Monday,
April 11, 2022
Market recap
Dow Jones
34,721.12
+137.55 (+0.40%)
S&P 500
4,488.28
-11.93 (-0.27%)
Nasdaq
13,711.00
-186.30 (-1.34%)
Top Story
US Stocks Mixed Amid Uncertainty Related to Rates and Geopolitics
• US stocks were mixed on Friday. There was notable weakness in the technology sector, which was largely driven by shares of growth stocks declining. High-flying names have come under pressure as the Federal Reserve becomes increasingly hawkish. Minutes released last week from the central bank's recent meeting highlight the Fed's plans to shed about $95 billion a month from its balance sheet as soon as next month. Officials may also be eyeing rate hikes of 50 basis points in order to combat runaway inflation.
• Rising rates aren’t the only issue on investors’ minds. Wall Street is constantly trying to digest what the war between Russia and Ukraine means for the global financial system, commodities, and fundamental international order. Earnings season also kicks off this week so some traders are waiting to see how big names perform.
What to Be on the Lookout for Today
• Investors will look to get more clarity on how rising prices are affecting the economy, and how the Fed plans to respond. Consumer inflation expectations for March are due, while the New York Federal Reserve will release its median one-year and three-year expectations for inflation.
• Federal Reserve Bank of Atlanta President Raphael Bostic is set to give a speech, as is Charles Evans, who heads the Chicago Fed. Last week both Fed Governor Lael Brainard and San Francisco Fed President Mary Daly delivered comments, convincing many investors the central bank will take a more aggressive approach toward inflation.
The Week Ahead at SoFi
We have lots of events this week, including talks on margin basics, negotiating salaries, funding for home improvements, and financial goal setting for college students, plus our next Your Next Dollar livestream. Save your seat!
A Few Headlines That Should Be on Your Radar
Spotlight on Earnings: This week, Taiwan Semiconductor (TSM) is set to hand in its latest report card, amid ongoing tensions between the island nation and China, which could disrupt the global chip industry. Meanwhile, US chipmaker NVIDIA (NVDA) recently announced a deal with TSM. Semiconductors are of massive importance to the economy given their use in things like cars and consumer products, all while a global shortage has unfolded over the last year. Taiwan Semiconductor will post earnings on Thursday, following last week’s news that it will be making graphics processing units for NVIDIA in 2022. Read more >> For the first time in history, median home sales prices passed $400k in the United States, driven largely by millennial buyers. Last month, the share of millennial homebuyers jumped to 43%, which is up from 37% a year prior. The generation appears to be exiting city centers in favor of bigger houses in the suburbs. These buyers are facing headwinds, however, as many still have student loan debt to service and now mortgage rates are rising. Being aware of these tips can help you navigate the homebuying process. Read more >> As crypto gains traction, Treasury Secretary Janet Yellen and President Joe Biden see opportunities amid the risk. Efforts to both reign in and capitalize on digital assets are underway. With market values of cryptocurrencies soaring and the digital asset making it into the mainstream, government leaders are looking to increase transparency through regulation, including documentation and reporting requirements. Read more >> As the use of credit cards continues to rise, so does the array of different credit card scams used to try to steal your money. Credit card criminals continue to design scams to entice you to hand over your credit card information, from phishing scams to credit card reader scams to threats of arrest. To avoid falling victim, it helps to understand how credit card scams work and know what some of the most common scams are. And if you do end up becoming a victim of one, we’ll also walk you through how to report credit card fraud. Read more >>Not-So-Breaking News
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Biogen (BIIB) struggled in early morning trading Friday after the US government said Medicare coverage for Aduhelm, the company's Alzheimer’s disease treatment, will be limited. Patients enrolled in clinical trials will be the only candidates eligible for coverage.
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Last week Microsoft (MSFT) said it had blocked Russian military spies from hacking into Ukrainian, European Union, and American targets. Western think tanks and Ukrainian media organizations were in the digital crossfire.
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Shares of CrowdStrike (CRWD) advanced after the cloud-computing giant received Impact Level 4 authorization to protect assets at the US Department of Defense. The company said it is continuing to work towards Impact Level 5 in order to help secure National Security Systems.
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WD-40 (WDFC) saw its shares pop at the end of last week after beating on earnings. The maintenance and cleaning company also said that inflation is unlikely to have an impact on the year’s profit.
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Designer Brands (DBI) reinstated its quarterly dividend after a two-year hiatus and bumped up its full- year earnings outlook. The footwear and accessories retailer owns Designer Shoe Warehouse which operates over 500 stores nationwide.
Financial Planner Tip of the Day
“You may not be able to completely reform an overspending habit overnight. But by tracking your spending, setting up a basic budget, and altering some of your everyday habits, you may soon be able to gain control over your financial life, and start reaching your short- and long-term savings goals.”
Brian Walsh, CFP® at SoFi