Thursday,
April 28, 2022
Market recap
Dow Jones
33,301.93
+61.75 (+0.19%)
S&P 500
4,183.96
+8.76 (+0.21%)
Nasdaq
12,488.93
â1.81 (-0.014%)
Top Story
Choppy Session Ends With Stocks Mixed, Mortgage Data Shows Housing Market Is Shifting
• US stocks were mixed Wednesday, as the marketâs volatility continues. Investors may have been hunting bargains as the session moved into the afternoon, following a series of encouraging earnings reports. Still, analysts say the combined headwinds of inflation, war in Ukraine, and fresh COVID-19 lockdowns in China are weighing on sentiment.
• Natural gas prices rose, possibly in response to Russiaâs decision to halt deliveries to both Poland and Bulgaria. Fossil fuel prices and other commodities have been highly volatile since Russia first invaded Ukraine. Oil prices also finished higher.
• MBA mortgage applications fell 8.3% last week. The total number is down by 50% compared to this time last year. Meanwhile, the average rate for a 30-year fixed mortgage is at its highest level since 2009. Pending home sales declined by 1.2%, which beat analyst expectations.
What to Be on the Lookout for Today
• Jobless claims are due, after the most recent report indicated 184,000 Americans filed for unemployment benefits, which slightly exceeded estimates. Still, it marked the lowest such number in 52 years, as the labor market remains especially tight.
• Fast food industry leader McDonaldâs (MCD) is scheduled to release earnings for its most recent quarter. The company recently rolled out some new menu items, including the return of spicy chicken nuggets to roughly half of its US locations and the Samurai Big Mac in Japan.
Your Credit Card Utilization Matters Nearly as Much as Your Payment History. So What Does That Mean?
When it comes to what affects your credit score, one of the most important factors is how much credit you have available vs. how much debt you currently have. Called your credit utilization, you can calculate this number by dividing your outstanding debts by your total credit available.
Letâs say you have three credit cards with a total credit limit of $30,000. You owe $3,000 in total. So your credit utilization would be:
3,000/30,000=0.10
Your credit utilization of 10% (youâre using 10% of your total available credit) is great, as lenders generally want to see a utilization rate below 30% to approve a loan application.
Track your credit score for free in the SoFi app, where the factors affecting your score are broken out to make them easier to understand.
A Few Headlines That Should Be on Your Radar
Research shows 86% of US households subscribe to a streaming video-on-demand service, and some analysts wonder if that means the market is more or less âmaxed out.â The industryâs biggest name, Netflix (NFLX), has lost subscribers for five straight quarters. The future for the streaming industry may come down to aggressively and effectively marketing individual titles, including TV shows and movies. This is because customers seem to prefer switching back and forth between platforms, rather than stacking multiple subscriptions. Read more >> The S&P has lost 9% since Mar 29, and we are only a whisker away from that Mar 8 low. This is one of the few applications where all of the life coach advice to âfocus on the presentâ and âlive in the nowâ will actually work against you. In this weekâs column, SoFiâs Head of Investment Strategy shows how to chase yourself as an investor five years from now. Read more >> As mortgage rates rise, more would-be homebuyers are turning to adjustable-rate mortgages, which currently offer lower initial rates. Advisors warn clients that ARMs are riskier than traditional mortgages, as the rate can increase and make monthly payments unaffordable. It can be useful to envision a âworst caseâ scenario in terms of how the rate can change, as opposed to imagining a 1% or 2% rate increase. Many ARMs stipulate the maximum amount for the initial rate increase, and how much the rate can climb over the life of the loan. Read more >> Ever wonder why is credit important? We delve into the myriad benefits of a good credit score, from lower interest rates to increased borrowing opportunities. Here are the eight core benefits of good credit, which highlight why it is important to have a good credit score. Read more >>Not-So-Breaking News
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Boeing (BA) reported a $1.24 billion quarterly loss as it grapples with ongoing production setbacks, with delivery of its 777 jetliner delayed until 2025. Other challenges include production issues for its military aircraft, supply-chain disruptions, and Russian sanctions.
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In a win for the âright to repairâ movement, Apple (AAPL) has announced that it will facilitate iPhone ownerâs ability to fix their own phones. The companyâs online Self Service Repair store will provide consumers parts and tools needed to make certain repairs. In the next few months, the service will be expanded to include some computer models.
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Harley Davidson (HOG) beat analysts earnings estimates by one cent to $1.45 per share and announced a drop in Q1 profit from the prior year as supply-chain disruptions weigh on growth. Sales in the US were down for the period. The company maintained its full-year forecast for up to 10% revenue growth.
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Media company, iSpot.tv, snagged $325 million from Goldman Sachs (GS) as it looks to become a more viable competitor to marketing research company, Nielsen Corporation. With an estimated valuation exceeding $1 billion, the companyâs TV ad measurement services have been used by NBC (CMCSA) and WarnerMedia (WBD), which has helped it to bring in annual revenue over $100 million.
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Kraft Heinz (KHC) Q1 2022 net income increased to 63 cents per share from last year. Both sales and EPS beat analyst projections. Sales were down due to currency exchange issues and divestitures. The company modestly increased its full year sales forecast, while analysts predict a decline of about 4%.
Financial Planner Tip of the Day
âItâs recommended that a credit report be checked yearly from the three major credit bureaus. Reviewing them on a yearly basis is a good way to understand and monitor overall credit health.â
Brian Walsh, CFPÂŽ at SoFi