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Daily Scoop 22-1-25

Daily Scoop 22-1-25

👋 Your Tuesday Scoops - Shell's failed carbon capture & the not-so-free Facebook

January 25, 2022

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Today's Scoop:Nervous

Big Picture

Consumers are still spending a lot.
Home prices continue to climb but at a slower pace.
Investors are worried about the central bank ending its stimulus program.

The Market

⬇️

-1.2%

S&P 500: 4,356.45

1Mo:

-9%

| 1Yr:

+13%

| 5Yr:

+90%

Markets stumbled again today but didn't fall back to the lows from Monday. Investors are

worried a little bit about Russia invading Ukraine

, but mainly about the

central bank removing the economic stimulus program

they've had in place since the start of the pandemic. The Federal Reserve is starting to taper off that steroid program and return to normal situations because the economy is looking healthy enough to stand on its own.⁠ Investors don't love the uncertain health of a steroid-less economy.

Consumers still look to be happy spending money. American Express reported members

spending at record levels

last month.

Home prices continue to climb.

The S&P CoreLogic Case-Shiller Index showed a 12-month rise of 18.8%. It was the 6th-highest rise on record, following behind the previous five months.

⁠

Company Scoops ❤🌎💰

(Click to dig in & vote your reaction, see how others feel)

Shell's

government-funded greenwashing

Tesla's

batteries level up

Facebook's

not-so-free app charging low income users

Johnson & Johnson's

big drug profits

Verizon's

5G drives growth

(These links only work for 24 hours while the story is live)

🤓 Inside Scoop...

You may have heard people talking about the "market correction." A correction is when any investment falls more than 10% in value from its most recent peak. Some might call that a crash, but correction implies that it's a normal part of the cycle. Investors are trying to make bets on the future, and the price they're willing to pay depends on their confidence in that future. The normal cycle starts with investors getting really hyped, maybe over-hyped. Then, that exuberance "corrects" itself back to a more pessimistic mindset, then likely heads back to normal and starts again.