Inflation cooled significantly in November, as the Consumer Price Index (CPI) rose 7.1% annually, down from 7.7% in October and much better than economists’ expectations of…
7.3%. Despite the moderation in inflation, the Fed indicated raising interest rates through next year, with the key rate reaching roughly 5.1% or more. The Fed’s persistent hawkish stance could lead to the economy tipping into a recession.
Furthermore, the policymakers downgraded their outlook for economic growth in 2023 from the 1.2% forecasted in September to 0.5%. Consumers also pulled back on spending last month, with retail sales dropping 0.6%, even worse than the Dow Jones estimate for a 0.3% decline.
With further monetary tightening in store and other unfavorable economic data, recession odds continue to rise. According to the latest Bloomberg monthly survey of economists, the probability of an economic downturn next year stands at 70%, up from 65% in November and more than double what was estimated six months ago.
Amid the uncertain economic backdrop, it could be wise to avoid fundamentally weak stocks Lucid Group, Inc. (LCID), Ginkgo Bioworks Holdings, Inc. (DNA), and Bed Bath & Beyond Inc. (BBBY). These stocks are rated F (Strong Sell) in our POWR Ratings system.
Lucid Group, Inc. (LCID)
LCID is a technology and automotive company that develops electric vehicle (EV) technologies. It designs, engineers, and builds electric vehicles, EV powertrains, and battery systems. The company operates more than twenty retail studios in the United States.
On December 13, LCID and Panasonic Energy Co., Ltd., a Panasonic Group company (PCRFY), entered into…
Continue reading at STOCKNEWS.com
