Motley Fool Money More Rate Hikes Coming
Oct 7, 2022
In this discussion, Andy Cross and Jason Moser, both seasoned analysts, dissect the implications of September's jobs report signaling possible interest rate hikes. They delve into AMD's lowered revenue forecast and Constellation Brands' quarterly losses. Malcolm Ethridge shares insights on seasonal hiring trends and earnings expectations, while the panel speculates on DraftKings' potential partnership with ESPN and highlights promising stocks like Alphabet and Dream Finders Homes. Expect a lively debate on market dynamics and investment strategies!
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Rate Hike Rationale
- The U.S. added 263,000 jobs in September, the lowest monthly gain this year but still lowering unemployment to 3.5%.
- This tight labor market and 5% wage growth suggest the Federal Reserve will likely raise interest rates again in November.
AMD's Warning
- AMD's warning of lower revenue, due to a weaker PC market, follows a similar pre-announcement from NVIDIA.
- This isn't surprising given recent trends, but the full impact on AMD's margins remains to be seen after their November 1st earnings announcement.
Constellation Brands and Canopy Growth
- Constellation Brands' investment in Canopy Growth continues to weigh down their financial results.
- However, their core alcohol business performed well, and they remain optimistic about the long-term potential of the cannabis market.