Friday,
June 10, 2022
Market recap
Dow Jones
32,272.79
-638.11 (-1.9%)
S&P 500
4,017.82
-97.95 (-2.4%)
Nasdaq
11,754.23
-332.05(-2.8%)
Top Story
Dow Falls Over 600 Points as ECB Announces Rate Hike, Jobless Claims Increase
• US stocks fell Thursday as Wall Street remains focused on the health of the broader economy. Sentiment may have been impacted by the European Central Bank’s announced plans to hike rates for the first time in a decade. While investors have been grappling with a rising-rate environment in the US, that’s now also true for the Eurozone.
• The Federal Reserve’s tightening monetary policy continues to be most investors’ top concern. With prices rising at their fastest pace in 40-years, the central bank is committed to hiking rates in an attempt to cool off the economy. These actions could have the potential to tip the economy into a recession. Investors are looking to determine where inflation is headed and how the Fed will respond.
• Jobless claims increased by 27,000 last week. The total number checked in at 229,000 to hit a five-month high. Economists say the labor market remains historically tight.
What to Be on the Lookout for Today
• The state of inflation will be the talk of Wall Street as the May CPI is due. This tracks the rise of prices on a monthly and year-over-year basis. In April, the index showed inflation was up 8.3% from the same time period in 2021. That’s near a 40-year high. Core CPI, which strips out volatile fuel and food costs, will also be released.
• May’s federal budget balance is set to be published. In April, the US posted a record budget surplus of $308 billion. Analysts attributed this to increased federal tax receipts and reduced government spending following COVID-19 stimulus payments.
Why You Should Check Your Credit Score
Monitoring your credit score is important, and to do it for free is that much better. Here, some of the most important reasons to review your number:
• You can spot discrepancies or potential fraud. Unordinary activities will reveal themselves when you keep tabs on your credit score. You can immediately spot red flags when something seems unusual (say, your score drops 40 points for seemingly no reason). This way, you can act right away, work toward getting your score back on track, or file a dispute if you detect fraud.
• You can gain insight into your financial situation. Understanding your credit score can help you determine when it’s a good time to purchase a home or refinance your mortgage. For example, if your score is less than ideal, you may want to hold off on making big moves until you boost your score. The delay may help you qualify for more favorable terms and interest rates.
• You can better compare financial products. Lenders have different criteria and credit score requirements to qualify for specific products. So, knowing your credit score can help you determine if applying for a particular product is worth it or if you should explore other options.
• You can pinpoint ways to improve your score. Having a handle on your credit score and the factors used to calculate it can help you optimize it. Some resources and websites may offer simulations so you can see how changing certain factors will alter your credit score.
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
Kohl’s (KSS) is in exclusive talks with Franchise Group (FRG), which has offered the beleaguered retailer $60 a share. Industry analysts anticipate the deal would strip the department store of its real estate holdings. Franchise Group is reportedly in talks with private equity real estate firm Oak Street to structure a sale-leaseback transaction. Read more >> Amazon’s (AMZN) latest augmented reality offer lets shoppers try on shoes virtually before clicking “buy.” The initial rollout will make the option available to iOS users in the US and Canada. It makes use of the customer's cell phone camera and the Amazon app. The feature aims to help consumers choose the color or style that might suit them best. Read more >> Both regulation and demand from consumers is pushing the fashion and apparel industry towards sustainability. Research suggests the so-called sustainable fashion sector could grow around 9.7% annually through 2025 when it will hit $10 billion. Recover, a Spanish company that recycles cotton for use in denim and other clothing products, just snagged a $100 million investment. Goldman Sachs (GS) led the round. Recover aims to build out a global solution for retailers in the sustainable fashion space. Read more >> If you have moved since the last time that you've ordered checks you may be wondering if they are still good to use. Read on to learn when it’s possible to use checks with an old address. Read more >>Not-So-Breaking News
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Target (TGT) announced plans to bump up its dividend. The news comes on the heels of the retail giant’s prediction short-term profits will fall as it slashes prices to clear out excess inventory.
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Nio (NIO) reported a $281.2 million loss, quadruple the number from a year ago. The Chinese electric vehicle manufacturer’s production slowed as a result of COVID-19 shutdowns. CEO William Bin Li also said rising commodity costs have eroded the company’s bottom line.
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The European Union’s ambitious greenhouse gas emissions goal just got some serious teeth. EU lawmakers have agreed to prohibit the sale of new diesel and gasoline cars and vans in the EU beginning in 2035. The aim is a 100% reduction in emissions from new passenger cars and light commercial vehicles by 2035, compared to 2021 levels.
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CVS (CVS) has reconfirmed its full-year 2022 outlook for profit. The company benefited from a 10.1% increase in pharmacy revenue which was supported by COVID-19 vaccinations and tests. Aetna’s group healthcare division was also a source of growth.
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Signet Jewelers (SIG) beat Wall Street expectations on the top and bottom lines. The Akron, Ohio headquartered company sells diamond jewelry. Signet reiterated its fiscal 2023 outlook and increased its stock repurchases by $500 million.
Financial Planner Tip of the Day
“When shopping around for a checking account, consider your financial habits. If you shop frequently at certain retailers, it may be worth taking advantage of an account that offers discounts. Or if you use the ATM frequently, looking for a checking account that reimburses you for third-party ATM fees may be a smart choice.”
Brian Walsh, CFP® at SoFi