- ASUS ROG Zephyrus M16 (2023) price slides down sizeable 23% courtesy of Best Buy Black Friday promotion Notebookcheck.net
- After spending 41% of my life as a tech journalist I can tell you these are the best Black Friday gaming laptops under $1000 PC Gamer
- $400 off one of the best RTX 4080 laptops in the game – a great deal this Black Friday PC Guide – For The Latest PC Hardware & Tech News
- Whoa! This RTX-powered MSI gaming laptop is just $599 for Black Friday PCWorld
- Judge me by size, do you? I say 14-inchers make the best Black Friday gaming laptop purchase PC Gamer
- View Full Coverage on Google News
Tag Archives: Slides
Dow Jones Rises On Q3 Earnings Results; Netflix Slides On Downgrade – Investor’s Business Daily
- Dow Jones Rises On Q3 Earnings Results; Netflix Slides On Downgrade Investor’s Business Daily
- Dow rises 200 points, heads for winning week after strong bank earnings, yields retreat: Live updates CNBC
- US futures steady as big banks kick off earnings season: Stock market news today Yahoo Finance
- Q3 Earnings Season Poses Next Big Test for S&P 500: Here’s How to Prepare for It | investing.com Investing.com
- Analysts’ outlook of another quarterly profit drop is bad for stocks. But they’re routinely wrong The Associated Press
- View Full Coverage on Google News
Dow Jones Slides 250 Points On Key Housing Data; DraftKings Pops On Upgrade – Investor’s Business Daily
- Dow Jones Slides 250 Points On Key Housing Data; DraftKings Pops On Upgrade Investor’s Business Daily
- WEDNESDAY’S BLOG Stock Market Today: What to Watch The Wall Street Journal
- NASDAQ 100, Dow Jones, S&P 500 News: Market Braces for October’s Volatility Amid Rate, Political Concerns FX Empire
- Stock Market Tests August Lows But These Indicators Remain Bearish; Yield Hits Nearly 16-Year High Investor’s Business Daily
- Nasdaq, S&P 500 Futures Retreat On Rate-Hike Worries — But Here’s Why This Analyst Sees Bullish End To Ye Benzinga
- View Full Coverage on Google News
2023 NFL mock draft 5.0: Anthony Richardson vaults way up, while Jalen Carter ‘slides’ to team that trades back – Yahoo Sports
- 2023 NFL mock draft 5.0: Anthony Richardson vaults way up, while Jalen Carter ‘slides’ to team that trades back Yahoo Sports
- NFL Mock Draft 2023: Packers’ Aaron Rodgers traded to Jets; QBs go 1-2-3 as Bears, Cardinals move back CBS Sports
- Lance Zierlein 2023 NFL mock draft 2.1: Raiders go up for C.J. Stroud; Colts select Anthony Richardson NFL.com
- Realistic Round 1 options for Bills in 2023 NFL Draft Buffalo Rumblings
- NFL Mock Draft 2023: Ravens end up finding trade partner for Lamar Jackson, Lions take QB heir to Jared Goff CBS Sports
- View Full Coverage on Google News
CPI Inflation Rate Slides, But Service Still Rising; S&P 500 Rally Pauses
The CPI inflation rate fell faster than expected in December. However, core inflation, which strips out food and energy, only slowed in line with forecasts amid stubborn services inflation. The S&P 500 inched higher in late Thursday morning stock market action, oscillating between mild losses and gains after release of the consumer price index.
X
The CPI inflation rate eased to 6.5% from 7.1% the prior month vs. Wall Street expectations of 6.6%. The consumer price index was fell 0.1% on the month vs. the expected flat reading.
The core CPI rose 0.3% vs. November levels, as expected. The annual core inflation rate eased to 5.7% from 6%. The core CPI inflation rate peaked at a 40-year-high 6.6% in September.
Also on Thursday, the Labor Department also reported new claims for jobless benefits dipped 1,000 to 205,000 in the week through Jan. 7, suggesting that layoffs have yet to pick up in a broad way.
The Fed is likely to continue stepping down the pace of rate hikes to just a quarter-point with its next policy move on Feb. 1. Odds of just a 25-basis-point Fed rate hike jumped to 93% after the CPI, up from 77%.
The extent to which the Fed keeps hiking after that will depend less on the CPI than wage growth, which is key to the outlook for service-sector inflation. The good news for markets that sparked the latest S&P 500 rally attempt is that wage growth showed a surprising deceleration in December.
