(KRON) — In today’s instalment of Winners & Losers, financial expert Rob Black discusses the market slump, Amazon Prime day success and the return of rent prices to prepandemic levels.
Loser: Markets slump as traders worry about larger rate hikes
Stocks tumbled as big bank earnings kicked off with disappointing results and traders assessed the possibility of even tighter U.S. monetary policy on the back of June’s inflation data.
If the banks are a barometer of the whole economy, it’s going to be an ugly quarter.
JPMorgan Chase shares sank 5% after the bank added to reserves for bad loans and halted its share buybacks, signaling a more cautious economic outlook.
Initial jobless claims edged higher last week in a potential sign the labor market may be cooling as the Federal Reserve tightens financial conditions. First-time filings for unemployment insurance in the U.S. increased to 244,000 in the week ended July 9.
The producer price index for final demand — a gauge of wholesale and business prices — surged 11.3% year-over-year.
The Fed has an 86% probability of a full point rate hike in the wake of inflation.
General Motors will build a network of 2000 EV fast chargers at Pilot and Flying J gas centers along U.S. highways. Once complete, the network will have fast chargers at intervals of about 50 miles along U.S. highways.
The world’s largest chipmaker TSMC posted record profit allaying fears over semiconductor headwinds.
Nearly half of Gen Z is using TikTok and Instagram to search instead of Google. Google’s own data shows that 40% of Gen Z prefer the platforms over Google Search and Maps.
Winner: Amazon Prime Day biggest yet for Amazon
Amazon shoppers bought more than 300 million items during this year’s Prime Day sale, enough that it was the biggest event in Amazon’s history.
Prime members purchased more than 100,000 items per minute during the discount bonanza.
The top-selling categories were consumer electronics, home goods and Amazon-branded devices.
Consumers’ wallets are being squeezed by soaring inflation.
This year, shoppers appeared to reach for necessities over indulgences, with products like Frito-Lay snack packs landing among the top purchased items.
Roughly 58% of orders were placed for items under $20.
Throw in Best Buy and Target and total online retail sales during Amazon’s Prime day event surpassed $11.9 billion. That’s 8.5% higher than last years.
Amazon called out the use of Amazon Live, its livestreaming service. Prime Day live streams had more than 100 million views.
A shopping live stream I recently saw was Jimmy Choo’s creative director, Sandra Choi, logged into Zoom to broadcast live to dozens of Bloomingdale’s customers.
Loser: Rents have bounced back to prepandemic levels and beyond
Families and renters who left the city during the pandemic are now returning to big cities despite concerns about high crime, taxes and troubled mass transit.
Younger renters are also pouring into the rental market.
Average rent in Manhattan was a record $5,000 last month. Median rent in NYC was up by 25% to $4,050 a month.
Although rental markets in major U.S. cities surged to record highs last year, San Francisco’s recovery has lagged behind.
A confluence of factors are to blame, including exorbitant prepandemic rents and the city’s rent-control policies, coupled with a mass exodus of tech workers and others over the past two years.
Of the 100 largest cities nationwide, San Francisco’s rent discounts are the steepest. The city’s median rents are down roughly 10% from March 2020. They are trending upward, but at a fairly modest pace relative to the national average.
In June, the median one-bedroom rent in SF was $2,331, up 7.6% year-over-year. But the rent growth was far slower than the national average of roughly 14.2%.
One reason for the sluggish recovery is that the city’s rental market was the most expensive in the country prior to Covid, and it took the biggest hit when the pandemic struck.
In late May and early June, landlords noticed an uptick in the rental market as more people returned to the office.