Wednesday,
April 6, 2022
Market recap
Dow Jones
34,641.18
-280.70 (-0.80%)
S&P 500
4,525.12
-57.52 (-1.26%)
Nasdaq
14,204.17
-328.39 (-2.26%)
Top Story
Hawkish Comments From Fed Governor Brainard Send Stocks Lower, Trade Deficit Worse Than Forecast
• US stocks fell Tuesday, with losses extended in the final hour of trading, at least partially in response to comments from Federal Reserve Governor Lael Brainard. She argued the central bank will need to be a lot more aggressive in its approach to fighting inflation, which analysts warn could slow economic growth.
• Oil prices moved lower yesterday as the world’s energy markets remain highly volatile amid the Russia-Ukraine armed conflict. Ukrainian President Volodymyr Zelensky made his case in front of the UN that Russian President Vladimir Putin should face a war crimes trial.
• The US trade deficit checked in at $89.2 billion for February, which was slightly worse than expectations. Crude oil imports jumped by $1.9 billion.
What to Be on the Lookout for Today
• The Federal Open Market Committee releases the minutes from its most recent meeting, as investors look to gain further insight into the central bank’s rate-hike game plan. These date back to the Fed’s meeting on March 15-16, after which it forecast that rates will rise between 2.5% and 3% by the start of 2025.
• Amid the historically tight housing market, MBA’s weekly mortgage applications survey is due. This is considered a leading indicator of activity within the housing and mortgage sector. Mortgage rates have been rising, and that appears to be impacting demand. Last week’s Market Composite Index, which measures the loan application volume, fell by 6.8%. That’s the steepest drop since December of 2019.
• By the way, yesterday’s newsletter incorrectly reported that Levi Strauss (LEVI) and Tilray Brands (TLRY) published results yesterday, when in fact they both report today. We apologize for the error, but both companies are still worth watching as they release their latest numbers.
Don’t Miss a Thing from Bitcoin 2022 in Miami
We know: You want to stay on top of crypto’s biggest event of the year. Good news is you can follow the Bitcoin 2022 Miami live stream and our content hub all weekend long. We’ll be coming at you with breakdowns from speeches, behind-the-scenes action from our SoFi booth, and more! Follow along!
A Few Headlines That Should Be on Your Radar
Amazon’s (AMZN) new rocket deal with three companies is heating up the competition with Elon Musk’s SpaceX. It’s all shaping up toward an explosion of new satellite internet offerings in the next few years. Broadband companies will see increasing competition with Amazon’s Project Kuipers planned for a network of 3,236 internet satellites. SpaceX’s Starlink satellites will need to make room for their new neighbors. Read more >> Reeling from the inflation hit to their buying power, consumers are looking to stretch their dollar. Brand names are being replaced by store-brand labels, and discount stores are increasing back in favor. That could mean an opportunity for discount retailers like Dollar General (DG). With inflation approaching 8% and prices of everyday products moving steadily upward, consumers are rethinking their spending habits. Splurging on high-end items was common during the pandemic, but a more frugal approach could be coming into vogue. Read more >> Millennials are falling behind in terms of saving for retirement. Bottom line, it's more complicated than cutting out that trip to the coffee shop. In addition to factors like inflation, it’d be easy to blame the shortfall on millennials spending or saving habits. But there are other obstacles, such as student loans, that the generation must face as well. Read more >> Why has crypto become so popular? In a word: Growth. Investors are intrigued by the potential of cryptocurrency to grow in value — as well as the potential transformation of the financial system that crypto might bring. Here’s a closer look at what the market cap of a digital coin tells you, and a list of the top cryptocurrencies by market cap. Read more >>Not-So-Breaking News
-
Elon Musk is wasting no time making his presence felt at Twitter (TWTR) after buying an over 9% stake in the social media company. Tesla’s (TSLA) founder has joined Twitter’s board and asked his followers if they want the platform to add an “edit button.” Twitter’s CEO Parag Agrawal shared he feels Musk will bring great value to the company’s board.
-
Honda Motor (HMC) and General Motors (GM) are expanding the partnership between both companies, announcing the development of a series of affordable electric vehicles. The EVs will use GM’s new Ultium battery technology and cost under $30,000.
-
Online luxury fashion retail platform Farfetch (FTCH) is taking a stake in Neiman Marcus Group, investing up to $200 million to bring both Neiman Marcus and Bergdorf Goodman into its ranks. Executives say the company’s first priority is to re-platform the Bergdorf Goodman website and mobile app.
-
The average price of an apartment in New York City’s Manhattan borough rose by 19% in the first quarter, dating back to the same period in 2021. Real-estate sales went over $7 billion for the three-month period ending March 31, the sub-market’s strongest ever start to a year. Analysts note Manhattan real estate purchases are largely in cash and unaffected by rising mortgage rates.
-
Chinese online fast-fashion company Shein is reportedly looking to raise $1 billion dollars in fundraising at a valuation of $100 billion. After being largely unknown just years ago, Shein is considered a rising challenger to companies like Zara (IDEXY) and Amazon (AMZN).
Financial Planner Tip of the Day
“Once money has been contributed to a retirement account, it’s time to invest that money. To say 'saving for retirement' is a bit misleading—really, it can be considered to be 'investing for retirement.’”
Brian Walsh, CFP® at SoFi