Wednesday,
January 5, 2022
Market recap
Dow Jones
36,799.65
+214.59 (+0.59%)
S&P 500
4,793.54
-3.02 (-0.06%)
Nasdaq
15,622.72
-210.08 (-1.33%)
Top Story
US Stocks Are Mixed as Yields Rise
• US stocks were mixed on the second trading day of 2022. The benchmark 10-year Treasury yield hit 1.71% on Tuesday. For context, it closed out 2021 at 1.51% on Friday afternoon. The 10-year yield impacts rates for mortgages and other types of loans.
• As bond yields climbed yesterday, shares of tech companies including Tesla (TSLA) and Nvidia (NVDA) saw losses. Banks, which would likely benefit from rate increases, traded in the green yesterday.
• Investors continued to assess how the Omicron variant of COVID-19 will impact the global economy. COVID-19 cases in the US topped 1 million earlier this week. According to data from Johns Hopkins, the US currently has the highest seven-day average of daily new COVID-19 cases in the world.
What to Be on the Lookout for Today
• The Mortgage Bankers Association’s Mortgage Applications Survey for the last week of December will be published. This data point tracks the weekly number of mortgage applications. Applications for new mortgages have been falling recently ahead of the seasonal slowdown.
• RPM International (RPM), a company which makes coatings, sealants, and building materials, will share its latest results. Demand for the company’s products has been strong thanks to a robust housing market and an interest in home improvement. However, RPM has struggled to meet this demand due to supply-chain pressures.
Claim Your Tickets for This Free Event: Investing 101
Join us for a webinar to learn about the basics of investing with SoFi Financial Planner, Brian Walsh. You'll learn the various investing approaches and strategies, investing for your goals, and how to determine the appropriate amount of risk for you.
Plus, you’ll get the opportunity to ask your investing questions!
A Few Headlines That Should Be on Your Radar
The longstanding rivalry between beer and liquor is heating up during the pandemic, and there's evidence that liquor is making gains. Liquor companies have been searching for ways to eat into beer’s market share for decades. Their latest strategy is selling canned cocktails. Read more >> Oil production was slashed by historic amounts in 2020. Now, OPEC and their allies are agreeing to increase oil output targets. Despite uncertainty over the next few months concerning Omicron, Ukraine-Russia relations, and Iran nuclear talks, oil production will ramp up next month. Investors will be closely watching whether this helps keep pace with demand, or exacerbate potential oversupply. Read more >> CBRE will purchase an over 28-million-square-foot portfolio for $4.9 billion, representing one of the largest-ever industrial warehouse deals. Industrial warehouses were real estate’s best-performing property category throughout 2021. Industry analysts say this points to the growth of ecommerce and the changing supply chain. Read more >> Cyclical vs. non-cyclical stocks: investing around economic cycles Investing in cyclical stocks and non-cyclical stocks may help to provide balance and diversification in a portfolio. This in turn may help investors to better manage risk as the economy moves through different cycles of growth and contraction. Read more >>Not-So-Breaking News
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Sports ecommerce giant Fanatics (FANA) will acquire the trading card company Topps. Fanatics now has exclusive licensing rights with the four major sports leagues. Fanatics reportedly will give the leagues themselves and the players’ unions equity in its trading card venture.
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Ford (F) is announcing a huge expansion in production capacity for its upcoming electric F-150 pickup. The automaker says it will come close to doubling its annual production capacity and will build upwards of 150,000 vehicles annually at a plant in Michigan. Ford is taking its first orders for the trucks this week.
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The CDC is shortening the recommended waiting period for fully vaccinated people when it comes to getting the Pfizer (PFE) COVID-19 booster shot. Officials now say a booster shot is needed five months after a person is fully vaccinated. Meanwhile, the CDC could soon recommend booster shots for all children ages 12 to 15.
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Telecommunications giants AT&T (T) and Verizon (VZ) are reversing course and now say they will delay the rollout of their new 5G services. This is because of safety concerns raised by the airline industry, and requests from federal officials. Both AT&T and Verizon have agreed to enact additional safety measures while also delaying the rollout until January 19.
Financial Planner Tip of the Day
“Stock market investing can be more appropriate for big goals in the distant future, such as saving for a child’s education or your own retirement, which could be 20 or 30 years down the line. This relatively long time horizon not only gives your investments a chance to grow, but it means that you also have the time to ride out market downturns that may occur along the way.”
Brian Walsh, CFP® at SoFi