Wednesday,
February 23, 2022
Market recap
Dow Jones
33,597.13
-482.05 (-1.41%)
S&P 500
4,304.68
-44.19 (-1.02%)
Nasdaq
13,381.52
-166.55 (-1.23%)
Top Story
Tensions Between Ukraine and Russia Intensify, Rattling Global Markets
• US stocks fell Tuesday as rising tensions between Ukraine and Russia continue to weigh on investors' minds. President Joe Biden classified Russian troop deployment into separtist regions of Ukraine as an “invasion.” Biden added new sanctions against Russia, and other world leaders threatened actions that could cause commodity prices to spike across the world. To that end, oil prices rose to their highest level since 2014.
• The other factor weighing equities down is worry over rising inflation, and how the central bank will respond. Next month could bring the first in a series of rate hikes. Economists at JPMorgan Chase & Co (JPM) are now projecting that the central bank could raise rates nine times over the course of the next year.
What to Be on the Lookout for Today
• There is no economic data scheduled for release. That said, Wall Street will be paying extremely close attention to the latest developments out of Eastern Europe and Washington, DC.
• Booking Holdings (BKNG) will hand in its most recent report card. During its most recent earnings call the travel technology company said total room nights booked in Q3 2021 increased for the third straight quarter. Revenue increased to $4.7 billion which fell just short of Q3 2019 when sales came in at $5 billion. Both revenue and earnings per share topped analyst expectations. The company also just ran its first-ever Super Bowl ad.
How Debt Affects Anxiety and Stress
For years, studies have shown a link between stress over finances and an increase in mental health problems, including depression, anxiety, and substance abuse. And on the flipside of the coin, people with mental illnesses are more likely to have financial problems.
Now the COVID-19 pandemic adds new evidence to support this important realization. An overwhelming 84% of Americans reported feeling financial stress in their lives because of the COVID-19 pandemic, according to a survey released in October 2020 by the National Endowment for Financial Education® (NEFE®). And that specific stress was in addition to being in the already fraught situation of trying to cope with the other difficulties of living through a pandemic.
When in debt, stress and anxiety can feel overwhelming, so treats or indulgences seem like a good idea to help relieve those feelings and escape from financial problems.
But there’s no quick fix. Paying off debt is typically a long-term lifestyle change. It can take years or even decades to become debt-free. Like any lifestyle change, becoming debt-free can be a difficult adjustment. Don’t be surprised or ashamed if there are stumbling blocks along the way. It’s normal to struggle making any changes.
Looking for options to help pay off your debt? Consolidate your high-interest debt with a low fixed rate personal loan — plus earn rewards to save, invest back in stocks or crypto, or pay down your eligible SoFi debt.
A Few Headlines That Should Be on Your Radar
The escalating geopolitical tensions between Russia and Ukraine threaten to keep raising commodity prices worldwide. Both Russia and Ukraine are among the world’s largest producers of certain raw materials including wheat and corn. Russia is also a major producer of natural gas and oil, and war could cut off supply or make it more difficult to deliver. The availability of important metals such as nickel and aluminum is also in question. Read more >> 3G wireless networks are being phased out by the world’s telecom companies, and consumers can expect major speed and responsiveness upgrades with 5G. Experts say 5G offers much faster speeds for cell phones and other connected devices, but that may be underselling its impact. The technology could spur major innovations and improvements to means of production. This is due to 5G’s improved latency or ultra-fast response time, which is around 250 times faster than humans. Read more >> Home values rose significantly in 2021, providing many sellers with a windfall of cash. They may not be prepared for the major capital gains tax burden. Tax filing season has arrived, and for many longtime homeowners who took advantage of the hot housing market, a big check is owed to the government. The thresholds that allow for capital gains write-offs haven’t increased since 1997, meaning they haven’t kept pace with rising home values. There are steps property owners can take to reduce their burden. Read more >> Financial therapy is a relatively new field that combines the emotional support of a psychologist with the money mindset of a financial planner. A financial therapist is a financial planner and mental health professional all wrapped into one. Read on to learn if you might benefit from this type of professional counseling, and, if so, how to find a financial therapist that is the right fit for you. Read more >>Not-So-Breaking News
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Home Depot (HD) beat analyst expectations on the top and bottom lines, overcoming inflationary pressures in the process. Customers spent 12.4% more per trip on average in the most recent quarter, when compared to the same period in 2020. The company boosted its dividend by 15%.
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Retailer Macy's (M) easily exceeded Wall Street's earnings forecast for the most recent quarter and raised its dividend for the period by 5%. This comes as the company has faced pressure from activist investors, who want Macy's to spin off its online sales division.
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Krispy Kreme (DNUT) posted revenue that beat analyst expectations, but fell short on profit, for Q4 2021. Executives have said the company continues to focus on driving sales through its app, website, and brick-and-mortar stores, while also looking to "significantly" expand points of access.
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Medical device company Medtronic (MDT) says it expects surgical procedure volume to get back to pre-COVID levels by this year's final quarter. In its most recent quarter, Medtronic reported earnings per share were up 6%, but the company missed analyst expectations on the top and bottom lines.
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Virgin Hyperloop is officially shifting its focus to cargo transport and laying off 111 workers in the process. Previously the company was dedicated to providing passenger travel through its vacuum tubes that can send cargo pods up to 600 mph.
Financial Planner Tip of the Day
"Anyone who wants to flex good financial habits may find it worthwhile to come up with a debt repayment plan. In an ideal world, this might mean paying off credit card balances in full and making all other necessary debt payments on time, such as mortgage installments and student loan payments."
Brian Walsh, CFP® at SoFi