Saturday,
August 21, 2021
Amid evolving news surrounding COVID-19 and the economic reopening, your financial needs are our top priority. For more information,click here.
Top Story
The Week in Review
US stocks were volatile Monday, dipping early in the day and then recovering. Data released yesterday morning showed that economic growth in China slowed more than expected. Retail sales in the country climbed by 8.5% year-over-year last month.
US stocks fell Tuesday as investors weighed concerns about declining retail sales and dwindling global economic growth. As COVID-19 cases rise in certain parts of the country, consumers are being more cautious with their spendingāboth because they are concerned about visiting stores and because they want to save money in case of an economic downturn.
US stocks fell for the second day in a row Wednesday. The Federal Reserve published its July meeting minutes, which indicated that the central bank could begin reducing asset purchases before the end of the year. The committee members emphasized that a decision to reduce or taper assets would not necessarily be a precursor to an interest-rate increase.
US stocks continued to decline Thursday as investors weighed concerns about the Federal Reserve scaling back stimulus measures. Many members of the Fedās leadership believe the bank has met its inflation objective, though the labor market still needs to strengthen before it will make sense to raise interest rates.
US stocks rebounded Friday after a week of losses. Investors sold equities and commodities, and purchased bonds because of fears that global economic recovery will slow without the Fedās support.
For more economic news and how it affects your money, visit the SoFi app.
This Weekās Top Stories
Retail sales for July fell sharply as consumers reined in spending on clothes, cars, and furniture. It comes as the Delta variant of COVID-19 is rapidly spreading. Both Walmart (WMT) and Home Depot (HD) were able to post growth in second-quarter sales, but slower than earlier this year. While it's hard to predict how much the pandemic will impact, signs are emerging that consumers are getting cautious.
Carvanaās (CVNA) stock is up 1,000% since the early days of the pandemic as it benefits from red-hot demand and rising vehicle prices. But it isn't only its strong car sales which has investors excited. It has a robust loan business that is growing. There is one risk to the Carvana story: a souring loan market. If Carvanaās loan business hurts, rather than helps profit, investors may not be willing to pay such a premium for the stock.
MCR Hotels, one of the countryās biggest hotel-chain operators, is charging guests for an Ć la carte menu of amenities. By charging for amenities like early check-in or access to the pool on a busy weekend, MCR can lower the rates it charges at some hotels, boosting its occupancy rates. As it stands Marriott (MAR) and Hilton (HLT) are skeptical, but so was everyone when the airline industry started charging for checked luggage.
Deep Dives from SoFi Learn
Earning passive income, or money you earn without active involvement, can help you to achieve financial independence and greater wealth. Learn about these 39 ways to get started earning passive income.
Thinking about refinancing your car loan? Discover a few considerations you should think about before making this move.
Do you ever wonder how much insurance you really need? Weāll walk you through various types of coverage so you can determine which suit your needs.
Credit Card Utilization: What You Need To Know
The world of credit scores can make your head spin, but what we know for sure is that credit card utilization plays a big role in how companies compute your credit score. In fact, about 30% of your credit score is determined by your credit card utilization rate. That means a high credit card utilization rate can adversely affect your credit score.
The general guideline is that you should not exceed a 30% credit card utilization rate. Track your credit score for free in the SoFi app, where the factors affecting your score are broken out to make them easier to understand.
