Important News for Investors

1. Bearish

Investors received a bearish signal on Thursday as all major indexes closed below their 50-day moving averages. This is the first time the Dow Jones Industrial Average has done so since June 1. The Dow fell 0.84%, the S&P 500 dropped 0.77%, and the Nasdaq Composite declined 1.17%. All three indexes are heading for a losing week, marking the third consecutive down week for the Nasdaq and the S&P. The Dow is also on track for its worst week since March.

2. Common Threads

After a week of earnings reports, it’s clear that not all retailers are performing equally. Target and Walmart both reported fiscal second-quarter results, revealing significant differences. Target fell short of revenue expectations and experienced a decline in online sales. On the other hand, Walmart outperformed and saw a rise in online sales. Target is struggling with softness in discretionary spending and has cut its forecast for the full year. In contrast, Walmart is optimistic about the second half of the year.

3. Late Night Sell-Off

Bitcoin experienced a sudden drop late Thursday, losing as much as 9% and currently trading around $26,000. The cause of the sell-off is still uncertain, but it may be related to a Wall Street Journal story that revealed SpaceX, Elon Musk’s rocket company, wrote down its bitcoin holdings and sold off the virtual currency. Some experts believe the sell-off is driven by short-sighted retail investors.

4. Chapter 15

China’s heavily indebted property giant, Evergrande Group, filed for bankruptcy protection in the U.S. on Thursday. This follows its default on loans in 2021, which had a significant impact on China’s property sector. Evergrande’s bankruptcy filing includes proceedings in Hong Kong, the Cayman Islands, and the British Virgin Islands. The filing comes at a time when the Chinese real estate market is already facing uncertainties and concerns about its impact on other sectors of the economy.

5. Cash Strapped

A large percentage of Americans are living paycheck to paycheck. In June, 61% of U.S. adults relied on their next paycheck to cover basic expenses. A survey from Bankrate also found that over 70% of Americans do not feel financially secure. With the average monthly take-home pay of around $3,300 and monthly expenses reaching $2,800, many Americans are struggling to make ends meet.

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