Monday,
March 7, 2022
Market recap
Dow Jones
33,614.80
-179.86 (-0.53%)
S&P 500
4,328.87
-34.62 (-0.79%)
Nasdaq
13,313.44
-224.50 (-1.66%)
Top Story
Russia-Ukraine Drags Stocks Lower Despite Upbeat Jobs Report
• US stocks fell Friday as the armed conflict in Ukraine continues to rattle the market. Reports of smoke rising from Europe’s largest nuclear power plant following an alleged Russian attack sent oil prices higher, including both US benchmark West Texas Intermediate crude, and global standard Brent crude. 10-year Treasury yields plunged as traders appear to be favoring bonds instead of equities within the current environment.
• Meanwhile, investors are closely watching for this week’s inflation data as the CPI and core CPI are due. Recent reports have shown inflation spiking at levels not seen in decades. Federal Reserve Chair Jerome Powell indicated last week he’s likely to suggest a 25-basis-point hike to the central bank’s target range later this month, which guides what banks and other depository institutions charge when lending money to each other.
• The market downturn continued despite an upbeat jobs report to close out the week. The economy added 678,000 jobs last month — easily eclipsing the 440,000 that had been predicted. Meanwhile the unemployment rate fell to 3.9% in February, from 4.0% in January.
What to Be on the Lookout for Today
• The Federal Reserve reports on consumer credit for January. This includes things like credit cards and personal loans used to purchase goods and services. Consumer credit grew overall in December, but at a slower rate than what was observed during the previous month. Personal debt grew by 5.4% in the final month of 2021, but the number came in at 10.7% for November.
• Canadian oil and natural gas company Vermilion Energy Inc. (VET) hands in its most recent report card. During its last earnings call the Calgary-based company announced plans to reinstate its dividend, which is set to take effect next month. Meanwhile, both oil and natural gas prices have been spiking recently in response to Russia’s invasion and sanctions against it that have disrupted the fossil fuel industry.
The Week Ahead at SoFi
Tune in this week to learn how to take the fear out of networking and boost your career through effective relationship building. Plus, check out Your Next Dollar. Save your seat in the SoFi app!
A Few Headlines That Should Be on Your Radar
While markets remain rattled by Russia’s invasion of Ukraine, inflation remains a major concern for investors, and prices could spike even higher amid the armed conflict. This week on Wall Street inflation data is due, including the CPI and core CPI which are increasing at record levels. The all-prices index is set for release later this week, and traders will be paying attention as they try to predict how the Fed will respond to inflation that’s at its highest point in 40 years. Last week Chairman Jerome Powell indicated he’s likely to support a 25 basis point hike to the Fed’s target rate, for later this month. Read more >> In order to save up money effectively, you need a budget and motivation. But you also need a fun and exciting way to do it, which is why these “savings hacks” are going viral. In actuality, different savings plans work for different people depending on their personality and circumstances. Whether it’s the 52-week challenge, no-spend challenge, or weather Wednesday — there’s a reason these savings methods are popular, all you need to do is figure out what fits your financial lifestyle. Read more >> Honda (HMC) and Sony (SONY) are partnering together on a new line of electric vehicles. It marks the latest partnership linking technology companies and automakers as investors wonder: could this be the swan song for gas-hungry vehicles? It’s not just partnerships fueling this growth either, as some tech firms are going solo while looking to develop electric cars — including Apple (AAPL). Automakers are increasingly pivoting away from the production of gas powered vehicles. Honda plans to no longer sell gas-fueled cars by 2040. Read more >> Russia’s invasion of Ukraine may lead to attractive renewable energy investments due to pressure on the oil and gas market. Amidst the oil and gas price swings, there are opportunities for investors looking to put their money to work in novel ways in the stock market. Some experts believe that the current conflict may cause governments and companies to shift away from a reliance on fossil fuels in the long term. Read more >>Not-So-Breaking News
-
CVS (CVS) is eyeing future sales within the metaverse. The drugstore chain filed a trademark for its health clinics and pharmacies within the digital platform, as well as patents for certain digital products. Nutrition and wellness counseling are included in the filing.
-
Gap (GPS) is predicting solid profits for 2022 as the pandemic eases and more people return to in-store shopping. The retailer shared quarterly results Friday showing narrower-than-expected losses. Executives noted demand at Old Navy and Athleta stores has improved.
-
Sweetgreen (SG) shared quarterly results for the first time since going public in mid-November of 2021. Sales continue to grow amid widening losses. The salad chain says it doesn’t expect to turn a profit in 2022, but did provide strong sales guidance for the rest of the year.
-
Retailer Costco (COST) posted earnings that beat analyst expectations for profit, revenue, and same-store sales growth. Still, the 14.4% increase in same-store sales represented slower growth than the previous quarter, which included a 14.9% spike.
-
Private equity firm Hellman & Friedman has purchased a 7.5% stake in software company Splunk (SPLK), after it announced Gary Steele will take over as CEO on April 1. Hellman & Friedman is now Splunk’s largest shareholder, with a stake valued at $1.4 billion.
Financial Planner Tip of the Day
"A well diversified portfolio helps maximize the expected return for a given level of risk. It also helps smooth returns over time compared to the drastic swings of investing in one or two riskier investments."
Brian Walsh, CFP® at SoFi