Monday,
June 27, 2022
Market recap
Dow Jones
31,503.25
+825.89 (+2.69%)
S&P 500
3,911.83
+116.10 (+3.06%)
Nasdaq
11,607.62
+375.43 (+3.34%)
Top Story
US Stocks Gain on Slightly Upbeat Economic Data
• US stocks rose Friday. This was largely due to the fact that consumers think inflation might slightly improve over the next year. Although consumer sentiment fell to a record low of 50 in June, consumers see inflation falling to 5.3% over the next 12 months. Earlier this month, consumers pegged this number at 5.4% so Wall Street applauded the trend heading in the right direction.
• Cruise line stocks outperformed on Friday. Carnival Corporation (CCL) said current quarter booking volumes are ânearly doubleâ first quarter volumes. Its stock jumped along with competitors Royal Caribbean Group (RCL) and Norwegian Cruise Lines (NCLH). This sentiment also helped boost the likes of casino companies like Wynn Resorts (WYNN).
What to Be on the Lookout for Today
• Mayâs durable goods orders are due. These include long-lasting manufactured products, including transportation items. In April new orders for durable goods rose 0.4% to $265.3 billion, which failed to meet analyst expectations.
• Mayâs pending home sales index is also published, which is a forward-looking indicator based on contact signings. In April the index declined 3.9%, potentially due to rising mortgage rates, which forces more would-be buyers to the sidelines.
• On the earnings front, sneaker and clothing apparel giant Nike (NKE) reports at a time when the retail sector is in focus. Inflation has stretched many consumers thin, reducing demand, and retail spending declined in May. Reports also emerged last week that Nike is planning a full exit from Russia amid the war in Ukraine.
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A Few Headlines That Should Be on Your Radar
Ok, so retail spending slowed down in May. How is that affecting some of the industryâs biggest names? Nike (NKE) will provide a sector snapshot when it shares results today. As inflation rises it puts pressure on Americansâ wallets and makes consumers less likely to buy stuff. Plus, the recent trend is more toward services like concerts or sporting events. All the while, reports say Nike is pulling out of Russia entirely. Read more >> The housing market appears to be cooling as rates rise, forcing would-be borrowers onto the sidelines. Prices remain elevated, but some are looking for them to fall. Is this a repeat of 2007-2008? Economists say the housing market is healthier than it was 15 years ago. In many ways the meltdown that happened back then forced changes, resulting in more strict underwriting. The mortgages that are already on the books are less risky. Read more >> Netflix (NFLX) plans to offer a new ad-supported tier at a lower price in an attempt to attract new subscribers. The streaming giant has seen its valuation plummet amid increasing competition and erosion to its subscriber base. Read more >> According to research, overturning Roe v Wade can have lasting economic consequences. The field of economics can be used to isolate and measure the causal effects of abortion access on reproductive, social, and economic outcomes for women and their families. Read more >>Not-So-Breaking News
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Polestar went public and began trading last week. The electric vehicle companyâs IPO was made possible by its merger with special purpose acquisition company Gores Guggenheim. Polestar is planning to use the proceeds to fund global expansion.
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Carmax (KMX) beat Wall Street expectations on the top and bottom lines. The used car retailer benefited from a higher average selling price of its vehicles.
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LendingTree (TREE) share prices tumbled after it lowered its forecast for the second quarter. The online lending platformâs home segment has seen revenue decline as high inflation and rising interest rates reduced demand for mortgages.
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Blackberry (BB) reported higher than expected results. CEO John Chen attributed the companyâs recent success to new designs in its IoT line as well as growth in cybersecurity billings.
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Harmonyâs ONE token tanked on the news hackers stole $100 million in cryptocurrency from its Horizon bridge. Bridges allow people to swap assets between blockchains and have proven vulnerable to these types of exploits.
Financial Planner Tip of the Day
âNo matter how you prefer to pay for purchases, checking your bank and credit card statements regularly for suspicious or erroneous charges can help you spot fraudulent activity right away. You may want to do this daily during periods of high usage, like around the holidays when itâs easier for fraudulent charges to slip through.â
Brian Walsh, CFPÂŽ at SoFi