Wednesday,
March 2, 2022
Market recap
Dow Jones
33,293.96
-598.64 (-1.77%)
S&P 500
4,306.18
-67.76 (-1.55%)
Nasdaq
13,532.46
-218.94 (-1.59%)
Top Story
Markets Continue to Tumble, Dow Falls Just Under 600 Points Amid Russian Invasion
• US stocks fell Tuesday as investors pivoted away from equities in favor of less risky assets amid the Russian invasion of Ukraine. The Dow Jones Industrial Average fell by 597 points. All three major indexes sold off as satellite imagery showed a large column of troops and equipment advancing on the capital city of Kiev. Oil prices and other commodities moved higher in response.
• January construction spending surged forward by 1.3%. This was largely driven by residential construction. Analysts say homebuilding is constrained by higher raw materials prices, especially lumber, used for framing.
What to Be on the Lookout for Today
• Fed Chair Jerome Powell will testify in front of Congress concerning the central bank’s plans for interest rates and its balance sheet. Today he’ll appear before a House committee, with testimony in front of the Senate planned tomorrow. Wall Street will be paying close attention.
• ADP will publish its employment report for February. This provides a look at private hiring in the US. In January companies cut 301,000 jobs, which was a surprise given analyst estimates initially called for a gain of 200,000. Leisure and hospitality accounted for over half of the lost jobs. It marked the first net job loss since December 2020, which analysts blamed on the Omicron variant.
• Dollar Tree (DLTR) will post quarterly earnings. The discount retailer last shared results in November, which were largely in line with industry expectations. Its Q3 2021 earnings were down 31% year-over-year. Dollar Tree announced plans at that time to increase prices in 2022, with a median of $1.25 planned by early this year.
Common Money Mistakes and How To Prevent Them
It isn’t at all unusual to face a few money issues as you go through life.
You might run into trouble when you’re just starting out and have to pay off college loans or you’re trying to buy your first home.
Money problems can also crop up later in life, as a result of unexpected medical expenses or a job loss, or when you’re nearing retirement and realize you haven’t saved enough.
Whenever they happen, financial problems can be enormously stressful. The good news, however, is that by assessing money issues head-on, and creating a manageable plan to solve them, it’s often possible to bounce back after a financial mistake.
Here are some of the most common money issues people face, and some ideas for how to manage them — or, even better, avoid them in the first place. Watch on YouTube now!
A Few Headlines That Should Be on Your Radar
The ongoing economic fallout from Russia’s invasion of Ukraine is sending the prices of oil, wheat, and Bitcoin (BTC) higher. Americans are feeling the impacts of higher oil prices at the pump. Wheat futures traded at “limit up,” which refers to the largest price increases regulators allow during one trading day. Analysts say there’s a distinct possibility Russian interests are utilizing digital currency as a way to get around economic sanctions. The rising prices attributed to Russia’s invasion clearly involve both traditional market dynamics and more modern trends. Read more >> With venture capital and government research dollars pouring in, life sciences is one of the hottest sectors in real estate and the demand for lab space is booming. Analysts say this trend isn’t going away anytime soon, adding property owners are increasingly looking for tenants who won’t be having employees work from home. Life sciences labs fit the bill with large and specialized equipment that requires on-site work. Read more >> The incredibly tight automobiles market has consumers facing challenges other than short supply and rising prices — many car dealerships are looking to boost profits by requiring clients to accept dealer-offered financing. Dealership strong-arming, charging higher than the listed price, and pricing cars based on method of payment has resulted in a rash of consumer complaints to agencies such as the National Consumer Law Center and the Federal Trade Commission. Read more >> Traveling during spring break doesn’t have to be expensive. And even if you’re staying home, you can use the time to invest and jump start your savings for your next adventure. Our monthly roundup of articles from around the web includes tips on how to spend less on spring break trips, navigating a vacation safely during a pandemic, and how to fight travel FOMO. Read more >>Not-So-Breaking News
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Ride-hailing app Uber (UBER) announced a new feature that aims to expand into entertainment events and dining out at restaurants. With Uber Explore, users will be able to buy concert tickets and book dinner reservations among other options. Analysts note the move is part of Uber’s diversification strategy moving beyond just rides.
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Target (TGT) handed in its most recent report card yesterday and said it expects sales to keep growing even as the pandemic wanes. Sales were up 9% last quarter. Executives note this is despite expected increases in the price of food, fuel, and other items.
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Fellow big-box retailer Kohl’s (KSS) published a mixed earnings report with sales for the most recent quarter coming in below analyst estimates. This included the all-important holiday shopping period. Still, Kohl’s issued upbeat guidance going forward and noted margins are holding up despite supply-chain issues.
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German drugmaker Bayer (BAYRY) reported increased profit for its most recent quarter and delivered upbeat sales guidance for the rest of the fiscal year. The company admits the outlook relies on geopolitical stability in Eastern Europe, adding it will attempt to mitigate the associated risks as much as possible.
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Domino’s (DPZ) posted earnings data that fell short of analyst expectations, with US same-store sales having risen by just 1% for the most recent quarter. CEO Ritch Allison is also set to retire, with COO Russell Weiner tapped as his replacement.
Financial Planner Tip of the Day
"When building a personal budget, it can be helpful for individuals to get a good grip on the money that’s coming in and going out. It’s a common mistake to set budget categories with aspirational numbers pulled out of thin air, only to have a budget fall apart later on when faced with reality."
Brian Walsh, CFP® at SoFi