Saturday,
October 16, 2021
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The Week in Review
US stocks were volatile this week. Indexes have been choppy recently as traders weigh concerns about rising energy prices, which could contribute to inflationary pressures and weigh on economic growth. A global shortage of natural gas has sent crude prices soaring in recent weeks. Oil prices wobbled slightly Tuesday, but remained close to multiyear highs. West Texas Intermediate (WTI), the US oil benchmark, stayed above $80 per barrel.
Meanwhile, earnings season kicked off with several major firms sharing results. Earnings growth is expected to increase by about 30% year-over-year for the third quarter after spiking by 96.3% year-over-year for the second quarter.
On the economic data front, a better-than-expected jobs report contributed to optimism on Wall Street. Initial unemployment claims hit 293,000āthe first time the metric has been under 300,000 since the pandemic hit the US in mid-March 2020. The Federal Reserve has been carefully tracking the strength of the labor market to determine when to scale back its monetary policies. The central bank has said it could begin tapering its initiatives in mid-November. The strong jobs report could encourage the Fedās decision to make changes next month.
For more economic news and how it affects your money, visit the SoFi app.
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.
This Weekās Top Stories
Oil Prices Surpass $80 Per Barrel Amid Rebounding Demand Oil prices climbed past $80 per barrel in intraday trading Monday as demand for oil continues to surge across the globe. At its current price, oil is trading at a high not seen in seven years. Since the end of October 2020, US crude prices are 120% higher.Some investors who previously avoided the energy sector because of the impact oil has on the environment and because of lackluster returns in the past are now trying to get back into the sector. Read more >>
Liz Looks at: The Final Quarter of 2021 Even in Lizās worst-case scenario weād still end the year up almost 11% on the S&P 500. But she is finding it more and more difficult to expect any kind of meaningful rally before the end of the year. Hereās why. Read more >> Home Heating Costs Could Rise by 30% or More Americans across the country should prepare for higher energy costs this winter, with the White House warning that bills will be much higher compared to last year. With energy prices skyrocketing across the globe and supply dwindling, the Energy Information Administration, a government agency, warned some parts of the country will see an average increase of 30% for their energy bills. Read more >>