Market Update
China Optimism Lifts Resource and Luxury Stocks In Europe
Bridgette Randall
27 Dec, 2022
Frankfurt
European markets traded higher on China optimism and a rise in resource stocks.
China's health regulator said international visitors will no longer need mandatory quarantine from January 8. The quarantine requirement was in place for three years.
Chinese officials also plan to lift international travel for Chinese citizens but did not announce the date.
Resource companies also traded higher after crude oil prices rose on the expectations of rising demand from China.
European Stock Indexes Advance, Bond Yields Rise
The DAX index increased 0.4% to 13,995.10, the CAC-40 index added 0.7% to 6,550.66 and the FTSE 100 index advanced 3.73 points to 7,473.0 in Thursday's trading.
London trading is scheduled resume on Wednesday.
The yield on 10-year German Bunds increased to 2.51%, French bonds rose to 3.06%, UK gilts to 3.64% and Italian bonds to 4.61%.
Copper price increased to a 6-month high of $3.90 a pound on hopes of rising demand from China as social mobility resumes and business activities gather pace.
Crude oil traded higher but natural gas prices dropped to a six-month low on milder winter weather, above average wind power and ample gas supplies.
Natural gas storage facilities in the European Union were at 83.1% as of December 25th, according to Gas Infrastructure Europe.
Brent crude oil price increased 29 cents to $84.20 a barrel and the TTF natural gas futures price for immediate month delivery fell 3.5% to
Movers: Alibaba. Apple, JM Smucker, Las Vegas Sands, Nio, Southwest Air, Tesla
Scott Peters
27 Dec, 2022
New York City
Tesla Inc declined 8.7% to $112.62 on the worries of falling sales in China despite the year-end discounts.
Tesla China sales were between 10,000 and 13,000 in the first three weeks of December and fell just below 9,000 in the week ending December 25, according to CnEVPost.
China's total new energy vehicle sales in the week ending on December 25 were about 182,000 units, an increase of 48.1% from a year ago and 12.6% from the previous week.
Tesla dropped to a new 52-week low.
Apple Inc dropped 1.3% to $130.07 and fell to its 52-week low after tech stocks continued to slide in Tuesday's trading.
Despite the weakness in tech stocks, some consumer staples and healthcare stocks traded at multi-year highs.
JM Smucker jumped 0.9% to $159.85 and traded at all-time high and Merck & Co advanced 0.3% to a multi-year high of $112.20.
Nio Inc ADR dropped 9.0% to $9.98 after the electric vehicle maker in China lowered its fourth quarter sales outlook to 39,000 from the previous estimated range between 43,000 and 48,000.
The company blamed a sales shortfall to supply chain disruptions due to Covid outbreaks in major cities in China.
China-linked stocks were also in favor after China relaxed travel restrictions.
Las Vegas Sands Corp increased 4.4% to $48.51 and Wynn Resorts jumped 4.6% to $84.44.
Alibaba Group Holding Ltd increased 3.7% to $88.95.
Southwest Airlines Co declined 4.7% to $34.37 after the company canceled 70% of its scheduled flights and warned of flight disruptions for the next several days.
Tech Stocks Lead Decliners, Tesla and Apple Drop to One-Year Lows
Barry Adams
27 Dec, 2022
New York City
Stocks lacked direction in early trading in thin trading in the last week of 2022 as investors reviewed portfolios for tax purposes.
Investors are reviewed latest data on wholesale and retail inventories and international trade deficit.
In holiday-shortened trading, bond yields rose and investors weighed 2023 economic outlook and China reopening.
Chinese health regulators said international passengers arriving in China will no longer require mandatory quarantine from January 8.
The National Health Commission also said Chinese citizens will be allowed to resume international travel without specifying the date.
Health regulators are also bracing for a surge in travel in two weeks ahead of Chinese Lunar New Year and at least 255 million people are expected to travel to the countryside.
Indexes In Review
Stocks lacked direction and energy prices rose on the expectations of higher demand from China as social mobility resumes.
The S&P 500 index eased 2.51 points to 3,841.12 and the Nasdaq Composite index fell 0.8% to 10,409.98.
Crude oil price increased $1.58 to $81.15 a barrel and natural gas prices rose 5 cents to $5.12 a thermal unit.
Copper futures price rose to a six-month high of $3.09 per pound the expectations of rising demand from China.
