Welcome to November!
November is an opportunity to gather with friends and family and be thankful for our blessings – and to gobble down an extra helping of green bean casserole!
The stock market bounced back nicely in October after a really bumpy September, jumping 7.01% (S&P 500). What drove the rebound? Better-than-expected earnings for starters!
Companies like Microsoft, Goldman Sachs, Google, Chevron, and Chipotle posted stronger-than-expected earnings last quarter. Earnings represent how much money a company made in the quarter and are a major factor in the company’s stock price. When earnings ‘beat’ expectations, that’s like over-delivering on how much money it’s expected to make. And Wall Street likes that!
Many of the largest companies beat earnings last quarter, which helped push stock prices up in October. Unfortunately, Amazon wasn’t one of those companies. The supply-chain issues plaguing companies everywhere hit Amazon particularly hard. In a quarterly earnings call, new CEO Andrew Jassy noted that increased labor costs, shipping costs, and supply-chain issues all weighed on the company’s profitability.
The state of the global supply chain remains in focus for both Wall Street and Washington, DC. As lawmakers continue to debate the Biden Administration’s proposed spending package, supply-chain issues remain in key spots like the Port of Los Angeles. While the Administration did convince the Port to begin round-the-clock operations, trucking and freight remain under pressure, contributing to delays as we enter the critical holiday season.
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