Tuesday,
July 5, 2022
Market recap
Dow Jones
31,097.26
+321.83 (+1.1%)
S&P 500
3,825.33
+39.95 (+1.1%)
Nasdaq
11,127.84
+99.11 (+1.0%)
Top Story
Stocks Gain to Kick Off Second Half, US Manufacturing Slows and Construction Spending Dips
• US stocks rose Friday in the second half of the yearâs first trading session. The first six months of 2022 marked the S&Pâs worst such performance since 1970. Broadly stated, investors are worried the Fedâs tightening monetary policy could tip the economy into a recession.
• The Fed has maintained a hawkish stance in the face of rising prices. Last week central bank Chair Jerome Powell indicated while a recession is a possibility, the greater risk is not getting prices under control.
• The benchmark 10-Year US Treasury saw its yield dip below 2.9%. This is well off its mid-June peak of 3.5%. Fridayâs bond trading session was shortened ahead of this past holiday weekend.
• Both the ISM, manufacturing PMI, and the S&P Global US manufacturing PMI declined last month. Both indexes hit their lowest point in two years.
• Construction spending declined in May, surprising analysts. The category slipped 0.1% marking the first decline in eight months.
What to Be on the Lookout for Today
• Mayâs factory orders are due. The Commerce Department reported factory orders rose 0.3% in April, after increasing 1.8% in March.
• Mayâs revised capital equipment orders will be published. The preliminary number showed a 0.7% advance, despite rising interest rates.
• Juneâs total vehicle sales are set for release. The number decreased by 12.6% in May, month-over-month, and plummeted 24.9% from the same time period in 2021.
• Sainsbury's will release its first-quarter trading statement. Given itâs the second largest grocery chain in the UK, this will give investors some insight as to how inflation is impacting consumer spending overseas. Last week Sainsburyâs CEO said customers are âwatching every pennyâ and buying more frozen foods in a bid to save money.
10 Tips for Writing a Real Estate Offer Letter
In a competitive market, buyers have been known to waive contingencies, increase earnest money, insert escalation clauses, and pen love letters. Yes, thatâs right: personal letters to sellers in an attempt to stand out from the crowd.
The National Association of RealtorsÂŽ isnât feeling the love for âlove lettersâ because they often contain personal information about the buyer, like their race and culture, that could make sellers and their agents vulnerable to accusations of discrimination.
Oregon was poised to ban homebuyer offer letters until a federal judge permanently blocked the law in March 2022. That month a Rhode Island representative introduced a bill to outlaw the practice in her state, calling it âkind of a very quiet way of redlining, potentially,â before the bill was held for further study.
So the practice goes on, legally, as of now, despite the lettersâ tepid sway. A Zillow survey of partner agents showed that love letters were the least successful strategy for winning the deal (all-cash offers made sellersâ hearts beat fastest).
If youâre inclined to write a homebuyer love letter, here are 10 tips.
A Few Headlines That Should Be on Your Radar
The latest economic data shows retail spending slipped in May, as the impact of inflation is being felt, and Americans are cutting back on their spending. Levis Strauss (LEVI) will provide a snapshot look at the sector when it reports earnings this week. Inflation continues to be the talk of Wall Street, and companies are constantly being evaluated in terms of how well they can handle rising prices. Another company reporting this week is WD-40 (WDFC), which may be able to weather inflationary pressures, given its product offerings. Read more >> Mortgage rates have jumped from pandemic lows. Even so, homebuyers may be wise to move on rates before they rise further. With 3% rates a not-so-distant memory, some would-be homebuyers are rethinking their purchase plans. But if you look back far at history, that might not be a winning strategy. Read more >> With inflation wreaking havoc thus far in 2022, SoFiâs Head of Investment Strategy believes the market may fare better in the second half of the year. In the midst of bear markets and rising Fed Rates, Liz Young shares her perspective on whatâs to come and optimism for market conditions for the rest of 2022. Read more >> Home exchange. House swap. House trading. By any name, itâs a twist on home buying and selling that can spare both parties the irritation of showings and the expense of agent commissions. Trading homes isnât done every day, but maybe itâs an option waiting for your exploration. Read more >>Not-So-Breaking News
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Kohlâs (KSS) announced itâs no longer pursuing a sale of its business after engaging in extended talks with potential buyers. The company said the retail environment has experienced significant deterioration since it first launched the bidding process. The Vitamin Shoppe owner Franchise Group (FRG) had been reported as most likely to purchase Kohlâs.
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Coinbase (COIN) is attempting to get new licenses in Europe as it looks to expand. The cryptocurrency exchange said it is in talks with French authorities. Competitors such as Crypto.com, Binance, and FTX have already started growing in overseas markets.
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California approved a plan to tax lithium, a key component in electric vehicle batteries. The revenue thatâs generated will go toward environmental remediation projects. Some in the EV industry have warned this will negatively impact the sector as a whole and cause shipment delays.
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June marked Chinaâs best economic performance in four months. The worldâs second largest economy saw its manufacturing and services sector grow for the first time since February. That said, given China is pursuing a âzero COVIDâ policy the threat of new lockdowns remains, all while Beijing has been relatively unclear about its plans on that front.
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The European Central Bank appears to be preparing for its first rate hike in over a decade with eurozone inflation at a record 8.6%. At a conference last week ECB President Christine Lagarde indicated the need to be aggressive in the face of rising prices.
Financial Planner Tip of the Day
âReaching your savings goals might happen faster by setting up automatic transfers from checking account to savings account each time youâre paid. If your paycheck is direct-deposited, you may also be able to split the deposit into more than one account, on a percentage or dollar-amount basis.â
Brian Walsh, CFPÂŽ at SoFi