Tuesday,
June 14, 2022
Market recap
Dow Jones
30,518.06
-874.73 (-2.8%)
S&P 500
3,749.91
-150.95 (-3.9%)
Nasdaq
10,809.23
-530.80 (-4.7%)
Top Story
S&P Tumbles to New Low for 2022, Closes in Bear Market Territory
• US stocks fell Monday. All three major indexes finished in the red and the S&P 500 closed in bear market territory. Treasury bonds tumbled.
• Wall Street observers say most of the selling was tied into last week’s inflation report. May’s CPI checked in at 8.6%, hotter than expected. Many investors expect the Federal Reserve to continue tightening its monetary policy in response.
• The median consumer expectation for inflation over the next year is 6.6%. That’s according to the New York Fed who released its 1-year and 3-year inflation expectations for May. Over the medium term, or 3-year period, consumers predict inflation of 3.9%.
What to Be on the Lookout for Today
• The Federal Reserve begins its two-day meeting to discuss potential rate hikes. Given inflation is at its highest level since 1981, some have even suggested a 75-basis-point hike could be on the table.
• The NFIB will publish May’s small business optimism index. In April, the figure hit a 48-year low. Three in every ten business owners list inflation as their biggest problem.
• The Producer Price Index final demand is also due for May. This tracks the average changes in prices received by domestic producers for goods and services. April saw the index rise 0.5% after it increased by more than 1% during each of the preceding two months.
• Motorcar Parts of America (MPAA) is scheduled to report earnings. The manufacturer and distributor of aftermarket car parts announced a new line of brake pads and rotors under the company’s Quality-Built brand last week.

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A Few Headlines That Should Be on Your Radar
It can get overwhelming looking at negative financial headlines. Remember you have options and the ability to respond as conditions change. With inflation running high and the Fed tightening its monetary policy, investors have a lot to consider. There are many factors at play without even getting into the lingering effects of COVID-19 and the war in Ukraine, both of which pose significant economic challenges. We’ve got some thoughts on how to respond. Read more >> Luxury retailers see upside in cryptocurrency. While the sector has taken a beating this year, brands like Gucci (PPRUY), Prada (PRDSY), and Versace (CPRI) are giving consumers the ability to pay with digital coins. Online shopping exploded throughout the pandemic, giving luxury retail a similar digital boost. Now brands are looking to connect with younger consumers, and a large portion of the under-40 crowd has already invested in crypto. Read more >> What happens when a television set is turned off and streaming ads keep playing? For brands, it’s a big waste of money. According to new research it's costing around $1 billion each year. Meanwhile, industry giants Netflix (NFLX) and Disney+ (DIS) have shown a recent willingness to offer ad-supported pricing. Firms are now developing products that use new sensors and test whether buttons are being pushed to determine if anyone is watching. Read more >> Despite the Fair Housing Act of 1968 and other federal laws, a large race gap in homeownership continues to exist across the United States. The Black homeownership rate in the fourth quarter of 2021 stood at 43%, compared with 74% for non-Hispanic whites, according to the US Census Bureau. Solving the Black-white inequity may require significant reform. Read more >>Not-So-Breaking News
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Netflix (NFLX) has given the “green light” for Squid Games season 2. In the first 28 days following the series' initial release it attracted 1.65 billion hours of viewing. It was also Netflix's first ever Korean series to reach No. 1 in the US. The South Korean company associated with Squid Games saw its share price pop on the news.
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Speaking of streaming, Apple (AAPL) and Nike (NKE) are teaming up to make sports films. Deadline reports the partnership involves Apple Original Films, Brad Weston’s MAKEREADY, and Nike’s Waffle Iron Entertainment. The group says the films aim to celebrate the power of sport and inspire the next generation of athletes.
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EV startup Electric Last Mile Solutions (ELMS) says it plans to file for bankruptcy and liquidate its assets. This comes less than a year after going public. The company’s founder and CEO left in February amid an investigation into allegations of unreliable financial statements and has struggled to secure additional financing as a result.
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The cryptocurrency market lost around $200 billion in value this past weekend as macro economic factors continue to weigh on a multitude of sectors. Bitcoin (BTC) fell below $23,000 for the first time since December 2020. Meanwhile, crypto lender Celsius paused withdrawals citing “extreme market conditions.”
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Warehouse giant Prologis (PLD) said it has reached a deal to acquire rival Duke Realty for $26 billion, including debt. Last month Duke Realty rejected a lower offer. Prologis counts companies like Amazon (AMZN), Home Depot (HD), and FedEx (FDX) among its tenants.
Financial Planner Tip of the Day
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