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Stocks Fall as Fed Minutes Indicate Plans For a More Aggressive Response to Inflation
• US stocks fell Wednesday as investors studied the FOMC minutes from last monthâs meeting. Beginning in May, the central bank plans to begin shedding around $95 billion in assets from its balance sheet on a monthly basis. It seems the Fedâs also largely in agreement that 50-basis-point hikes will be enacted going forward.
• Overseas, investors continue to pay close attention to the Ukrainian-Russian conflict, which has rattled energy markets. The price of oil fell yesterday, as the EU continues to take steps aimed at reducing its dependency on Russian fossil fuels. Elsewhere, the latest COVID-19 lockdowns in China threaten the countryâs growth and the already burdened supply chain.
• With mortgage rates up near 5%, demand for both new mortgages and refinances are down. MBA mortgage applications fell for the fourth-straight week, and refinance demand is also down 62% year-over-year.
• President Joe Biden extended the pause on federal student loan payments that has been in place throughout the pandemic. Theyâre now scheduled to resume on August 31 of this year.
What to Be on the Lookout for Today
• The weekâs initial jobless claims will be published. Last weekâs number came in at 202,000, which was a slight increase, after the previous report showed a 50-year low. Analysts say employers are reluctant to part ways with employees amid the tight labor market.
• Lubricant maker WD-40 (WDFC) is scheduled to post its most recent quarterly earnings. The company recently announced it will increase its dividend to $0.78 on April 29, which translates to a yield of 1.6%, lagging behind the industry average.
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A Few Headlines That Should Be on Your Radar
Opportunities in the metaverse have caught the attention of companies such as Wendyâs (WEN), JP Morgan Chase (JPM), and EstĂŠe Lauder (EL). Online gamers may find a fast-food restaurant in their virtual neighborhood as marketing efforts get creative. As a virtual reality existing alongside the real world, the metaverse offers companies a bridge to ecommerce, which some companies hope will win them more customers in the long run. It could also help them to better understand existing ones. Read more >> Many market pundits think the classic âdiversifiedâ portfolio consisting of 60% stocks and 40% bonds is dead, and would not function effectively to protect investorsâ downside risk. Liz isnât in the market of calling bottoms, but at some point bonds can enter oversold territory and once again add diversification benefits to an investorâs portfolio. How do we know when that point is? See when SoFiâs Head of Investment Strategy thinks 60/40 can rise from the dead. Read more >> Uber (UBER) says it wants to become a one-stop-shop for all its users traveling needs. For now, that includes a pilot program that will let people in the UK book train tickets. Flights and hotel reservations are also planned for the app. The company has become an industry leader in terms of ride-hailing and continues to focus on growing its food delivery business, with this program its latest expansion. Uber has offered things like boat and scooter rentals previously, and executives call planes and trains a natural next step. Read more >> One recent study found that 90% of Americans say money impacts their stress level. If youâve ever swiped your debit card and seen âtransaction deniedâ or looked at your credit cardâs interest rate, you can probably relate to that. Letâs spend a little time setting some smart money goals that could help you both dissolve your financial anxiety and live your best life. Are you ready to learn how to set and stick to those money goals? Read more >>Not-So-Breaking News
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Tilray (TLRY) traded higher yesterday after missing revenue forecasts, but beating on earnings. The Canadian cannabis company also said it's currently on track to hit $4 billion in sales by the end of fiscal 2024.
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Rivian (RIVN) announced first-quarter production and deliveries that met industry expectations, with more than 2,500 vehicles produced and just over 1,200 deliveries for the quarter ending March 31. Executives also said the company is on pace to meet its annual production guidance of 25,000 vehicles.
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Boeing (BA) is pushing forward with a digital makeover that aims to give its software developers and airplane designers more tools to work with. The company is hiring Amazon (AMZN), Google (GOOGL), and Microsoft (MSFT) to help move hundreds of applications to the cloud, while the tech giants will then handle storage and maintenance within their data centers.
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Many Wall Street watchers were surprised to learn that JetBlue (JBLU) made an unsolicited bid to acquire Spirit Airlines (SAVE). Analysts say JetBlue is looking to grow its fleet in order to compete with larger airlines. In February, Spirit and fellow ultra-low-cost carrier Frontier (ULCC) announced plans to merge, a deal which is now in doubt per some reports.
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Intel (INTC) announced it is suspending all business operations in Russia, one month after halting shipments to customers in the country as well as Belarus. The company added, it condemns âRussiaâs war against Ukraineâ and called for peace, saying it will support its 1,200 employees located in Russia.
Financial Planner Tip of the Day
"A stock is essentially a small piece of a company. Investors can buy stock, and in doing so, become shareholders of that specific company. Money can be earned in two ways, through the stocks value growing over time, as well as dividends, if applicable. Investing in stocks can offer the potential to earn a high rate of return in the long term, but that potential comes with some risk. Theyâre one of the more volatile forms of investing for the short and medium term."
Brian Walsh, CFPÂŽ at SoFi