Thursday,
December 16, 2021
Market recap
Dow Jones
35,927.56
+383.38 (+1.08%)
S&P 500
4,709.84
+75.75 (+1.63%)
Nasdaq
15,565.58
+327.94 (+2.15%)
Top Story
US Stocks Rebound After Fed Meeting
• Markets were mixed on Wednesday. After starting the day in negative territory, US stocks cut their losses once the Federal Reserve announced it would wind down its asset purchases at a faster rate. The more aggressive stance comes as the Fed is attempting to control the highest inflation level since 1982.
• This decision lays the foundation for a policy shift in 2022. Next year, members of the Fed expect to hike rates three times.
• Traders were also continuing to digest comments surrounding the new Omicron COVID-19 variant. The UK, for example, recorded its highest number of daily cases since the outset of the pandemic on Wednesday.
• On the economic front, retail sales for November were lackluster. For the month, they only rose 0.3% which was much lower than economist expectations of 0.8%.
What to Be on the Lookout for Today
• Initial and continuing jobless claims are released this morning along with real estate-specific data like building permits and housing starts for November. Flash manufacturing and service metrics are also due.
• FedEx (FDX), Adobe (ADBE), Accenture (ACN), and Rivian Automotive (RIVN) are all scheduled to report earnings.
New Podcast Episode: The Current State of Real Estate
How do investing and entrepreneurship go hand in hand? Ryan Serhant, star of two-time Emmy-nominated Million Dollar Listing New York, explains why there has been a surge in people starting their own business, where the real estate market goes from here, and why your mindset is your greatest asset in investing and beyond.
Liz also offers her take on real estate at this point in the cycle and the major factors that will affect it in 2022. Itās all in this monthās new episode of The Important Part: Investing with Liz Young. Listen and subscribe on Spotify, or wherever you get your podcasts.
A Few Headlines That Should Be on Your Radar
The Federal Reserve made it official on Wednesday, announcing expedited plans to wind down its pandemic bond-buying program at a more aggressive pace. This will be a bumpy path to and through tightening. But right now, Liz is betting on a successful transition. See what SoFiās Head of Investment Strategy has to say about the last Fed statement of 2021. Read more >> Rising inflation, an early start to the holiday shopping season, and inventory shortages caused consumers to scale back spending in November. That resulted in retail sales rising at a modest seasonally adjusted pace of 0.3% for the month. For context, that is lower than the 1.8% sales gain seen in October. Despite the modest uptick month-over-month in November, consumer spending remains strong. Retail sales year-over-year were 18.2% higher last month. Thatās even with a 6.8% rise in consumer prices in November. Read more >> Federal student loan holders are not likely to get a reprieve on loan payments next year. Despite pushes by some politicians, the moratorium on student loan payments looks set to expire at the end of January. That means millions of student loan holders will have to resume making monthly payments beginning on February 1. For many this will be the first student-loan related payment in two years. Read more >> 5 steps to switching your car insurance Getting new car insurance can have big benefits, and it isnāt as hard as it may seem. Hereās a step-by-step guide on how to switch car insurance. Read more >>Not-So-Breaking News
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The CEOs of American Airlines (AAL), United Airlines (UAL) and Southwest Airlines (LUV) were grilled by Congress yesterday over flight cancellations during the summer. Those problems occurred despite a $54 billion pandemic bailout.
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YouTube (GOOGL) may lose access to Disney (DIS) programming if the two sides donāt reach an agreement this week. The two parties are attempting to reach a deal that YouTube hopes will keep pricing fair.
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Mortgage refinance demand slowed as interest rates began to creep higher. Initial worries about the Omicron variant sent mortgage rates lower for a few days, but theyāve since moved higher, causing fewer homeowners to refinance their mortgages.
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The Advertising Standards Authority, a UK advertising watchdog, banned several cryptocurrency ads. The regulator said the ads failed to warn consumers about the risks associated with digital tokens.
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Kraft (KHC) is turning the cream cheese shortage into a way to sell other baked goods. Later this week Philadelphia Cream Cheeseās owner is giving away a limited number of $20 payment vouchers which can be used to purchase other desserts.
Financial Planner Tip of the Day
āIt can be incredibly tempting to use a work bonus to buy something fabulous. And thereās nothing wrong with an occasional splurge. But you may also want to consider using that money to pay down a high-interest credit card, make an extra payment on a loan, or start (or add to) a high-yield savings vehicle or other investment.ā
Brian Walsh, CFPĀ® at SoFi