Wednesday,
May 18, 2022
Market recap
Dow Jones
32,654.59
+431.17 (+1.3%)
S&P 500
4,088.85
+80.84 (+2.0%)
Nasdaq
11,984.52
+321.73 (+2.8%)
Top Story
Dow Rises Over 400 Points as Market Rally Continues, Retail Sales Rise Despite Inflation
• US stocks rose Tuesday as the market is attempting to comeback from the year’s lows. Investors bought up shares of beaten down tech stocks, with the Nasdaq Composite finishing up 2.8% for the session.
• Retail sales rose by 0.9% in April, which was largely in line with analyst expectations. This is despite inflation being at a 40-year high. Some market observers maintain higher prices have yet to make a major dent to retail spending during the last four months.
• The NFIB/Wells Fargo (WFC) Homebuilders Index fell by eight points in May. It represents a two-year low for the reading, which gauges builder confidence concerning single-family homes. Most of the builders surveyed cited affordability as the biggest problem.
What to Be on the Lookout for Today
• April’s building permits and housing starts are set for release. In March, housing starts rose 0.3%, which surprised analysts. Still, housing starts for single-family homes fell, which market observers blamed on rising mortgage rates. Meanwhile, building permits for future construction increased 0.4% in March.
• Retailing giant Target (TGT) will share its most recent earnings data. Last month Target announced it was pushing back into the resale market amid a new deal with online retail shop ThredUp. A similar program shut down after a test run in 2015. The resale market checked in at $15 billion last year and is expected to triple by 2025.
The Cost Of Waiting To Refi Your Student Loans
If rates rise 1% in the next year, with an average balance of $75,000, waiting to refinance could cost you $2,000-$6,000 over the life of your student loan.* That could be the beginning of an investment portfolio, the start to a down payment, your early retirement fund — or a whole bunch of crypto.
Our calculator shows how much you can save on your student loans by refinancing with SoFi. Just add in your current student loan information, and we’ll calculate your estimated savings — both monthly and over the lifetime of your loan. If you have multiple student loans, simply combine the loans and average their principal.
A Few Headlines That Should Be on Your Radar
Inflation is being blamed for a lot of issues in the stock market right now, but retail sales remained steady in April, suggesting some wealthier US consumers are still spending. In fact, some companies, including The Home Depot (HD), say they haven’t seen inflation impact what customers are buying. The home improvement retailer says its customers have been opting for premium items and have not traded down. All the while, sales of things like handbags and high-end watches are on the rise in the US. Read more >> Reports say Elon Musk is concerned about fake accounts, putting his potential purchase of Twitter (TWTR) on hold. But why are things like spam and bots so important to the company’s finances? While the social media platform has claimed it only has around 5% of fake accounts in official filings, Musk believes it could be closer to 20%. Advertisers want to be put in front of engaged, real humans, so the issue may have Tesla’s (TSLA) CEO questioning Twitter’s valuation. Read more >> In the wake of more stringent online privacy practices, the advertising industry is finding a way in through the front door. Media networks are being created with retailers collecting data directly from their consumers and sharing it with advertisers. In the “post cookies” online world, creativity will be needed. Read more >> While 20% percent down on a home mortgage loan has long been the standard, it might be beneficial to put down less. This article will review different loan programs and down payment options to hopefully provide clarity and demystify how different down payment options can impact your mortgage choices. These tips may help you better identify the loan programs that best fit your financial scenario to help put you on the road to owning your own home. Read more >>Not-So-Breaking News
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Share prices of both Citigroup (C) and Paramount Global (PARA) popped on the news that Warren Buffet’s Berkshire Hathaway recently bought millions of their shares. The billionaire investor’s conglomerate now holds positions in the companies valued at more than $2.5 billion each.
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Mastercard (MA) has introduced a technology that will allow shoppers to validate payment using facial recognition or fingerprint scanning. The software has already been rolled out in Brazil and will be offered globally later this year.
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United Airlines (UAL) shares got a lift as the company revised upward its revenue projection based on higher demand. It also announced the FDA will permit 52 Boeing (BA) 777s to return to service after being grounded on safety concerns. The planes make up 10% of the airline’s capacity.
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On Holding (ONON) results beat Wall Street estimates on the top and bottom lines as the company generated record sales. The company revised its outlook upward. Share prices skyrocketed over 20% on the news.
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JD.com (JD) shares rose as it beat on revenue. The Chinese ecommerce company missed expectations on profit and posted its slowest quarterly revenue growth ever as COVID-19 lockdowns in China have dampened consumer demand.
Financial Planner Tip of the Day
“The sooner you can start investing, the quicker you can start taking advantage of compounding interest, which can accelerate your ability to save. Compound interest is the return you earn on your returns, which can help your earnings grow exponentially over time.”
Brian Walsh, CFP® at SoFi