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Welcome to MarketBites! Here's all you need to know about yesterday's market news.
“Beware of little expenses; a small leak will sink a great ship.”
- Benjamin Franklin
PORTFOLIO MANAGER COMMENTARY
Stocks fell on Wednesday as traders looked to the end of a losing year and braced for 2023. The energy industry was the biggest laggard in the S&P 500 as oil and natural gas prices slid. A few stocks including EQT, APA, and Marathon Oil were among the notable losers in the index. Meanwhile, Southwest Airlines continued its downward trend as it canceled more flights amid severe winter weather conditions. Its shares fell more than 5%.
As the final week of trading winds down, the stock market is on track for its worst year since 2008. The Nasdaq has performed the worst of the three indexes, losing 34.7% this year as investors rotated out of growth stocks amid rising recession fears.
CHART OF THE DAY
When asked for an assessment of their current financial situations by University of Michigan surveyors, the share of middle-income households who said they were worse off dropped toward levels close to those of low-income households in 2022. Xavier Jaravel, an associate economics professor at the London School of Economics, found that middle-income households experienced inflation well over 15% from 2020 to 2022, compared with 14% and lower for the highest- and lowest-income households. That is mainly because of the middle’s exposure to cars and gasoline, where price increases were especially pronounced. In earlier cycles, low-income households tended to experience higher inflation.
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