Friday,
July 29, 2022
Market recap
Dow Jones
32,529.63
+332.04 (+1.03%)
S&P 500
4,072.43
+48.82 (+1.21%)
Nasdaq
12,162.59
+130.17 (+1.08%)
Top Story
Stocks Continue Rally Despite Negative Second-Quarter GDP Reading
• US economic growth fell 0.9% in the second quarter which was lower than Dow Jones projections of a 0.3% gain. First-quarter GDP declined by 1.6% which means there have now been two straight quarters of decline. Some believe this constitutes a recession, however Fed Chair Jerome Powell said he doesnāt think the US is in a recession largely because of the strong job market.
• Despite the drop in GDP, US stocks continued their rally Thursday. Some on Wall Street think an economic downturn may cause the Federal Reserve to pull back or end its hawkish rate hike campaign.
What to Be on the Lookout for Today
• Juneās Personal Consumption Expenditures Index is due. This is the Fedās preferred measure of inflation. Mayās index showed prices rising 6.3% year-over-year, remaining unchanged from April. Also set for release is Juneās real consumer spending, this monthās Chicago PMI, and the University of Michiganās consumer sentiment survey.
• On the earnings front, consumer products giant Procter & Gamble (PG) rounds out the week of earnings releases. It recently announced it will test its Tide products in outer space through a partnership with SpaceX. Oil giants Chevron (CVX) and ExxonMobil (XOM) will also report results.
Recession Help Center
Although there is some debate around this topic, two consecutive quarters of decline in a country's GDP generally constitutes a recession.
Navigating a recession can be overwhelming, but being prepared for when an economic downturn hits can help you get through to the other side successfully. SoFi has created this hub to provide you with information and resources to help guide you through uncertain economic conditions and market volatility. Dive in!
A Few Headlines That Should Be on Your Radar
Gas prices have actually fallen a bit recently amid the push and pull between falling demand and tight supply. Now, energy markets have been rattled once again as Russia has decided to cut its natural gas deliveries to Europe. The resulting chain reaction could cause international oil prices to spike as demand shifts away from natural gas to oil products. Plus, thereās something affecting US infrastructure that suggests motorists could be facing āpain at the pumpā for an extended period. Read more >> Solar stocks performed well yesterday after members of Congress announced theyād struck a spending deal that includes $369 billion for clean energy projects. The money would go toward infrastructure and clean energy jobs. Thereās also an extended tax credit, and portions dedicated to EVs as well as hydrogen and electric power. Global energy consumption hit a new all-time high in 2021, but solar power also set a record thatās worth noting. Read more >> A startup wants to both make your dinner and deliver it to your front door ā all through the use of partially cooked meals and mobile kitchens located in vans. The company says itās not a food truck or a delivery service. Wonder could be considered a hybrid food company that wants to take the place of traditional takeout. It argues its food is delivered hot and never soggy. Right now itās only in one state, but might be coming to your neighborhood in the next few years. Read more >> We've broken down the average retirement savings by age in the US, from ages 30 and up. See where you fit in the country's averages. When saving for retirement, it can be helpful to see how one compares to others in their age range. Read more >>Not-So-Breaking News
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JetBlue (JBLU) agreed to buy Spirit Airlines (SAVE) for $3.8 billion. If approved by regulators, the takeover will create the country's fifth-largest airline. This follows Spirit having ended its merger agreement with Frontier Airlines (ULCC) on Wednesday.
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Thanks to sales of its COVID-19 vaccine and its antiviral treatment Paxlovid, Pfizerās (PFE) second-quarter earnings and sales beat Wall Street expectations. Paxlovid brought in $8.1 billion during the second quarter while Pfizerās COVID vaccine brought in $8.8 billion. The company expects to bring in $32 billion from its COVID-19 vaccine in 2022.
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Shares of Comcast (CMCSA) tumbled on Thursday after the cable company failed to add broadband subscribers for the first time ever. Peacock, which is owned by Comcast, said paid subscribers remained flat at 13 million after adding 4 million during the prior quarter.
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Royal Caribbean (RCL) shares rose after posting a narrower-than-expected loss during the second quarter. The cruise giant also said booking volumes came in 30% above corresponding levels in pre-pandemic 2019.
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The team behind Solana, a cryptocurrency, opened physical retail space at Hudson Yards in Manhattan on Thursday. The goal of the storefront is to onboard and educate anyone new to the crypto space.
Financial Planner Tip of the Day
"With the 70-20-10 rule, you aim to put 70% of your income into essential and discretionary spending, 20% toward savings or investing, and 10% toward debt paydown and charitable giving. These ābucketsā can help you prioritize and achieve your financial goals."
Brian Walsh, CFPĀ® at SoFi