ATB Rundown: Peloton losing money; Americans adding debt with new cars; Dollar Tree inflation pinch

8/25/22

Peloton just keeps losing money. And Americans are eager to go into more debt for that new car. Some strong economic data lifted the markets today ahead of the Fed Chairman’s anticipated speech coming tomorrow in Jackson Hole, Wyoming.

The Dow gained 322, or 1%, to close at 33,291
The S&P was up 58, or 1.4%
The Nasdaq jumped 1.67% or 207 points.

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The pain is real at Peloton. The fitness equipment maker lost $1.2 billion for its fiscal fourth quarter as it continues its turnaround plan. It’s Peloton’s sixth consecutive quarterly loss. Shares fell 20% today, just one day after surging 20% on news of its partnership with Amazon.

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Even Dollar Tree is feeling the pinch from inflation. The discount retailer cut its financial outlook for the year after reporting second quarter earnings that beat estimates by a penny. Dollar Tree shares fell 10% today.

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US consumers are going deeper into debt to pay for that new car. The average loan is $40,200 with a monthly payment of $667. That’s up 15% from last year. It shows Americans are borrowing at record levels to pay for their expensive cars.

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From Los Angeles, I’m Brian Martin with your BEONDTV After the Bell report.