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US Stocks Fell Monday As Geopolitical Tensions and Inflation Weighed on Investor’s Minds
• US stocks fell Monday as investors reacted to geopolitical tensions. The prospect of armed conflict between Russia and Ukraine sent oil prices higher on the day and stocks lower. Some analysts caution that severe sanctions against Russia could cut off part of the world’s oil and gas supply.
• Investors are also reacting to last week’s inflation numbers. St. Louis Fed President James Bullard reiterated his comments from last week and said the central bank must be aggressive in its approach toward combating rising prices. Many analysts attributed the market’s recent volatility to the prospect of rising interest rates.
What to Be on the Lookout for Today
• The January Producer Price Index is due. This measures wholesale prices for a range of goods and services. December’s number rose by 0.2%, falling short of analyst expectations. Throughout 2021 the index gained by 9.7%, marking the highest increase on record dating back to 2010. This month’s Empire State Manufacturing index is also set for release, which tracks general business conditions in New York.
• Airbnb (ABNB) will post its earnings report for Q4 2021. Analysts are expecting the online lodging marketplace to report increased profits for the quarter. Airbnb beat analyst estimates when they last reported earnings in early November.
The Fastest Ways to Get Your Tax Refund
Learning that you are eligible for a tax refund can be a welcome surprise.
And if you have any pressing expenses — maybe you’re behind on a few bills or have been putting off going to the dentist because of the cost — you may be wondering how you might be able to get that money into your hands quickly.
Fortunately, there are a few simple things any taxpayer can do to help ensure that their refund comes as fast as possible.
To get your tax refund as quickly as possible, it’s a good idea to file early, and, if possible, avoid the mail.
This includes e-filing with the IRS (rather than physically mailing in your return), and also setting up direct deposit, so there’s no waiting for that refund check to come through the mail.
For more tips and tricks for getting your tax refund, read this SoFi Learn article.
For existing SoFi Checking and Savings® Members, you can find your routing and account number here, or by opening the app, navigating to the Money tab, and clicking on the “more” button.
A Few Headlines That Should Be on Your Radar
Private equity is flowing into software companies and a number of larger players are snatching up rivals in an effort to grow. Cisco (CSCO) recently made a $20 billion bid for software maker Splunk (SPLK), which would be the company's largest acquisition ever. Cisco’s bid is not only a big deal for the company, it’s also part of a much larger trend shaping both Wall Street and Silicon Valley. Both legacy companies like Cisco and private investors are showing an increased appetite for software that's sold on a subscription basis that provide steady and reliable cash flows. Read more >> Revenue soared to new heights for food-delivery apps during the pandemic, but the business sector’s high-cost model requires creativity moving forward. Industry leader DoorDash (DASH) is entering into a partnership with McDonald’s (MCD) whereby the fast-food chain can pay less in commissions if food is ready on time. High-labor costs have food delivery apps focused on ways to improve driver efficiency. Competition is robust, making it harder to raise fees on restaurants, both larger and smaller ones. Read more >> Ongoing supply-chain issues are crimping everyone’s style, including sneaker heads, as deliveries are routinely delayed. Major shoe makers like Nike (NKE) have been shifting toward more direct sales in the past couple years, while maintaining relationships with some larger retailers. High-end sneaker shops are important to Nike as a way to show off new designs and help build brand awareness, but some of these shops have been waiting months to receive new shipments due to supply chain snags. Read more >> Whether your goal is to lower your taxes or just file them on time, the key is preparation. To answer your tax questions, we’ve compiled a selection of informational articles on such key tax topics as capital gains, retirement savings, stock options, refunds, and more. Read more >>Not-So-Breaking News
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Lockheed Martin (LMT) has abandoned its plan to purchase rocket engine maker Aerojet Rocketdyne Holdings (AJRD) after the deal received widespread criticism. Competitors and regulators argued the $4.4 billion deal would have given Lockheed Martin control over solid fuel rocket motors. The FTC cited antitrust concerns last month while voting unanimously to block the deal.
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Securities filings show billionaire investor George Soros purchased around 20 million shares of electric truck startup Rivian Automotive (RIVN) last week. Analysts say the company faces challenges in trying to grow its share of the US EV market as a result of ongoing supply-chain constraints.
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3M (MMM) released earnings guidance that fell in line with analyst expectations yesterday. However, the company says it faces diminished sales going forward due to declining demand for face masks.
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Reports indicate both Spotify (SPOT) and Amazon (AMZN) could submit bids to take over Audioboom, a London-based podcasting group. Both companies are looking for ways to capture a larger portion of the $36 billion global audio ad market.
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Tesla's (TSLA) China sales fell 15.5% in January compared to December. The EV giant said supply-chain disruptions hampered operations at its Shanghai gigafactory, impacting output in the world’s largest auto market.
Financial Planner Tip of the Day
“It can be incredibly tempting to use a tax refund or a work bonus to buy something fabulous. And there’s nothing wrong with an occasional splurge. But you may also want to consider using that money to pay down a high-interest credit card, make an extra payment on a loan, or start (or add to) a high-yield savings vehicle or other investment.”
Brian Walsh, CFP® at SoFi