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Dow Turns Negative in Final Hour of Trading, Jobless Claims Lower Than Anticipated
• US stocks fell Thursday as the blue-chip Dow Jones Industrial Average, positive throughout most of the session, began selling off in the final hour of trading. The tech-heavy Nasdaq Composite was down over 1%, with software companies broadly selling-off. Investors continue to monitor the ongoing Russian invasion of Ukraine, which has rattled energy markets and sent oil prices higher. Energy stocks and the bond market were generally less volatile yesterday than earlier in the week.
• Jobless claims came in 215,000 for the week, lower than what was anticipated. The number remains near historic lows. Separately within the job market, nonfarm workplace productivity went up 6.6% in Q4 2021, according to the Bureau of Labor Statistics.
What to Be on the Lookout for Today
• Additional job market data is on the way in the form of nonfarm payrolls and the unemployment rate for February. The US Bureau of Labor and Statistics surveys both private and government employers to determine these figures. Nonfarm payrolls rose by 467,000 in January, while the unemployment rate increased to 4%. Last month’s report on average hourly earnings and consumer credit for January are also set for release.
• Bitcoin (BTC) mining company Cipher Mining (CIFR) will report quarterly earnings. Analysts note the extreme volatility observed in the cryptocurrency market has affected mining stocks. Cipher Mining’s most recent earnings report showed revenue grew by 4.1% during the first nine months of 2021.
Home Buying 101: Knowing How Much House You Can Afford
When the idea of buying a home becomes a real possibility, figuring out what you can actually afford (or what loan amount you can qualify for to borrow) can be a little tricky.
You may have a general idea in terms of what you want your mortgage loan amount and monthly payment to be, but that number may get a little hazy during late night sessions of online house shopping.
There are a few simple first-time home buyer guidelines that can help you figure out your budget based on your financial profile. Taking the time to consider these factors can help you understand the realities of your budget, as well as the potential costs associated with buying a house. Watch on YouTube now!
A Few Headlines That Should Be on Your Radar
If you’ve been delaying the purchase of a car due to high prices, your wait could be extended due to Russia’s invasion of Ukraine. Delivery disruptions of key metals, components, and even the closing of factories in Europe threaten to send prices higher. The invasion is sparking the auto industry’s third crisis in as many years, following general COVID-19 slowdowns and the semiconductor shortage that began unfolding last year. Now, with cars already in short supply and used car prices hitting record numbers, analysts predict global production could slip by 2% in 2022 — sending prices spiking even further. Read more >> So-called “financial infidelity,” in which committed partners lie about money, is a common problem for couples. Research shows 27% of people have lied about finances — but there’s a three-step way to come clean and begin rebuilding trust. These types of lies can be relatively small like taking too many trips to Starbucks (SBUX), or more serious like declaring bankruptcy in secret or hiding a gambling addiction. In order to overcome the hurt and frustration involved, compassion, planning, and communication are needed. Read more >> The latest fundraising announcements show venture capitalists are pouring cash into the “deskless job market” — which one company claims is the majority of the current workforce. Blockchain infrastructure and AI that helps automate email administration are also in focus. A new app that’s attracting attention aims to help deskless employees communicate while on the go, which could be significant as work-from-home expands. Private investment is also helping to fuel growth within the blockchain, Web3, and artificial intelligence that aims to boost efficiency when it comes to reading and responding to email. Read more >> Between open houses and bidding wars, buying a home can be draining. Meanwhile, in-the-know and select clientele have the chance to tour and purchase properties before they even hit the market. The practice, known as pocket listings or whisper listings, is becoming more common in real estate. This insider access may sound tempting, especially in a hot housing market, but there are legal caveats and financial considerations to account for before pursuing a pocket listing. Read more >>Not-So-Breaking News
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Amazon (AMZN) plans to close 68 brick-and-mortar retail locations in both the US and UK, including book stores, pop-up shops, and its 4-star stores. The company’s first-ever physical book store launched in Seattle in 2015, over 20 years after Amazon was founded and eventually became an online book store.
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Electronics retailer Best Buy (BBY) fell short of analyst expectations for revenue with executives blaming staffing shortages tied to the Omicron variant as well as ongoing supply-chain issues. Still, market observers argue Best Buy’s long-term outlook could benefit from videoconferencing and telemedicine, which grew in popularity throughout the pandemic.
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American Eagle (AEO) reported that it used more expensive air freight throughout the second half of 2021 in order to get around the closure of Asian factories. This comes amid ongoing challenges for retailers concerning both logistics and higher prices. American Eagle product sales increased by 11%, while the Aerie division’s revenue grew by 27%.
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Snowflake (SNOW) posted its slowest revenue growth since 2019 in its most recent quarter, and is forecasting slower revenue growth for the current three-month period. The cloud software company also reported it had nearly 6,000 customers as of the end of January.
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Clothing retailer Burlington Stores (BURL) missed analyst expectations on the top and bottom lines and reported a slowdown for in-store traffic during the fourth quarter of 2021. Executives say they’d normally be happy with 6% quarterly growth in sales but have identified some potential areas of improvement regarding the receipt of deliveries.
Financial Planner Tip of the Day
“As you work your way toward a down payment for a house, setting a goal can be a sound step toward making it a reality. A mortgage calculator can help you estimate how much you can borrow, play with different down payment options, and view different monthly mortgage payment options (how much your monthly mortgage payments will be).”
Brian Walsh, CFP® at SoFi