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Stocks Rise Ahead of Fedâs Comments, Record Number of US Job Openings as âGreat Resignationâ Continues
• US stocks rose Tuesday following another choppy session. Analysts say the mood on Wall Street is one of unease and uncertainty as the Fed began its two-day FOMC meeting. The yield on the 10-year US Treasury again went over 3.0% before finishing lower. As yields rise, pressure is put on equities.
• Marchâs JOLTS report showed US job openings rose to a record 11.5 million. Many economists consider this to be the best indicator of how tight the labor market is, with the number of available workers falling far short of what employers need. The âGreat Resignationâ continued, as a record number of people quit their jobs in March.
What to Be on the Lookout for Today
• The Federal Reserve will issue its FOMC statement with all eyes on inflation, while Chair Jerome Powell is slated to give a press conference afterwards. Itâs expected policymakers will raise rates by half a percentage point. This would be the largest hike in over two decades, all while inflation is at 40 year highs.
• ADP will publish its employment report for April. The US economy added 455,000 private jobs in March in what continues to be a robust labor market.
• Allegiant Travel (ALGT) will hand in its most recent report card. Itâs been a busy earnings season for airline stocks, as the sector seems to have plenty of pent-up demand following the COVID-19 pandemic. Last week, Allegiant announced a $95 million expansion at Utahâs Provo Airport, which will result in 150 new hires.
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A Few Headlines That Should Be on Your Radar
Department stores are opening scaled-down stores and moving to suburban open-air malls where they hope shoppers will stop by as they knock off their errands. Market by Macyâs may be a convenient place to make online returns while picking up a trendy new item. As shoppers stayed home and moved online, the shift away from indoor malls left bricks-and-mortar retailers looking for a change. Read more >> Home prices continued to rise in March even though mortgage rates increased significantly in the first quarter. Real-estate agents say the market is experiencing a high level of activity because buyers want to lock in a rate before they rise further. It means bidding wars could remain the norm for now. Foreclosures are also on the upswing, but remain at historical lows. Either way, they arenât likely to help alleviate the fact that housing is in short supply. Read more >> Investors are gauging the net effect of inflationary pressures on consumers' budgets against pent-up demand for travel following the pandemicâs restrictions. Credit card companies that benefited from the increasing popularity of online shopping, hope to ride the wave of vacation spending. Valuations of credit card companies have been stable, however the headwinds of inflation may spell trouble ahead. Travel demand is up and this leaves some investors optimistic about continued price support for these companiesâ stocks. Read more >> Volatility is unavoidable, but there are things investors can do to minimize the impact to their portfolio when trading stocks. Navigating volatility as an investor means understanding different market sectors. Learn how volatility investing works and which sectors to target. Read more >>Not-So-Breaking News
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Hilton Worldwide Holdings (HLT) exceeded estimates for profit but missed on revenue. The companyâs $1.72 billion in sales was nearly double that of the year-ago period, but fell below the consensus $1.75 billion. The company also revised down its second-quarter outlook.
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Paramount Global (PARA) missed on the top line, but beat on earnings in its most recent quarter. Revenue of $7.33 million was down 1% from last year, while streaming service Paramount+ added 6.8 million subscribers. The company reported revenue was down in its top three business lines as well.
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Molson Coors (TAP) posted better-than-expected results on both the top and bottom lines, achieving what the company called its largest quarterly sales growth in over a decade. Robust sales in the Coors Light, Carling, and Topo Chico Hard Seltzer lines all contributed to the strong results.
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Pfizer (PFE) reported net income increased 61% from the prior year period to $7.864 billion, beating analyst expectations. Revenue of $25.661 billion also exceeded estimates. The results reflect strong sales of its COVID-19 vaccine and its antiviral medication, Paxlovid.
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Restaurant Brands International (QSR), owner of Burger King, Popeyes, and Tim Hortons, exceeded Wall Street estimates on the top and bottom lines. Executives credited strong sales from Burger King, while revenue grew over 15% to $1.45 billion.
Financial Planner Tip of the Day
âIf you truly want to get better at spending and saving, then you may want to track both your daily spending habits and your long-term progress on your savings goals. This may feel difficult at first, but as with most things, it becomes easier with practice and as you hone the methods that work for you.â
Brian Walsh, CFPÂŽ at SoFi