Thursday,
August 18, 2022
Market recap
Dow Jones
33,980.32
-171.69 (-0.50%)
S&P 500
4,274.04
-31.16 (-0.72%)
Nasdaq
12,938.12
-164.43 (-1.25%)
Top Story
Stocks Finish Down, but Rebound off Session Lows in Response To Fed Minutes
• US stocks fell Wednesday, snapping a five-day winning streak for the Dow. Still, all three major averages pared their losses after the Fed’s July meeting minutes were released. Some Wall Street analysts say investors sensed the central bank could be moving in a more dovish direction, which arguably built upon last week’s improving inflation numbers.
• Stripping out the effects of falling gasoline prices, retail sales rose in July. This is especially important given the role consumer spending plays in the US economy. It’s also in spite of soaring inflation, putting pressure on Americans’ wallets.
• MBA weekly mortgage applications fell to hit their lowest mark in 22 years. Meanwhile, the average rate on a 30-year fixed rate mortgage fell week over week. That said, at 5.45%, it’s two full percentage points higher than this time last year, which has sapped demand.
What to Be on the Lookout for Today
• The Labor Department will release initial and existing jobless claims, metrics that have been on the rise as of late. Last week, 262,000 Americans filed for unemployment benefits, an increase of 14,000. That’s the largest number of weekly claims in 2022.
• July’s existing home sales will also be published to continue the week’s housing-market focus. The National Association of REALTORS® reported existing home sales fell 5.4% in June month-over-month, and 14.2% on an annualized basis.
• Cosmetics giant EstĂ©e Lauder (EL) will hold a conference call with analysts to discuss its fourth-quarter results for fiscal 2022. Last week, the company announced it will transition all of its corporate vehicles to 100% electric by 2030. EstĂ©e Lauder is also reportedly in talks to purchase luxury brand Tom Ford.
Tips for Keeping Your Bank Account Safe
Research shows that almost two out of three Americans are banking online. No surprises here given the ease of a digital-first banking experience. A little diligence goes a long way in keeping these convenient digital solutions safe from fraudulent activity.
For starters, avoid accessing your account on Public WiFi networks, which aren’t secure and give hackers easy access to hijacking your session and logging into your account with your credentials.
Also, keep an eye out for phishing scams — usually in the form of emails that trick you into providing personal and banking information to fraudsters.
Don’t forget to monitor automatically recurring payments, since some companies may fail to stop an automatic withdrawal despite your request to do so.
Safeguard your checkbook, debit cards, and credit cards — be as vigilant in protecting these items as you would cash! Choose unique and strong passwords, keeping them somewhere very safe. Enable two-factor authentication to add an additional layer of protection and security.
Last, but not least, try turning on bank alerts. Notifications such as email, app, and text alerts can help you protect your account — if you are notified of an event you’re not responsible for, it’s a great clue fraudulent activity may be happening on your account! These alerts are one of many wonderful benefits available with SoFi’s Checking and Savings account. Now may be a good time to consider switching because SoFi members with direct deposit can earn up to 2.00% annual percentage yield (APY) on all account balances — set up Direct Deposit here.
A Few Headlines That Should Be on Your Radar
Inflation is changing consumer shopping habits. Two retailing giants are experiencing the fallout differently. Walmart (WMT) has reportedly seen a change in its foot traffic. Target (TGT) is seeking to unburden itself. Here’s why the retailer’s pain is a bargain-shopper’s delight. Read more >> Some hotels are offering parents traveling with babies solutions to common vacationing challenges. At some resorts, parents are checking into child-proofed rooms outfitted with amenities like bottle-warmers, baby gates, and cribs. Of course we can’t forget to mention – the baby butler. Read more >> The Biden administration has approved another $3.9 billion in student loan forgiveness. Lawmakers continue to debate a more extensive program. This latest round of student loan cancellation applies to ITT Tech students who attended the school after 2005, up until it closed down. But a number of questions remain, ahead of a looming deadline. Read more >> Amid conflicting economic data, there is one sector of the economy that appears to be sending decidedly “hard landing” signals. SoFi’s Head of Investment Strategy explains what you should consider in the current climate before making investment decisions. Read more >>Not-So-Breaking News
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Lowe’s (LOW) reported better-than-expected earnings, but missed on revenue. The home improvement retailer said operational improvements helped offset weak sales.
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English soccer club Manchester United (MANU) saw its share price jump in response to a tweet by Elon Musk. The billionaire tweeted “I’m also buying Manchester United,” which he later claimed was a joke. The price spike was brief and has since moderated.
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Best Buy (BBY) plans to sell over-the-counter hearing aids this fall. The consumer electronics company’s announcement came after the FDA approved the OTC sale of these devices beginning mid-October.
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TJX (TJX) beat Wall Street forecasts for profits, but posted lower-than-expected revenue. The discount department store’s CEO Ernie Herrman attributed tepid sales to the impact of inflationary headwinds on consumer spending.
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Krispy Kreme’s (DNUT) share price tumbled after it missed analyst estimates on the top and bottom lines. Mike Tattersfield, the donut seller’s chief executive, blamed the disappointing results on “unique economic pressures” that are affecting consumers.
Financial Planner Tip of the Day
“No matter how you prefer to pay for purchases, checking your bank and credit card statements regularly for suspicious or erroneous charges can help you spot fraudulent activity right away. You may want to do this daily during periods of high usage, like around the holidays when it’s easier for fraudulent charges to slip through.”
Brian Walsh, CFP® at SoFi