Top Story
Market Sell-Off Intensifies, Dow Records Worst Day Since 2020, Housing Market May Be Cooling
• US stocks fell Wednesday with the Dow Jones Industrial Average plummeting 1,100 points, or 3.6%. A negative earnings report from retailing giant Target (TGT) seemed to negatively affect investor sentiment, similar to how a downbeat report from Walmart (WMT) earlier in the week made an impact. Analysts say rising costs in the retail sector are being passed on to consumers, a key aspect of inflation.
• The US housing market could be starting to cool off a bit according to analysts. Both housing starts and building permits fell in April. Single-family permits declined by 4.6% month-over-month, while single-family housing starts tumbled 7.3% from March. Still, there is a backlog of homes yet to be built per the Commerce Department.
What to Be on the Lookout for Today
• Weekly jobless claims are due. While still at lows not seen in decades, the number of Americans filing unemployment claims has upticked recently.
• Aprilâs existing home sales will be published by the National Association of REALTORSÂŽ. The number fell in March by 2.7%.
• Kohlâs (KSS) will report its latest results, after rival JCPenney recently made an offer to acquire the department-store chain for upwards of $8.6 billion. Earlier this year the Wisconsin-based company put itself up for sale following calls from activist investors who are unhappy with Kohlâs direction.
The Types Of Credit You Have Can Impact Your Credit Score
Having multiple types of credit can have a positive effect on your FICO Score. In fact, credit mix accounts for 10% of your score. Being responsible with both revolving and installment credit accounts shows lenders that you can successfully manage your debts.
• Revolving accounts are those that are open-ended, such as a credit card. You can borrow money up to your credit limit, repay it, and borrow it again. As long as youâre conforming to the terms of the credit agreement, the account is likely to have a positive effect on your credit report and, therefore, your FICO Score.
• Installment accounts are closed-ended. There is a certain amount of credit extended to you and you receive that money in a lump sum. Itâs repaid in regular installments over a set period of time. If you need additional funds, you must take out another loan. A personal loan is one example of an installment loan.
Credit mix wonât make or break your ability to qualify for a loan, but having a good mix of different types of debt indicates to lenders that youâre likely to be a good lending risk.
Track your credit score for free in the SoFi app, where the factors affecting your score are broken out to make them easier to understand.
A Few Headlines That Should Be on Your Radar
With eight in 10 Americans planning to travel this summer, companies closely associated with travel are trying to step up their game. For Airbnb (ABNB) and Uber (UBER) that means brand-new features aimed at regulating supply, amid the soaring demand. As pandemic-related restrictions ease up, people are looking to hit the road. In fact, 45% of Americans say they plan to travel at least twice in the next several months. Airbnb says it has plenty of available listings for rent, but some competitors say theyâre close to selling out in many top locations. Read more >> This type of bumpy environment is when short-term trades can turn into long-term mistakes. SoFiâs Head of Investment Strategy tells us what to focus on while we wait for some of the last shoes to drop, and for the darkest days to be behind us. Read more >> A recent Deloitte publication revealed pay, burnout, and work-life balance as key issues underlying âthe great resignation.â Some companies are listening and revising business practices to incentivize employees to stay. The study revealed that 40% of Gen Zers and 24% of millennials are poised to call it quits. Seems many envision a more flexible arrangement and alignment with personal values. Read more >> By investing in companies that practice CSR, investors have the opportunity to use their own wealth-building strategies to make a positive impact on the world. Corporate social responsibility, or CSR, is a type of self-regulation that a business uses to enhance the well-being of communities and society through ethical, environmental, and social measures. Read more >>Not-So-Breaking News
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Target (TGT) shares plummeted after earnings came in lower than expected. The retailer cited supply chain disruptions, soaring fuel prices, and a decline in shoppersâ discretionary spending on products.
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A Russian subsidiary of Alphabetâs (GOOGL) Google will file for bankruptcy following the seizure of its bank account. Russian authorities alleged that some of Googleâs content was illegal and objected to the tech giant limiting access to Russian media on YouTube.
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Tencent (TCEHY) missed analyst expectations on the top and bottom lines, marking its worst performance in about 20 years. The social media and video game company has been impacted by lockdowns in China as well as regulatory restrictions, as Beijing officials seek to restrict youth online game time.
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Loweâs (LOW) beat on earnings, but posted lower-than-expected revenue. The home improvement retailer said cooler spring weather is delaying Americansâ spending on outdoor projects. Its full-year outlook was left unchanged.
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Saudi Arabiaâs Public Investment Fund, PIF, has acquired 5% of Nintendo (NTDOY). The purchase is one of many made by the PIF in the video game industry. Fund chair Crown Prince Mohammed bin Salman wants to make changes to the countryâs economy and is supporting efforts to create a content industry in Saudi Arabia.
Financial Planner Tip of the Day
âBuilding a diverse stock portfolio can be achieved in a variety ways, whether an investor lets their passions for an industry or certain companies guide them, or they are attracted to the ease and low barrier to entry of an exchange-traded fund (ETF).â
Brian Walsh, CFPÂŽ at SoFi