The stock market closed lower on Wednesday as Target warned of a weaker holiday season despite retail sales data suggested consumers are willing to spend on big topic items. Furthermore, industrial production dropped 0.1% in October against the 1.4% growth in retail sales.
Overall, S&P 500 declined 0.8% to 3,959, while NASDAQ fell 1.5% to 11,184.
Tweet of the Day
Me calling for @cz_binance to be kicked out of the UAE while I was live on stage today at the ADGM Crypto day. That shady character was speaking right before me together with Lunatic @novogratz both of them vomiting their crappy bullshit about collapsing shitcoins. Rats & Roaches https://t.co/Hqo6YVViNN
— Nouriel Roubini (@Nouriel) November 16, 2022
Chart of the Day
Our chart of the day is the ten-year chart of S&P Global (SPGI) as of November 5, 2022, when the stock was at $316.
S&P Global has been providing financial information and analytics for more than 150 years. The company used to be a big player in book publishing, but has evolved to become more of a financial stock (with higher profit margins).
Ratings are in a Bear Market, which is understandable considering all those companies that issued debt at ultra-low interest rates the past two years.
Profits are expected to decline 19% this year because of the Credit Ratings division. Ratings were great in 2020 and 2021 as organizations issued bonds with low interest rates.
I see profit growth returning in 2023. This is a solid stock to buy on a pull back.
– David Sharek, Founder of The School of Hard Stocks
SPGI is part of the Conservative Growth Portfolio. This is a relatively safe stock that David Sharek thinks can grow 15% a year. His Fair Value P/E remains at 26 this qtr.