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Dow Gains 650 Points, Oil Prices Dip, and People Are Still Quitting Their Jobs
• US stocks rose on Wednesday as oil prices fell by around 12%, following a rise in March that largely coincided with Russiaâs invasion of Ukraine. Rising commodity prices have been weighing on investor sentiment recently. Throughout this month oil prices increased to near 10-year highs. Russiaâs role as a net exporter and the sanctions placed against its fossil fuel industry have some analysts convinced market volatility will continue.
• The âGreat Resignationâ continues â 4.3 million people quit their jobs in January. The Department of Laborâs JOLTS report also shows 11.3 million job openings. Economists say the labor market is strong due to high demand for workers and increasing wages, prompting many to leave existing positions. In 2021 almost 48 million people quit their jobs â an annual record.
What to Be on the Lookout for Today
• The market will be paying close attention to the latest inflation data. The consumer price index and core consumer price index are due for February. The core CPI strips out energy and food when surveying prices, while the CPI is known as the âall itemsâ index. In January, the CPI rose 7.5% for the preceding 12 months â the fastest rate of price increase since February 1982. Core CPI is up 6% year-over-year, the largest such change since August 1982.
• Software company Oracle (ORCL) hands in its most recent report card. Oracle just announced last week it has suspended all operations in the Russian Federation as a result of the invasion of Ukraine. In December, Oracle announced plans to acquire health IT company Cerner (CERN) â which is now being sued over claims that other potential bidders were shut out.
What Credit Score Is Needed to Buy a House?
Whatâs your number? Thatâs not a pickup line; itâs what a lender will want to know. The number will range from 300 to 850, and it will weigh heavily in whether you qualify for a conventional or government-backed loan and at what interest rate.
What credit score is needed to buy a house? The numbers hinge on the economic climate, lender and type of loan, but those with imperfect credit often manage to secure home loans. The first step is to know your credit score, take time to improve it if needed, and compare lender offers.
Track your credit score for free in the SoFi app, where the factors affecting your score are broken out to make them easier to understand.
A Few Headlines That Should Be on Your Radar
President Joe Biden has issued an executive order concerning cryptocurrencies, and it could pave the way for a US digital dollar to be issued by the Federal Reserve. In the meantime, the hope is to make digital assets more transparent and fair. Prominent members of the crypto community praised the directive, which included six main priorities, such as keeping consumers protected. The order also mentioned cracking down on illicit activity â given cryptocurrencies such as Bitcoin (BTC) have been associated with the black market. Read more >> The fear-based moves in markets over the last few weeks have brought the phrase âcurve inversionâ back into our conversations. Yield curve inversions, much like spikes in oil prices, typically precede a recession. SoFiâs Head of Investment Strategy explores what curve inversion is, what it signals about investor sentiment, and why itâs used as a forward-looking indicator. Read more >> We all know inflation is spiking, but the thing hurting consumer spending power the most is the fact wages arenât growing at as fast a pace. Thereâs a number of budget hacks to consider now that key items like food and fuel cost so much these days. One key is eliminating discretionary spending on things like subscriptions, another can be refinancing your mortgage or restructuring credit card debt. With around 6 in 10 Americans living paycheck-to-paycheck, the number of people squeezed by inflation is also rising. Read more >> Without savings, a financial shock â even minor â could set you back. And if it turns into debt, it can potentially have a lasting impact. Thatâs why it can be wise to make building an emergency fund one of your highest savings priorities. Even if youâre currently living paycheck to paycheck, you may be able to slowly start building a buffer against emergency expenses. Read more >>Not-So-Breaking News
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Itâs starting to look like student loan payments could remain on pause in May, as the US Department of Education has directed companies servicing federal student loans not to send out notices regarding the resumption of payments. Student loan payments have been suspended since the start of the pandemic.
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A bipartisan group of House lawmakers sent a letter to the United States Attorney General urging that Amazon (AMZN) be investigated for âpotentially criminal conduct.â They allege that senior executives may have been misleading during the Judiciary Committee's investigation of competition within digital markets.
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Oatly (OTLY) posted fourth-quarter revenue that exceeded Wall Street estimates. Executives say localized self-manufacturing production helped ease inflationary pressures and supply-chain woes. The oat milk maker is forecasting revenue between $880 million and $920 million for 2022.
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Campbell Soup Company (CPB) missed analyst expectations for revenue during its most recent three-month period, with executives citing labor and supply-chain issues, especially as tied to the Omicron variant. The company is predicting those pressures will ease in the second half of its fiscal year.
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Stitch Fix (SFIX) says it struggled to add new customers during its latest quarter, and itâs delivering downbeat guidance for the rest of 2022. The company recently rolled out a direct-buy option known as âFreestyleâ in a bid to boost sales, as Stitch Fix typically sends buyers customized boxes called âFixes.â
Financial Planner Tip of the Day
âThe further away a person is from hitting their credit limit, the healthier their credit score will be, in most circumstances. A borrowerâs debt-to-credit ratio, also known as the credit utilization rate, should ideally be no more than 30%. Higher utilization rates can negatively affect a personâs credit score. Paying revolving credit lines in full each month can have a positive impact on a personâs credit score because doing so essentially lowers the credit utilization rate.â
Brian Walsh, CFPÂŽ at SoFi