The yield on 2-year Treasury notes increased to 4.41%, 10-year Treasury notes rose to 3.84% and 30-year Treasury bonds advanced to 3.92%.
Smallest International Goods Trade Deficit In Nearly Two Years
International goods trade deficit declined 15.6% or $15.5 billion from a month ago to $83.3 billion, the U.S. Census Bureau reported Tuesday in its preliminary estimates.
The November deficit was the smallest since December 2020.
Goods trade deficit in October was $98.8 billion.
November exports were $168.9 billion, a decline of $5.3 billion from October.
November imports were $252.2 billion, a decline of $20.8 billion from October.
Wholesale Inventories Growth Accelerated In November
Wholesale inventories in November increased 1.0% from October to $933.6 billion after adjusting for seasonal factors and trading days in the period, the U.S. Census Bureau reported Tuesday.
November inventories jumped 21.0% from a year ago.
October inventories increase from September were revised higher to 0.6% from the previous estimate of 0.5%.
Retail inventories at the end of November increased 0.1% to f $738.7 billion and rose 18.4% from a year ago, after adjusting for seasonal factors and trading day difference.
Retail inventories in October were downwardly revised to a decline of 0.4% from the previous estimate of a decline of 0.2%.
U.S. Stocks In Review
Tesla Inc declined 8.7% to $112.62 on the worries of falling sales in China despite the year-end discounts.
Tesla China sales were between 10,000 and 13,000 in the first three weeks of December and fell just below 9,000 in the week ending December 25, according to CnEVPost.
China's total new energy vehicle sales in the week ending on December 25 were about 182,000 units, an increase of 48.1% from a year ago and 12.6% from the previous week.
Tesla dropped to a new 52-week low.
Apple Inc dropped 1.3% to $130.07 and fell to its 52-week low after tech stocks continued to slide in Tuesday's trading.
Despite the weakness in tech stocks, some consumer staples and healthcare stocks traded at multi-year highs.
JM Smucker jumped 0.9% to $159.85 and traded at all-time high and Merck & Co advanced 0.3% to a multi-year high of $112.20.
Nio Inc ADR dropped 9.0% to $9.98 after the electric vehicle maker in China lowered its fourth quarter sales outlook to 39,000 from the previous estimated range between 43,000 and 48,000.
The company blamed a sales shortfall to supply chain disruptions due to Covid outbreaks in major cities in China.
China-linked stocks were also in favor after China relaxed travel restrictions.
Las Vegas Sands Corp increased 4.4% to $48.51 and Wynn Resorts jumped 4.6% to $84.44.
Alibaba Group Holding Ltd increased 3.7% to $88.95.
Southwest Airlines Co declined 4.7% to $34.37 after the company canceled 70% of its scheduled flights and warned of flight disruptions for the next several days.
Smallest Goods Trade Deficit In 20 Months
Brian Turner
27 Dec, 2022
New York City
International goods trade deficit declined 15.6% or $15.5 billion from a month ago to $83.3 billion, the U.S. Census Bureau reported Tuesday in its preliminary estimates.
The November deficit was the smallest since December 2020.
Goods trade deficit in October was $98.8 billion.
November exports were $168.9 billion, a decline of $5.3 billion from October.
November imports were $252.2 billion, a decline of $20.8 billion from October.
Wholesale Inventories Growth Accelerates in November
Brian Turner
27 Dec, 2022
New York City
Wholesale inventories in November increased 1.0% from October to $933.6 billion after adjusting for seasonal factors and trading days in the period, the U.S. Census Bureau reported Tuesday.
November inventories jumped 21.0% from a year ago.
October inventories increase from September were revised higher to 0.6% from the previous estimate of 0.5%.
Retail inventories at the end of November increased 0.1% to f $738.7 billion and rose 18.4% from a year ago, after adjusting for seasonal factors and trading day difference.
Retail inventories in October were downwardly revised to a decline of 0.4% from the previous estimate of a decline of 0.2%.
Asia Indexes Advanced, Kuroda Comments Eased Yen
Arjun Pandit
26 Dec, 2022
New York City
In subdued trading, the Nikkei index advanced 0.7% to 26,405.87 following the easing of inflation in the U.S.
The yen also edged lower from the four-month high after comments from the Bank of Japan Governor Haruhiko Kuroda.