Goods Vs. Services Spending
Inflation in goods prices, excluding food and energy, has decelerated from double-digit increases earlier in the year. That progress continued in December. Core goods prices fell 0.3% on the month. That brought year-over-year inflation to 2.1% from 3.7% in November.
Inflation in nonenergy services prices, which affects 56% of consumer budgets, still hasn’t begun to subside. Core services prices rose 0.5% on the month and 7% from a year ago vs. 6.8% in November. However, that’s partly due to the way the Labor Department calculates housing inflation. While new rates for rental housing have been falling for months, it takes about a year for that to be fully reflected in renewed leases and the CPI.
Still, services prices excluding shelter rose 7.4% from a year ago. That includes energy services prices, which are up 15.6% from a year ago. Excluding energy and shelter, service prices are up about 6.2% from a year ago.
S&P 500 Reaction To CPI Report
The S&P 500 rose less than 0.1% around 10:55 a.m. ET, showing little direction. The Dow Jones Industrial Average gained 0.4%, while the Nasdaq composite dipped 0.1%.
Meanwhile, the 10-year Treasury yield slipped 2 basis points to 3.53%.
The latest S&P 500 rally off mid-October lows got another jolt of energy on Jan. 6, when unexpectedly tame wage inflation data raised hope that the Fed could wind down rate hikes before they crashed the economy.
The rally sparked by the jobs report has lifted the S&P 500 within 0.4% of its 200-day moving average. The past couple of rally attempts have faltered around that level, but this one might have some legs.
The S&P 500 finished 13.7% above its Oct. 13 bear-market intraday low on Wednesday, but remained 17.6% below its all-time closing high.
Be sure to read IBD’s The Big Picture every day to stay in sync with the market direction and what it means for your trading decisions.
CPI Inflation Report Details
Prices for used cars and trucks fell 2.5% on the month and are now 8.8% below year-ago levels. New vehicle prices were dipped 0.1% from November, while the annual price increase moderated to 5.9% from 7.2% the prior month.
Energy prices fell 4.5% on the month, while the annual increase moderated to 7.3% from 13.1% in November.
Prices for food climbed 0.3% on the month, as the annual increase slowed to 10.4% from 10.6%.
Rent of one’s primary resident and owner’s equivalent rent rose 8.3% and 7.5% from a year ago, respectively. Both rose 0.8% on the month.
Prices for transportation services rose 0.2% on the month and 14.6% from a year ago.
Medical services prices rose 0.1% on the month, after falling 0.7% and 0.6% the prior two months. That left the annual increase at 4.1%.
Fed’s Powell Shifts Focus From CPI To Wages
A further decline in the CPI inflation rate could allow the S&P 500 to keep moving higher, but it won’t be the catalyst.
Wage growth has become key to the Fed policy outlook, so investors celebrated after the December jobs report showed a sudden downshift in Q4. The average hourly wage rose 4.6% from a year ago, below 5% forecasts, kick-starting the current S&P 500 rally. Wage growth has now fallen to the lowest level since August 2021, sliding a full percentage point from the March peak.
With wages growing at an annualized 4% rate in Q4, wage growth appears to be receding to close to Fed Chair Jerome Powell’s target of 3.5%. Factoring in productivity growth of about 1.5%, wage growth of 3.5% could bring inflation close to in line with the Fed’s 2% goal.
The most important inflation rate going forward is personal consumption expenditures (PCE) services minus energy and housing, Powell says. Core goods-price inflation is waning and the same is likely for housing inflation in 2023, given the stalling of market rents. But inflation in nonenergy services, excluding housing, is likely to stay elevated as long as wage growth remains hot.
Housing accounts for over 30% of the CPI and 40% of the core CPI, but it only makes up 15% of the broader PCE basket.
Health care spending in the CPI excludes the bulk of outlays: spending covered by employers and government programs. Further, the recent declines in medical services prices in the CPI reflects stale data on insurer profits. By contrast, PCE health care services inflation is on the rise amid higher labor costs. Also, food consumed at restaurants, which continues to see high inflation, is excluded from the core CPI but is grouped among core PCE services.
YOU MAY ALSO LIKE:
Join IBD Live And Learn Top Chart-Reading And Trading Techniques From The Pros
Catch The Next Winning Stock With MarketSmith
How To Make Money In Stocks In 3 Simple Steps
This New Fed Inflation Chart Is Key For S&P 500
Wall St slides as services data spooks investors about Fed rate hikes
Dec 5 (Reuters) – U.S. markets ended Monday lower, as investors spooked by better-than-expected data from the services sector re-evaluated whether the Federal Reserve could hike interest rates for longer, while shares of Tesla slid on reports of a production cut in China.
