Thursday,
January 6, 2022
Market recap
Dow Jones
36,407.11
-392.54 -1.07%
S&P 500
4,700.66
-92.88 (-1.94%)
Nasdaq
15,100.17
-522.54 (-3.34%)
Top Story
Stocks Drop as Investors Analyse Fed Meeting Minutes
• US stocks fell Wednesday as Wall Street parsed through minutes from the Federal Reserve’s December meeting. The central bank discussed plans to begin reducing the amount of bonds it is holding.
• Currently the Fed is holding almost $8.3 trillion in Treasuries and mortgage-backed securities. It has been buying bonds to help keep the economy afloat amidst problems brought on by the pandemic, but now the bank is tightening its monetary policies in an effort to curb inflation.
• Investors analyzed the ADP jobs report for December, which showed that private job growth hit 807,000. This was more than double economists’ expectations. The data only represents job growth through mid-December, before the Omicron variant of COVID-19 was at its height in the US.
What to Be on the Lookout for Today
• Initial and existing unemployment claims for the previous week will be published. Total vehicle sales for December will also be released.
• Constellation Brands (STZ), the beverage company behind Modelo, Corona, Casa Noble Tequila, and other popular alcohol brands, will hand in its report card. The company has had to deal with changes in consumer behavior during the pandemic as people shifted from drinking at bars and restaurants to consuming products at home. Investors will be curious about the company’s plans for dealing with changes in demand due to the recent wave of COVID-19 cases.
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A Few Headlines That Should Be on Your Radar
Some Wall Street banks put return-to-office plans on pause while Omicron spreads, and others see working from home as a "new normal." Analysts predict Wall Street’s return-to-work process will foreshadow what’s to come in other white-collar industries. Read more >> Now that the holiday season is behind us, Liz wanted to do a deeper dive into some of the spending trends among SoFi members. We aren’t quite out of the woods yet, but this data tells Liz we’re getting delightfully close. See what SoFi’s Head of Investment Strategy has to say about holiday spending trends. Read more >> Retailers are facing shrinking profit margins due to increasing numbers of returns following the holiday shopping season. The pandemic has led to an explosion in online shopping, which tends to have a higher number of returns. Retailers are also offering longer return windows and facing increased parcel costs, while trying to come up with ways to cut down on returns altogether. Read more >> Setting a goal is just the first step. These 8 steps will help you see it through to completion. Once you’ve sorted your goals, follow these 8 tips for fine-tuning and actually getting them done. Read more >>Not-So-Breaking News
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Walmart (WMT) is hiring 3,000 drivers and building out a fleet of electric vans as the company expands its InHome delivery service. The retail giant continues to look for an edge amid competition from fellow brick-and-mortar rival Target (TGT) as well as the ever-present ecommerce powerhouse, Amazon (AMZN). Walmart’s delivery service has now been operating for two years and is currently serving six million homes. This move will bring the InHome option to over 30 million consumers.
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Investors are gobbling up shares of Beyond Meat (BYND) following word that fast-food chain KFC (YUM) will soon offer Beyond Fried Chicken at restaurants nationwide. Timing-wise, Yum Brands and Beyond Meat say the rollout will begin next week. Beyond Fried Chicken is made from plant-based ingredients but is said to mimic the look, taste, and texture of traditional fried chicken.
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GM (GM) is no longer the top-selling car maker in the US. Instead, Toyota Motor Corp. (TM) sold the most cars in America last year. GM blames the supply-chain crisis and says sales figures reflect difficulties with navigating the superconductor shortage. The automaker’s sales fell 43% in Q4 2021.
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Allegiant Air (ALGT) is ordering 50 Boeing (BA) 737 MAX jets and has an option on 50 additional aircraft. Industry analysts say Allegiant Air is looking to grab a bigger share of the US tourism market post-pandemic. The deal is a blow to European rival Airbus (EADSY), who was also reportedly in the running, and marks Boeing's first contract with a US ultra-low-cost carrier.
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At-home COVID-19 test kit prices are rising at Walmart (WMT) and Kroger (KR) stores. This follows the expiration of an agreement with the White House in which Walmart, Kroger, and Amazon (AMZN) agreed to sell the tests "at cost." Amazon notes it has developed its own PCR test that’s priced lower than competitors. Prior to the emergence of the Omicron variant, President Biden had announced the three-month agreement as part of his plan to ramp up testing and improve detection.
Financial Planner Tip of the Day
“Whether you rent or own, housing is the largest expense the average US consumer must deal with every month. And if you can reduce your payment, you’ll likely have a bit more flexibility in choosing where to allocate your money—whether that’s spending it, paying down debt, or saving for a future goal. Along with reducing small indulgences, cutting your rent can be an effective way to free up more cash in your budget.”
Brian Walsh, CFP® at SoFi