Tuesday,
July 26, 2022
Market recap
Dow Jones
31,990.04
+90.75 (+0.28%)
S&P 500
3,966.84
+5.21 (+0.13%)
Nasdaq
11,782.67
-51.45 (-0.43%)
Top Story
Stocks Waver in Choppy Session, Most Investors on Pause, National Activity Index Below Zero
• US stocks were mixed Monday as the final trading week of July kicked off. Earnings season continues in earnest all while the Federal Reserve is set to announce another rate hike tomorrow. Roughly one-third of companies in the S&P 500 are set to report earnings this week.
• Wall Street veterans say the market was essentially in a holding pattern yesterday. This could be due to a number of looming events in addition to the busy earnings calendar and Fed policy decision. The most significant is arguably Thursday’s second-quarter GDP announcement. If it shows a contraction the economy will unofficially be considered in a recession.
• The Chicago Fed’s National Activity Index showed US economic growth is continuing to slow. June’s reading checked in at -0.19. Any value below zero indicates a rate of growth below the historical trend. May’s reading was also revised downward to -0.19.
What to Be on the Lookout for Today
• July’s Consumer Confidence Index is due from the Conference Board. In June the reading tumbled to its lowest level in over a year.
• May’s S&P CoreLogic Case-Shiller Home Price Index is due. April’s results showed home prices increased 20.4% on an annual basis. The index hasn’t declined since November 2021.
• June’s new home sales are also set for release. In May the figure came in below projections which analysts identified as a sign the real estate market could be cooling.
• Two giants of the tech sector will hand in their latest report cards. Microsoft (MSFT) and Google parent Alphabet (GOOGL) will post earnings. This follows the tech sector’s recent rally that’s taken root during this earnings season.
• Investors will also be watching as several of the food industry’s major players will publish quarterly results. Coca-Cola (KO), McDonald’s (MCD), and Chipotle (CMG) are all on the earnings calendar.
With Rates Set To Rise, Does Waiting For Potential Federal Student Loan Forgiveness Make Sense?
President Biden has floated the idea of forgiving $10,000 from individual borrower’s student loan accounts, which would cost upwards of $321 billion. Close to a third of all student loan borrowers could see their debt completely forgiven under that policy.
$10k of student loan cancellation is great, but what if you’ve got more than $10k in federal student debt?
Refinancing student loans — when a private lender pays off your existing loans and issues you a new loan with new terms — can lower the interest rate you’re currently paying or reduce your monthly payments. One of the downsides of refinancing your federal student loans with a private lender is that you lose access to federal benefits.
But with SoFi, you can refinance just a slice of your federal student loan, and leave the rest in your federal loan account for the possible forgiveness you’ve been waiting for.
And with the Fed expected to raise rates again this week, you’ll likely see more savings by refinancing now before rates go even higher.
View your rate and see if refinancing a slice of your federal student loan makes sense for your financial plan.
A Few Headlines That Should Be on Your Radar
Student loans could end up being forgiven outright by law, or there could be a set amount that is forgiven. It’s all up in the air as Congress considers legislation. In the meantime, how should borrowers proceed? Some borrowers who have applied for loan forgiveness had their account transferred to a different servicing company, which can be confusing. Plus, payments are set to resume September 1. We’ve got you covered in terms of what to consider and the options available. Read more >> Speed dials? Gas Gauges? That’s so last century. Apple (AAPL) wants to get its new CarPlay software into as many vehicles as possible. It could pave the way for massive sales opportunities, on par with the App Store. Executives also know that if a person falls in love with the CarPlay interface they’re less likely to consider an Android phone. But what car brands are on board, and which ones could go their own way? It’s a question that could shape the auto industry’s next decade-plus. Read more >> Are canned cocktails and margarita-flavored beverages taking the place of hard seltzer? Is light beer making a comeback? The fizzled fad is costing beverage makers big bucks. Boston Beer Co.’s (SAM) Truly brand sales are down year-over-year and the company just cut its forecast for the category. The numbers behind hard seltzer’s slide are pretty stunning, as those low-calorie fruity options may not be hitting like they used to. Read more >> Can the President cancel student loan debt? Here’s an overview of some ways the next president might tackle the question of student loan forgiveness. Read more >>Not-So-Breaking News
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In an unexpected move, Weber (WEBR) announced CEO Chris Scherzinger will step down and be replaced by Chief Technology Officer, Alan Matula on an interim basis. The grill maker says the change comes as demand for its products has fallen, both in-store and online.
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According to the latest monthly snapshot from Nielsen (NLSN), streaming accounted for one-third of all TV viewership in June. Streaming TV’s 34% market share is 6% higher from the same period in 2021. The portion attributed to broadcast and cable TV was the smallest ever recorded.
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Around 2,500 employees are now preparing to go on strike at three Boeing (BA) plants near St. Louis after their union voted to reject a contract offer over the weekend. The aeronautics company said it will use its “contingency plan” in the event of a strike, while the union says it will only accept a contract that’s “fair and equitable.”
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Per a recent survey from travel website Upgraded Points, nearly 20% of Americans are afraid to check their credit card statement as interest rates rise. While the nation’s credit card balances were trimmed throughout 2020 they’ve been creeping back up again, especially given inflation and higher costs for food and gas.
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The National Football League is launching its own streaming service. Called NFL+ it will cost $4.99 a month and include all out-of-market preseason games, as well as mobile device access to select games, including the playoffs.
Financial Planner Tip of the Day
“If you have student loans, they may or may not be at a low rate, and regardless, they may or may not feel manageable. It can be a good idea to investigate how much money you can save when you refinance your student loans into one convenient, low interest loan.”
Brian Walsh, CFP® at SoFi