Tuesday,
April 19, 2022
Market recap
Dow Jones
34,411.69
â39.54 (-0.11%)
S&P 500
4,391.69
â0.90 (-0.020%)
Nasdaq
13,332.36
â18.72 (-0.14%)
Top Story
Stocks Finish Down as Investors Focus on Coming Rate Hikes, Home Builder Confidence Declines
• US stocks fell Monday as investors appear to be pricing in a series of aggressive rate hikes from the Fed. The choppy session ended with all three major indexes in the red to kick off the trading week.
• Wall Street is paying close attention to the bond market, which continues to be volatile. The yield on the benchmark 10-Year US Treasury hit its highest level since 2018. Analysts say that has weighed on stocks and led to fears of an economic slowdown.
• The NAHB Home Builders Index declined for the third-straight month, hitting a seven-month low. Analysts say this declining confidence is tied to rising interest rates.
What to Be on the Lookout for Today
• Fresh housing market data is on the way, with Marchâs seasonally adjusted building permits and housing starts set to be published. Housing starts bounced back in February after dipping slightly in January. Februaryâs housing starts report noted 1.77 million units, marking a 6.8% increase month-over-month. Meanwhile, building permits fell 1.9% in February, after Januaryâs monthly increase was the highest seen since May of 2006.
How Does Renters Insurance Work?
Financial educator Ro$$ Mac breaks down renters insurance â what it is, who needs it, and what it covers. Watch the video below to learn all about renters insurance.
A Few Headlines That Should Be on Your Radar
A number of big names will report earnings this week, including industry leader Netflix (NFLX), which soared during the pandemic as more people consumed streaming content at home. Now investors are watching and wondering how the competition is stacking up, as Netflix continues to add subscribers, but at a slower pace. Netflixâs most recent new subscriber numbers showed growth, but at the slowest rate in three years. Market watchers will be paying close attention to how the streaming giantâs revenue is growing, and how that compares to industry rivals. Read more >> As cryptocurrency has grown in popularity and attracted more investment dollars, âstablecoinsâ have become more mainstream as well. Now, one of the hottest new trends is âalgorithmic stablecoinsâ â which use software and rules in an attempt to stay pegged to the US dollar. With the more traditional stablecoin, issuers hold cash or bonds in order to back the crypto with real assets. Proponents of the algorithmic variety claim theyâre preferable due to decentralization, and the fact theyâre less susceptible to regulation. Others warn the model is highly unproven and risky. Read more >> As the pandemic disrupted Americansâ lives, many sought comfort in fried foods. Conversely, interest in dieting has seen a dip. Restaurantsâ deep-fat fryers are getting a work-out. French fries, cheese curds, and fried chicken are all the rage as pandemic-weary Americans look to comfort food to foster good cheer. Even the health conscious have gotten on board with the trend. Read more >> While rental leases may appear set in stone, theyâre more flexible than many tenants think â especially if the rental market is soft in your area (meaning more rentals than renters). Many people don't realize negotiating rent is an option. It never hurts to ask â and these tips for how to negotiate rent may help you snag a better deal. Read more >>Not-So-Breaking News
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Bank of America (BAC) beat analyst expectations on the top and bottom lines in its most recent quarter. The company reported earnings of 80 cents per share, and cited a 52% drop in net loan charge-offs versus the prior year, which refers to when borrowers fall behind on their payments.
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DiDi Global (DIDI), a leading Chinese ride-hailing service, announced plans to delist its US-traded shares. Since going public its stock price has tumbled over 86%, asChinese regulators have forced it off domestic app stores, citing cybersecurity concerns.
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Charles Schwab (SCHW) fell short of estimates on the top and bottom lines. With trading revenue down 21% from the prior year, the companyâs first-quarter earnings per share dropped to 67 cents per share from 73 cents per share a year ago. Still, both active brokerage accounts and total assets have grown.
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Apple (AAPL) employees in the tech giantâs flagship Grand Central Terminal store in New York City are attempting to unionize. Organizers, calling themselves the Fruit Stand Workers United, are looking to labor union Workers United for support in the endeavor.
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Shares of medical device company, Natus Medical (NTUS), skyrocketed to a two-year high after it announced an agreement to be acquired. An affiliate of investment firm ArchiMed will pay $33.50 a share to buy Natus in a deal valued at about $1.2 billion. That represents a significant premium to the companyâs current trading value.
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 expenses â which 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