Friday,
May 13, 2022
Market recap
Dow Jones
31,730.30
-103.81 (-0.33%)
S&P 500
3,930.08
-5.10 (-0.13%)
Nasdaq
11,370.96
+6.73 (+0.06%)
Top Story
Inflation Continues to Weigh on Wall Street
• The Dow Jones Industrial Average and S&P 500 tumbled further Thursday, however a handful of heavily-shorted names staged a brief rally in morning trading. Gamestop (GME) and AMC (AMC) popped by more than 30% and 20%, respectively, before ultimately pulling back. Rivian Automotive (RIVN), Lucid (LCID), and Carvana (CVNA) jumped as well. Some analysts believe the run up could be a result of a short squeeze, however a definitive driver could not be determined.
• The producer price index jumped 11% from this time last year, confirming that inflation is still running rampant. Fund managers largely agree that the central bank needs to help rein in inflation, but some are worried that an ultra aggressive stance could create a hard landing.
• US jobless claims came in at 203,000 last week, rising for a second straight week. Despite the disappointing trend, the figure remains at a historic low due to the tight labor market.
What to Be on the Lookout for Today
• The University of Michigan consumer sentiment index for May is due this morning. Investors will be curious to see how the average American is feeling about their finances in light of rising prices and volatile markets.
• Minneapolis Fed President Neel Kashkari is also scheduled to speak before noon. Wall Street is looking for any hints it can get in regards to the central bank’s plans to tame inflation while avoiding a full-blown recession.
Retirement Savings: Which Retirement Plan is Right for You?
If you’re like most people, you might be a bit overwhelmed by all the different types of retirement savings plans out there.
And that’s fair: The choices are confusing for two reasons. First, each of the common retirement plans was created by a separate law, and each has its own set of rules that are similar, but not the same. Second, the names are weird.
Some of them are named after the person who proposed them — like Senator William Roth of Delaware. Others, like the 401(k) and 403(b), are named after sections of the IRS code. Best of all, none of these names contain any useful information for people who are trying to choose among them.
Each of the common retirement plans was created by a separate law.
But don’t let that stop you from doing your research and choosing the plan that’s right for you. After all, they’re all designed to give you tax breaks to help you save and invest for retirement.
We’ll break them down, as well as offer some guidance on how you might use them. Watch this video to learn about the different types of retirement vehicles that are out there and which would work best for you.
A Few Headlines That Should Be on Your Radar
Instacart just filed for an IPO as CEO Fidji Simo looks to the public market to support her business expansion plans. After flying high during the pandemic, the company recently cut its valuation by 40%. During the pandemic, shoppers leaned on delivery company Instacart to get their groceries safely. As COVID-19 wanes, demand is down and company executives are looking for new ways to boost valuations. Read more >> As Americans emerge from their pandemic hibernation, casinos are hitting the jackpot. March was the best month on record for revenues in the gambling industry. Despite inflationary headwinds, casinos are seeing more gamblers at the slot machines and card tables. Revenues hit $5.31 billion in March, and executives say the odds favor demand going even higher from here. Read more >> A start-up just raised $55 million from investors including Ellen Degeneres, Reddit Co-Founder Alexis Ohanian, and Bill Gates. Pachama is in the business of rebuilding forests, or what’s known as afforestation. It's helping companies navigate the process of buying carbon credits as a way to offset their emissions. Read more >> The sooner you get a head start on planning for the future, the more opportunity you have to grow your retirement savings. It's never too early to begin planning for retirement. Here's a step-by-step guide to starting a retirement savings plan. Read more >>Not-So-Breaking News
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Tapestry (TPR), the company that owns Coach, beat analyst expectations on the top and bottom lines, citing strong consumer demand and the ability to pass on price increases to shoppers. It tempered its outlook for fiscal 2022 as ongoing lockdowns in China are expected to dampen demand.
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WeWork (WE) reported better-than-expected results as losses shrank to $435 million in the first quarter from $2.03 billion during the same period a year ago. The co-working space provider also raised its second-quarter revenue guidance.
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Beyond Meat (BYND) missed on both the top and bottom lines which the company attributed to “expensive and inefficient” production of its new plant-based jerky. Discounts offered to international customers were also cited as a reason for the lackluster results. The company left its full-year revenue forecast unchanged.
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Six Flags (SIX) beat Wall Street expectations for both profit and revenue, which was supported by a 39% increase in spending per capita. Revenue also popped by 68.4%.
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AppLovin (APP) saw its share price soar with the news that the app-monetization company is forecasting $2 billion from its software business alone in 2023. The company also announced it may sell certain assets to reduce its reliance on apps.
Financial Planner Tip of the Day
“Once money has been contributed to a retirement account, it’s time to invest that money. To say 'saving for retirement' is a bit misleading—really, it can be considered to be 'investing for retirement.'”
Brian Walsh, CFP® at SoFi