The electric-vehicle maker (TSLA.O) slumped 6.4% on plans to cut December output of the Model Y at its Shanghai plant by more than 20% from the previous month.
This weighed on the Nasdaq, where Tesla was one of the biggest fallers, pulling the tech-heavy index to its second straight decline.
Broadly, indexes suffered as data showed U.S. services industry activity unexpectedly picked up in November, with employment rebounding, offering more evidence of underlying momentum in the economy.
The data came on the heels of a survey last week that showed stronger-than-expected job and wage growth in November, challenging hopes that the Fed might slow the pace and intensity of its rate hikes amid recent signs of ebbing inflation.
“Today is a bit of a response to Friday, because that jobs report, showing the economy was not slowing down that much, was contrary to the message which (Chair Jerome) Powell had delivered on Wednesday afternoon,” said Bernard Drury, CEO of Drury Capital, referencing comments made by the head of the Federal Reserve saying it was time to slow the pace of coming interest rate hikes.
“We’re back to inflation-fighting mode,” Drury added.
Investors see an 89% chance that the U.S. central bank will increase interest rates by 50 basis points next week to 4.25%-4.50%, with the rates peaking at 4.984% in May 2023.
The rate-setting Federal Open Market Committee meets on Dec. 13-14, the final meeting in a volatile year, which saw the central bank attempt to arrest a multi-decade rise in inflation with record interest rate hikes.
The aggressive policy tightening has also triggered worries of an economic downturn, with JPMorgan, Citigroup and BlackRock among those that believe a recession is likely in 2023.
The Dow Jones Industrial Average (.DJI) fell 482.78 points, or 1.4%, to close at 33,947.1, the S&P 500 (.SPX) lost 72.86 points, or 1.79%, to end on 3,998.84, and the Nasdaq Composite (.IXIC) dropped 221.56 points, or 1.93%, to finish on 11,239.94.
In other economic data this week, investors will also monitor weekly jobless claims, producer prices and the University of Michigan’s consumer sentiment survey for more clues on the health of the U.S. economy.
Energy (.SPNY) was among the biggest S&P sectoral losers, dropping 2.9%. It was weighed by U.S. natural gas futures slumping more than 10% on Monday, as the outlook dimmed due to forecasts for milder weather and the delayed restart of the Freeport liquefied natural gas (LNG) export plant.
EQT Corp (EQT.N), one of the largest U.S. natural gas producers, was the steepest faller on the energy index, closing 7.2% lower.
Financials (.SPSY) were also hit hard, slipping 2.5%. Although bank profits are typically boosted by rising interest rates, they are also sensitive to concerns about bad loans or slowing loan growth amid an economic downturn.
Meanwhile, apparel maker VF Corp (VFC.N) dropped 11.2% – its largest one-day decline since March 2020 – after announcing the sudden retirement of CEO Steve Rendle. The firm, which owns names including outdoor wear brand The North Face and sneaker maker Vans, also cut its full-year sales and profit forecasts, blaming weaker-than-anticipated consumer demand.
Volume on U.S. exchanges was 10.78 billion shares, compared with the 11.04 billion average for the full session over the last 20 trading days.
The S&P 500 posted six new 52-week highs and four new lows; the Nasdaq Composite recorded 105 new highs and 133 new lows.
Reporting by Shubham Batra, Ankika Biswas, Johann M Cherian and Devik Jain in Bengaluru and David French in New York; Editing by Anil D’Silva, Shounak Dasgupta and Lisa Shumaker
Our Standards: The Thomson Reuters Trust Principles.
Amazon Stock Slides After it Gives Weak Outlook Amid Recession Fears
Amazon.com Inc.
AMZN -4.06%
projected sales in the current quarter would be far below expectations, sending its stock plunging and offering the latest stark sign of how shifting economic forces are battering tech giants that thrived during the pandemic.
The company on Thursday said sales in the recently completed third quarter rose 15% from a year earlier, while net income was $2.9 billion—its first quarterly profit in 2022, though still a 9% decline from the same period last year.
The e-commerce giant jolted investors with its projection for revenue of $140 billion to $148 billion in the current period—analysts had expected more than $155 billion, according to FactSet. Amazon, which said the estimate includes a sizable hit from foreign-exchange factors, also said it anticipated operating income of anywhere between zero and $4 billion, reflecting the uncertainty looming over what is traditionally its biggest quarter of the year because of holiday shopping.
