In Tuesday’s market trades, the S&P 500 (IVV) and Dow Jones (DJI) rose slightly to earn another record close. Stock markets ignored the Conference Board’s Consumer Confidence Index report.
In September, the index fell to 98.7, compared to 105.6 in August. The lower confidence might result in retailers under-performing markets. However, Walmart (WMT) and Costco (COST) continue to trade higher. Similarly, shareholders are bullish on Best Buy (BBY).
Unexpectedly, China announced stimulus measures that are comparable to those issued during the pandemic four years ago. The PBOC’s actions would help luxury brands rebound. Ulta Beauty (ULTA), elf (ELF), Estee Lauder (EL), and high-end car firms like Mercedes-Benz (MBGAF) and BMW (BMWYY) previously blamed China for its weak quarterly sales.
Investors should continue to avoid automotive stocks. The economy is not healthy enough to support customers buying high-priced vehicles. Even though Toyota Motors (TM) said it would buy back its cheap stock, shares still have a negative momentum. TM stock peaked at over $250 in March.
Labor strike risks are another headwind for markets. Boeing (BA) and Stellantis (STLA) workers are among the groups whose strike actions hurt the underlying firm. Boeing cannot afford to pay higher wages as quality controls worsen. Stellantis has trouble selling its top-end Jeep Wagoneer.
