Thursday,
March 3, 2022
Market recap
Dow Jones
33,889.96
+595.01 (+1.79%)
S&P 500
4,386.54
+80.28 (+1.86%)
Nasdaq
13,752.02
+219.56 (+1.62%)
Top Story
Dow Gains Over 600 Points as Stocks Rally Amid Russian-Ukraine Conflict
• US stocks rose Wednesday as the market attempted to look beyond Russia’s invasion of Ukraine, which appears to be intensifying. Analysts note the armed conflict and resulting sanctions could disrupt Russia’s oil production, which accounts for 10% of global supply. Oil prices moved higher yesterday.
• Fed Chair Jerome Powell testified before Congress and indicated he plans to support a 25-basis-point hike to interest rates this month. This involves the central bank’s federal funds rate, or the interest that banks and other depository institutions charge when lending money to each other. With inflation accelerating at its highest rate since 1982, the Fed wants to cool off the economy, ideally without doing unnecessary harm to the job market.
• ADP released its February private jobs report yesterday. Companies added 475,000 jobs last month, which exceeded analyst expectations by 75,000. This comes as pandemic-related restrictions have eased and associated case numbers have fallen over the past month.
What to Be on the Lookout for Today
• Initial jobless claims are due. Last week’s number hit a 52-year low, coming in at 232,000. That was a 17,000 decline from the previous week and means the fewest amount of Americans are collecting unemployment since 1970. Continuing jobless claims will also be reported, as well as January’s factory orders, and the ISM services index for February.
• Grocery chain Kroger (KR) is set to post its most recent quarterly earnings. Its last report topped Wall Street estimates for both earnings and revenue. Sales were up 7.2% compared to the same quarter in 2020. The Cincinnati-based Kroger recently announced plans to expand its online grocery business into Oklahoma City, opening in the state for the first time.
Student Loan Refinancing 101
Refinancing is when you consolidate your student loans with a private lender and receive new rates and terms. The exact process can vary by lender, but the general idea is that a borrower consolidates their existing student loan debt with a new loan, and qualifying borrowers might be able to secure a lower interest rate.
Here’s some more detail on the refinancing process, plus how to make the most of your student loans and find the ideal scenario for you! Watch on YouTube now!
A Few Headlines That Should Be on Your Radar
The growing list of companies severing business ties with Russia has grown to include Apple (AAPL), ExxonMobil (XOM), Dell (DELL), and many of the world’s largest shipping companies. It’s not just economic sanctions affecting Russia’s economy at this point, as a number of high-profile companies in the US and Europe have announced plans to divest from Russian business interests or stop selling products in the country. It’s all part of the business community’s rebuke of Russia’s invasion of Ukraine. Read more >> It’s still too soon to declare that the Russia/Ukraine war won’t cause globally contagious effects, and this article lays out what Liz sees as the main areas to watch. Although seemingly trivial compared to the primary crisis Ukraine is facing, this article will cover the possible contagion effects that could, or already have started to, affect other global financial markets and economies. Read more >> If you’re buying or selling a home this spring, the ongoing geopolitical tensions could have an impact on your bottom line. While mortgage rates had been climbing, they started falling as of this week’s invasion. Mortgage rates are closely linked to the 10-year Treasury, and yields began to decline as risk-averse investors started buying up bonds. While it’s not clear when the situation in Ukraine could reach a conclusion, analysts suggest mortgage rates could continue to be impacted in the meantime. Read more >> Want to save money on student loans, or pay them off faster? Here are 5 tips for navigating the student loan refinancing process. Refinancing and consolidating student loans can be a financial game changer: You can pay your debt in a single monthly payment and potentially lower your rates — meaning less interest and more peace of mind. Read more >>Not-So-Breaking News
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Google (GOOGL) issued a recall for its Fitbit smartwatches following reports of a burn hazard tied to overheating concerns. The company says at least 115 reports have been filed in the US, with 78 burn injuries — including two people who say they suffered third-degree burns.
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Applebee’s and IHOP parent company Dine Brands (DIN) beat analyst expectations for profit in its most recent quarter, boosted by strong sales numbers at its two largest brands. Sales for the quarter jumped 34.2% for Applebees and 39.2% for IHOP compared to the same period in 2020.
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Clothing retailer Abercrombie & Fitch (ANF) fell short of Wall Street estimates on both the top and bottom lines. The company says delayed product shipments harmed sales during the holiday shopping period, adding Omicron then made a dent in mid-January, after which point sales staged a comeback.
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Volvo (VLVLY) reported its sales fell by 17.2% in February as supply-chain constraints continue to plague the automaking industry as a whole. Company executives cited the component shortage but said things are improving on that front amid strong demand for Volvo vehicles. They warned the conflict in Ukraine has the potential to further disrupt key deliveries.
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Discount retailer Dollar Tree (DLTR) missed analyst expectations for sales last quarter, although executives said the company successfully converted to a $1.25 price point across all its US stores. Dollar Tree faced several major expenses outside of normal operating costs during the period, including a rodent infestation at a distribution center in Arkansas.
Financial Planner Tip of the Day
“While saving an emergency fund is one of many competing financial priorities, having a cushion to catch you when you fall can prevent a minor calamity from spiraling into lasting debt. The toughest part may be getting started and staying motivated. Just remember, you walk 10 miles by walking 10 feet at a time.”
Brian Walsh, CFP® at SoFi