Have We Hit Bottom?

Market Snapshot Markets initially dropped on news that core CPI accelerated to 6.6% in September, up from 6.3% in August. But they quickly bounced back and surged higher as certainty around a 75-point hike in November grew, and investors figured that the selling had gone too far. The question now becomes whether the Fed thinks the current hiking schedule is still sufficient or whether it needs to tighten the screws further. At the close, the Dow shot up 2.83%, the Nasdaq rose 2.23%, and the S&P gained 2.6%. WSO’s DCF Modeling Course can get you up to speed on all things discounted cash flow that you will need to both survive and excel in finance. From the big picture, to fundamentals, to enterprise and equity valuation practice, you’ll take a deep dive into topics that are crucial for anyone who wants to work in Finance. [Master DCF Modeling today]() Let’s get into it. Monkey Meme of the Day [image]() [Source]() Banana Bits - Retirees can breathe a little easier as the [Social Security cost-of-living increase](=) will total 8.7% next year - BlackRock’s massive [AUM fell 16% in Q3](), but it still turned a profit of over $1bn - Rumors are swirling that Intel is planning [wide swaths of layoffs]() to get costs under control - Billion-dollar natural disasters are [becoming the norm]() Banana Brain Teaser Yesterday — I can fly, but I have no wings. I can cry, but I have no eyes. Wherever I go, darkness follows me. What am I? Clouds. Today — It’s 50 bananas off of our [DCF Modeling Course](=) for the first 15 correct respondents. LFG! If you throw me out the window, I'll leave a grieving wife. Bring me back but through the door, and you'll see someone giving life. What am I? Shoot us your guesses at [vyomesh@wallstreetoasis.com](mailto:vyomesh@wallstreetoasis.com?subject=Banana%20Brain%20Teaser) with the subject line “Banana Brain Teaser” or simply [click here to reply!](mailto:vyomesh@wallstreetoasis.com?subject=Banana%20Brain%20Teaser) Macro Monkey Says Hard-To-Find Labor Has Its Perks — The biggest thing people worry about in a recession is losing their job. In a competitive marketplace, shedding workers during a downturn is just part of the game…unless you have long-term worries about your ability to attract talent. - Companies are starting to talk about keeping employees in case a recession comes next year, even if it comes at the expense of profits - The shift in mindset could lessen the pain of a recession - The domino effect of people losing their jobs, then consuming less, which leads to more job losses, could be curbed if companies hold on to workers America’s domestic consumer market is the linchpin of its economic stability. Once the consumer starts tightening or is overwhelmed by debt, bad things start to happen. That’s partially why the economy has been trudging along without a traditional “recession” coming about in 2022. Persistent inflation and falling stock markets have dinged the average person’s wealth, but they’ve managed to keep their spending relatively stable. Too few workers to fill the enormous demand enabled by money printing is what got us into this inflationary mess in the first place. But if it incentivizes companies to keep workers throughout a downturn, the severity of a recession could be minimized. WSO DCF Modeling Course [image]( WSO’s DCF Modeling Course can get you up to speed on all things discounted cash flow that you will need to both survive and excel in finance. From the big picture, to fundamentals, to enterprise and equity valuation practice, you’ll take a deep dive into topics that are crucial for anyone who wants to work in Finance. Our robust curriculum will help you thrive in the most prestigious jobs on Wall Street. Book your course today. [Master DCF Modeling Today]() What's Ripe Domino’s Pizza ($DPZ) — You can have eye-watering inflation and the deepest recession imaginable, and people will still order large pepperonis on the reg. Despite higher prices and labor challenges, Domino’s managed to grow its top line in the quarter. It sets a positive tone for other major restaurant chains set to report earnings soon, including McDonald’s and Chipotle. $DPZ was up 10.44% by the end of the day. Barclays ($BCS) — The British bank was up big Thursday on the back of a wide-ranging market rebound in the U.K. Hope for some sanity in financial markets sent the pound, bonds, and stocks higher in Britain. An announcement of a fiscal plan that makes more sense could add fuel to the recovery. Barclays has lost 20% in the past month, so the bump was much needed. $BCS was up 8.43% by the end of the day. What's Rotten Coinbase ($COIN) — Despite news of a partnership with Google in crypto cloud payments, $COIN continued losing ground Thursday. The crypto winter is as dark as ever, and investors aren’t expecting much to change until rates stabilize and risk assets are on the table again. For now, $COIN is playing the long game and betting on a crypto resurgence in the future. $COIN is down 11.99% in the last month. Etsy ($ETSY) — The e-commerce platform told investors that inflation was a primary factor that drove slowing sales in Q2. Well, inflation has only gotten worse since then, and investors are expecting an ever sharper slowdown as a result. The sharp decline comes less than a week after a buy rating from Goldman, so maybe there’s some value to be had. By the end of the day, $ETSY was down 9.27%. Thought Banana Who Needs a Hummer EV? — The $110k [Hummer EV Pickup](=) weighs 6 tons, gets up to 1000 horsepower, and can reach 60 mph in 3.3 seconds. For reference, an F1 car goes zero to 60 in [2.6 seconds](. It’s a f*cking incredible piece of machinery from a traditionally gas-guzzling brand. Hummer, and other legacy car brands, are designing new EV models to be huge and incredibly powerful in order to cater to the traditional truck guy. - EVs are starting to lap gas cars in terms of power and acceleration, and brands are souping up their vehicles to entice consumers with unbelievable speed - It doesn’t take a rocket scientist to wonder how safe a 12,000-pound tank zooming down the road is - Americans love big cars, and there isn’t any sign of that changing amid the transition to EVs The U.S. has the [highest traffic death rate in the developed world](, so ensuring that the next generation of cars doesn’t regularly mow down pedestrians, or slam into each other, is pretty important. Federal agencies have thus far been more focused on the climate benefits of EVs than the safety risks from their insane power and heavy weight. These cars are basically computers on wheels, so hopefully, that intelligence can keep everybody safer on the road. But if I see one of these Hummers zooming past me, I’m getting the hell out of the way. Wise Investor Says “The time to buy is when there’s blood in the streets.” — Baron Rothschild Happy Investing, Patrick & The Daily Peel Team Was this email forwarded to you? Sign up for the WSO Daily Peel [here](. [ADVERTISE](=) // [WSO ALPHA]( // [COURSES](=) // [LEGAL](=) Don't want The Daily Peel? [Unsubscribe here](=). Click to [Unsubscribe]( from ALL WSO content IB Oasis Corp. (aka "Wall Street Oasis") 20705 Saint Charles St Saratoga, California 95070 United States (617) 337-3353