8/12/22

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%.

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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.

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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.

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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.

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