Tuesday,
August 2, 2022
Market recap
Dow Jones
32,798.40
-46.73 (-0.14%)
S&P 500
4,118.63
-11.66 (-0.28%)
Nasdaq
12,368.98
-21.71 (-0.18%)
Top Story
Stocks Waver to Kickoff Week, Market Adopts Holding Mode, Manufacturing in Focus
• US stocks fell Monday in an up-and-down session. Wall Street veterans say the market is in “wait-and-see” mode ahead of Friday’s jobs report. While recessionary fears have been prevalent in recent months, the labor market has remained a bright spot.
• Analysts also contend investors are expecting a less hawkish Fed going forward. The central bank enacted a 75-basis-point hike last week in an attempt to cool off inflation. There’s a sense future hikes could be smaller, effectively slowing the pace at which rates will rise.
• S&P Global’s preliminary manufacturing PMI showed the US factory sector slowed in July. Both new orders and output fell. Manufacturers say this is the most challenging business environment since 2009, excluding the pandemic lockdown periods.
• The ISM manufacturing index showed the sector expanded, but at its slowest pace since 2020. It also showed some inflationary pressures slowing.
• Construction spending dipped in June as single family home building declined sharply. Analysts attribute this to rising mortgage rates and the resulting fall in demand. While construction spending fell month-over-month it actually rose 8.3% on an annual basis.
What to Be on the Lookout for Today
• The labor market will be in focus as the June JOLTS report is due. This tracks both job quits and openings. Job openings and quits declined in May but the number of open positions still outnumbered available workers by nearly two-to-one.
• Starbucks (SBUX) will hand in its latest report card, providing investors a snapshot into aspects of consumer spending and how inflation is making an impact. The company recently announced the closure of some stores in order to ensure worker’s safety.
• JetBlue (JBLU) is also scheduled to share results. Last week the company announced it had secured its acquisition of Spirit Airlines (SAVE).
5 (Little Known) Reasons to Get Renters Insurance
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A Few Headlines That Should Be on Your Radar
The housing market is cooling, but don’t expect to see price declines anytime soon. At least, in most markets. The rate of growth dropped a record-breaking 2% in June from the prior year, but prices in most markets remain sticky and an inventory shortage means high prices will persist. Here’s a look at where things could be headed before 2022 is over. Read more >> More Americans feeling the inflation squeeze are finding refuge at dollar stores and finding creative ways to save. We’ve got tips on how you can win by following similar steps. Some families are feeding their families with dollar-store purchases. Others are implementing energy saving practices amid rising prices for essentials. For many, cutting out entertainment spending simply isn’t enough. Read more >> An EV truck manufacturer just announced it will purchase a battery power pack maker. It’s the type of deal that illustrates what’s going on with electric vehicles in general. Nikola (NKLA) just started shipping its heavy electric trucks earlier this year, with plans to ship between 300 and 500 for 2022 as a whole. It's acquiring Romeo Power (RMO), who needs money just to keep the lights on. This is all part of the delicate supply and demand balance that continues for the EV sector – with batteries front and center. Read more >> Rental-friendly upgrades exist! We've got some rental friendly renovations that can make your house feel more like a home. Renter-friendly updates may not mean updating your kitchen cabinets or even painting a wall, but there are some relatively cheap and fast ways to instantly update your rental. Read more >>Not-So-Breaking News
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Boeing (BA) shares popped on the news that it was cleared to resume 787 deliveries following their suspension in June 2021 on manufacturing quality concerns. The aerospace company also got a lift as a pending strike was postponed. The union representing 2,500 employees at three plants agreed to consider a revised contract proposal.
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NIO (NIO) announced deliveries were up in July compared to the same period last year. The Chinese electric vehicle manufacturer has experienced three consecutive months of increased deliveries following a drop that occurred in April due to COVID-19 shutdowns.
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Alibaba (BABA) said it is committed to retaining its NYSE listing after being added to the SEC’s delisting risk list last week. The US securities regulator said the ecommerce giant failed to meet auditing requirements.
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Global payments (GPN) announced it will buy EVO Payments (EVO). The fintech company will pay $34 a share, reflecting a valuation of $4 billion, in a move aimed at expanding its international reach.
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Valvoline (VVV) will sell its global products business to Saudi Aramco in a $2.65 billion deal that will close at the end of the year or early in 2023. The company plans to focus on retail services, a segment Valvoline expects to see grow in terms of sales by 20% compared to last year.
Financial Planner Tip of the Day
"If you have savings that is not currently earmarked for a specific financial goal, take some time to think about what goal you’d like to apply it to. A great first saving goal is to have three to six months of living expenses in an emergency fund. After that, it might be good to turn your attention toward retirement savings and investing."
Brian Walsh, CFP® at SoFi