A lion is seen at the Bronx Zoo on March 22, 2018 in New York City.
James Devaney Getty Images Entertainment | Getty Images
Here are the most important news investors need to start their trading day:
1. Like a lion?
Time to wipe the slate clean with a new month. With a gloomy February in the books, investors are wondering what March can bring. The Dow was negative for the year after ending last month down nearly 4.2%. The S&P 500 and Nasdaq are still positive for 2023 despite falling 2.6% and 1.1%, respectively, in February. On Wednesday, investors will chew on more economic data, as well as earnings reports from home improvement retailer Lowe’s and other retail chains. Kohl’s. Follow live market updates.
2. Layoffs of General Motors
Mary Barra, CEO, GM at NYSE, November 17, 2022.
Source: NYSE
Just a week after General Motors executives said they are not planning any layoffs, the company will lay off about 500 salaried employees. The cuts came after a performance evaluation, and are part of the company’s plan to cut $2 billion in costs over the next two years. The layoffs affect “a small number of global executives and classified employees following the latest performance calibration,” according to an internal company communication. The auto industry has largely avoided layoffs so far, with major tech companies dominating news of job cuts. Last month, GM rival Ford said it would cut around 3,800 jobs in Europe.
3. Shop more carefully
A Lowe’s Home Improvement Warehouse store is seen on August 17, 2022 in Houston, Texas.
Brandon Bell Getty Images
Lowe’s the latest to join the store caution parade. The home improvement retailer followed rival Home Depot, as well as big-box giants Walmart and Target, in issuing conservative sales guidance for the year. For focusing exclusively on home improvement, Lowe’s and Home Depot found themselves in a bleak spot. Mortgage rates are higher (see below), which puts pressure on the housing market, which should focus more on renovations as more people stay in their homes these days. But many people have used pandemic-era stimulus money, home equity or other savings to renovate their homes during the Covid era.
4. Demand for mortgages is sinking
The Henley and Partners 2023 wealth report ranks the top 10 US cities where millionaires are buying second homes.
Grace Cary moment | Getty Images
For some time there, you can see some green shoots before the spring selling season. But maybe the groundhog meant six more weeks of the housing market season when he saw his reflection on February 2. In just about a month, mortgage rates have risen half a percentage point, and that has pushed the demand for mortgages to buy houses to a 28-year low. Mortgage applications for home purchases are down 6% each week, according to the Mortgage Bankers Association. Demand is down 44% compared to the same period last year, when rates were in the 4% range. Find out more about the latest mortgage data from CNBC’s Diana Olick.
5. Rough reports for Rivian
The Rivian name is displayed on one of the new electric SUV vehicles in San Diego, USA, 16 December 2022.
Mike Blake Reuters
Rivian, the upstart EV truck maker, reported lackluster earnings Tuesday, while also forecasting lower-than-expected production output for the year. Rivian said it will produce 50,000 vehicles this year, lower than Wall Street’s estimate of 60,000. The company blamed supply chain problems for the recent disruption, with suppliers lacking certain components. While the company is a bit gloomy about this year, it does see some silver linings. “We expect supply chain challenges to continue into 2023, but with better predictions than those experienced in 2022,” Rivian said in a letter to shareholders.
– CNBC’s Alex Harring, Michael Wayland, Gabrielle Fonrouge, Rebecca Picciotto and Diana Olick contributed to this report.
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