January 12, 2022

Market recap

Dow Jones


+183.35 (+0.51%)

S&P 500


+42.75 (+0.92%)



+210.62 (+1.41%)



-$10.30 (-0.51%)

Planet Fitness


+4.46 (+5.03%)

Bank of America


+$0.29 (+0.59%)


Top Story

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.

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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.

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.

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.

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Not-So-Breaking News

  • Planet Fitness (PLNT) is acquiring Sunshine Fitness, which operates over 100 Planet Fitness clubs within the US. The former company says it gained 1.7 million members during fiscal 2021 while exceeding expectations by opening 132 new clubs.

  • European startup Black Market is now valued at $5.7 billion after the refurbished iPhone seller announced another round of funding. Founded in Paris in 2014, the company fixes up and resells Apple (AAPL), Samsung, Dell (DELL), and Microsoft (MSFT) products, in addition to other items such as Dyson hair dryers and Krups coffee makers.

  • Bank of America (BAC) says it will reduce overdraft fees this spring from $35 to $10, with bounced check fees going away entirely. Other large banks are taking similar steps, as these fees generate billions of dollars in revenue each year but draw scrutiny from regulators and consumer advocates.

  • Shipping giant Maersk (AMKBY) says cargo delays will continue as it is taking longer than originally hoped to clear out congestion. During a period of increased consumer spending, the pandemic has triggered logjams at high-volume ports and a shortage of container ships.

  • The COVID-19 pandemic continues to wreak havoc on the airline industry as United (UAL) is cutting upwards of 3,000 scheduled flights due to workers calling out sick. This comes after winter storms also contributed to thousands of cancellations during the holiday season. In response, United and other airlines are offering pilots increased pay to pad their schedules with more flight time this month.

Financial Planner Tip of the Day

“Use the benefits of technology to offset the risks of technology”

Brian Walsh, CFP® at SoFi

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