Top Story
Stocks Slide, Extending Mondayâs Losses
• US stocks fell Tuesday, dragged down by the tech-heavy Nasdaq Composite. Wall Street is closely watching the uptick in COVID-19 cases sparked by the new Omicron variant and whether surging infections will alter how the Federal Reserve is thinking about tweaking its monetary policies.
• Yesterday the World Health Organization said the new Omicron strain of the coronavirus is spreading faster than any previous variant. In the United Kingdom, Prime Minister Boris Johnson announced a handful of new protective measures in the face of an incoming "tidal wave" of infections. UK Health Secretary Sajid Javid said Britain might soon be registering as many as 200,000 Omicron infections per day. The country's National Health Service website crashed due to demand for booster shots.
• Inflation data released yesterday didn't help Street sentiment either. The November producer price index jumped 9.6% over the past year. This is a new record and was above economist expectations of 9.2%. Investors are curious about how both the uptick in infections and inflation will impact decision-making at the Federal Reserve.
What to Be on the Lookout for Today
• November retail sales, the import price index, the Empire State Index, and NAHB home builders index are all due this morning.
• The Federal Reserve concludes its two-day meeting in the afternoon, after which Chairman Jerome Powell will hold a press conference.
• Lennar (LEN) and Trip.com Group (TCOM) are scheduled to report their latest earning results.
SoFiâs 2021 Year in Review
We did it! Another year has come and gone, and weâve had quite the year to celebrate. From the opening of SoFi Stadium, to our IPO, and everything in between, itâs time we close the door on 2021 and welcome in 2022. Read our 2021 Year In Review now!
A Few Headlines That Should Be on Your Radar
Macyâs (M), Urban Outfitters (URBN), and even Kroger (KR) are taking a page out of Amazonâs book and operating third-party marketplaces online. The goal is to give customers more choices and boost revenue. Sellers list their inventory on the website and retailers get a cut of the saleâtypically 15%, but the split can go as high as 40% in some cases. Retailers don't hold inventory or cover shipping costs, making it a high-margin diversification channel. Read more >> Omicron is threatening office reopenings, which would be a blow to landlords and small businesses that rely on workers in city centers. Another delayed return to the office could prompt more employers to consider or implement a long-term remote work strategy. Currently, under 50% of workers in US cities have returned to the office. Read more >> Car shoppers will have a hard time finding any deals this year with demand still outstripping supply. Unfortunately, it doesnât look like next year will be any better. Manufacturers and distributors are scaling back deals and discounts this holiday season amid a severe shortage of inventory. Last month J.D. Power found 87% of all new vehicles were bought for the sticker price or more. Prior to the pandemic, just 36% of vehicle sales went for the asking price or higher. Read more >> A monthly budget might do the trick for some. But others may prefer the added control and flexibility of a weekly budget template. Tightening the timeframe could make it easier to notice if youâve strayed off course with your spending, or to pivot your planning when an unexpected expense (good or bad) comes along. Read more >>Not-So-Breaking News
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United Airlines (UAL) is buying up to 100 electric engines as part of an investment in ZeroAvia. The engines are powered by hydrogen electricity and emit zero emissions.
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Pfizerâs (PFE) antiviral COVID-19 pill was 89% effective in preventing hospitalizations and deaths. The pill works when given to adults within the early days of their first symptoms. Pfizer wants to market the drug as a home remedy under the Paxlovid name.
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Tesla (TSLA) will accept Dogecoin, the meme cryptocurrency, as a payment method. Elon Musk said Dogecoin can be used to buy some of the companyâs merchandise, which sent shares up over 20% yesterday.
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Hard Rock International (BALY) is paying close to $1.1 billion in cash to buy the Mirage, a Las Vegas hotel and casino owned by MGM Resorts International (MGM). Hard Rock plans to build a hotel shaped like a guitar in its place.
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3M (MMM) is spinning off its food safety unit and combining it with Neogen (NEOG) in a deal that values the unit at $5.3 billion. Shareholders of Neogen will own about 49.9% of the business while 3M shareholders will get 50.1%.
Financial Planner Tip of the Day
âWhen people donât know how much they spend and when, it can be difficult to stick to a savings plan. If you donât know how much money hits the bank account each month and how much you spend, how do you know whatâs a realistic amount to save? Before creating savings strategies, many people find it helpful to track their spending and expenses, organized by week, month, or year.â
Brian Walsh, CFPÂŽ at SoFi