🌀 Are US Consumers In A Debt Spiral?

Good morning. US stock futures dipped in Tuesday morning trading as investors gear up for a pair of key inflation readings to gain clarity into the path forward for rate cuts from the Federal Reserve.

💳 US consumers borrowing at record levels

📝 Our report: American consumers unleashed their credit cards with more gusto than a post-holiday sale stampede in November, marking the most spirited surge in borrowing in a year! As the holiday shopping season went into overdrive, credit-card balances soared, giving a whole new meaning to the term "festive spending spree."  

 🔑 Key points:

• Total credit rose $23.8 billion after rising a revised $5.8 billion in October, according to recently released data from the Federal Reserve. The figure well exceeded the highest estimate in a Bloomberg survey of economists, which had a median forecast of $8.6 billion.

• Revolving credit outstanding, which includes credit cards, increased $19.1 billion in November, the most since March 2022.

• So far, steady hiring, wage growth and savings have given American consumers the confidence to keep spending and carry more credit-card debt.

💡 So what: High levels of credit card debt in the U.S. pose multiple challenges for consumers. The accompanying high-interest payments on credit card balances not only lead to increased costs for purchases but also contribute to financial stress, impacting mental and emotional well-being. Overall, excessive credit card debt can significantly impede individuals' ability to achieve financial stability and pursue their desired long-term financial goals.

Tuesday - US Trade Deficit

Wednesday - New York Fed President John Williams Speaks

Thursday - US CPI

Friday - No Major Economic News

 📈 Here are 5 investing lessons from Peter Lynch!

💰 Do you know the difference between options and stock?

🏢 US office space hits vacancy record

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✈️ Boeing works to unground planes

WHAT: Boeing is working round the clock to get its embattled Max 9 jets back soaring the friendly skies! The company took the first step toward returning its grounded 737 Max 9 jetliners to service, issuing guidance to airlines on the inspections required following a recent mid-air structural failure.

WHY: Airlines have grounded all their Max 9 aircrafts after a Jan. 5 accident that occurred when a door-shaped panel ripped out as Alaska Airlines Flight 1282 climbed out of Portland, Oregon.

🚙 VW adds AI to compact cars

WHAT: Volkswagen rolled out its new compact rides at the CES trade fair, now equipped with a voice assistant powered by ChatGPT tech! The chatbot, integrated via a partnership with Cerence Inc., can control entertainment in the car and answer general knowledge questions. In future, it could converse with drivers and interact in other ways, the carmaker said in a statement.

WHY: Volkswagen said it was the first volume manufacturer to make the technology a standard feature in its compact segment cars. GM said in March last year it was working on a virtual personal assistant using AI models behind ChatGPT.

🥽 Apple Vision Pro gets February release date

WHAT: Apple is set to unleash its Vision Pro headset on February 2nd, marking the dawn of “spatial computing”, according company CEO Tim Cook. The official release of the VR and augmented reality headset marks a significant moment for the company as consumers will soon get their hands on Apple's biggest product launch in roughly a decade.

WHY: Apple's highly anticipated expansion of its hardware lineup comes at a challenging moment for the tech giant. The company has lost over $175 billion in market value after two analyst downgrades sparked a punishing sell-off of the company’s stock.

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