoppers.
The biggest contraction in credit card spending comes from goods spending. It's been on the decline since the start of this year. credit card spending database fell below zero, analyst Renate Marold wrote to clients in a Tuesday note. economy, according to Barclays.įor the first time since 2021, aggregate spending growth on a year-on-year basis in the Barclays U.S.
"Those are names that are trading for less than 10 times earnings because people are worried about a recession, and if we don't get one, they're going to do very, very well," Bobrinskoy said.Ĭonsumers are pulling back sharply on goods spending in what could be a troubling signal for the U.S. Mohawk is leading the broader market on Monday, with its shares up 5.3% in afternoon trading. His top picks are Goldman Sachs, automotive supplier Borgwarner, flooring manufacturer Mohawk Industries and energy supplier Apache -which are all trading higher on Monday. And that will not be good for tech stocks."Ĭyclical names, such as oil and gas companies, are trading at values in a market that is pricing in for a recession, Bobrinskoy said. "The market is not cheap, but cyclicals and consumer discretionary and certain financial industry stocks are very attractive," Bobrinskoy said on "The Exchange." "My prediction is, as we get on the other side of these recessionary fears, interest rates–long-term rates–will actually go up a bit, above 4% on the 10-year. Lea la cobertura del mercado de hoy en español aquí.Ĭharles Bobrinskoy, Vice Chairman of Ariel Investments, is bullish on cyclical stocks for the near term. BlackRock and UnitedHealth Group are also scheduled to report. JPMorgan Chase, Wells Fargo and Citigroup are set to report Friday.
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banks scheduled to release their earnings reports for the first time since the series of bank crises in March. "This set of data will certainly provide context for the Federal Reserve to evaluate where they are in that battle," Northey added.įurther, Wall Street is heading toward another season of earnings announcements, with several major U.S. Bank Wealth Management's William Northey said. And, as the Federal Reserve evaluates their battle against inflation and the appropriate pace of monetary policy, market conditions have already begun to lean back towards an additional rate increase at the next meeting," U.S. "The data coming forward this week is important in that it will be one of the last sets of data to inform the May 3rd Federal Reserve meeting. Both inflation metrics could give further clarity into how the Federal Reserve might proceed on its rate-hiking campaign. Those moves come ahead of the March readings of the consumer price index, due Wednesday, and the producer price index, out Thursday. Moderna shares shed 3% after the biotech firm said it's delaying its flu vaccine. Meanwhile, CarMax shares jumped 9.6% after the used car retailer posted a stronger-than-expected quarterly profit. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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