The widening of the yield range for the Japanese government bonds was "absolutely not a first step" in exiting from the ultra-low rate policy, Governor Haruhiko Kuroda said at a gathering today.
He added the move was designed to continue the implementation of a sustainable monetary easing."
In Shanghai stocks advanced despite the lingering Covid woes and rapidly rising infection rates.
In addition, health regulators said they will stop releasing daily Covid cases amid rising infection rates.
The Shanghai Composite index increased 0.7% to 3,065.56 but the Hang Seng Index declined 0.4% to 19,593.06.
Sensex In India Jumps 1.2%
Stocks in Mumbai advanced following a rise in Asian markets and optimism on Wall Street.
Benchmark indexes opened higher after the preferred inflation measure by the U.S. Federal Reserve cooled in November.
The Price Consumption Expenditure index, an alternative measure of inflation which understates the headline inflation but provides broader understanding of the consumer, rose at the slowest pace of 0.1% in November from October.
On an annual basis, the PCE index rose 5.5% in November slower than 6.1% in October, the slowest pace of increase since Oct 2021.
Food prices increased 11.2% and energy rose 13.6%.
The Sensex and the Nifty indexes accelerated gains in the final hour of trading after buying picked up in large cap stocks.
The Sensex index gained 721.13 points or 1.20% to 60,566.42, while the broader Nifty index added 207.80 points or 1.17% to close at 18,014.60.
Among the stocks traded on the BSE, 43 closed at new 52-week highs and 146 closed at new 52-week lows.
The Indian rupee closed at 82.65 against U.S. dollar and the yield on 10-year Indian government bonds rose to 7.31%.
In local trading, crude oil increased 2.9% to 6,621 a barrel and natural gas added 0.5% to 440 a thermal unit.
U.S. Indexes Down for Third Week In a Row
Barry Adams
23 Dec, 2022
New York City
Benchmark indexes clawed back morning losses in volatile trading and closed higher.
Investors ahead of holiday weekend reviewed the increase in personal consumption expenditure price index, new home sales data and durable goods orders.
In the last one month, market sentiment has wavered between a soft landing scenario and recessionary slowdown and investors are worried that stock prices may not reflect the earnings downfall in 2023.
In overseas trading, markets in Asia closed lower after Japan's core inflation accelerated in November and China's Covid flare-up raised the prospects of prolonged supply chain disruptions.
Indexes In Review
Stock market indexes wavered in morning trading but bond yields rose after core PCE Index rose more-than-expected.
The S&P 500 index increased 0.6% to 3,844.92 and the Nasdaq Composite index increased 0.2% to 10,497.82.
For the week, the S&P 500 index declined 0.23% and the Nasdaq Composite fell 2.4%.
Crude oil prices rose $2.01 to $79.44 a barrel and natural gas prices advanced 12 cents to $5.12 a thermal unit.
The yield on 2-year Treasury notes increased to 4.33%, 10-year Treasury notes edged up to $3.75 and 30-year U.S. bonds advanced to 3.83%.
Personal Income Rises 0.4%, Spending Increased 0.1%
Personal income rose $80.1 billion, or 0.4% at a monthly rate, while consumer spending increased $19.8 billion, or 0.1% in November.
The rise in personal income primarily reflected increases in compensation and personal income receipts on assets.
The personal saving rate, personal saving as a percentage of disposable personal income, was 2.4% in November, compared to 2.2% in October.
Real disposable personal income increased 0.3% in November and real consumer spending grew less than 0.1%.
Goods decreased 0.6% reflecting lower spending on new motor vehicles and services increased 0.3% Within services driven by the largest increase in food services and accommodations.
The PCE Price Index Growth Slows
The personal consumption expenditure price index rose 5.5% in November slower than 6.1% in October, the slowest pace of increase since Oct 2021.
Food prices increased 11.2% and energy cost rose 13.6%, according to report released by the U.S. Bureau of Economic Analysis
The core PCE price index, which excludes food and energy costs, rose 4.7% in November,
On a monthly basis, the PCE price index increased 0.1% in November from October.
Energy prices decreased 1.5% and food prices increased 0.3% and excluding food and energy, the core PCE price index increased 0.2 percent from October to November.
November Home Sales Jumped 5.8%
New home sales in November Jumped 5.8% to a seasonally adjusted rate of 640,000 from the downwardly revised October sales rate of 605,000.
