Top Story
Dow Gains Almost 200 Points as Fed Indicates Rate Hikes May Go Beyond What Market Is Anticipating
• US stocks rose Wednesday as the Fed indicated 50-basis-point rate hikes are likely in the coming months. In addition, the increases themselves may continue beyond what the market seems to be expecting. The central bank is attempting to cool off record-high inflation, but some are worried it will tip the economy into a recession.
• The FOMC minutes released from the Fedās meeting earlier this month also laid out plans to reduce the central bankās $9 trillion dollar balance sheet. This mostly consists of Treasury bonds and mortgage-backed securities.
• Durable goods and capital equipment orders rose more slowly in April than anticipated. Analysts say demand for merchandise business equipment remains steady.
What to Be on the Lookout for Today
• Weekly jobless claims are due, which have been on an uptick recently. Last week the number of initial claims was at its highest level since January, while existing unemployment claims hit a 53-year low.
• Costco (COST) is set to report earnings. Last week rivals Walmart (WMT) and Target (TGT) shared that higher fuel and labor costs were eating into their bottom lines. A false rumor also circulated last week that Costco had raised the price of a hot dog and soda combo in its food court, as a result of inflation.
New Credit and Your Credit Score: What You Need to Know
Though lenders like to see that a person has been extended credit in the past, too much new credit in a short amount of time can be a red flag to lenders.
When you apply for a loan or other type of credit, the lender will typically look at your credit report. This is called a credit inquiry and can be a hard inquiry or a soft inquiry. A soft inquiry may be made by a lender to pre-qualify someone for credit or by a landlord for a lease approval, for example.
During a formal application process, a lender might make a hard inquiry into your credit report, which can affect your credit score. FICO Scores take into account hard inquiries from the last 12 months in your credit score calculation, but a hard inquiry will remain on your credit report for two years.
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
It seems counterintuitive to hope for a slowdown in growth & demand in order to help the economy move forward, but SoFiās Head of Investment Strategy argues itās a necessary step. The problem is, our data points are mostly backward looking. By the time weāre warned about the slowdown, itās probably well underway. Read more >> Negative leverage was a common problem in the real-estate sector during the subprime mortgage crisis, and now it seems to be making a comeback among investors who own apartment buildings. Itās a result of rising mortgage rates and elevated purchase prices. Negative leverage was a common problem in the real-estate sector during the subprime mortgage crisis, and now it seems to be making a comeback among investors who own apartment buildings. Itās a result of rising mortgage rates and elevated purchase prices. Read more >> Itās time to gas up and head out for your Memorial Day weekend trip. The problem is how much it costs, with the average price per gallon over $4 in all 50 states. There are six key steps youāll want to follow when planning to fill up. Avoiding āpain at the pumpā will be a common thread in the coming months, with nearly 6 in 10 Americans planning at least one road trip vacation this summer. Read more >> Budgeting for retirement can feel overwhelming, but taking it step by step allows you to create a plan for a retirement youāll enjoy. Hereās a look at typical retirement expenses so individuals can get a handle on how much theyāre likely to spend and how much they need to budget for retirement. Read more >>Not-So-Breaking News
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Dickās Sporting Goods (DKS) beat Wall Street expectations on the top and bottom lines, but adjusted its outlook downward. Citing high inflation and supply chain disruptions, the sporting goods retailer described its current sentiment on the economy and its business prospects as ācautious.ā
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Lyft (LYFT) has announced plans to trim its budget and slow its hiring as it struggles to keep drivers on their platform. Meanwhile, the ride-sharing company said layoffs arenāt planned.
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Kohlās (KSS) has announced plans to bump up investments in its stores, in a strategy it claims represents a $500 million sales opportunity. It will open 100 new small-format stores while remodeling and expanding the Sephora line to include 850 stores by 2023. The department store recently rejected buyout offers but expects additional bids this year.
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TotalEnergies (TTE) has made a deal to buy 50% of renewables company Clearway Energy, the fifth largest US company in the sector. The acquisition is the French companyās largest in the US renewable energy space.
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Crypto technology company Ripple Labs may consider an IPO once its SEC lawsuit is over. The SEC contends the company and executive chairman Chris Larsenās sales of cryptocurrency XRP were illegal.
Financial Planner Tip of the Day
"Deciding how to invest money in your 20s can seem overwhelming at first; there are a lot of people with differing opinions and itās hard to know where to start. But remember that you donāt need to be bringing in the big bucks to be a savvy investor."
Brian Walsh, CFPĀ® at SoFi