The company’s shares fell more than 12% in after-hours trading following the results to trade near $97. At that level, Amazon’s valuation is below $1 trillion, which it first hit in 2018.
The disappointing outlook capped an extraordinary several days that also saw shares of other tech giants plummet after their results showed worsening conditions in a range of areas.
Shares of
parent Meta Platforms Inc., already battered over the past year, dropped nearly 25% on Thursday after it reported its second quarterly revenue decline in a row a day earlier.
Microsoft Corp.’s
stock also fell after it delivered on Tuesday its worst net income decline in more than two years and the weakest revenue growth in over five years. Google-parent
Alphabet Inc.
similarly disappointed investors with slowing sales.
These tech companies flourished during the pandemic, as life and work suddenly shifted more to the internet, pushing up sales and spurring the already fast-growing companies to accelerate hiring and investment.
Now, one after another, engines that drove that growth are sputtering. Sales of personal computers and other gadgets are falling. Consumers, walloped by inflation, are broadly trimming their spending, while companies are tightening their outlays for everything from digital ads to IT services.
“There is obviously a lot happening in the macroeconomic environment, and we’ll balance our investments to be more streamlined without compromising our key long-term, strategic bets,” Amazon Chief Executive
Andy Jassy
said Thursday.
In the third quarter, Amazon’s online store sales rose 7% to $53.48 billion after falling in recent quarters. The segment includes product sales primarily on its flagship site and digital media content. Its online sales got a boost from its annual Prime Day sale, which this year fell in the third quarter where last year it was in the second quarter.
While still the nation’s largest online store, Amazon’s e-commerce division has struggled to grow this year. The company in the second quarter reported a 4% year-over-year drop in its online stores segment. That marked the largest drop since the metric was first reported in 2016.
This year, Amazon’s e-commerce machine—which has grown at breakneck speed for decade—has been showing signs that it could be entering a phase of slower growth. After a multibillion-dollar infrastructure build-out and hiring spree, it now has to contend with high inflation and concerns about a recession weighing on consumer spending.
Chief Financial Officer
Brian Olsavsky
said the company has entered a period of caution.
“We are preparing for what could be a slower growth period like most companies. We are going to be very careful on our hiring,” Mr. Olsavsky said during a call with reporters Thursday. “We certainly are looking at our cost structure and looking for areas where we can save money.”
He said Amazon is “seeing signs all around that people’s budgets are tight, inflation is still high.”
Analysts say the new challenges Amazon faces in e-commerce could linger.
Amazon has the largest share of online commerce, about 38%, but its market share has plateaued in recent years, according to market research firm Insider Intelligence. Analysts say the company’s size has made it unlikely the e-commerce unit’s growth would hit the same pace it once did. Amazon also is dealing with increased competition from
Walmart Inc.,
Target Corp.
and others.
Mr. Jassy has shifted toward cost-cutting. The company cut back on subleasing millions of square feet of excess warehouse space and put off opening new facilities while earlier thinning out its hourly workforce through attrition.
It enacted a hiring freeze through the end of the year at its corporate retail division, the segment that drives core sales and is responsible for a large part of this year’s slowdown. The company has paused hiring among some teams at its Amazon Web Services cloud-computing division.
While Amazon’s earnings continue to be aided by AWS and its expanding advertising business, growth slowed in the cloud business. AWS had sales of $20.5 billion during the third quarter, a 27% rise but one of the lowest rates of growth posted by the unit in recent quarters. Mr. Olsavsky said the company saw AWS customers “working to cut their bills.”
Amazon’s advertising revenues rose 25% to $9.5 billion.
Amazon is headed toward the end of the year with added challenges. After needing fewer blue-collar employees earlier in the year, it has looked to add more than 100,000 workers at its warehouses to meet the expected holiday demand. Still, that strategy has come with a cost. Amazon recently said it would spend $1 billion to raise average starting salaries to $19 an hour nationwide and is earmarking millions to raise wages and benefits for its delivery employees.
Consumers will be more likely to return to bricks-and-mortar stores for their holiday shopping this year, and economic concerns will likely weigh on spending, according to analysts. Amazon’s own
Jeff Bezos
seemed cautious about the future. He recently said it is time to “batten down the hatches,” referring to warning signs that the U.S. is headed for a recession.
Write to Sebastian Herrera at sebastian.herrera@wsj.com
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Brent crude slides below $85 a barrel as dollar surges
An aerial view of Phillips 66 oil refinery is seen in Linden, New Jersey, United States.
