Tech Stocks Help Lead Markets Higher
• Major technology stocks gained ground Tuesday after a volatile stretch to start the year. Facebook parent Meta (FB), Amazon (AMZN), and Apple (AAPL) all advanced after bond yields cooled on the second day of the week. Because mega-cap tech stocks have such a massive weigh on indices including the Nasdaq and S&P 500, these benchmarks, along with the Dow Jones Industrial Average, had a less frictional path higher on Tuesday.
• COVID-19 hospitalizations reached an all-time high in the US on Tuesday. The seven-day average topped 140,500 people hospitalized with confirmed and suspected coronavirus cases. Companies operating across sectors are facing a shortage of critical workers who are out sick. Analysts are watching how this trend will impact individual industries and the entire economy.
What to Be on the Lookout for Today
• December’s Consumer Price Index and Core CPI are set for release. In November, the Department of Labor and Statistics reported a CPI increase of 6.8% over the preceding 12 months — the highest such increase in almost 40 years.
• Also on Wednesday, the US Treasury will release the December federal budget, while the Federal Reserve will unveil its first Beige Book of Q1. The latter report gathers anecdotal information concerning economic conditions.
• KB Home (KBH) will publish its latest results. This homebuilding company constructs single-family homes, focusing on move-up and first-time homebuyers. Analysts say growth is driven by pent-up demand for housing, low inventory, and low interest rates.
Learn to Think Through Individual Goals with “Saving Money for the Future”: A New Course by SoFi in Partnership with Coursera
This course is designed for anyone who currently has, or will have in the future have, savings goals. Learners will come to understand the importance of compounding growth, the variables that impact setting goals like retirement savings, and how much money you need to save now to reach future goals.
The concepts covered in this course are broad but through the activities offered, learners will see how to apply what they are learning about saving money for the future to their lives now. Enroll now to learn how to think through individual goals, like retirement, but also how those goals fit into your bigger financial picture.
A Few Headlines That Should Be on Your Radar
Fed Chair Jerome Powell testified in front of Senate lawmakers at his reconfirmation hearing yesterday, where he was repeatedly asked about inflation.
Powell says pandemic-era monetary policy is no longer appropriate as demand is outpacing supply, pushing inflation upwards. He indicated the central bank will not only look to raise interest rates, but officials could begin selling bonds in a coordinated attempt to cool off the economy.
Read more >>
Retail stocks posted significant gains in 2021 as stimulus measures boosted consumer spending power, but some analysts are expressing caution.
After child tax credit payments began going out in July, retailers posted steady gains throughout last year. Sales lagged prior to that point as COVID-19 stimulus checks stopped being issued. The loss of the child tax credit and a lessened tax-refund effect could push down retail stock prices.
Read more >>
Car-sharing company Turo filed for its IPO this week and says it’s poised for long-term growth by offering a modernized version of renting a car.
Turo lets private car owners list their vehicles for rent on their platform, allowing guests to access a ride in an on-demand fashion. Company executives say consumers prefer on-demand platforms like this, while adding cars continue to rise in cost but are driven less frequently.
Read more >>
The first step to investing is understand your goals
Selecting an investment strategy depends a lot on your financial goals. It is important to know what you want to save for and how much you want to save.
Read more >>