In the midst of all of this economic insanity and instability, is it even possible to make a wise and profitable business and investing decisions?
Taylor Welch discusses these things with Dr. Steve Turley to show all of us regardless of the economic or political climate how we can all become better investors and entrepreneurs. Taylor will also be offering a free course for Turley Talk insiders, so make sure to stick all the way to the end.
MARKET MOVERS
- Home building dropped sharply in July. Housing starts in July fell 9.6% from the month before to a seasonally adjusted annual rate of 1.45 million, the Commerce Department said Tuesday, down from a revised 1.60 million the prior month. The declines come amid moves by the Federal Reserve to raise interest rates to combat inflation and cool the economy. Read more here.
- Home Depot’s second-quarter earnings beat expectations. The company cited continued strength in demand for home improvement projects. Same-store sales rose 5.8% in the quarter, topping analyst expectations for growth of 4.9%, according to FactSet. Total customer transactions in the period slipped to 467.4 million, from 481.7 million in the year-ago period, while average ticket grew 9% to $90.02 from $82.48.
- Reebok owner Authentic Brands strikes a $254 million deal for the Ted Baker fashion brand. The deal value represents a premium of roughly 18% to Ted Baker’s closing price Monday. After completion, ABG said it intends to separate the Ted Baker business into an intellectual property holding company that would remain controlled by ABG, plus one or more operating companies that would manage the brand’s stores, e-commerce operations, and wholesale business.
- Paramount reaches streaming deal with Walmart. Paramount Global reached a deal with Walmart Inc. to offer its streaming service to subscribers of the retail giant’s membership program. Under the agreement, Walmart+ members will have access to the Paramount+ Essential plan, an ad-supported version of the streaming service, at no additional cost.
- Walmart sticks with a second-half outlook after earnings beat expectations. Walmart topped analysts’ expectations for earnings and revenue in the fiscal second quarter, even as consumers pulled back in discretionary categories like apparel. The retailer’s profits are under pressure, but it is wooing more middle- and higher-income customers who have turned to the discounter for low-priced food and essentials because of inflation. Read more here.
- Adam Neumann's new residential real estate company Flow has raised $350M from a16z. The un-launched real estate venture is at a valuation of over a billion dollars. The $350 million check that a16z wrote is the largest single check this firm has ever written into a startup. Adam Newman has evidently purchased over 3000 apartment units. The idea is that Flow will operate the properties Newman has bought and also offer its services to new developments and other third parties. Source(13:57)
WHAT TO WATCH
- Michael Burry of ‘The Big Short’ dumps all stock holdings and adds just one name. “The Big Short” investor sold out of all of his 11 equity positions last quarter, including Meta, Alphabet, Warner Bros. Discovery, Global Payments, and Bristol-Myers Squibb, a regulatory filing showed. Burry did add one stock — $3.3 million worth of GEO Group — last quarter, the filing showed. It conveys just how bearish he is on the market. Read more here.
- Wharton’s Jeremy Siegel says the market bottom is in and a ‘soft landing’ is still possible. With signs that inflation may have peaked, the Federal Reserve has a path to achieve a so-called “soft landing” where inflation comes down without causing a major recession, Siegel said. Siegel pointed to the slowdown in the housing sector as proof that the Fed’s rate cuts were effective. even if it has not yet shown up in inflation data. Read more here.
- The ongoing drop in oil prices is a Rorschach test for markets. Either this is emblematic of a global economy in decline & careening toward recession, or it's a normalization of crude values that takes much-needed inflationary pressure off companies.
- Amazon is raising seller fees for the holidays to manage surging inflation. From Oct. 15 through Jan. 14, third-party sellers who use Fulfillment by Amazon will have to pay 35 cents per item sold in the U.S. or Canada. It’s the first time Amazon has hiked seller fees for the holidays. Amazon says that expenses are reaching new heights making it harder for the company to absorb costs tied to the peak shopping season.
