Tuesday,
August 9, 2022
Market recap
Dow Jones
32,832.54
+29.07 (+0.09%)
S&P 500
4,140.06
-5.13 (-0.12%)
Nasdaq
12,644.46
-13.10 (-0.10%)
Top Story
Stocks Mixed As Wall Street Awaits Updated Inflation Report
• US stocks were mixed Monday as investors await the updated CPI report for July. The reading will potentially provide more clarity on the Federal Reserve's next moves at its September meeting.
• In the meantime, Wall Street is parsing through earnings reports to get a sense of just how much inflation is impacting companies' top and bottom-line performance. Weaker than expected figures from NVIDIA (NVDA) weighed on the tech sector and broader averages yesterday.
• Elsewhere, some clean energy companies like Tesla (TSLA) saw their share prices rise after the Senate passed a $430 billion climate bill known as the "Inflation Reduction Act." The House is expected to pass the legislation later this week.
What to Be on the Lookout for Today
• The NFIB Small Business Optimism Index for July is due. June’s index marked a nine-and-a-half year low. Inflation was identified as the biggest challenge by 34% of business owners, which is the highest level since 1980. Also, keep an eye out for the second-quarter nonfarm productivity reading, which declined 7.3% in the year’s first three months.
• Online gaming and creation platform Roblox (RBLX) will hand in its most recent report card. Gucci (PPRUY) recently announced pop star Miley Cyrus will promote its new Flora fragrance as an avatar in the luxury brand’s metaverse community on Roblox. Cryptocurrency exchange Coinbase (COIN) is also set to publish its latest earnings. Its share price popped last week when a deal was announced with BlackRock (BLK), in which the investment management company will help its institutional clients purchase bitcoin (BTC).
Is Now A Good Time to Refinance Your Student Loans?
Refinancing your student loans is a good idea when you can snag a lower interest rate. But what else might you consider when deciding if now is the right time to refinance?
Reflect on how your financial situation has changed since you took out your loans originally. If your financial situation has since improved, your higher credit score and income could help you qualify for lower interest rates.
Look into your federal student loan benefits (such as student loan deferment and forbearance, income-driven repayment plans, and the graduated repayment plan) — are you planning to take advantage of them? Refinancing could make sense, if not.
Finally, if you’re going to take out a large loan (like a mortgage loan), you may want to reduce your debt-to-income ratio (DTI). A lower DTI generally signals better odds of loan approval and better interest rates. You can achieve this by decreasing your monthly student loan payments by taking out a longer-term student loan through refinancing. It might make sense to refinance your student loans at least six months before buying a home or making any other large purchase. That will give you time to recoup the points lost after a hard credit inquiry. Once the mortgage or other big loan has been secured, you could refinance again, this time picking the lender offering the lowest rate, not just the lowest payment. You can refinance student loans as many times as you wish.
If you think student loan refinancing may be a good option for you, the next step is to check out several refinancing providers to compare interest rates and other features. View your rate with SoFi here.
A Few Headlines That Should Be on Your Radar
The Senate passed a major spending plan that focuses on climate change, the tax code, and health care. How will it impact individuals and corporations? As is often the case on Capitol Hill, a series of compromises were struck to get the deal done. For example, what is the carried interest loophole and why was it replaced by a stock buyback tax? Plus, it could be a boom period for battery makers if the legislation passes in full. Read more >> Despite the economic slowdown this year and rising inflation, demand for ride-hailing apps remains strong. Digital advertisers see that as an opportunity. Since 2019 Uber (UBER) has been selling digital ads in its Uber Eats app. More recently, T-Mobile (TMUS) purchased a company that places ads in cars. Now, Lyft (LYFT) is launching a division that will focus on digital ads in cars, tablets, and its app. Here’s where riders can expect to see them. Read more >> Research shows Americans take fewer vacation days than Europeans. It seems after COVID-19 lockdowns, more US workers are stepping away for a break — but are they truly disconnecting? It’s not just email that keeps workers from enjoying time away, but a series of anxieties related to the current state of the labor market. We have a few tips to help ensure your vacation is rooted in refreshment and relaxation. Read more >> Do federal student loans ever expire? Short answer: no. Read on to learn more about why your student loans aren’t likely to expire and more effective ways to deal with student loan debt. Read more >>Not-So-Breaking News
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NVIDIA (NVDA) shares fell yesterday after the company's preliminary earnings report showed a massive revenue miss. The chipmaker cited weaker-than-expected gaming revenue and said its data center segment has been impacted by supply chain disruptions.
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On Monday, Pfizer (PFE) announced it’s purchasing Global Blood Therapeutics (GBT) for $5.4 billion. Sales at Pfizer have started to slow in light of decreasing demand for its COVID-19 products, and the biotech company has been on the lookout for acquisitions to help boost its revenue.
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According to the Wall Street Journal, CVS Health (CVS) is working with bankers to potentially acquire Signify Health (SGFY) as the pharmacy chain looks to grow its in-home health services. Initial bids are expected within the next week.
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Shares of Palantir (PLTR) fell yesterday morning after the company reported earnings that showed a loss per share that came in below expectations. With that said, revenue increased 26% on an annual basis and the software company's commercial customer count increased 250% year-over-year.
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Bed Bath & Beyond (BBBY) shares jumped more than 60% yesterday morning after the heavily shorted stock became one of the most searched names on Reddit’s WallStreetBets discussion board. There was no apparent catalyst for the move, however chatter on the forum has had a direct impact on certain stocks over the past year.
Financial Planner Tip of the Day
“A debt-to-income ratio helps to determine whether someone qualifies for a loan, credit card, or line of credit and at what interest rate. To calculate your DTI, divide your monthly debts by your gross monthly income. In general, mortgage lenders like to see a DTI ratio of no more than 36%, though that is not necessarily the maximum.”
Brian Walsh, CFP® at SoFi