Welcome to MarketBites! Here's all you need to know about yesterday's market news.
“Why should a man be scorned if, finding himself in prison, he tries to get out and go home?”
- J.R.R. Tolkien
PORTFOLIO MANAGER COMMENTARY
U.S. stocks closed lower on Thursday with the S&P leading the indices down 0.8%. Snap released earnings after-hours and posted disappointing results to follow up on an overall lackluster year. The social media company announced a slowdown in sales growth and issued warnings about their digital-ad market. Shares of Snap were down 24% after hours. The stock had already shed more than 75% so far this year prior to the announcement.
Blackstone’s net income plummeted to less than a penny per share this past third quarter as its private-equity portfolio lost value. The firm reported a net income of $2.3 million compared to a profit of $1.4 billion during the same period last year. Blackstone stock was down 4.22% on the day.
U.S. home sales fell for an eighth straight month in September marking the longest streak of declines in 15 years. Existing home sales continue to be a drag on the U.S. economy as mortgage rates are now approaching 7%. Mortgage rates are strongly correlated to interest rate levels; thus, as long as the Fed continues to raise rates then watch for housing demand to continue to slow down.
CHART OF THE DAY
U.K.'s Liz Truss resigned from her position as prime minister yesterday after igniting financial turmoil during her short stint. The chart below highlights the volatility of the bond market after Truss was elected on September 5th. The current 10-year government bond yield is almost a full percentage point higher, at 3.87% compared to 2.90% on September 2.
By Raymond Kanyo