Wednesday,
December 22, 2021
Market recap
Dow Jones
35,493.10
+560.94 (+1.61%)
S&P 500
4,649.24
+81.22 (+1.78%)
Nasdaq
15,341.09
+360.14 (+2.40%)
Top Story
US Stocks Rebound as Investors Weigh Omicron Concerns
• US stocks made a comeback yesterday after three days of declines due to concerns about the rapidly-spreading Omicron variant of COVID-19. The World Health Organization has said the new strain of the virus is more contagious than any previous variants. However, studies have shown that vaccine boosters provide significant protection against Omicron.
• The Senate plans to vote on President Biden’s Build Back Better plan in January, despite the fact that West Virginia Democrat Joe Manchin has said that he will not support the bill in its current form.
• Nike’s (NKE) stock price popped after the retailer reported better-than-expected earnings and sales in spite of recent supply-chain challenges. In contrast, General Mills’ (GIS) stock fell after its earnings missed expectations due to higher input costs.
What to Be on the Lookout for Today
• The Consumer Confidence Index for December is released. This data point gauges consumers’ feelings about their finances and willingness to spend. Consumer confidence fell in November after rebounding in October.
• CarMax (KMX) reports quarterly results. The vehicle dealer has benefited from surging prices and record demand for used vehicles. JPMorgan raised its investment rating on the stock earlier this month to overweight from neutral owing to the company’s strong position over rivals.
SoFi Member Benefits: Money Benefits Explained
Ready to explore SoFi member benefits? Explore our SoFi money management programs and sit down with one of our credential financial planners to go over your personal financial goals. Watch the video below to learn how to unlock this member benefit in the SoFi app.
A Few Headlines That Should Be on Your Radar
The Consumer Financial Protection Bureau is ratcheting up its oversight of buy now, pay later fintechs. BNPL took off during the pandemic and has now become a part of many people’s daily lives. The CFPB is seeking information from Affirm (AFRM), AfterPay (AFTPY), and other BNPL companies about their late-fee policies and how they inform consumers of their payment schedules. The CFPB wants to ensure consumers know exactly what they are getting into when they use these payment options. Read more >> Travelers are boarding planes for the holidays despite rising Omicron variant cases. Some US air carriers expect volume to be higher than it was during Thanksgiving, when passenger numbers reached levels not seen since the pandemic began. Both Delta Air Lines (DAL) and Southwest Airlines (LUV) recently said they expect revenue to be higher than previously anticipated in the fourth quarter. Read more >> The cost-of-living-raise is gaining in popularity again, especially among unions, as inflation soars to a nearly 40-year high. Popular during the 1990s when inflation was soaring, a cost-of-living-adjustment or COLA is an increase in an employee’s salary to reflect higher consumer prices. It is designed to protect workers in inflationary periods. Read more >> Can you finance an engagement ring? Yes, and there are several avenues available to you. There are definitely options, but an important thought to keep in mind is staying within an affordable — for you — range and not comparing how much other people may feel comfortable spending on an engagement ring. Read more >>Not-So-Breaking News
-
Student loan relief is set to expire at the end of January, but the Biden Administration may push that deadline back. Federal student loan payments have been paused since March 2020. This policy has been extended multiple times during the course of the pandemic.
-
McDonald’s (MCD) is selling Dynamic Yield, a personalization tech company it acquired about three years ago. Mastercard (MC) is buying Dynamic Yield from the fast-food giant for an undisclosed price.
-
Electric truck maker Nikola (NKLA) is paying the SEC $125 million to settle charges that it misled investors. The SEC said Nikola provided false information about its products and business opportunities.
-
Goodyear Tire & Rubber (GT) is getting into the electric vehicle market, launching ElectricDrive GT replacement tires. The tire maker is taking on Bridgestone (BRDCY), Michelin (MGDDY), and Continental (CTTAY), leaders in the EV replacement tire market.
-
Disney+ (DIS) still expects to have between 230 million and 260 million subscribers by 2024, up from about 118.1 million today. Disney CEO Bob Iger said Disney+ has to offer more content for a broader audience to reach that goal.
Financial Planner Tip of the Day
“There are studies that show that people who write their goals down greatly improve the chances that they’ll succeed at those goals. You may find it valuable (and fun) to take this idea a step further and create a vision board or draw out your goals.”
Brian Walsh, CFP® at SoFi