Hello Gauchos! Investment Connections welcomes you to the academic year of 2022-23! We are excited to have you as a part of our club and look forward to connecting with each one of you at our weekly meetings. Keep an eye out for our first meeting, details of which will be posted on our Instagram!

Below you'll find:

• Last weeks market performance

• News that moved markets

• An outlook on this weeks earnings

• Finding your next summer internship

News that moved that markets

• U.S. Household Wealth Suffers Record Drop in Second Quarter U.S. household wealth fell by a record $6.1 trillion in the second quarter to its lowest in a year.

• U.S. Wholesale's Inventories Gain Revised Lower in July Inventories are a key component of gross domestic product. U.S. wholesale inventories increased less than initially thought in July as businesses slowed the replenishment of their stocks.

• Traders are pricing in a 90% chance of a 75 basis point rate hike at the next meeting, up from 57% a week earlier, according to CME Group's Fedwatch Tool.

Earnings

General Mills: General Mills, Inc. is expected* to report earnings on 09/21/2022 before market open. The report will be for the fiscal Quarter ending Aug 2022. According to Zacks Investment Research, based on 8 analysts' forecasts, the consensus EPS forecast for the quarter is $1. The reported EPS for the same quarter last year was $0.99.

Costco: Costco Wholesale Corporation is expected* to report earnings on 09/22/2022 after market close. The report will be for the fiscal Quarter ending Aug 2022. According to Zacks Investment Research, based on 12 analysts' forecasts, the consensus EPS forecast for the quarter is $4.11. The reported EPS for the same quarter last year was $3.9.

Economic Data Recap

• ISM: The ISM rose to over 56 in August, another reading above 50 which indicates expansion.

• Beige Book: Beige Book which is a special report from each district, showcased an easing in input costs along many fronts and also an improvement in the supply chain.

Upcoming Economic Data

• Markets will have their eyes on the CPI reading which might impact Fed rate hike.

Opinion: A Look Into Our Current Housing Market

While the idea of a housing market crash might sound daunting to house-owners, it is something that Gen-Z and millennials have been rooting for even though they might not understand the consequences. While I understand the frustration of extremely unaffordable housing prices, I believe that housing prices will maintain their levels. I will explain my reasoning using the basics of supply and demand.

The existing inventory of houses rose for the first time in three years. The “Months of Supply”, the number of months it would take for the current inventory of homes on the market to sell given the current sales pace, has risen to 4.1 from decades low of 2.1 in January. While anything less than 6 months of supply is considered a seller’s market, this has helped raise some weight off the prices.

With the combination of increasing mortgage rates and unaffordable listing prices, the demand for housing has been decreasing. One of the key factors would be the homebuilder confidence which has been hammered down by the hawkish outlook of the federal reserve. Another obstacle in finding the equilibrium between supply and demand is the existing inventories. With mortgage rates at nearly 6%, the current homeowners will not be incentivized to list their homes because of their lock-in effect.

So the low amount of house supply is going to keep the home prices supported but the change in supply makes me more cautious about the longer-term outlook even though the pace of increasing supply is expected to slow down along with the economy. - Ishan Gondara

Meetings and Events

• Come meet us at the club fair on September 20th as he set up table at the club fair!

• Our friends at UAS are organizing a business club fair on 22nd September from 1800hrs to 2000hrs at Mosher Alumni House!

Job Openings (because you are -99.69% YTD)

MEMES

https://ucsb.joinhandshake.com/stu/events/1103841?ref=virtual_group_events