Friday,
April 8, 2022
Market recap
Dow Jones
34,583.57
+87.06 (+0.25%)
S&P 500
4,500.21
+19.06 (+0.43%)
Nasdaq
13,897.30
+8.48 (+0.06%)
Top Story
Afternoon Rally Sends Stocks into the Green, Jobless Claims Fall to 54-Year Low
• US stocks rose on Thursday, ending a two-day downturn that followed hawkish comments from the Fed. Investors are reacting to the likelihood that the central bank will be more aggressive in its approach toward inflation in the coming months.
• Oil prices have started to steady somewhat, and analysts say thatâs boosted stocks. Commodity prices have been highly volatile since Russiaâs invasion of Ukraine, especially within energy markets. US standard West Texas Intermediate rose slightly yesterday but has backed off considerably from its $130 per barrel high point, reached last month.
• Jobless claims fell to 166,000 as the tight labor market continues. Itâs the lowest number of Americans filing for unemployment since 1968.
What to Be on the Lookout for Today
• The US Census Bureau will release its final number for Februaryâs wholesale inventories. This takes stock of wholesalersâ unsold products, which is an indicator of retail demand. The original report showed last monthâs wholesale inventories growing by 2.1%, from January.
• Sunlands Technology Group (STG) will share its results for Q4 2021 and the previous year as a whole. Itâs been a challenging past 12 months for the stock, during which its share price has fallen by upwards of 60%. The Chinese company provides online education services for students and professionals.
How Does a Late Payment Affect Your Credit Score?
One of the purposes of a credit score is to show lenders how likely you are to repay your debts. Payment history is 35% of your credit score, so making payments on time and in full each month is crucial.
Even if your credit history is pristine, it only takes one report of 30 days past due to change your score. Whether you were short on cash or simply forgot to make the payment, the FICOÂŽ algorithm doesnât distinguish â and the result is the same.
Once a late payment is reported to the credit bureaus, it could remain on your credit report for up to seven years.
Set up SoFi Relay to get payment reminders on your recurring expenses, track your credit score, and more â all in one app.
A Few Headlines That Should Be on Your Radar
Alphabetâs (GOOGL) drone-delivery subsidiary Wing is now flying Walgreens (WBA) products to customers in Dallas-Fort Worth. Other products are available in the area as well, like Blue Bell ice cream. Wing wants to expand and eventually fly completely autonomous drone deliveries nationwide. For now, all drones must be either operated or overseen by human pilots. In this case, Walgreens employees are standing by and ready to hook deliveries to the droneâs extendable lines. From there, the drone flies off and automatically detaches the package at the intended destination. Read more >> Mortgage applications are down over 40% since last year as rising interest rates make it more expensive for consumers to carry a loan. Some first-time homebuyers are feeling squeezed out. Even a small increase in mortgage interest paid can translate to a sizable impact on a borrowerâs cash flow, given the large amount borrowed and the long-term nature of the loan. The higher cost to borrow is causing some would-be home-buyers to re-think their plans. Read more >> Novel Commerce is providing brands the ability to offer non fungible tokens as a cutting edge marketing tool, potentially driving consumer loyalty and engagement. Exclusive access promotions may allow companies to capitalize on FOMO. For companies looking to step into Web3 commerce, Novel is providing a fastpass solution that eliminates sophisticated knowledge of blockchain technology. NFTs can be relatively easily created â no coding experience required. Read more >> Stock markets or exchanges consist of lots of people buying and selling at different prices because they all have different ideas about those stocksâ value. One investor might think a stock will go up, while another thinks itâs going to go down. So whoâs right about when to buy stocks? Knowing when to buy, sell, and hold stocks can be less confusing when an investor does the research into company health, overall market conditions, and their own financial needs as relates to personal short-term and long-term goals. Read more >>Not-So-Breaking News
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Conagra Brands (CAG) lowered its earnings guidance for 2022 as a whole, blaming rising input prices and freight costs. Executives say increased input costs are likely to last until sometime in the fall, adding the net result will likely be a close to a 100-basis-point loss from its profit margin.
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Oil giant Shell (SHEL) says itâs writing down upwards of $5 billion as a result of its decision to suspend business operations in Russia. Thatâs higher than the previously disclosed estimate which suggested the figure would be around $3.4 billion. Executives say the increased figure is tied to receivables, credit losses, and contracts.
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Warren Buffettâs conglomerate Berkshire Hathaway continues to make big investments into publicly traded companies, as the firm announced it bought almost 121 million shares of personal computing and printing company HP (HPQ). Berkshire now owns close to 11.4% of HP, which is worth around $4.2 billion.
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Wine, beer, and liquor company Constellation Brands (STZ) beat Wall Street estimates for adjusted earnings per share in its fourth quarter. The company also reported its investment in cannabis company Canopy Growth Corp (CGC) lost around $110 million in fair market value.
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New York State AG Leticia James led top prosecutors from over a dozen other states and Washington, DC in calling on some of the nationâs top banks to eliminate all overdraft fees for consumer bank accounts. Her letter specifically mentioned Bank of America (BAC), JP Morgan Chase (JPM), US Bancorp (USB), and Wells Fargo (WFC).
Financial Planner Tip of the Day
âAn emergency fund is intended to be used at a momentâs notice. For the most part, youâll hear that a healthy emergency fund should cover between three and six months worth of living expensesâwhich would include rent, mortgage, bills, food, and other essentials. And since you never know when an emergency might happen, itâs best to keep your fund relatively liquid.â
Brian Walsh, CFPÂŽ at SoFi