Top Story
Inflation and Growth Concerns Drag Equities Lower, Jobless Claims Rise Slightly
• US stocks fell Thursday, closing out the holiday-shortened trading week amid a flurry of high-profile earnings reports. Broadly speaking, concern may be mounting among investors about rising inflation and potentially slowed economic growth. The market will be paying close attention to companiesā forecasts during upcoming earnings calls in an attempt to gauge who is handling inflationary pressures well.
• Commodity markets remain volatile, including the price of oil, which rose for the session. Both international benchmark Brent crude and US standard West Texas Intermediate saw their price per barrel move higher.
• The US Labor Department says jobless claims rose last week after hitting a 54-year low. The week ending April 9 saw 185,000 people file for unemployment insurance, marking an increase of 18,000 from the previous report. The labor market remains especially tight, with employers looking to fill a historic number of open jobs.
What to Be on the Lookout for Today
• Marchās industrial and manufacturing production numbers are due. Both figures exceeded analyst expectations in February. Economists say that suggests consumer demand for goods remains strong despite some shifts in spending toward services.
• This monthās Empire State Manufacturing Index is also set for release. A survey prepared by the New York Fed, it tracks activity within the New York region. In March the figure fell to its lowest point since 2020.
Can You Get a Student Loan For Summer Classes?
Summer classes can help students make room in their schedule or get ahead to potentially graduate earlier. But, can students borrow student loans to pay for a summer class? The short answer is yes.
Federal and private student loans can be used to pay for summer classes. Federal loans are an option for borrowers who have not met the annual borrowing limit set by the federal government. Some schools may also require students to meet a minimum number of course hours during the summer session in order to use federal student aid.
Students who are unable to use federal loans to pay for summer classes may consider applying for a private student loan. Keep in mind that private student loans do not have the same borrower protections as federal student loans.
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A Few Headlines That Should Be on Your Radar
Elon Musk is making a hostile takeover bid, attempting to buy Twitter (TWTR) outright and take it private. The deal would value the social media platform at over $43 billion. But what exactly is a hostile takeover, and how have similar attempts played out in the past? Unlike a negotiated sale of a company, hostile takeovers occur when the acquirer is not working directly with the target company toward reaching an agreement. Read more >> Elevated prices for groceries and gas have some Americans taking a pencil to their budgets. Discretionary spending on things like snacks is likely to be the first category to go. Thatās unwelcome news for the convenience store at your local gas station. Manufacturers of snacks and the mini-marts that rely on them for revenue are bracing for hits to their bottom lines as consumers curtail gas consumption in the face of runaway inflation. Non-essentials may well no longer be welcome if Americans are watching their wallets. Read more >> When it comes to childcare and daycare, parents say they need more options, especially with the cost so high. NeighborSchools is a startup that wants to help people launch home-based childcare businesses with its ādaycare-in-a-box.ā By managing compliance and business operations, the company provides educators with a simplified pathway toward getting started. With the latest $5 million infusion, the tech start-up has raised $9 million in total. It plans expansion of its daycare network into 10 more communities; standing up to the corporate chains that have dominated the market, while addressing the nationās shortage of childcare. Read more >> From starting the college conversation to visiting campus, our tools and resources will help answer questions you may have about helping your child get a college education. Need help with the college planning process? From saving for college and applying for loans to visiting campus and choosing a major, our guide is a one-stop resource to helping your child get a college education. Read more >>Not-So-Breaking News
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With earnings season in full swing, Citigroup (C) handed in its latest report card, beating analyst expectations on the top and bottom lines despite a 46% decline in first-quarter profit. Executives say the drop in net income is the result of increased credit costs and general expenses, as well as lower revenue.
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Goldman Sachs (GS) posted first-quarter revenue and profit that beat Wall Street forecasts despite what CEO David Solomon described as a turbulent three months marked by Russiaās invasion of Ukraine. He noted the geopolitical conflict led many clients to change their strategy and pivot away from risk.
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Morgan Stanley (MS) beat analyst expectations on the top and bottom lines during its first quarter, sending its share price higher. Prior to the strong earnings report the stock had been down more than 14% for the year, underperforming the broader S&P 500.
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Pharmacy retailer Rite Aid (RAD) posted fourth-quarter revenue that exceeded Wall Street estimates, and also delivered upbeat sales guidance. For the quarter, same store sales were up by 7.8%. Rite Aid forecasts revenue between $23.1 billion and $23.5 billion for fiscal 2023.
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Wells Fargo (WFC) beat analyst expectations for profit but fell short on revenue, while the bankās chief executive also predicted the Fedās tightening monetary policy will reduce economic growth. The company added the war in Ukraine puts the broader economy at further risk.
Financial Planner Tip of the Day
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