Monday,
January 24, 2022
Market recap
Dow Jones
34,265.37
-450.02 (-1.30%)
S&P 500
4,397.94
-84.79 (-1.89%)
Nasdaq
13,768.92
-385.10 (-2.72%)
Top Story
US Stocks Fall Friday, Dragged Lower by Netflix
• US stocks fell on the final day of the week, weighed down by Netflix (NFLX) shares which tumbled on Friday. After disappointing subscriber numbers, the streaming giant's slide spread to other competitors including Disney. As a Dow component, Disney's dive then weighed on the 30-stock index. Growth stocks, especially those in the technology space, have come under pressure this year in light of rising rates.
• On the economic front, a forward-looking gauge of the US economy rose in December. The Conference Board's Leading Economic Index increased by 0.8% after a 0.7% rise in November. Although this wasn't a blockbuster showing, it does highlight that the economy is expanding, albeit at a slow clip.
What to Be on the Lookout for Today
• IHS Markit releases its purchasing manager's index or PMI for manufacturing and services in the month of January. This provides a general sense of whether US purchasing managers see the market as expanding, contracting, or staying the same. December's index report showed modest increases in manufacturing. Analysts said further growth was constrained by material shortages and supplier delays.
• IBM (IBM) reports quarterly earnings. Analysts expect earnings per share of $3.51, which would represent a 13.7% decline from the year-ago quarter. The company reported a 0.3% increase in revenue during Q3 2021 with executives crediting progress in its software and consulting business.
The Week Ahead at SoFi
Join us for a panel discussion and get insights on what recruiters are looking for when conducting a job search. Plus, don’t miss out on this week’s Your Next Dollar. Sign up for these events and more in the SoFi app!
A Few Headlines That Should Be on Your Radar
The week ahead on Wall Street includes more housing data and a series of earnings reports from several names in Big Tech. Some of the tech sector’s most prominent names post earnings this week amid what’s been a challenging start to the year. Investors will also be watching housing data and new jobless claims amid Omicron’s ongoing impact. Read more >> After lagging behind Asia and the US for decades, Europe’s tech scene is taking off and attracting investor cash. Venture capitalists are increasingly interested in Europe’s tech sector as elected officials pursue pro-growth policies. Several firms across the continent have made headlines with recent funding rounds, and local investors are driving most of the activity. Read more >> The fashion rental market is growing as the business expands well beyond its ball gown and designer jacket days. Rent the Runway’s (RENT) stock has taken a beating, but some analysts like the fashion-rental market’s growth potential as the focus shifts to more casual clothing types. Established clothing brands are trying out subscription models of their own. Read more >> Many people who invest in cryptocurrencies create passive income by staking, or holding their investment long term, but there are other ways. When you earn passive income, you are able to earn money on your assets without active involvement on your part. The concept is the same as compounding interest or reinvesting dividends in the traditional financial world or earning rent on investment properties. In this article, you’ll learn how to earn passive crypto income. Read more >>Not-So-Breaking News
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Welcome to Silicon Valley, Ohio? Intel (INTC) has picked Columbus for the location of its new $20 billion manufacturing hub that executives say will be the planet's largest. The Santa Clara-based chip maker has previously built factories in Arizona, New Mexico, and Oregon. This marks Intel's first expansion into a new state in four decades.
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At-home cycle maker Peloton (PTON) says it expects to meet analysts’ revenue expectations ahead of a full report in February, although the company is adding fewer new subscribers than previously anticipated. Executives say slashing costs and improving the bottom line are its focus.
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As the market waits for the Fed to potentially set the table for rate hikes, IMF chief Kristalina Georgieva says any increases would slow a global recovery post-pandemic. She argues this is especially true for countries holding a large amount of US dollar bonds.
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CoinDesk reported a big dip for cryptocurrencies on Thursday into Friday of last week. It followed stock market losses the day before as upwards of $147 billion was drained from the entire crypto market over a 24-hour period. Bitcoin dove 7% during that same timeframe.
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Citing worsening conditions surrounding the Southeast Asian country’s humanitarian crisis, both Chevron (CVX) and Total Energies (TTE) are pulling out of Myanmar. The UN warns of an “unprecedented” crisis there following last year’s coup.
Financial Planner Tip of the Day
“Buying crypto isn’t a taxable event, but selling crypto and purchasing goods and services with crypto is. For federal tax purposes, virtual currency (crypto) is treated as property, with the same tax rules as other property transactions like stocks.”
Brian Walsh, CFP® at SoFi