Tuesday,
March 1, 2022
Market recap
Dow Jones
33,890.09
-168.66 (-0.50%)
S&P 500
4,373.77
-10.88 (-0.25%)
Nasdaq
13,751.40
+56.77 (+0.41%)
Top Story
US Stocks Mixed Monday, Volatility Continues Amid Russian Invasion
• The Dow Jones Industrial Average fell over 160 points and stocks were mixed as investors continued to react to the Russian invasion of Ukraine. Negotiations were held between the two nations near the border with Belarus. Oil and natural gas prices moved higher as the US and its allies enacted more sanctions. Analysts predict markets will continue to remain volatile until the situation reaches some sort of conclusion.
• The Chicago Purchasing Managers Index, also known as the Chicago Business Barometer, fell to 56.3 in February, the first decline since November 2021. Around 25% of the firms surveyed reported a decline. This measures the performance of the manufacturing and non-manufacturing sector in the greater Chicago area. January’s index beat expectations and was the highest recorded in three months.
What to Be on the Lookout for Today
• January construction spending is due. In December 2021 construction spending jumped 9% from a year earlier. Construction sometimes slows during the winter months and the sector has also been negatively affected by delays in terms of materials and supplies. Markit’s final adjustment to this month’s manufacturing PMI and the Institute for Supply Management’s manufacturing index for February are also set for release.
• Retail giant Target (TGT) will post its earnings report. The company enjoyed growth throughout the pandemic and, so far, it's been able to sustain it. Some analysts predict Target will post its highest operating income of the last 10 years. This comes as many consumers have been taking advantage of the retailer’s same-day delivery option.
The Sports World Is More Like Investing Than You Think
How we analyze investment opportunities and athletes is not all that different.
In this new episode of SoFi’s podcast “The Important Part: Investing with Liz Young,” Liz is joined by Cynthia Frelund, NFL Media's first analytics expert, at Penthouse 56 at SoFi’s hospitality space in downtown LA during Super Bowl week. The two compare the similarities and differences between investing and the sports world, and how looking at investing through a different lens might help investors feel less intimidated.
Liz also offers her take on why analyzing fundamentals is key in a year where strength matters more than ever.
Listen and subscribe on Spotify, Apple, or wherever you get your podcasts.
A Few Headlines That Should Be on Your Radar
While the Russian invasion of Ukraine has far-reaching economic impacts, fossil fuels are front and center. It’s also why BP could be looking at a $25 billion loss. Among the world’s oil and gas giants, BP (BP) is considered most exposed to Russia in terms of investments. Now the company has agreed to divest a 20% stake in Russian oil giant Rosneft (ROSN), which could be difficult and costly amid strict economic sanctions. Read more >> Mall operators are offering things like skydiving, virtual golf, and pickleball in an effort to drive traffic and generate revenue. Malls are evolving and attempting to stay relevant in the age of online shopping by diversifying their offerings to include entertainment and appeal to all age groups. The move aimed at boosting spending by getting consumers to extend their visits and take advantage of a variety of social experiences at the mall. Read more >> There’s a startup just outside of Washington, DC, that aims to become a world leader in the production of safer batteries that charge faster and last longer. Ion Storage began in a University of Maryland lab with a federal grant for just over $574,000. Now the company’s scientists are cutting batteries in half and putting them before open flames to show how safe and durable they are. Experts say the technology could change where the US stands in terms of global battery production — and cut down on fire risks. Read more >> Buying and selling stocks based on emotions or gut reactions to temporary volatility can derail your investment plan, potentially setting you back. It’s human nature to be concerned, or to feel panic at times. But sometimes, the best investment advice is not to give in to your feelings. Here’s what you need to know when the market is down. Read more >>Not-So-Breaking News
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TD Bank (TD) announced its largest-ever acquisition yesterday, in which First Horizon Corp. (FHN) will be purchased for $13.4 billion in cash. Market observers say the Canadian bank is focused on expanding its presence in the southeastern US, having made several unsuccessful bids for other assets over the past several months.
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EV company Lordstown Motors (RIDE) is predicting sales of 3,000 electric pickups through next year. Analysts note this is significantly lower than what former management had laid out to investors prior to when the company went public in October 2020.
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eBay (EBAY) drummed up excitement within the cryptocurrency community by indicating it could soon accept crypto payments. The company is currently studying the idea and would become one of the first ecommerce platforms to accept crypto payment. eBay already accepts NFTs.
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Target (TGT) is responding to the tight labor market by taking steps aimed at becoming a more attractive place to work. It plans to invest $300 million over the next year in higher starting salaries and healthcare benefits for employees.
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Singer-songwriter Neil Diamond has sold his catalog to Universal Music Publishing Group (UMG). Deals of this type have gotten into the hundreds of millions of dollars amid the rise of streaming. The terms of Diamond’s sale weren’t disclosed although reports say unreleased tracks are included along with hits like “Sweet Caroline” and “Cracklin’ Rosie.”
Financial Planner Tip of the Day
“Making the minimum payment on your credit card can lead to paying back much more than your purchase. It is best to avoid costly interest and fees by paying off your balance in full every month.”
Brian Walsh, CFP® at SoFi