That Peloton machine is about to cost more. And how long will these rate increases last? A sharp rise on the markets today. A fourth straight week of gains following those better than expected inflation numbers.
The Dow gained 424 to close at 33,761
The S&P was up 72 points, or 1.75%.
The Nasdaq gained 267, or 2%.
Peloton is cutting jobs and raising prices to stop the bleeding. It’s also closing some of its 86 stores. The Peloton bike will cost $500 more, the treadmill $800 more. It’s part of the new CEO’s plan to return the fitness equipment maker to profits. Peloton stock has tumbled 60% this year alone.
Things aren’t a whole lot better at Rivian. The electric automaker lost $1.7 billion in its second quarter. That’s more than double from the same time last year when it lost $580 million. As we keep hearing, supply chain issues are to blame.
Gas prices are falling, inflation numbers are turning lower, but one member of the Federal Reserve says rate increases will continue until inflation holds at 2%. Markets are divided on whether the Fed will increase the borrowing rate by another three-quarters of a percent in September or scale down to a half point.
From Los Angeles, I’m Brian Martin with your BEONDTV After the Bell report.