Friday,
March 18, 2022
Market recap
Dow Jones
34,479.97
+416.87 (+1.22%)
S&P 500
4,411.67
+53.81 (+1.23%)
Nasdaq
13,614.78
+178.23 (+1.33%)
Top Story
Stock Market Rally Continues Into Its Third Day, Investors Digesting Rate Hikes and Ukraine-Russia
• US stocks rose on Thursday, extending a rally that began Tuesday. Investors are still attempting to analyze the ongoing armed conflict in Ukraine. The market is also weighing this week’s decision from the Fed to hike interest rates, which was the first such increase in three years, amid rampant inflation. Six more hikes are expected in 2022.
• New unemployment claims came in at 214,000. That’s lower than the 220,000 economists had predicted, and it speaks to the extremely tight labor market. Meanwhile, continuing jobless claims fell to 1.41 million which is the lowest number recorded since 1970. In mid-March 2021, almost 4 million Americans were receiving unemployment benefits.
What to Be on the Lookout for Today
• Housing market data is on the way in the form of February’s seasonally adjusted existing home sales. The Conference Board’s February index of leading economic indicators will also be published. The privately run company’s report showed a 0.3% decline in January, which analysts blamed on the Omicron variant’s impact.
• The Eastern Company (EML) hands in its latest report card. This will include earnings data for the fourth quarter of 2021 and the last fiscal year as a whole. Headquartered in Connecticut, the Eastern Company provides security and metal products, as well as industrial hardware. After its most recent earnings call, the firm announced the sale of its Greenwald Industries business division last November.
Building Credit Takes Time
If you ever plan on purchasing a car, renting an apartment, buying a house, or taking out a loan to fund your dream company, you’re going to want to track your credit score. Any of these long-term goals become more affordable and more streamlined with a higher credit score.
Once good credit has been established, using it wisely and responsibly can offer flexibility and freedom. Installment loans like mortgages, car loans, and student loans might make it easier to reach major life goals, while credit cards for smaller purchases can help build credit and possibly qualify for lower interest rates on those big purchases.
The good thing about long term goals is that you have more time to prepare to make them happen. Get a head start and 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
Netflix (NFLX) looks to be cracking down on password sharing, as they roll out a feature in several countries allowing people to add “sub” accounts for around $3 a month. An ad-supported tier seems unlikely at this time, even though the platform’s subscriber growth has stalled. Executives say other companies like Amazon (AMZN) and Meta (FB) spend so much on targeted ads that it’d be difficult for Netflix to compete in that space. They also don’t seem overly excited about releasing content in a delayed fashion, because Netflix customers prefer the binge-watch option. That said, the days of looking the other way on shared accounts seem to be ending. Read more >> There may be an upside to the ongoing supply-chain mess. Consumers have a unique opportunity to pick up some favorite brands at a deep discount. Even luxury brands may land in the outlets. Name-brand retailers’ practice of selling merchandise pre-season has made supply-chain-driven delivery disruptions especially painful. With some experiencing 10-week delays, products may arrive just as their selling window is near expiration. Even the most popular brands may not have enough shelf-time to sell, and consequently end up in the off-market. Read more >> The latest fundraising rounds from the private equity market show venture capitalists are interested in areas of B2B ecommerce, instant delivery, and social media link-sharing. Instant delivery of groceries means you don’t have to schedule a window for their arrival, and startup Getir is expanding across Europe and the US. Meanwhile, B2B sales have been slow to adapt in the digital age, but Profishop aims to change that. Linktree is also snagging funding as it looks to help content creators share websites on social media. Read more >> Recessions tend to have a wide-ranging economic impact, affecting businesses, jobs, everyday individuals, and investment returns. But what are recessions exactly and what kind of long-term repercussions do they tend to have on personal financial situations? Here’s a deeper dive into these economic events and how to best prepare for recessions. Read more >>Not-So-Breaking News
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Berkshire Hathaway now owns more than 13% of Occidental Petroleum’s (OXY) outstanding shares, after Warren Buffett’s company purchased 18.1 million more shares this week for nearly $1 billion. The firm also holds options to buy that would bring its stake to nearly 22%.
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Eyeglasses and contact lenses retailer Warby Parker (WRBY) is projecting a loss of more than $15 million in the first quarter as fewer customers came in for eye exams or to try on new sunglasses. The company also says it lost upwards of $5 million in sales during the busy holiday period due to the Omicron variant’s impact.
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Dollar General (DG) fell short of Wall Street estimates for revenue in its most recent quarter, but the company increased its sales forecast for the next fiscal year. Executives say they expect net sales to grow by upwards of 10%, with same-store sales increasing closer to 2.5%.
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Signet Jewelers (SIG) beat analyst expectations for revenue and raised its dividend. Over the past 12 months the stock has outperformed the S&P 500, with share prices up 31% over that time.
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Steel producer Nucor (NUE) delivered downbeat sales guidance based on decreased sheet mill profitability. The company estimated that its steel products segment will grow its sales due to strong nonresidential construction.
Financial Planner Tip of the Day
"One of the ways that can help pay off debt expeditiously is to focus on only one debt at a time. If you spread your money out over all of your debt payments, you might not see progress as fast as you want. By focusing on one goal at a time, you may see success sooner — and that motivation could help you keep your debt payoff plan on track."
Brian Walsh, CFP® at SoFi