Tuesday,
March 22, 2022
Market recap
Dow Jones
34,552.99
-201.94 (-0.58%)
S&P 500
4,461.18
-1.94 (-0.04%)
Nasdaq
13,838.46
-55.38 (-0.40%)
Top Story
Dow Drops Over 200 Points After Powell’s Hawkish Comments Spark Selloff
• US stocks fell Monday in what was another volatile session. The Dow Jones Industrial Average moved lower following Fed Chair Jerome Powell’s comments concerning inflation, which he said is “way too high.” He indicated the central bank could be even more aggressive in its approach towards rate hikes throughout 2022.
• Russia’s invasion of Ukraine continues to both weigh on investor sentiment and impact commodity markets. International benchmark Brent crude moved higher yesterday, surpassing $115 per barrel. Elsewhere overseas, investors are closely watching the emergence of a new COVID-19 subvariant that’s driving a rise in Europe’s case numbers.
• The Federal Reserve Bank of Chicago published its national activity index for February. It showed US economic growth decreased slightly from January. The number also came in a bit weaker than analysts had expected.
What to Be on the Lookout for Today
• The Johnson Redbook Index is published. This samples around 9,000 large retail locations to provide advanced estimates of same-store sales growth. The index has been on the decline since early February, which could indicate rising prices are weighing on consumer spending.
• Adobe (ADBE) posts its first-quarter earnings. The software company issued sales guidance that missed analyst expectations in December of last year, sending share prices down 10% in what was the company’s second-worst day in 10 years.
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A Few Headlines That Should Be on Your Radar
The growth of electric vehicles has led to a rise in the price of nickel, which is used in lithium ion batteries. Russia is a major producer of nickel, so its invasion of Ukraine sent prices spiking even further. With demand for nickel surging, the US is not much of a player when it comes to production. The Eagle Mine in Michigan is the main source of domestic production, and it's slated to close in 2025. A new mine in Minnesota could come on line and help offset supply shortages. Tesla (TSLA) already has a contract in place, should the mine open. Read more >> Wendy’s (WEN) breakfast bet from two years ago now seems like a good move, as they rank third in terms of early-morning sales behind Burger King (QSR) and industry leader McDonald’s (MCD). Meanwhile, breakfast is one of the few places where fast-food companies are seeing growth. Prior to the pandemic, diners were increasingly opting for healthier options at lunch and dinner, with fast food only experiencing growth in terms of breakfast sales. Wendy’s put its breakfast menu into place in March 2020 and used drive-thru sales and diminished competition to its advantage. Read more >> The SEC voted to propose new rules that aim to require more disclosure from publicly traded companies when it comes to climate change. The commission’s chair argues investors want this kind of information when deciding whether to buy or sell certain stock. Firms would be required to disclose things like greenhouse gas emissions and the ways they’re exposed to climate risks. The rules now enter a 60-day public comment period, with a second vote held afterwards. Climate activists are cheering the move, but some argue the SEC lacks the necessary expertise concerning the subject, adding investors could be negatively impacted. Read more >> Your guide to Bitcoin, crypto, NFTs, and beyond Whether you are just learning or are an advanced trader, here you’ll find tools, resources, and insight on all things crypto, including the latest Bitcoin 2022 conference happenings and speaker highlights. Read more >>Not-So-Breaking News
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Warren Buffett’s conglomerate holding company Berkshire Hathaway (BRKB) agreed to buy New York-based insurance company Alleghany (Y) for $11.6 billion in cash. It marks Berkshire’s biggest deal since acquiring Precision Castparts for $37 billion six years ago.
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Analpan (PLAN) is being sold to a private equity firm pending approval from regulators and stockholders. Thoma Bravo announced it’s agreed to purchase the software as a service company for $10.7 billion. Analpan reported increased revenue but widening losses during its most recent earnings call.
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Nielsen Holdings (NLSN) says it rejected a buyout offer from private equity group Elliot Management. The deal would have valued the data and market measurement firm at $15 billion. Nielsen executives say that significantly undervalues the company and would shortchange shareholders.
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General Motors (GM) now owns 80% of self-driving startup Cruise LLC, after it bought out SoftBank (SFTBY) Vision Fund 1’s stake. GM will also invest an additional $1.35 billion into Cruise in order to help advance the startup’s plan to deploy vehicles for a ride-sharing app.
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Disney (DIS) Shanghai is closed until further notice after 24 new domestically transmitted cases of COVID-19 were identified. Until recently the financial hub of Shanghai had been relatively unaffected by coronavirus lockdowns or closures. The current outbreak is China’s largest observed since cases were first identified in Wuhan.
Financial Planner Tip of the Day
"Financial health isn’t synonymous with a person’s savings or how much they currently earn. It may be helpful to think of good financial habits as a future-oriented exercise routine that can start with small daily steps—something done today that’s motivated by longer-term gains."
Brian Walsh, CFP® at SoFi