This Week In Money: Nordstrom, Macy's, Fidelity, Snapchat, Alibaba
In this weekly series, we break down seven different things every person needs to know from the world of finance news. We're taking complicated stories and making them simple, easy to understand, and quick to read. Perfect for the man who wants to be in the know, but doesn't have the time to obsess over global markets. If you like this, make sure to link up with Finimize for more financial news.
Stocks were down for the first time in months
It’s be a great run since the lows of the market at the end of September, so a bit of a pullback was probably inevitable - but down 3.5% is a significant move.
High end department stores had a terrible week
Macy’s and Nordstrom both reported results – and it turns out a lot fewer people are shopping at high-end department stores! iPhones and the like are proving a lot more attractive than expensive clothing.
Everyone thinks the Fed will raise rates
Chatter from officials at the central bank (The Fed) suggest that it will raise interest rates in December for the first time since 2006 - that will probably make life more difficult for stocks.
The $14bn day: More stuff was sold online on Wednesday than any previous day in history
China’s Singles Day (Nov 11th) has become massive - it’s way bigger than Black Friday and Cyber Monday combined. Alibaba (China’s Amazon) popularized the day and benefits hugely from its success. Some also took it as a sign that the average Chinese person is (economically) doing better than expected.
This week’s sign that the tech apocalypse is upon us
Fidelity - a big, blue-chip investment manager - reportedly wrote down it’s Snapchat investment by 25%. It left a lot of people asking what Fidelity was doing owning a startup in the first place - and others warning that unicorns aren’t real…
Commodities (like copper and oil) had a terrible weak
Many commodities hit 6-year lows. There is just too much of it right now relative to what the world needs (mainly because China is using so much less). Energy and mining stocks, like ExxonMobil and Glencore, saw big stock sell-offs as a result.
India laid out a ginormous welcome mat for foreign companies
Prime Minister Modi made it a lot easier for international companies to do business in India. Relatedly, General Electric and Alstom (sort of a French GE) agreed to massive deals with the country’s main rail company to build locomotives in India - it’s probably a sign of things to come for India.
