Wednesday,
July 6, 2022
Market recap
Dow Jones
30,967.82
â129.44 (â0.4%)
S&P 500
3,831.39
+6.06 (+0.2%)
Nasdaq
11,322.24
+194.39 (+1.8%)
Top Story
Recession Fears Cause Stocks to Start the Week Mixed
• US stocks were mixed on Tuesday. The uneasy sentiment was largely tied to fears about a possible recession.
• Two indicators gave investors pause on the first trading day of the week. First, the 10-year Treasury yield and the 2-year yield inverted briefly. While past performance is never a guarantee of future results, some analysts view this phenomenon as a recession indicator. Secondly, oil prices fell, which some believe foreshadows slowing economic activity.
• Speaking of economic data, US factory orders jumped 1.6% in May. This beat expectations but was largely due to petroleum-related products which have seen large price increases. Another related survey of executives thinks a slowing economy will weigh on industry demand.
What to Be on the Lookout for Today
• The FOMC will release the minutes from its latest meeting. This will provide the market insight as to how the central bank is thinking about inflation and the need for future rate hikes. It also comes as the Fed enacted its sharpest rate hike since 1994 last month, when it increased its target rate by 75-basis-points.
• Mayâs job openings and quits are due, also known as the JOLTS report. Quits have been piling up in recent months amid what economists call the âGreat Resignation,â although jobless claims have been inching up over the past month. Investors will be looking for more insight into the labor market with this data point.
• ISMâs services index for June will be released. This is also referred to as the non-manufacturing PMI. In May the number declined month-over-month but analysts say it remained in growth mode.
• Software company Simulations Plus (SLP) will report its third quarter fiscal year 2022 earnings. The California-based company produces models and simulations for a variety of industries including pharmaceuticals, cosmetics, and foods. Last week Simulations Plus announced record attendance at their second annual pharmacometrics workshop that was held in March.
Renters Insurance: What Does it Cover?
In short, a lot.
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After a moment of panic, you remember you have SoFi Protect renters insurance powered by Lemonade. You can file a claim right on your phone, and potentially be reimbursed in minutes!
Starting at just $5/month, you can protect the stuff you own at home â and everywhere else.
A Few Headlines That Should Be on Your Radar
The latest addition to the âMinions/Despicable Meâ franchise represents a major accomplishment for Hollywood, and one that differs from other success stories in 2022. The latest entrant to the âDespicable Meâ franchise took in $107 million domestically during its opening weekend. Minions: The Rise of Gru (CMCSA) has some built-in advantages. Itâs part of a well-established franchise and it didnât have a direct July Fourth competitor. Yet executives are excited about what the movie could mean for family-friendly films at theaters. Read more >> While many on Wall Street are worried about a protracted slowdown, a number of US companies are giving workers mid-year raises. Historically speaking, companies target around 3% annual increases to payment packages. During 2022 the average is closer to 4.8%. Broadly stated, the most productive employees may see that trend continue, as thereâs pressure to keep talent from looking elsewhere. Read more >> Cloud computing rose to new heights during the pandemic. That allowed the sectorâs established names to take advantage of their âhead start.â Microsoft (MSFT), Amazon (AMZN), and Alphabetâs Google (GOOGL) account for 65% of the worldâs cloud computing spending. The so-called âbig threeâ arenât satisfied â in fact, each companyâs cloud division is growing in the same way a startup would. Read more >> While rental leases may appear set in stone, theyâre more flexible than many tenants think. It may sound intimidating (or simply futile). But, with a little research and a well-thought-out approach, it may be possible to negotiate your monthly rent, and land a better deal. Read more >>Not-So-Breaking News
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French music streaming service Deezer is officially a publicly-traded company. The Spotify (SPOT) rival made its stock market debut on Euronext Paris Tuesday morning. Seven years ago Deezer attempted to go public but those plans were eventually put on hold.
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Ford (F) reported a small increase in quarterly sales that failed to meet analyst expectations. The automakerâs Q2 revenue rose 1.8% year-over-year, while Wall Street had been anticipating growth between 3.3% and 5.1%. That said, Ford outperformed the broader sector, as industry experts predicted quarterly auto sales would be down upwards of 20% from the year-ago-period.
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Netflix (NFLX) series Stranger Things 4 set a new Nielsen (NLSN) streaming record last month. For the week of May 30 through June 5 the series surpassed 7 billion minutes of viewing time within the US. No other series has come close to this mark although Tiger King and Ozark did previously top 5 billion viewing minutes.
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A large number of McDonaldâs (MCD) franchisees have removed $1 drinks from menus as inflation continues to rise. This move comes as the fast-food giant has been hit with rising food and labor costs in both the US and abroad.
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As the buy now, pay later (BNPL) sector struggles, Swedish fintech firm Klarna is about to close on a new fundraising round, according to a report. The $650 million round is being led by Sequoia Capital and would result in a $6.5 billion valuation, down around 85% from where it was valued on June 2021.
Financial Planner Tip of the Day
âA home office tax deduction is available to self-employed people â independent contractors, sole proprietors, members of a business partnership, freelancers, and gig workers who require an office â who use part of their home, owned or rented, as a place of work regularly and exclusively.â
Brian Walsh, CFPÂź at SoFi