Friday,
June 24, 2022
Market recap
Dow Jones
30,677.36
+194.23 (+0.6%)
S&P 500
3,795.73
+35.84 (+1.0%)
Nasdaq
11,232.19
+179.11 (+1.6%)
Top Story
Dow Gains More Than 190 Points and Nasdaq Rises Over 1%, Jobless Claims Fall to 229,000
• US stocks rose Thursday as investors continue to weigh the possibility of a recession. All three major indexes finished in the green as part of a late day rally. Fed Chair Jerome Powell testified to Congress for the second straight day and reiterated the central bank's commitment to fighting inflation.
• The yield on the benchmark 10-Year US Treasury fell to its lowest level in two weeks. Bond yields and prices move in opposite directions.
• Oil prices fell as did other commodities such as copper. Analysts say this could be tied to concerns over a broad economic downturn and an ensuing drop in demand.
• Jobless claims fell to 229,000. This remains near historic lows amid a tight labor market.
What to Be on the Lookout for Today
• May’s new home sales will be published. The number fell 16.6% in April from March, a significantly bigger drop than Wall Street estimated. New home sales declined by 26.9% year-over-year. Analysts attribute that to rising mortgage rates and persistent inflation, all while home prices remain elevated.
• The University of Michigan will publish its final consumer sentiment index for June. May’s consumer sentiment index fell as respondents' pessimism over inflation overshadowed a more optimistic look regarding their personal finances. Also, watch for this month’s final five-year inflation expectations.
• CarMax (KMX) will report earnings. The used vehicle retailer released a report this month that said customers are showing more interest in electric vehicles amid soaring gas prices. The company’s EV test drives in March were 1.5 times higher than the same period in 2021.
What Stage In Your Life Does Life Insurance Make Sense?
No matter what your age, it’s probably a good time (and not too late!) to think about getting life insurance. It’s a key step in financial planning.
First, a crash course in what insurance is: When you purchase a life insurance policy, you make recurring premium payments. Should you die while covered, your policy will pay a lump sum that you’ve selected to the beneficiaries you have designated. It’s an important way to know that if you weren’t around, working hard, your loved ones’ expenses (housing, food, medical care, tuition, etc.) would be covered. Granted, no one wants to imagine leaving this earth, but buying life insurance can give you tremendous peace of mind.
In terms of when to buy life insurance, here are a few points to keep in mind:
• It’s best to apply when you’re young and healthy so you can receive the best rate available.
• Typically, major life events signal people to buy life insurance. These are moments when you realize someone else is depending on you (and, not to sound crass, your income). It could be when you marry or have a child. It could be when you realize a relative will need long-term caregiving.
• Even if you are older or have underlying health conditions, there are options available to you. They may not give as high an amount of coverage as other life insurance policies, but they can offer a moderate benefit amount and give you a degree of peace of mind.
Picking out the right life insurance policy can seem complicated, but in truth, the number of choices just reflects how easy it is to get the right coverage for your needs. There’s truly something for everyone, regardless of your age or budget. Learn more about term life insurance offered through SoFi.
A Few Headlines That Should Be on Your Radar
Market observers see trouble ahead for retail as inflation and recession concerns pose a risk to ongoing consumer demand. Revlon (REV) just filed for Chapter 11. Some believe this is just the beginning of many more bankruptcies to come for the retail sector. Read more >> Mark Zuckerberg believes the metaverse could turn around the fortunes of Meta (META), which has stumbled amid falling demand. Meanwhile, longtime co-pilot Sandberg has announced plans to leave the firm this fall. The tech giant’s market cap has plummeted since last year on the heels of Apple’s (AAPL) enhanced privacy rules, and increased competition for advertising dollars. Zuckerberg expects a billion people will bring real money into the metaverse, thereby boosting Meta’s bottom line. Read more >> While NFT headlines haven’t all been favorable lately, but that’s no problem for marketplace Magic Eden, who just snagged a $130 million Series B fundraising round. It’s part of a bid to expand. Magic Eden’s numbers have been improving in recent months, but they’d like to explore possibilities beyond the Solana blockchain. It’s all part of the uncertain, but intriguing future for NFTs. Read more >> How to buy a home in 7 steps. The home buying process can be confusing. Here’s a helpful guide to all the steps you need to take to become a homeowner. Read more >>Not-So-Breaking News
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Olive Garden’s parent company Darden (DRI) reported better-than-expected results on the top and bottom lines. The company benefited from strong patronage at its fine dining restaurants, Eddie V’s and The Capital Grille.
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American Airlines (AAL) has announced plans to discontinue service to four US cities due to a shortage of pilots. The affected destinations are Islip and Ithaca, New York; Toledo, Ohio; and Dubuque, Iowa.
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Accenture (ACN) beat Wall Street’s outlook for revenue but missed on earnings. The consulting company also offered a downbeat forecast.
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JPMorgan Chase (JPM) announced plans to lay off hundreds of mortgage employees. Rising interest rates have curbed demand for new housing loans. Applications to refinance have also plummeted.
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Nike (NKE) will fully withdraw its operations in Russia according to reports. This comes as Russian authorities may enact new legislation permitting officials to seize assets and assess penalties on companies that plan to leave the country in protest over the war with Ukraine.
Financial Planner Tip of the Day
“Depending on the type of loan you have, if you make a down payment that’s less than 20%, your lender probably will require that you purchase private mortgage insurance. PMI could add about 0.3% to 1.5% to the cost of your mortgage. And you’ll likely have to pay it every year until your equity in the home reaches 20%.”
Brian Walsh, CFP® at SoFi