Tayfun Cosku | Anadolu Agency | Getty Images
Brent crude fell below $85 a barrel Monday, as recession fears weighed and the U.S. dollar surged.
Brent futures for November settlement were trading down over 1% around $84.92 at 8 a.m. London time. West Texas Intermediate futures also fell to trade around $77.93.
The U.S. dollar surged to a high not seen since 2002 Monday, while sterling tumbled to a record low against the currency.
On Friday, both Brent and WTI futures fell around 5% to hit their lowest level since January.
It comes as central banks around the world — including the U.S. and the U.K. — continue to hike interest rates in an effort to tackle inflation.
Meanwhile, fears around an economic slowdown continue to mount, with Steve Hanke, professor of applied economics at Johns Hopkins University, putting the chance that the U.S. will fall into recession at 80%.
“If [the Fed] continue[s] the quantitative tightening and move that growth rate and M2 (money supply) into negative territory, it’ll be severe,” Hanke told CNBC’s “Street Signs Asia” on Friday.
This is a breaking news story and will be updated shortly.
Wall St slides as investors digest jobs data, Gazprom halt
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., August 22, 2022. REUTERS/Brendan McDermid
Register now for FREE unlimited access to Reuters.com
Sept 2 (Reuters) – Wall Street’s main indexes fell in afternoon trading on Friday as investors digested mixed jobs data, while renewed concerns over the European gas crisis prompted investors to sell equities heading into a long weekend.
The main three indexes opened sharply higher following the jobs data that showed stronger-than-expected hiring but an uptick in unemployment rate which eased some fears about aggressive interest rate hikes from the Federal Reserve.
“Investors are rethinking the August jobs report and are probably leaning into the fact that there’s no clear end to the rate increases. Higher rates provide competition for stocks,” said Rick Meckler, partner at Cherry Lane Investments.
Register now for FREE unlimited access to Reuters.com
Adding to worries, Russia has scrapped a Saturday deadline to resume gas flows via the Nord Stream 1 pipeline, one of the main supply routes to Europe, after saying it discovered a fault during maintenance, deepening Europe’s difficulties in securing fuel for winter. read more
Russia’s state-controlled oil firm Gazprom said it could not safely restart deliveries until it had fixed an oil leak found in a vital pipeline turbine. It did not give a new timeframe.
“I did see the Gazprom headlines, and obviously that’s not good news,” said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey.
Analysts also pointed to thin trading volumes ahead of the extended holiday weekend helping to exaggerate market moves.
“Volume is very light because it is a Friday before a three-day weekend which tends to sometimes give these liquidity vacuums,” Saluzzi added.
Markets are closed on Monday on account of Labor Day.
The CBOE volatility index (.VIX), also known as Wall Street’s fear gauge, rose to 25.5 points after hitting one-week lows earlier.
Nine of the 11 major S&P sectors were down. All the sectors had risen earlier after the Labor Department’s report showed U.S. employers hired more workers than expected last month.
However, average hourly earnings rose 0.3% compared with estimates of 0.4%, while the unemployment rate edged up to 3.7% from a pre-pandemic low of 3.5%, indicating that the Fed’s efforts to front-load rate hikes were beginning to take effect. read more
Wage growth data is seen as important to the Fed’s deliberations on increasing interest rates as the central bank looks to bring inflation, running at four-decades high, back to its 2% target.
The focus now shifts to the August consumer price report due mid-month, the last major data available before the Fed’s Sept. 20-21 policy meeting.
Fears of aggressive policy tightening have gripped Wall Street recently, with the S&P 500 (.SPX) sliding nearly 4.5% since Fed Chair Jerome Powell’s hawkish remarks last week about rate hikes. His views were later echoed by other policymakers.
All the three main indexes are set for a third straight weekly loss.
At 1:39 p.m. ET, the Dow Jones Industrial Average (.DJI) was down 186.98 points, or 0.59%, at 31,469.44, the S&P 500 (.SPX) was down 26.50 points, or 0.67%, at 3,940.35, and the Nasdaq Composite (.IXIC) was down 113.37 points, or 0.96%, at 11,671.75.
Energy stocks (.SPNY) advanced 1.6% as oil prices gained nearly 2% ahead of an OPEC+ meeting to discuss potential production cuts.
Advancing issues outnumbered decliners by a 1.08-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.40-to-1 ratio on the Nasdaq.
The S&P index recorded three new 52-week highs and five new lows, while the Nasdaq recorded 41 new highs and 127 new lows.
