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Stocks Sink on Lower Industrial Production, Target’s Weak Holiday Sales Outlook

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

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.

David Sharek

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.

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