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Geopolitical Tensions and Mixed Earnings Cause Uncertainty on Wall Street
• US stocks fell Thursday. Geopolitical tensions between Russia and Ukraine along with a mixed bag of corporate earnings reports have caused uncertainty on Wall Street. US President Joe Biden said the chances of Russia invading its neighbor are "very high" and suggested an attack could come "within the next several days.”
• Meanwhile, some companies are doing better than others. AutoNation (AN) beat top- and bottom-line estimates, while shares of Palantir (PLTR) fell after handing in disappointing results.
• Economic data was mixed. Weekly jobless claims came in at 248,000, which was higher than forecasts of 218,000. Meanwhile, in the real estate sector housing starts for January disappointed, but housing permits jumped which was a surprise.
What to Be on the Lookout for Today
• January’s existing home sales due. December’s number was the lowest in four months, and represented a 4.6% decline. Analysts say supply is exceptionally tight — housing inventory checked in at 910,000, which is the lowest number since 1999. January’s leading economic indicators are also set for release.
• Sports gambling app DraftKings (DKNG) reports earnings. Over 100 million Americans were able to legally bet on the Super Bowl, and many analysts are noting this was the first such event in the expanded online betting era. The NFL predicted its partnerships with sports betting companies will earn a combined $1 billion per year by 2030. MLB invested in DraftKings during its early growth period.
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Check out the replay of our recent event to learn about the basics of investing with SoFi Financial Planner, Brian Walsh. You'll learn the various investing approaches and strategies, investing for your goals, and how to determine the appropriate amount of risk for you.
A Few Headlines That Should Be on Your Radar
Medical data indicates the pandemic is easing, and Americans’ spending data show they’re ready to take advantage. Sectors such as travel and lodging report boosted levels of activity, while entertainment venues including theme parks and restaurants are also making a comeback. Analysts say airlines and hotels can expect to have a big summer as vacations, concerts, and sporting events return in force. Read more >> Geopolitical tension, high levels of demand, and the traditional pre-summer increase has oil prices on the rise. While this would seem like a good thing for oil producers, there’s a potential downside. As the price of oil moves closer to $100 per barrel, some oil producers will be tempted to expand production. The notoriously tight market is at risk of oversupply if that happens, but until then gas prices could remain high. Read more >> The latest fundraising rounds involving venture capital firms shows investors are targeting cybersecurity, automated customer service, and remote quality control for manufacturing. These various sectors within the broader tech space have been bringing in significant private investment in recent years, partly due to the pandemic. For example, cybersecurity is even more challenging with people working from home. AI “bots” that automate customer service interactions, and software solutions aimed at remote quality-control predate COVID-19 but continue to draw focus. Read more >> Just as you can borrow money against the equity in your home, you can also borrow money against the value of certain investments in your portfolio. A margin account allows an investor to borrow equity as collateral to purchase a stock. Learn how this high-risk strategy works and when it makes sense to use it. Read more >>Not-So-Breaking News
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Walmart (WMT) reported better-than-expected earnings and said it's on track to hit its long-term financial projections. The retailer is an inflation bellwether due to its national footprint. It noted that supply-chain costs were $400 million higher during the last quarter than anticipated.
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Shares of DoorDash (DASH) jumped early yesterday morning after it said sales during its most recent quarter rose 34% on an annual basis. The delivery giant also provided upbeat forecasts suggesting demand for its services will remain strong even after the pandemic subsides.
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After announcing plans last month to stop accepting Visa (V) credit cards in Britain, Amazon (AMZN) reached an agreement with the credit card company to settle the fee dispute. Amazon said it will also remove a 0.5% surcharge on Visa transactions in Singapore and Australia.
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Tesla's (TSLA) Model 3 was just dethroned by Ford’s (F) Mustang Mach-E for Consumer Report's 2022 top electric vehicle pick. The decision was based on multiple factors including reliability, customer reviews, and testing.
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Speaking of Tesla (TSLA), the National Highway Traffic Safety Administration (NHTSA) announced it's opening a formal investigation into 416,000 of its vehicles due to unexpected brake activation reports. Apparently the issue is potentially tied to its driver-assistance system, Autopilot.
Financial Planner Tip of the Day
“It’s certainly not easy to prioritize investing for retirement. If you’re in your 20s or 30s, you might have student loans or other goals that seem more ‘immediate,’ such as saving for a down payment on a house or kid’s college. But setting aside a little every year starting in your 20s could make the difference between hundreds of thousands of dollars of accumulated investment earnings by retirement age. That’s one reason it’s important to begin planning for retirement early.”
Brian Walsh, CFP® at SoFi