Friday,
August 12, 2022
Market recap
Dow Jones
33,336.67
+27.16 (+0.08%)
S&P 500
4,207.27
-2.97 (-0.07%)
Nasdaq
12,779.91
-74.89 (-0.58%)
Top Story
Better-Than-Expected Inflation Reports Boosts Stocks Early On, Major Averages Finish Mixed
• July's producer price index decreased 0.5% on a monthly basis in part due to a drop in energy prices. The gauge, which measures final-demand wholesale prices, gained 9.8% from the same time last year. The monthly drop seemed welcomed by Wall Street, following an encouraging consumer price index reading for July which came in lower than expectations. Investors sent shares mostly higher Thursday morning on the back-to-back inflation reports which were better than expected. The major averages finished mixed to end the day.
• Sentiment was also boosted by earnings reports. After posting stronger than anticipated subscriber numbers during the prior quarter, Disney (DIS) shares jumped, which helped lift the Dow Jones Industrial Average. The media giant posted earnings and revenue that beat expectations. Disney plans to increase prices for its flagship streaming product, Disney+.
What to Be on the Lookout for Today
• July’s import price index, which rose by a less-than-expected amount in June, will be released. The University of Michigan will publish the preliminary results of its consumer sentiment survey for August, as well as its five-year inflation expectations.
• Spectrum Brands (SPB), which owns brands like Kwikset, National Hardware, Cutter, and Remington is scheduled to report. The company saw its target price downgraded in a report from Wells Fargo (WFC) several weeks ago.
Why a Good Credit Score is Important
In a nutshell, having a good credit score provides opportunities for you financially and can help you spend less overall on financing. If you want to buy a car, a good credit score can help you find a car loan at a low rate. Similarly, having good credit is key to opening a credit card.
Having a bad credit score — generally anything under 500 on the scale of poor to exceptional credit — can limit your financial opportunities. If you have bad credit, you may not qualify for loans that you apply for, or if you do, you may have higher interest rates. You also may not get approved for a credit card, unless it’s a secured card, which requires a deposit and has a low credit limit. A bad credit score could even hamper your job search, particularly if the job involves handling money.
The bottom line is that having bad credit hinders your ability to grow financially, so it’s important to do what you can to maintain a good credit score.
SoFi Relay is a user-friendly app that allows you to monitor and keep track of your credit score, among other perks that could assist with financial planning and managing your net worth.
Check out the features SoFi Relay offers to help bolster your financial success.
A Few Headlines That Should Be on Your Radar
Thinking about buying an electric vehicle? The spending bill making its way through Congress could disrupt the market in a big way. Over the long term, analysts think EV costs could fall, because the legislation focuses on building up a domestic supply chain. In the meantime, shortages of things like batteries could make EVs hard to come by. This begs the question: Is now the time to act if you’re in the market? Read more >> A new survey from Bankrate says affordability is the biggest challenge facing Gen Z and millennials who want to buy a home. Meanwhile, mortgage rates are on the rise as well. Perhaps you are wondering if it’s the right time to buy a home, or if you have enough saved up for a down payment. There are several things to consider when it comes to getting yourself into position to buy. Read more >> Could new sports leagues be coming to a TV screen near you in the next few years? That’s one of Overtime’s goals, after the sports media company snagged $100 million in a series D round. Founded in 2016, Overtime produces dozens of online shows and boasts tens of millions of followers on social media. It’s already inked partnerships with companies like Topps to make trading cards. What’s next for its basketball and seven-on-seven football leagues? Read more >> SoFi Checking & Savings has increased the APY to 2.00% for direct deposit members, and 1.00% for members without direct deposit. With SoFi, you’ll earn more interest in one week than you would in one year in a big bank’s savings account. Read more >>Not-So-Breaking News
- Warby Parker (WRBY) reported a smaller-than-expected loss in its fiscal second quarter and sales figures that were largely in-line with estimates. However, the eyeglass company did cut its full-year forecast, joining other retailers that have lowered their expectations for the second half of 2022.
- Bumble's stock tumbled after missing estimates on both the top and bottom lines. The online-dating company said it had 3 million paying users in the second quarter and expects a $6 million hit due to the war in Ukraine.
- Canada Goose (GOOS) posted quarterly revenue figures that handily beat Wall Street's expectations. CEO Dani Reiss attributed the beat to better direct-to-consumer sales. The chairman also said first-quarter sales tend to be a “leading indicator of the year ahead” and saw them as “very promising.”
- Utz (UTZ), the salty-snack conglomerate, posted net income and revenue figures that beat expectations. The company also raised its outlook for the rest of the year.
- The national average for a gallon of gas fell below $4 on Thursday. Analysts expect prices to fall in the short term, but they are watching factors like oil demand, the ongoing war in Ukraine, and even the weather to see where the average price heads toward the end of the year.
Financial Planner Tip of the Day
"When building a personal budget, it can be helpful for individuals to get a good grip on the money that’s coming in and going out. It’s a common mistake to set budget categories with aspirational numbers pulled out of thin air, only to have a budget fall apart later on when faced with reality."
Brian Walsh, CFP® at SoFi