Consumer Companies Rise as Jobs Growth Slows
Consumer companies saw a significant increase in their stock prices following a lackluster jobs growth report. This encouraged speculation that the Federal Reserve would halt its rate hikes, alleviating concerns about mortgage affordability.
Effect of Rate Hikes on Consumers
JJ Kinahan, CEO of IG North America and president of its brokerage tastytrade, noted that the spike in mortgage rates has been the main way consumers have felt the impact of the Fed's rate-hike campaign. The recent jobs data is consistent with this trend as an Institute for Supply Management services-sector index indicated a slowdown in activity among retailers, realtors, restaurants, and other businesses. In fact, the index dropped to a five-month low of 51.8%, suggesting an overall softening of the economy.
Church & Dwight Faces Challenges
Despite reporting a significant increase in third-quarter revenue, Church & Dwight, the maker of household and consumer-care products like baking soda and toothpaste, experienced a decline in their stock prices. The company attributed this to the anticipation of higher marketing costs impacting their growth in the fourth quarter.
Legal Action Against Alaska Airlines
Passengers who were on an Alaska Airlines flight where an off-duty pilot attempted to shut off the engines have filed a lawsuit against the airline. The claimants argue that the incident highlights insufficient screening procedures for pilots.
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