The median sales price of new houses sold in November 2022 was $471,200 and the average sales price was $543,600.
The seasonally?adjusted estimate of new homes for sale at the end of November was 461,000, a supply of 8.6 months at the current sales rate.
Home sales in the West jumped 27.6% to 171,000 and the Midwest increased 21.3% to 57,000 but fell in the Northeast 8.5% to 43,000 and in the South fell 2.1% to 369,000.
Transportation Impacted New Orders and Shipments In November
Durable goods orders fell in November after rising for three months in a row, the U.S. Census Bureau reported Friday.
New orders rose 0.7% in October.
The weakness in transportation orders dragged the overall orders in the month.
Excluding transportation, new orders increased 0.2% and excluding defense, new orders decreased 2.6%.
Durable goods Shipments increased in the month and advanced eighteen of the last nineteen months after transportation equipment increased 0.8%.
Shipments increased 0.2% to $275.9 billion following a 0.4% increase in October.
US Stock Movers
Parcel delivery companies were in focus after FedEx and UPS warned that holiday deliveries could arrive late because of severe and inclement weather coast-to-coast.
FedEx increased 1.7% to $177.12 and United Parcel Service rose 0.5% to $176.40.
Moreover, a total of 6,000 flights have been canceled and about 20,000 flights have been delayed this week after bitter cold and arctic blast swept through northern states.
Meta Platforms Inc was nearly unchanged at $117.15 after the company agreed to pay $725 million to settle a class action lawsuit over the data breach.
The class action lawsuit filed in 2018 alleged that the company gave unauthorized access to 87 million users' data to Cambridge Analytica.
Cambridge Analytica used and shared data to advise political campaigns.
Tesla Inc dropped as much as 2% but recovered to flat-line and traded at $125.01 after chief executive Elon Musk said he will hold off selling his stake in the company for the next 18 to 24 months.
In the last twelve months, Musk has sold $3.9 billion of shares to finance his purchase of Twitter Inc.
Alphabet Inc rose 1.8% to $89.33 after the National Football League confirmed its plan to make "Sunday Ticket" available on the company's video platform YouTube.
Carnival Corp declined 2.7% to $7.60 and Norwegian Cruise fell 0.9% to $12.96 on the worries of looming economic slowdown and elevated inflation may impact discretionary consumer spending.
European Markets Lacked Direction
European markets closed mixed in thin trading ahead of the Christmas Break.
Investors reacted to fast spreading coronavirus infections in China and hoped that infection rates will peak soon and social mobility and regular business activities will resume in weeks and not in months.
Market sentiment was on the defensive after core inflation index in the U.S. eased in November but stayed elevated indicating that the U.S. Federal Reserve may continue its aggressive rate hike stance.
The DAX index increased 0.2% to 13,940.93, the CAC-40 index decreased 0.2% to 6,504.90 and the FTSE 100 index edged up 3.73 points to 7,473.01.
The yield on 10-year German Bunds rose to 2.401%, French bonds increased to 2.91%, the UK Gilts to 3.63% and Italian bonds to 4.5%.
The euro held near $1.06 and the British pound closed at $1.205.
France Wholesale Price Inflation Eased In November
France's producer price inflation eased in November after a slight decline in energy prices.
Industrial goods wholesale prices in the domestic market declined to 21.5% from 24.7% in October, the latest data from the statistical agency Insee showed today.
The wholesale prices remained elevated after refined petroleum products prices dropped to 50.6% from 67.0 %in October.
Wholesale prices of industrial goods in foreign markets rose to 11.1%.
Total wholesale prices declined to 18.5% in November from 21.4% in October.
UK Automobile Production Increases In November
UK automobile production expands for the second month in a row in November, data from Society of Motor Manufacturers and Traders showed Friday.
Automobile production increased 5.7% from a year ago to 80,091 in November.
Of the total production, electrified vehicles accounted for about a third with production increasing 18.3% to 29,318 units.
About 74.8% of total manufacturing was for exports with 57% vehicles heading to the European Union, 22% to the United States and 6% to China.
Despite the easing of supply chain bottlenecks, production was still 25.7% lower than 107,744 in 2019.
Europe Stock Movers
European stocks were little changed ahead of the Christmas break next week and financial markets in London closed early.
