the bird is freed | The Daily Peel | 10/31/22

Oct 31, 2022 | Peel #327

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Market Snapshot

Here we go. Elona Musk began his run at the helm of Twitter guns a-blazin’, canning several execs and promising to further clean house.

In the markets, the Dow had a helluva Friday and is nearing its best-ever October performance.

Apple led the charge and is the only Big Tech name left unscathed after awful months from Amazon, Meta, Microsoft, and Alphabet.

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Macro Monkey Says

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What's Ripe

What's Rotten

Amazon ($AMZN) ↓ 6.80% ↓

• It took a while for Big Tech to get walloped like the rest of the market, but the collapse is in full force now
• A strong dollar didn’t help $AMZN in Q3, but projections of a weak holiday szn ahead really cratered the stock

DaVita ($DVA) ↓ 27.09% ↓

• The kidney dialysis company’s profits plummeted in Q3, and prospects for Q4 aren’t much better
• Labor market and pandemic headwinds were the cited reasons for the drop, but investors are over those excuses at this point

Data Peel

Source

Thought Banana

Life in Plastic, It’s Fantastic

The only way to keep Americans from racking up credit card debt might just be locking them inside.

Soon after lockdowns took effect, credit card debt began to plunge as people spent their time dancing on TikTok rather than slamming $20 espresso martinis.

• The sum total of U.S. credit card debt stood at $916 billion in September, a jump of nearly $200 billion since April 2021
• Stimmies that weren’t dumped into Robinhood helped people pay down debt and pad savings
• Since then, real wages haven’t kept pace with inflation, which has forced people to resort to credit to maintain their lifestyle

The big question: Could a recession, along with higher rates, blow up consumer balance sheets and lead to a painful downturn?

Banana Brain Teaser