Economic Alarms Ring: S&P 500 Margins Dip, NFIB’s Sales Deteriorate, Companies Signal Weak Demand, Yield Curve Again Inverts

The economic landscape is marked by several concerning indicators, as evidenced by the S&P 500 margins trending lower, reflecting potential challenges for companies. The National Federation of Independent Business (NFIB) reports a deterioration in sales, indicating a worsening scenario for small businesses. Additionally, a growing number of companies are expressing concerns about weak demand, adding …

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Tesla misses on both earnings and revenue, margins dropped

Tesla reported third-quarter results after the bell Wednesday. The company’s shares rose as much as 2.4% in extended trading after the report crossed, but then sank more than 4% after CEO Elon Musk cautioned that the Cybertruck would not deliver significant positive cashflow for 12 to 18 months after production begins, and emphasized that the …

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Liquidity Crunch Squeezes Margins and Earnings of community banks

by WarrenBuffe Community Banks to Face Margin and Earnings Pressures in 2023 – Rising Rates and Liquidity Crunch Shift the Landscape for US Banks https://www.spglobal.com/marketintelligence/en/news-insights/research/community-banks-margins-earnings-squeezed-by-liquidity-crunch https://www.spglobal.com/marketintelligence/en/news-insights/research/liquidity-pressures-put-funding-in-the-crosshairs-at-community-banks  

Federal Reserve Alert! Beige Book July 12, 2023: “many contacts reported an inability to fully pass on increased costs to consumers, which has compressed margins.” Is the ‘Greedflation’ Peak in Sight?

by Dismal-Jellyfish https://www.federalreserve.gov/monetarypolicy/beigebook202307.htm Overall Economic Activity Overall economic activity increased slightly since late May. Five Districts reported slight or modest growth, five noted no change, and two reported slight and modest declines. Reports on consumer spending were mixed; growth was generally observed in consumer services, but some retailers noted shifts away from discretionary spending. Tourism and …

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Margins are falling across more sectors. Banks seek to reduce commercial real estate exposure.

Margins are falling across more sectors. Are companies getting less greedy? Or are they more attuned to less intense demand for their goods/services, better supply, and the potential to lose market share? From @greg_ip on 'greedflation'https://t.co/w5UjBVQhR3 pic.twitter.com/7E4rJhW6yH — Nick Timiraos (@NickTimiraos) July 6, 2023 But despite all that, things are looking bright! Banks are removing …

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