Resource stocks led the gainers in London trading and Antofagasta, BHP Group and Anglo America gained between 0.5% and 1.2% following higher commodities prices.
Tech stocks were among the decliners and Infineon, Aixtron and ASM Holding fell around 0.5%.
Luxury stocks in Paris eased after the coronavirus infection flared-up in major cities and people avoided social gathering and public transport.
Kering SA dropped 0.5% to
French Wholesale Prices Ease, UK Auto Production Expands
Bridgette Randall
23 Dec, 2022
Frankfurt
European markets closed mixed in thin trading ahead of the Christmas Break.
Investors reacted to fast spreading coronavirus infections in China and hoped that infection rates will peak soon and social mobility and regular business activities will resume in weeks and not in months.
Market sentiment was on the defensive after core inflation index in the U.S. eased in November but stayed elevated indicating that the U.S. Federal Reserve may continue its aggressive rate hike stance.
The DAX index increased 0.2% to 13,940.93, the CAC-40 index decreased 0.2% to 6,504.90 and the FTSE 100 index edged up 3.73 points to 7,473.01.
The yield on 10-year German Bunds rose to 2.401%, French bonds increased to 2.91%, the UK Gilts to 3.63% and Italian bonds to 4.5%.
The euro held near $1.06 and the British pound closed at $1.205.
France Wholesale Price Inflation Eased In November
France's producer price inflation eased in November after a slight decline in energy prices.
Industrial goods wholesale prices in the domestic market declined to 21.5% from 24.7% in October, the latest data from the statistical agency Insee showed today.
The wholesale prices remained elevated after refined petroleum products prices dropped to 50.6% from 67.0 %in October.
Wholesale prices of industrial goods in foreign markets rose to 11.1%.
Total wholesale prices declined to 18.5% in November from 21.4% in October.
UK Automobile Production Increases In November
UK automobile production expands for the second month in a row in November, data from Society of Motor Manufacturers and Traders showed Friday.
Automobile production increased 5.7% from a year ago to 80,091 in November.
Of the total production, electrified vehicles accounted for about a third with production increasing 18.3% to 29,318 units.
About 74.8% of total manufacturing was for exports with 57% vehicles heading to the European Union, 22% to the United States and 6% to China.
Despite the easing of supply chain bottlenecks, production was still 25.7% lower than 107,744 in 2019.
Europe Stock Movers
European stocks were little changed ahead of the Christmas break next week and stock exchanged in London closed early.
Resource stocks led the gainers in London trading and Antofagasta, BHP Group and Anglo America gained between 0.5% and 1.2% following higher commodities prices.
Tech stocks were among the decliners and Infineon, Aixtron and ASM Holding fell around 0.5%.
Luxury stocks in Paris eased after the coronavirus infection flared-up in major cities and people avoided social gathering and public transport.
Kering SA dropped 0.5% to
Movers: 3M, Alphabet, Carnival, FedEx, Meta, Nutanix, Tesla
Scott Peters
23 Dec, 2022
New York City
Parcel delivery companies were in focus after FedEx and UPS warned that holiday deliveries could arrive late because of severe and inclement weather coast-to-coast.
FedEx increased 1.7% to $177.12 and United Parcel Service rose 0.5% to $176.40.
Moreover, a total of 6,000 flights have been canceled and about 20,000 flights have been delayed this week after bitter cold and arctic blast swept through northern states.
3M Co declined 1% to $12039 after the company set 2025 deadline to stop producing so called "forever chemicals" used in the production of semiconductors and electronic equipment.
PFAS or perfluoroalkyl and polyfluoroalkyl substances have been detected in water and food supplies.
On November 10th, California Attorney General's office sued 3M, Arkema, Tyco Fire Products and DuPont and other manufacturers of PFAS.
The companies "were aware of crucial facts relating to PFAS
Indexes Wavered After Economic Reports Kept Inflation and Earnings Worries In Focus
Barry Adams
23 Dec, 2022
New York City
Stocks lacked direction in trading after falling sharply in the previous session.
Investors ahead of holiday weekend reviewed the increase in personal consumption expenditure price index, new home sales data and durable goods orders.
Market sentiment has wavered between soft landing scenario and recessionary slowdown and investors are worried that stocks may not reflect lower earnings in 2023.
