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Volatile Session Ends With Stocks Mixed, Inflation Remains Small Business Ownersâ Top Concern
• US stocks were mixed Tuesday as all three major indexes experienced wild swings throughout the dayâs session. Uncertainty continues to plague investors, as the global economy faces major headwinds including inflation, the war in Ukraine, and COVID-19 lockdowns in China. Market veterans say itâs rare to have three major economic catalysts converge in this fashion.
• The NFIB Small Business Optimism Index held steady for the month of April. Still, the survey determined most businesses are struggling with higher inflation and worker shortages. Just over three in 10 business owners say inflation is their biggest problem â the highest percentage since 1980.
What to Be on the Lookout for Today
• The April Consumer Price Index will be published, with inflation at its highest level in 40 years. Last monthâs CPI showed prices increasing 8.6% year-over-year. The most recent data did show some easing in the core CPI, which strips out highly volatile food and fuel costs. Also be on the lookout for Aprilâs federal budget.
• Beyond Meat (BYND) will hand in its first-quarter report card. In late April fast-food giant McDonaldâs (MCD) announced plans to expand its partnership with the plant-based meats company, after first rolling out the McPlant at select locations in February.
Calculator: How Much Home Can You Afford?
Buying a home is complicated enough â and trying to estimate how much house you can afford based on just the sales price can be even more confusing. This calculator can estimate your total monthly house payment so you can better budget your home buying journey.
A Few Headlines That Should Be on Your Radar
While the housing market remains extremely difficult for would-be buyers to navigate, some data suggests inventory may be increasing. Thatâs based on the number of contracts going unsigned. Rising mortgage rates may also be forcing some people to abandon their search. Mortgage brokers say around 25% of applicants are being forced out of the buying pool as rates rise and push up the cost of borrowing. Sellers are the other half of the housing-inventory equation, and right now it seems many have unrealistic sales price expectations. Read more >> Nintendo (NTDOY) announced a 10-for-1 stock split that will make its shares affordable to a wider range of investors. It expects the declines in sales for its Switch video game unit to continue as supply chain snarls create a shortage of key parts. The video game company has seen Switch revenues shrink by 20% over the past fiscal year and predicts a further 9% decline for the forward-looking annual period. It hopes to boost its user base from the current 100 million players with its introduction of Nintendo Switch Sports. Read more >> Tech companies are increasingly looking abroad to fill open positions. Amid a labor shortage and strict limits on how many skilled employees can get visas in the US, the trend of remote working provides an expanded number of potential workers. As American jobs move abroad, some have intensified lobbying efforts to relax the immigration limits through the HB-1 visa program. Others counter that instead of importing skilled workers, Americans should boost their skill sets. Meanwhile, tech firms looking for ways to get the job done are increasingly looking to the neighbor to the north. Read more >> Whatâs your number? Thatâs not a pickup line; itâs what a lender will want to know when reviewing a mortgage application. What credit score is needed to buy a house? The numbers hinge on the economic climate, lender, and type of loan. We'll cover the minimum credit score for home mortgage loans and how you can improve your credit score if needed. Read more >>Not-So-Breaking News
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Peloton (PTON) missed on the top and bottom lines on weaker post-pandemic demand for its at-home fitness solutions and a higher-than-expected number of returns of its recalled Tread+ machine. CEO Barry McCarthy predicts continued weak sales, but claims loans from JP Morgan (JPM) and Goldman Sachs (GS) will improve the fitness companyâs prospects.
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Virgin Orbit (SPCE) plans to acquire 747 jets that will be used to launch rockets at altitudes of 45,000 feet. Delivery of two planes is expected in 2023 and will support the companyâs mission to provide launch services to countries. It currently has plans to carry seven satellites for the Pentagon.
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Pfizer (PFE) plans to spend part of its cash stash accumulated from COVID-19 vaccine sales to acquire Biohaven Pharmaceutical. The deal would include approved migraine treatments developed by Biohaven.
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Warner Music (WMG) reported revenue that exceeded expectations on strength in music publishing. Revenue was up 10.1% but net income dropped by $33 million to $111 million.
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Planet Fitness (PLNT) beat expectations on the bottom line, but missed on revenue. The franchisor and fitness center operator finalized its acquisition of franchisee, Sunshine Fitness, which it claims is a high-performer.
Financial Planner Tip of the Day
"Once good credit has been established, using it wisely and responsibly can offer flexibility and freedom. Installment loans like mortgages, car loans, and student loans might make it easier to reach major life goals, while credit cards for smaller purchases can help build credit and possibly qualify for lower interest rates on those big purchases."
Brian Walsh, CFPÂŽ at SoFi