Top Story
Market Slips as Fed Chair Talks to Congress, Biden Asks for Gas Tax Holiday
• US stocks fell Wednesday after a failed attempt at a rally, as all three major indexes gave back gains in the final hour of trading. Meanwhile, investors closely evaluated comments from Federal Reserve Chair Jerome Powell. He said the central bank remains committed to hiking rates until inflation shows signs of slowing to the Fed’s 2% target. Powell is scheduled to deliver additional testimony in front of Congress today.
• Powell said a recession is a possibility, but not a certainty. Stocks have been highly volatile in recent weeks. The market has expressed concerns a broader economic slowdown could be on the horizon, all while inflation is running up at its highest level in 41 years.
• President Joe Biden asked Congress to suspend the federal gas tax for three months. With prices rising across the board, the average cost for a gallon of gas has reached record highs. Both international benchmark Brent crude and US standard West Texas Intermediate saw their price per barrel fall.
• Mortgage applications rose 4.2% from a week earlier, according to the Mortgage Bankers Association. This is despite rising rates that have increased the cost of borrowing. The average rate on a 30-year fixed mortgage checked in at 5.98%, marking the biggest weekly jump since 2009. Meanwhile, the refinance index is down 77% from this time last year.
What to Be on the Lookout for Today
• Weekly jobless claims are due. Last week’s number fell to 229,000. Still, that exceeded analyst expectations. The reading continues to show a strong labor market all while some worry inflation and rising rates will push unemployment higher, something the Fed predicted last week.
• S&P Global’s flash manufacturing and services PMI for June will be published. May’s survey indicated slowed business activity amid higher prices for services. Ongoing supply chain issues hampered growth at factories.
• Parcel delivery firm FedEx (FDX) is scheduled to report earnings. Last week the company announced it would boost its dividend and shake up its board as part of an agreement with activist investor D.E. Shaw & Co. that comes just weeks into new CEO Raj Subramaniam’s tenure. FedEx’s share price enjoyed its biggest daily increase in nearly 36 years following the news.
30 Ways to Save Money on Food
Outside of housing and transportation, Americans spend more on food than any other category. According to the Bureau of Labor Statistics, in 2020 the average U.S. household shelled out $7,316 on food, including groceries and eating out.
While food is an essential expense (since we all need to eat), many of us could probably stand to spend less than what we’re currently spending on groceries, restaurants, and morning lattes.
Fortunately, with a little planning and some smart shopping hacks, you may be able to significantly cut the amount of money you spend on food but still eat well.
Here are 30 ways you can save more on your food purchases.
A Few Headlines That Should Be on Your Radar
TikTok is attracting advertising interest. That’s partly due to its traction with youth and influencers. The Chinese short-form video platform has one billion users and is projected to earn upwards of $12 billion in ad revenue this year. As privacy rules change, more established players are scrambling. Read more >> Twitter (TWTR) is partnering with Shopify (SHOP) to bring merchants to its social networking site. The move is intended to bring sellers where the customers are. This integration of platforms aims to facilitate moving shoppers from online conversation to immediate purchase. Read more >> While the Energy sector is one of the few to see gains in this bear market, SoFi’s Head of Investment Strategy argues given the current climate, it may not be a good time to rely on high oil prices as a buy signal, but rather as a good time to take profits. If price appreciation is your objective, it’s more important to lessen the blow of sharp drawdowns than it is to participate in the extra few percentage points of upside. Read more >> Conventional financial wisdom says buying in bulk is smart. Seems simple enough, but like anything financial, there’s a bit more to the story. Food is a big expense in most budgets. Buying in bulk may reduce your grocery bill, but you’ll want to calculate price per unit. Read more >>Not-So-Breaking News
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Coinbase (COIN) share price tumbled following an announcement by Binance.US that it will reduce some of its trading fees. Binance.US is an affiliate of Coinbase, the world’s biggest crypto exchange by volume. The move comes at a challenging time for cryptocurrencies, which are facing eroded valuations amid declining demand.
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Winnebago (WGO) shares jumped after earnings topped estimates by about 40%. The outdoor recreation company also beat on revenue, which got a boost from its purchase of Barletta boat company and price increases.
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La-Z-Boy (LZB) shares popped after reporting better-than-expected earnings. The furniture company said it plans to focus on marketing efforts and an improved supply-chain strategy to maintain its strong balance sheet.
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Korn Ferry (KFY) announced earnings and revenue above Wall Street estimates. The staffing consulting company offered a rosy outlook, with CEO Barry Burnison saying “shortages of skilled labor are projected to persist for years to come" regardless of economic activity.
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Daimler Truck (DTRUY) CEO Martin Daum said the company is struggling amid persistent supply chain snarls, adding this has been “one of the worst years ever” in his career in trucking. The company’s bottom line is being negatively impacted by a shortage in parts as well as rising costs.
Financial Planner Tip of the Day
"Once you know where you stand with your budget and your savings goals, you may want to start by building a sort of 'starter' emergency fund, sometimes called an account buffer—then move forward with a personal debt reduction plan, like the debt avalanche, debt snowball, or the hybrid debt fireball, which focuses on paying high-interest debt in a way that can build momentum and keep you motivated."
Brian Walsh, CFP® at SoFi