In overseas trading, markets in Asia closed lower after Japan's core inflation accelerated in November and China's Covid flare-up raised the prospects of prolonged supply chain disruptions.
Indexes In Review
Stock market indexes wavered in morning trading but bond yields rose after core PCE Index rose more-than-expected.
The S&P 500 index increased 0.3% to 3,833.63 and the Nasdaq Composite index decreased 0.2% to 10,460.76.
Crude oil prices rose $2.20 to $79.74 a barrel and natural gas prices advanced 8 cents to $5.09 a thermal unit.
The yield on 2-year Treasury notes increased to 4.31%, 10-year Treasury notes edged up to $3.73 and 30-year U.S. bonds advanced to 3.80%.
Personal Income Rises 0.4%, Spending Increased 0.1%
Personal income rose $80.1 billion, or 0.4% at a monthly rate, while consumer spending increased $19.8 billion, or 0.1% in November.
The rise in personal income primarily reflected increases in compensation and personal income receipts on assets.
The personal saving rate, personal saving as a percentage of disposable personal income, was 2.4% in November, compared to 2.2% in October.
Real disposable personal income increased 0.3% in November and real consumer spending grew less than 0.1%.
Goods decreased 0.6% reflecting lower spending on new motor vehicles and services increased 0.3% Within services driven by the largest increase in food services and accommodations.
The PCE Price Index Growth Slows
The personal consumption expenditure price index rose 5.5% in November slower than 6.1% in October, the slowest pace of increase since Oct 2021.
Food prices increased 11.2% and energy cost rose 13.6%, according to report released by the U.S. Bureau of Economic Analysis
The core PCE price index, which excludes food and energy costs, rose 4.7% in November,
On a monthly basis, the PCE price index increased 0.1% in November from October.
Energy prices decreased 1.5% and food prices increased 0.3% and excluding food and energy, the core PCE price index increased 0.2 percent from October to November.
November Home Sales Jumped 5.8%
New home sales in November Jumped 5.8% to a seasonally adjusted rate of 640,000 from the downwardly revised October sales rate of 605,000.
The median sales price of new houses sold in November 2022 was $471,200 and the average sales price was $543,600.
The seasonally?adjusted estimate of new homes for sale at the end of November was 461,000, a supply of 8.6 months at the current sales rate.
Home sales in the West jumped 27.6% to 171,000 and the Midwest increased 21.3% to 57,000 but fell in the Northeast 8.5% to 43,000 and in the South fell 2.1% to 369,000.
Transportation Impacted New Orders and Shipments In November
Durable goods orders fell in November after rising for three months in a row, the U.S. Census Bureau reported Friday.
New orders rose 0.7% in October.
The weakness in transportation orders dragged the overall orders in the month.
Excluding transportation, new orders increased 0.2% and excluding defense, new orders decreased 2.6%.
Durable goods Shipments increased in the month and advanced eighteen of the last nineteen months after transportation equipment increased 0.8%.
Shipments increased 0.2% to $275.9 billion following a 0.4% increase in October.
US Stock Movers
Parcel delivery companies were in focus after FedEx and UPS warned that holiday deliveries could arrive late because of severe and inclement weather coast-to-coast.
FedEx increased 1.7% to $177.12 and United Parcel Service rose 0.5% to $176.40.
Moreover, a total of 6,000 flights have been canceled and about 20,000 flights have been delayed this week after bitter cold and arctic blast swept through northern states.
Meta Platforms Inc was nearly unchanged at $117.15 after the company agreed to pay $725 million to settle a class action lawsuit over the data breach.
The class action lawsuit filed in 2018 alleged that the company gave unauthorized access to 87 million users' data to Cambridge Analytica.
Cambridge Analytica used and shared data to advise political campaigns.
Tesla Inc dropped as much as 2% but recovered to flat-line and traded at $125.01 after chief executive Elon Musk said he will hold off selling his stake in the company for the next 18 to 24 months.
In the last twelve months, Musk has sold $3.9 billion of shares to finance his purchase of Twitter Inc.
Alphabet Inc rose 1.8% to $89.33 after the National Football League confirmed its plan to make "Sunday Ticket" available on the company's video platform YouTube.
Carnival Corp declined 2.7% to $7.60 and Norwegian Cruise fell 0.9% to $12.96 on the worries of looming economic slowdown and elevated inflation may impact discretionary consumer spending.