Thursday,
January 13, 2022
Market recap
Dow Jones
36,290.32
+38.30 (+0.11%)
S&P 500
4,726.35
+13.28 (+0.28%)
Nasdaq
15,188.39
+34.94 (+0.23%)
Top Story
Stocks Inch Higher Halfway Through the Week
• US stocks moved higher Wednesday, albeit at a slow pace. Wall Street was trying to wrap its head around the latest inflation data. The Consumer Price Index rose 7% in December on an annual basis. Core CPI, which excludes food and energy, jumped 5.5%. This was the fastest pace for this pair of reports since 1982 and 1991, respectively. While this isn't what investors or the Fed want to see, there is a sense that this data is largely priced into the markets, which is why stocks crept higher halfway through the week.
• Investors are looking for other signals about the health of the US economy. Earnings season, which really revs up this week, is a chance for them to get more data. Profits from S&P 500 companies are expected to rise 22% in the fourth quarter from a year earlier according to analysts quoted by FactSet.
What to Be on the Lookout for Today
• The BLS will release the December Producer Price Index, which measures the average price fluctuation domestic producers receive for their sales. The previously released report showed a 9.6% year-over-year increase ā the highest such number since changes were first tracked over a 12-month period. From a diagnostic standpoint, supply-chain issues and resulting bottlenecks are driving these increases.
• Officials will also release initial jobless claims Thursday. In the week ending January 1, initial claims totaled 207,000 which was higher than the 195,000 initially projected.
• Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) will publish its quarterly earnings. Investors and economists alike will closely monitor this news, as the recent semiconductor shortage is well documented.
Credit Card Utilization: What You Need To Know
The world of credit scores can make your head spin, but what we know for sure is that credit card utilization plays a big role in how companies compute your credit score. In fact, about 30% of your credit score is determined by your credit card utilization rate. That means a high credit card utilization rate can adversely affect your credit score.
The general guideline is that you should not exceed a 30% credit card utilization rate. Track your credit score for free in the SoFi app, where the factors affecting your score are broken out to make them easier to understand.
A Few Headlines That Should Be on Your Radar
What came first, the market or the Fed? The hardest part about interpreting the inflation situation is that you can build a case for being optimistic or pessimistic depending on what you focus on. In this week's column, see what SoFiās Head of Investment Strategy has to say about inflationās staying power. Read more >> Shares of Apple have risen amid increasing optimism that the tech giant could make huge strides in the metaverse market. Apple (AAPL) shares have grown even faster than Meta Platformsā since the latter changed its name from Facebook, generating a buzz. Industry analysts say Appleās successes in hardware, software, and services set them apart, but thereās robust metaverse competition within the tech sector. Read more >> Parents say shelves are increasingly bare of baby formula as retailers and producers cast blame on each other. Industry analysts seem to think thereās enough blame to go around with retailers being unsure of where to send the product, while producers face supply-chain and staffing issues. There are also some claims parents are stockpiling baby formula the way consumers snatched up toilet paper. Read more >> Top 50 safest cities in the US Each of these American cities has a relatively low crime rate, a factor that affects desirability and housing market trends. Read more >>Not-So-Breaking News
- It seems more people are buying homes this winter as mortgage rates are on the rise. The average contract interest rate is at its highest mark since March 2020, and mortgage applications were up 2% last week.
- Upwards of 8,000 workers are on strike at around 80 King Soopers (KR) stores after negotiations failed between management and the union. The Colorado grocery chainās employees are demanding improved wages and benefits.
- Apple (AAPL) wants in on the live sports market by way of Major League Baseball. Specifically, the company is making a bid to livestream regular-season games. This represents the tech giant's first such effort in this regard, while Amazon (AMZN) has already invested in the live sports market including āThursday Night Football" coverage.
- Chinese ride-hailing company Didi (DIDI) is preparing to delist from the New York Stock Exchange and potentially launch a second-quarter IPO in Hong Kong. Reports point to a number of challenges, as a government investigation into Didi remains unresolved and obtaining permits in China has proven difficult.
- AT&T's (T) DirecTV and Dish Network (DISH) may reportedly engage in new attempts to merge their pay-television services. Federal regulators had previously blocked such a merger in 2002 over antitrust concerns.
Financial Planner Tip of the Day
āHave a plan for your raises, bonuses, and tax refunds.ā
Brian Walsh, CFPĀ® at SoFi