Top Story
Sell-Off Accelerates as Market Tries to Find Footing, Oil Prices Fall
• US stocks fell Monday as the market sell-off continued to start the week. Investors are reacting to the Fedâs tightening monetary policy, all while inflation is at its highest level in 40-years. The central bank is enacting rate hikes and planning to offload assets from its balance sheet. Some economists worry a broader economic downturn will result.
• Oil prices fell as COVID-19 lockdowns in China have threatened to greatly reduce demand. Energy stocks saw their share prices slip as a result. Industry bellwether Chevron (CVX) plummeted. Energy stocks had been on a mostly upward trek ever since Russiaâs invasion of Ukraine, paced by rising oil prices.
• The New York Fed released Aprilâs one-year and three-year consumer inflation survey. Expectations for inflation over the shorter term fell, while over the medium term expectations rose.
What to Be on the Lookout for Today
• Aprilâs NFIB Small Business Index is due, after falling to a two-year low in March. The reading measures small-business-owner optimism. Unsurprisingly, many owners list inflation as their biggest challenge. The first quarterâs real household debt is also set for release.
• Norwegian Cruise Line (NCLH) will post earnings, after missing on the top and bottom lines during its most recent quarter. In February the company allowed kids under the age of five to board without proof of vaccination, and it removed its mask mandate. Last week, industry peer Royal Caribbean (RCL) reported that since March its bookings have exceeded record levels observed pre-pandemic, in 2019.
Understanding Volatility Is Key To Being A Good Stock Investor
Has the volatility of the market had you questioning if it's a good time to start investing or if you should change your investment strategy?
The choppy nature of share prices can be intimidating to some investors â especially those who are just beginning to invest, nearing retirement, or have been burned by volatility in the past.
Understanding volatility is key to being a good stock investor. Learn investing tips and tricks from SoFi Financial Planner, Brian Walsh. Youâll learn about how to invest for your goals, how to deal with volatility, why you should be investing for the long term, and more! Watch this video on YouTube to learn more!
A Few Headlines That Should Be on Your Radar
Elon Musk plans to quintuple Twitterâs (TWTR) revenue by 2028, but how will he do it? According to a pitch deck heâs showing investors, ad revenue will account for less than half of sales, the platformâs payments system will be expanded, and a mysterious X feature will help add users. Itâs not clear what X entails, but the deck mentions its launch in 2023. Muskâs plan also calls for more users to be added to Twitter Blue, which charges $3 a month for an enhanced experience. Read more >> The World Health Organization estimates there was a 25% increase in anxiety and depression during year one of the pandemic. Venture capital firms see profits in therapy, but is a profit model appropriate? Amid the hardships unleashed by COVID-19, demand for mental health services has skyrocketed. Investors eyeing profit opportunities are spending billions purchasing therapy offices and funding start-ups offering mental telehealth. Some question if there could be a conflict of interest when profits are the primary desired treatment outcome. Read more >> With transactions of non-fungible tokens now in the billions of dollars, tax authorities are taking notice. The unique and varied nature of these assets make applying a uniform tax standard difficult. Puerto Rico and Washington state are stepping up to give it a shot. The IRS has been largely silent on the possibility of taxing NFTs. Among the challenges presented to governments and accountants alike is the anonymous nature of blockchain transactions, the fact that the asset may be digital or physical, and the absence of a view into the physical location of the people involved in the transaction. Read more >> A 401(k) can be a valuable part of a retirement savings plan. But how much should you have saved in your 401k at different ages, or even stages of your career? Charting the average 401k balance by age can help put your own savings in perspective. Seeing what others are saving in their 20s, 30s, 40s, and beyond can be a useful way to gauge whether youâre on track with your own retirement plans, and what else you can do to maximize this important, tax-deferred form of savings. Read more >>Not-So-Breaking News
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Palantir (PLTR) missed estimates for profits, but beat on revenue. The software companyâs outlook for second quarter revenue was below consensus expectations.
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Blue Apron (APRN) failed to meet Wall Street expectations on both the top and bottom lines. The meal kit company reported $28 million in marketing costs, a 40% increase.
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Party Cityâs share price (PRTY) was hammered after it reported profits and revenue that missed analystsâ estimates. The company also issued a tepid outlook for 2022. Executives cited increasing costs due to supply chain issues and inflation.
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Bitcoinâs (BTC) price tumbled amid the broader decline of the market. The cryptocurrency leaderâs share price is at its lowest level in nearly a year. Markets have been volatile in the face of inflation and recession concerns, putting pressure on crypto as a whole.
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Millions of Americans will be offered access to free internet services in an initiative announced by the Biden administration. Twenty internet service providers including AT&T (T), Comcast (CMCSA), and Verizon (VZ) will offer a basic plan to an estimated 48 million households. Sign ups will be available via the existing Affordable Connectivity Program.
Financial Planner Tip of the Day
âIRAs offer individuals an opportunity to save money for retirement in a tax-advantaged plan, without relying on an employer-sponsored plan like a 401(k). In addition, with a few different types of IRAs to choose from, itâs likely that many people will find an account that fits with their needs and goals.â
Brian Walsh, CFPÂŽ at SoFi