Friday,
June 3, 2022
Market recap
Dow Jones
33,248.28
+435.05 (+1.3%)
S&P 500
4,176.82
+75.59 (+1.8%)
Nasdaq
12,316.90
+322.44 (+2.7%)
Top Story
Volatility Continues as Uncertainty Prevails on Wall Street, Job Growth Falls Short of Expectations
• US stocks rose Thursday in another volatile session. Traders say the predominant mood on Wall Street is one of uncertainty, as the Fed indicates it will continue rate hikes amid record high inflation. All three major indexes swung back and forth between losses and gains throughout the day.
• The market shook off a downbeat earnings report from Microsoft (MSFT). The bellwether tech stock also rebounded to finish in the green. It was a positive day for the tech sector overall, which helped boost the Nasdaq Composite.
• ADP says the economy added 128,000 private jobs in May. This fell short of expectations as the consensus estimate was for 299,000 additional jobs.
• Jobless claims declined by 200,000 and hit its lowest level since 1969. Layoffs also declined throughout May according to global outplacement firm Challenger, Gray & Christmas.
• US factory orders ticked higher in April. The increase was a modest 0.3%. Economists say supply-chain disruptions are likely to blame.
What to Be on the Lookout for Today
• The labor market remains front and center in today’s economic data. May’s unemployment rate is due. In April the unemployment rate checked in at 3.6%, which was unchanged month-over-month.
• Nonfarm payrolls will also be released. The economy added 428,000 jobs in April, exceeding expectations.
• May’s labor-force participation rate and average hourly earnings are also on the calendar. Labor participation rate tracks the number of Americans who either have a job or are looking for one. The number fell in April.
• Bombardier Recreational Products (DOOO) reports earnings. The Quebec-based company makes ski mobiles and watersport vehicles, including the Sea-Doo watercraft brand. BRP exceeded profit expectations during its four most recent earnings calls.
When to Start Saving for Your Kids’ College Tuition
It may seem obvious, but let’s make it official: now. It’s never too early to start an education fund for your child. It’s all about giving yourself and your child a head start.
Starting earlier also means you’ll likely have more time to change savings direction along the way, if need be. Later on, if your child develops an aptitude for sports, art, theater, or writing, or any other specific field, it’s possible to look into financial aid and scholarships that may support that talent.
In addition to savings, students and their families may rely on scholarships, grants, federal student loans, or even private student loans to pay for tuition and other educational expenses.
For families that still need help funding a child’s education after exhausting their federal aid options, private student loans might be worth considering. SoFi, for example, offers private student loans and parent student loans to help pay for school.
SoFi’s private student loans are no fee and low-rate, plus there are flexible repayment options. Learn more about private student loans with SoFi today.
A Few Headlines That Should Be on Your Radar
Cannabis companies say they’re about five years away from selling marijuana inside the metaverse, but they already see plenty of upside in the digital landscape. Part of that comes down to the decentralized nature of blockchain technology and Web3. Meta Platforms (FB) has specific rules against depicting marijuana or related content, but other metaverse companies are more willing to work with pot stocks. One of the most intriguing aspects is how cannabis companies plan to use NFTs. Read more >> Americans don’t know how much they’re spending on unwanted subscriptions and it’s costing them more than $200 per month on average. There are ways to identify, eliminate, and track these expenses that can represent leaks that undermine one’s financial well-being. Read more >> Poparazzi has bagged $15 million in a series A Benchmark-led round following its achieving 5 million downloads of its social media app. The platform flew to the top of the App Store propelled by its popularity with teens seeking an alternative to Instagram. Read more >> Saving for the cost of higher education is key. Here’s info on how to set up a college fund. As a parent, sometimes just thinking about the cost of college for your kid (or kids) can feel bleak. Thankfully, there’s no time like a bad time to start thinking about ways to save for your child’s education. Read more >>Not-So-Breaking News
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Chipotle (CMG) now accepts cryptocurrency payments at nearly all of its US locations. The Mexican fast food restaurant chain will use the Flexa payment network to process the digital currency.
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Microsoft (MSFT) slashed its near-term outlook for earnings. The technology giant blamed the strength of the US dollar, which is at its highest level in 20 years. About half the company’s sales come from abroad.
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Ford (F) announced plans to invest $3.7 billion in US factories. The funds will be used to support production of both electric vehicles and gas-fueled vehicles. An estimated 6,200 union jobs will be added in the Midwest to support the car manufacturer’s goal of selling two million EVs by the end of 2026.
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Amazon (AMZN) announced plans to yank its Kindle e-readers from the Chinese market in response to the country’s restrictions on technology. Chinese retailers will no longer be supplied with the e-readers and the Kindle e-bookstore will be shuttered next year.
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Designer Brands (DBI), parent to DSW, beat on the top and bottom lines. That said, same-store sales growth was lower than expected. The shoe company raised its fiscal 2022 outlook for earnings per share, but cut its guidance for same-store sales.
Financial Planner Tip of the Day
“The 30 day rule can be an excellent way to manage excess spending on items that we want rather than need. After 30 days have passed, if you still wish to purchase an item, then you can potentially do so, knowing that it’s no longer an impulse buy.”
Brian Walsh, CFP® at SoFi