Top Story
Dow Gains Over 750 Points Amid Fresh Earnings Data, Market Shakes Off Sluggish Home Building
• US stocks rose Tuesday as investors studied a new round of earnings reports. Market veterans say inflation is well-established given June’s CPI came in at 9.1%, and now it’s all about how firms are handling those pressures. Yesterday’s rally suggests confidence in how individual companies are dealing with rising prices.
• Bank of America (BAC) reported higher-than-expected revenue. Executives attributed the increase to higher interest rates. The news may have also boosted sentiment on Wall Street as the banking sector is considered closely tied to the broader economy’s performance.
• Oil prices rose 1%. While fears over a broad economic slowdown have impacted prices recently, concern over tight supply is helping push them higher.
• June’s housing starts dropped to a nine-month low. The decline was wider than expected, while June’s number of building permits actually exceeded estimates. Analysts attribute the decline in new construction to the combined impact of rising prices and higher mortgage rates, which has lowered demand for housing.
What to Be on the Lookout for Today
• June’s existing home sales will be published. According to the National Association of Realtors® existing home sales fell 3.4% in May from April and 8.6% year-over-year. The median sales price rose above $400,000 for the first time.
• EV leader Tesla (TSLA) will share its latest results. Meanwhile, company CEO Elon Musk is involved in a legal battle with Twitter (TWTR) as he looks to abandon his purchase of the social media platform.
• Abbott Labs (ABT) is also scheduled to report earnings. The company just restarted baby formula production at a plant in Michigan as the nation deals with an ongoing shortage.
Finding Free Money for College
Scholarships and grants are two types of financial aid that don’t need to be repaid, making them feel like free money for college. Students may need to put in a little legwork to find and apply for scholarships or grants, but minimizing the amount of money you have to pay for tuition can be worth the hustle.
Lightening your college costs is great, but how do you know what’s available to you? There are countless scholarships, fellowships, grants, and more to make sense of. Streamline it all with SoFi’s Scholarship Search tool and save your college stress for tests.
A Few Headlines That Should Be on Your Radar
Amazon (AMZN) will be unveiling a redesigned Prime Video over the next two weeks as it concludes an overhaul that was 18 months in the making. Users may find it easier to determine what is free vs. paid, and more quickly navigate to their favorite show. Read more >> Toys “R” Us seemed gone for good after it declared bankruptcy and shuttered its stores in 2018. A small relaunch was then aborted when the pandemic hit. Now, the comeback is in full swing. Macy’s (M) opened up 400 “shops-within-shops” last August, and now will expand to bring a Toys “R” Us to all its stores. Special toy demonstrations and photo opps are part of the experience. It’s also boosting Macy’s sales. Read more >> Delinquencies are rising as it seems more Americans are forgetting to manage their personal finances amid external distractions. Troubling headlines can prompt anxiety and a crisis mentality that makes it easy to forget everyday tasks like paying the utility company. However, there are ways to keep the bills paid and achieve peace of mind amid the noise of external events. Read more >> Here’s a look at the states with the cheapest in-state tuition and fees at four-year flagship university programs. College tuition prices vary widely by state at public four-years institutions. Generally speaking, public colleges in the South and the West are the cheapest to attend. Colleges in the Northeast are the most expensive. Read more >>Not-So-Breaking News
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Tech startup Synchron has developed a product that will allow paralyzed patients to communicate using their thoughts. Earlier this month, the company implanted its first device into a US patient. The product is similar to one developed by Elon Musk called Neuralink, which is awaiting FDA approval.
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Meta’s (META) Instagram is launching a new payments option, which will allow users to make purchases from small US businesses via direct message. The new feature is called “Payments in Chat.”
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Hasbro (HAS) reported mixed results, missing on revenue with earnings that beat analyst estimates. CEO Chris Cocks said the company benefited from growth in sales of games Magic: The Gathering and Wizards of the Coast.
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Halliburton (HAL) beat Wall Street projections on the top and bottom lines. The oil services company benefited from price increases and strong demand.
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Johnson & Johnson (JNJ) announced better-than-expected profit and revenue, but lowered its full-year outlook. The consumer goods giant cited robust sales in consumer health and pharmaceuticals, including its COVID-19 vaccine, as contributors to its strong performance.
Financial Planner Tip of the Day
"Saving money in college can feel like an impossible task, but having an effective budget in place can help. Starting the college experience with a budget in place can help curb impulse purchases, and can actually relieve some of the pressure around spending. If a student knows how much money they can allocate for, say, going out, it could be easier to say no to the pressure of a spendy night out with friends."
Brian Walsh, CFP® at SoFi