Top Story
Dow Plummets Over 700 Points, Nasdaq Composite Joins S&P 500 in Bear Market Territory
• US stocks fell Thursday as all three major indexes gave back gains from the previous day’s session. While investors seemed encouraged by the Fed’s 75-basis-point hike on Wednesday, it may have also left more people convinced a recession is in the offing.
• Jobless claims came in at 229,000 which exceeded Wall Street estimates. Still, economists describe the labor market as tight. Unemployment numbers will come under increased scrutiny in the coming weeks amid rising rates and potentially slower economic growth.
• Housing starts fell 14% in May, which was a wider-than-expected drop. Analysts polled by Dow Jones had only forecast a 2.6% slip. The number represents a 13-month low. The increased cost of materials and rising mortgage rates seem to be putting pressure on the housing sector. Building permits also declined last month.
What to Be on the Lookout for Today
• The Federal Reserve will publish May’s industrial production index. In April, industrial production increased 1.1%, topping expectations.
• Alithya Group (ALYA) is scheduled to report earnings. Earlier this month the Montreal-based digital strategy and technologies company acquired Datum Consulting Group for $45.5 million.
• MICT Inc. (MICT) is also on the earnings calendar. The New Jersey-based financial services provider recently announced one of its subsidiaries received in-principal approval for a Capital Markets Services License in Singapore.
Who is Responsible: You or Your Landlord?
If an incident occurs that damages your home, you’re only responsible for your stuff. Your landlord’s insurance would take care of everything else.
Let’s unpack: since you pay rent to use the space — including walls, ceiling, floor, and any appliances included in your lease — your landlord is legally responsible to make sure they are in good condition. So if your heating breaks, pipe bursts, or your bedroom floor catches fire, your landlord is responsible for repairing the source of the issue as well as the structure.
But when it comes to the items within your walls, you’re responsible because they belong to you. If you could somehow pick your apartment up, turn it over, and shake it, nearly everything that would come tumbling out would be considered your “contents.” (The only exceptions might be appliances you don’t personally own, like your stove or fridge.)
SoFi Protect renters insurance powered by Lemonade can help cover the costs to replace your stuff for as little as $5/month. You’re also protected under Loss of Use coverage for any additional living costs if your home is unlivable, like hotels, food, and even pet boarding! Get covered in 90 seconds.
A Few Headlines That Should Be on Your Radar
Markets will be closed on Monday to commemorate Juneteenth. Market observers note the Black community remains underrepresented in the business world. There are a number of ways you may choose to support Black-owned businesses beyond just buying products. Read more >> On this Father’s Day, what would dad be worth if fatherhood were a paid position? Six figures? Many say yes. That said, Father’s Day spending still lags behind Mother’s Day. The most popular gifts this year are clothing, special events, and gift cards. Dad would likely be happy to hear people plan to be sensible with their spending. But inflation is no excuse to not make a gesture! Read more >> Food delivery startup Wonder Group snags $350 million and plans national expansion. Founder and CEO Marc Lore has had success with previous startups and sees profit potential in influencing the home dining experience. It’s only available in New Jersey right now. Lore thinks operations could expand nationwide by 2035. Read more >> What credit score is needed to rent an apartment in 2022? Read on to learn more about how your credit score can affect renting an apartment — and how you can approach renting if you have a lower credit score. Read more >>Not-So-Breaking News
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Revlon (REV) has filed for bankruptcy. The cosmetics giant blamed its financial troubles on its heavy debt load and supply chain disruptions. Its Chapter 11 filing cited its inability to meet close to a third of the demand for its products because it couldn’t access a “sufficient and regular supply of raw materials.”
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Tesla (TSLA) plans to raise prices for all its cars sold in the US. The electric car manufacturer blamed ongoing supply chain snarls and the increasing cost of raw materials.
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Marriott Vacations (VAC) revised its full-year outlook upward, citing “very high” owner occupancies and robust tour growth. The company anticipates that net income, contract sales, and adjusted free cash flow will all come in higher. It left its guidance on adjusted earnings per share unchanged.
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Kroger (KR) beat Wall Street expectations on the top and bottom lines. The grocery store giant also raised its full-year outlook.
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Apple (AAPL) has been accused of deliberately slowing down the performance of older iPhones, by encouraging an upgrade that would effectively shorten the lifespan of those models. The legal action comes just two years after the tech giant paid out $113 million to settle similar claims in what became known as “Batterygate.”
Financial Planner Tip of the Day
“Linking your bank accounts can be a great way to manage your finances without making a trip to the bank. Linking can help you optimize your finances by allowing you to use the accounts that offer the best interest rates or other perks while still being able to make transfers between them—even if they’re at different institutions.”
Brian Walsh, CFP® at SoFi