Monday,
August 15, 2022
Market recap
Dow Jones
33,761.05
+424.38 (+1.27%)
S&P 500
4,280.15
+72.88 (+1.73%)
Nasdaq
13,047.19
+267.27 (+2.09%)
Top Story
Stocks Pop As Inflation Slows, Investors Ponder Fed’s Next Steps, Import Prices Fall
• US stocks rose Friday as last week’s inflation data may have convinced investors that the Fed will enact a less hawkish stance in the coming months. As price increases have become entrenched, the market has attempted to predict where the central bank will take things in terms of rate hikes.
• There’s some mixed sentiment as to the market’s recent rally. Some maintain this is a typical bear market rally while others are convinced the recent gains point to a more significant rebound.
• Preliminary results from the University of Michigan’s latest report shows consumer sentiment rose to beat analyst expectations in July. Inflation expectations also fell. Declining gas prices contributed to the upbeat report.
• July’s Import Price Index fell. It marked the third straight month of decline for nonfuel imports, decreasing 0.5% month-over-month. On an annual basis, import prices rose 8.8%, representing the smallest such increase since prices advanced 7.1% between March 2020 and March 2021.
What to Be on the Lookout for Today
• The NAHB/Wells Fargo (WFC) Housing Market Index is due for August. This monthly survey provides a snapshot view of the single-family housing market, from the perspective of builders’ confidence. The index declined in July for the seventh consecutive month.
• August’s Empire State Manufacturing Index will be published by the New York Fed. The monthly survey takes a close look at the region’s output.
• Online employment marketplace Ziprecruiter (ZIP) is on the earnings calendar, providing investors with more insight into the job market. The company will discuss its second-quarter results with analysts. Last week, one of Ziprecruiter’s economists said demand for labor remains high thanks to strong consumer spending.
What’s the Difference Between APR and APY? With One You Are Charged Money, And With The Other You Earn Money.
APR and APY both have to do with interest, but in dramatically different ways. One saves you money if it is lower, and the other earns you money if it’s higher.
Annual percentage rate (APR) is an important part of researching your options when choosing a financial institution for borrowing money.
With a loan, the interest rate (APR) is a percentage charged by a lender for the use of money, with calculations based upon the loan’s principal. A lower APR means you pay less in interest over the life of the loan.
On the other hand, annual percentage yield (APY) is an important part of saving money. In the context of a savings account, a financial institution agrees to pay you a certain amount of interest (APY) based upon the money you have deposited in that institution.
A high APY means your money earns you money just by sitting in your account.
SoFi members with direct deposit can earn 2.00% annual percentage yield (APY) interest on all account balances in their Checking and Savings accounts (including Vaults). That means you’ll earn more interest in one week than you would in one year in a big bank’s savings account. Set up direct deposit with SoFi here.
A Few Headlines That Should Be on Your Radar
This week’s earnings calendar features two major big-box retailers in Target (TGT) and Walmart (WMT). Investors will study how each firm is navigating the pressures of rising prices and inflation. It’s an unavoidable reality that each company competes with Amazon (AMZN) for ecommerce sales all while maintaining a brick-and-mortar presence. But for Walmart, its latest bid to gain market share is entirely digital — and rooted in the entertainment sector. Read more >> Zantac was pulled off the shelves in 2020 due to cancer-causing concerns. Lawsuits have been filed against health and pharmaceutical companies with ties to the product. Pfizer (PFE), GSK (GSK) and others are bracing themselves as the first trial begins this month. Americans who took the medication will be watching as evidence for the cancer link gets more scrutiny. We’re also taking a look at potential settlements. Read more >> After some early success, subscription clothes services like Stitch Fix (SFIX) are struggling to remain profitable. A diminishing customer base and waning interest have resulted in slashed valuations and initiatives to change its image as a fee-based service. Meanwhile, some shoppers are turning to Amazon’s (AMZN) “try now, buy later” as a less expensive alternative. The question is if there’s a market for in-house styling. Read more >> The concept of “making your money work for you” doesn’t need to feel mysterious. Read on to identify eight steps that can help you learn how to make the most of your money. Read more >>Not-So-Breaking News
-
OLO (OLO) saw its share price plunge after it reported lower-than-expected revenue while beating profit forecasts by 1 cent. The digital ordering and restaurant delivery company has struggled with longer sales cycles and slow implementation at customer sites. It also disclosed Subway is beginning to replace their product with one of their own.
-
Honest Co. (HNST) missed analyst expectations for profit, but beat on revenue. The eco-friendly and non-toxic personal care products company says it benefited from strong sales of diapers and wipes while struggling with rising costs.
-
Poshmark (POSH) fell short of Wall Street expectations for profit while posting better-than-expected sales. The social ecommerce company also delivered an outlook for Q3 that fell short of analysts' estimates.
-
Spectrum Brands (SPB) reported lower-than-expected results on the top and bottom lines. The Fortune 500 company owns various brands including OmegaOne and George Foreman. Executives blamed tepid demand, the impact of adverse weather, and costs related to higher-than-expected inventory levels.
-
Joblist conducted a recent survey that revealed 26% of workers who quit during the “Great Resignation” regret doing so. Primary reasons for the sentiment included difficulty finding a new job, dissatisfaction in their new role, or positively re-evaluating their old position.
Financial Planner Tip of the Day
"Short-term money is any money you might need in the next couple of years, such as an emergency fund (so long as you have fast access to this money), travel fund, wedding fund, or down payment savings. The priority is it is there when you need it, which is why many people use a high-yield savings account or another cash equivalent."
Brian Walsh, CFP® at SoFi