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Market Remains Rattled Amid Russian Invasion of Ukraine, Inflation Weighing on Sentiment
• US stocks fell Friday as investors remain largely uncertain as to what comes next in the Russia-Ukraine conflict. Wall Street is trying to assess the impact of multiple large companies and institutions exiting Russia and how that could impact global markets as a whole. Meanwhile, oil prices moved higher, but have fallen off from 10-year highs observed earlier in the week.
• The University of Michiganâs monthly survey showed inflation and rising fuel prices have put a dent in consumer sentiment. The universityâs year-ahead inflation expectations are now the highest since 1981.
What to Be on the Lookout for Today
• There is no economic data scheduled for release today, but investors are closely watching as the Federal Open Market Committee gets ready for this weekâs two-day meeting. Itâs expected the central bank will enact a 25-basis-point hike to the Fedâs target interest rate, in response to already rampant inflation.
• Vail Resorts (MTN) will report its latest quarterly results. The Colorado-based company most recently posted earnings in December of last year, beating Wall Street expectations for profit but coming up short on revenue. Broadly speaking, investors may be interested to hear what executives have to say regarding the companyâs outlook, as inflation and rising oil prices could have an impact on pent-up demand for travel post-pandemic.
The Sports World Is More Like Investing Than You Think
How we analyze athletes and investment opportunities is not all that different.
Liz is joined by Cynthia Frelund, NFL Media's first analytics expert, at Penthouse 56,SoFiâs hospitality space in downtown LA during Super Bowl week. The two compare the similarities and differences between investing and the sports world, and how looking at investing through a different lens might help investors feel less intimidated.
Liz also offers her take on why analyzing fundamentals is key in a year where strength matters more than ever. Watch the discussion on YouTube!
A Few Headlines That Should Be on Your Radar
In the week ahead, the Fed is expected to enact the first in a series of interest rate hikes, with inflation at levels not seen since 1982. Both Volkswagen and BMW will report earnings â at a time when both European automakers face significant headwinds as a result of Russiaâs invasion of Ukraine. Fed Chair Jerome Powell has indicated heâll advocate for a 25-basis-point hike to the central bankâs target rate, which is effectively what banks and other depository institutions charge each other for lending money. The central bank is being forced to confront rapidly rising prices all while the market faces a high level of uncertainty given the geopolitical tensions in Eastern Europe. Read more >> The global sleep aid industry is expected to grow to $112 billion by 2030. This includes everything from sound machines and bedding to sleep labs and wearable tech that monitors users overnight. Google (GOOGL), Apple (AAPL), and Samsung are all competing in the same space. Research shows 58% of Americans donât get enough sleep â and the effects can be devastating. Everything from heart disease to Alzheimers has been linked to sleep disorders, as well as things like damaged personal relationships. Estimates say it costs the US economy $400 billion a year. Read more >> With gas prices soaring, big-box retailers like Costco (COST) and Walmart (WMT) who offer cheap gas are hoping to see more in-store traffic. Consumers however should brace for pain at the pump when visiting most gas stations. With gas prices through the roof, consumers are scrambling for relief. Many say itâs worth going out of the way to find cheap gas. While revenue from fuel sales is limited for big-box retailers, the stores hope to benefit from customers grabbing a bag of groceries along with their gas. Read more >> If youâre browsing the market for a rental, youâve likely encountered a dazzling array of condos and apartments. During your search, youâve probably wondered: âWhat is the difference between a condo and an apartment?â In the condo vs. apartment comparison, youâll pay similar costs when renting properties of similar quality. Things get more complex if youâre debating whether to buy a condo or rent an apartment, as there are myriad added costs for condo owners in exchange for the chance to build equity. Read more >>Not-So-Breaking News
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Regulatory authorities in the UK and EU have opened antitrust probes into Google (GOOGL) and Meta (FB) in regard to a 2018 advertising deal. The allegation is that the two companies conspired to rig auctions for online ads and illegally control prices, in whatâs been called the âJedi Blueâ agreement.
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Pandemic darling DocuSign (DOCU) has lost the share price gains it made since COVID-19 hit, with its latest earnings report delivering downbeat guidance for the new fiscal year. As remote work flourished amid the pandemic, demand surged for DocuSignâs online-signature technology.
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Office space rental company WeWork (WE) reported a narrower-than-expected loss on higher revenue for its most recent quarter. For the three-month period ending in December, WeWork lost $803 million, but that number is smaller than all its previous quarters â including a $844 million loss in the fiscal third-quarter.
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Coconut water maker Vita Coco (COCO) posted a net loss of $3.4 million in the fourth quarter. Executives say issues with ocean freight service and cost challenges threw their inventory out of balance geographically â especially due to high costs associated with shipping products to the East Coast.
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A partnership between Ford (F) and Pacific Gas and Electric (PCG) will explore the ability to power homes and return energy back to the grid by way of the F-150 Lightning. The electric vehicleâs battery is due out this spring and has âIntelligent Backup Powerâ that can keep a home powered in the event of an outage.
Financial Planner Tip of the Day
"If it works with your income, the 50/30/20 budget is one simple method for people starting to reorganize their finances. This budget allocates 50% of your income for essentials, like rent and bills, 30% toward personal day-to-day spending, and 20% for savings or financial goals."
Brian Walsh, CFPÂŽ at SoFi