Thursday,
February 24, 2022
Market recap
Dow Jones
33,132.25
-464.36 (-1.38%)
S&P 500
4,225.61
-79.15 (-1.84%)
Nasdaq
13,037.49
-344.03 (-2.57%)
Top Story
Dow Closes at Lowest Level of 2022 as Ukraine Declares State of Emergency
• US stocks fell Wednesday as investors continued to weigh the escalating tension between Russia and Ukraine. The Dow Jones Industrial Average closed at its lowest level of 2022 so far, and the S&P 500 moved further into correction territory. Ukraine has mobilized reservists and declared a state of emergency, while just one day earlier new sanctions were brought against Russia.
• While the Russia-Ukraine crisis has been grabbing most of the attention, investors are still unnerved by rising inflation in the US and abroad. Wall Street largely expects the central bank to enact the first of its rate hikes as soon as next month. However, a lack of information surrounding the pace of these hikes is still causing jitters.
What to Be on the Lookout for Today
• January’s new home sales are due. The number increased in December to 403,000 — up by 6,000 new homes from November. That represented a nine-month high. Initial jobless claims are also due. Last week’s number came in at 248,000 which was higher than both the previous week, and the 219,000 claims that were expected.
• The Department of Commerce will also release its revised Q4 2021 GDP, after the initial figure showed a 6.9% increase at an annualized pace.
• Anheuser-Busch InBev (BUD) will post its earnings report for the quarter ending December 2021. The company’s Q3 revenue surprised analysts amid lockdowns. Sales were up 8%. Analysts note the world’s largest beer company continues to deal with higher input costs.
A Life-and-Death Question
It all comes back to that big question: If you don’t have life insurance and you were to die unexpectedly, how would the people you care about be affected?
Life insurance is about protecting your loved ones so they won’t have to struggle financially when you pass away. And it can remove any burden they might have to take on if you’re carrying debt when you die.
If life insurance feels like a good fit for your financial plan, check out what SoFi Protect has to offer. As your life changes, you can always increase or decrease your coverage to suit your needs.
A Few Headlines That Should Be on Your Radar
The potential for all-out war between Russia and Ukraine threatens to disrupt business operations for major corporations — and sanctions are a big reason why. Some of the world’s major oil companies are invested in oil and natural gas products in Russia, and those could easily be affected by armed conflict in terms of delayed shipments and production slowdowns. Also, major banks are exposed to risk because if sanctions become more severe they could sever all ties with some Russian business interests. Read more >> We are now squarely in the next episode of this economic cycle. This is a time when investors earn their chops. Liz knows listing off all 99 of our problems doesn’t sound uplifting, but it might help to put them in bite-size pieces so the view isn’t so overwhelmingly negative. This week, SoFi’s Head of Investment Strategy looks at the new obstacles in our path, reviews the existing ones, and makes sense of how we got here. Read more >> Booking a vacation rental on Airbnb could end up putting money into Wall Street investors’ pockets as it’s not just mom-and-pop owners on the site these days. The bulk of listings online continue to be owned by smaller investors, but analysts say institutional investors are becoming likelier to buy short-term rental properties. Historically low interest rates have made the traditional housing market tight and expensive. Investors hope vacation rental properties will be less competitive, and therefore more profitable. Read more >> Picking out the right life insurance policy can seem complicated, but in truth, the number of choices just reflects how easy it is to get the right coverage for your needs. There’s truly something for everyone, regardless of your age or budget. Whether you opt for term, permanent, group, or guaranteed issue, you’ll get the peace of mind and protection that all insurance plans bring. Read more >>Not-So-Breaking News
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Home improvement retailer Lowe’s (LOW) is increasing its sales forecast for the rest of the fiscal year, with around $98 billion in sales now expected. This comes as the company reports sales grew by 5% in its most recent quarter, with sales among home professionals rising 23%.
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London-based bank Barclays (BCS) reported $8.67 billion in net profit for 2021, which is more than four times what the company reported during the previous year as lockdowns took effect. Barclays also saw longtime CEO Jes Staley step down last November amid alleged ties to disgraced financier Jeffrey Epstein.
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Molson Coors (TAP) posted a mixed earning report yesterday, posting revenue that beat estimates while missing on profit. Executives note revenue grew for both Coors Light and Miller Lite, which are two of the company’s largest brands.
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Office Depot and OfficeMax parent company ODP (ODP) beat analyst expectations for both revenue and earnings. Executives say higher prices were able to partially offset inflationary pressures as well as slower-than-expected back to office trends.
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Stellantis NV (STLA) reported $15.1 billion in net profits for 2021, which marked the first year in the automaker’s existence. The earnings represent a 179% increase over the combined profits for predecessors Fiat Chrysler Automobiles NV and French rival Groupe PSA, who merged to form Stellantis.
Financial Planner Tip of the Day
"Ideally, your life insurance payout should be enough to invest and yield returns that could replace your income annually. For example, if you assume that you’ll get a 5% return on the money you invest, you would need $1 million in coverage to replace a $50,000 income."
Brian Walsh, CFP® at SoFi