Volume on U.S. exchanges was 6.52 billion shares, compared with the 10.31 billion average for the full session over the last 20 trading days.
Register now for FREE unlimited access to Reuters.com
Reporting by Devik Jain and Sruthi Shankar in Bengaluru; Editing by Sriraj Kalluvila and Maju Samuel
Our Standards: The Thomson Reuters Trust Principles.
American tourists splurge in Paris boutiques as euro slides
PARIS, July 15 (Reuters) – American tourist Shawna Wilson says she has splashed out on four dresses at the high-end LVMH-owned department store La Samaritaine in Paris, tempted by the prices as the euro reached parity with the U.S. dollar.
The euro tumbled below $1 on Wednesday for the first time in two decades on fears that rising energy prices triggered by the Ukraine conflict could tip the European Union into a prolonged economic crisis. read more
“It’s like it’s on sale here,” said Wilson, 49, from Colorado, whose purchases included two dresses for her daughter. “Because the euro and the dollar are about the same, it definitely encourages us to spend.”
Register now for FREE unlimited access to Reuters.com
The weak euro is big draw for tourists, particularly Americans – who are flagged as a key growth driver for the European luxury goods sector in the second quarter, according to analysts from Barclays.
The strong dollar versus the euro contributed to a four-fold rise in tourism spending in Europe in June compared with last year, with an acceleration in spending from Americans, analysts at UBS, citing data from VAT refund provider Planet, said.
The luxury sector has rebounded quickly from the pandemic as people rushed to spend money saved during lockdowns — buying themselves treats as socialising resumed.
But sales in China, the world’s largest luxury goods market, have plunged this year as a new wave of strict COVID-19 lockdowns shuttered shops, crimped demand and also meant fewer high-spending Chinese tourists in Europe. read more
So as Americans fill up transatlantic flights, their eagerness to cash in on the weak euro is helping to replace business lost as a result of the lack of Chinese visitors, who were the main source of luxury sales growth in Europe pre-pandemic.
Luxury goods companies Richemont (CFR.S) and Burberry on Friday reported higher sales in Europe, which helped to offset a drop of more than 30% in China. read more
France has benefited most from the tourists’ splurge.
Sales to tourists in France in June climbed to just 11.3% below 2019 levels, a positive sign for French luxury labels that have a big exposure to their home market, UBS analysts said.
The Dior logo is seen on a building under renovation of luxury brand Dior on the Champs-Elysees avenue in Paris, France, July 13, 2022. REUTERS/Rali Benallou NO RESALES. NO ARCHIVES
American tourists were thronging Paris’s Avenue Montaigne this week, browsing in the luxury boutiques, which include designer names such as Louis Vuitton, Chanel and Gucci.
Cheryl Penn, 70, a realtor from Delray Beach, Florida, had already bought herself a skirt and stocked up on baby clothes for her granddaughter.
“We just got on the Avenue, so we just started our shopping spree,” said Penn.
“I like that the euro and the dollar are equal so I know exactly what I’m spending,” she said.
Jennifer Groner, a TikTok influencer, went on a shopping spree in Paris in April when the euro was under pressure versus the dollar.
“I’ve never seen anything like this in terms of the price savings,” she told Reuters, estimating that she snapped up a Birkin bag from Hermes in Paris for $4,000 less than it would have cost her in the United States, paying little over $9,000, thanks also to a VAT refund.
“You’re able to travel to Europe, take in the culture but at the same time buy a bag,” said Groner, who also bought handbags and accessories from Prada, Dior, Louis Vuitton and Chanel, for overall savings of $8,000 compared with U.S. prices, based on her calculations.
Monika Arora, founder of pursebop.com, a news and information website for luxury brands, said she believes the brands will eventually “harmonise” prices.
“They’ve done that many times before,” she said.
Chanel told Reuters in May it could implement further price increases in July to account for currency fluctuations – particularly the weakness of the euro – and inflation. read more
The pull of Paris remains strong for American shoppers even though New York’s high end shopping streets teem with luxury European designer brands.
“So many of my friends more than ever are taking little weekend trips to Paris and other places and they are shopping while they are there — because that’s what you do while you’re in Paris,” said Jennifer Tumpowski, outside Gucci’s flagship store on New York’s Fifth Avenue.
Register now for FREE unlimited access to Reuters.com
Reporting by Lea Guedj, Doyinsola Oladipo, Gigi Zamora and Mimosa Spencer. Editing by Jane Merriman
Our Standards: The Thomson Reuters Trust Principles.