Monday,
August 22, 2022
Market recap
Dow Jones
33,706.74
-292.30 (-0.86%)
S&P 500
4,228.48
-55.26 (-1.29%)
Nasdaq
12,705.21
-260.13 (-2.01%)
Top Story
Choppy Week Underscores Market Uncertainty Over Where Fed Goes From Here
• US stocks fell Friday as the market may be reassessing the Federal Reserveās stance in terms of future rate hikes. Entering last week there was some optimism concerning inflation in response to Julyās CPI, which showed prices held steady month-over-month. That may have contributed to a multi-day rally earlier this month, while last week was marked by volatility and a return of uncertainty.
• The marketās appetite for risk is low at the moment, as evidenced by a dip in the tech sector and another Bitcoin (BTC) sell off. Meanwhile, government bond yields surged higher as did the US dollar.
• Richmond Fed President Tom Barkin spoke at a conference and said the Fed remains committed to fighting inflation. He discussed how rising prices cause uncertainty and called inflation āunfair,ā adding that the central bank will get it under control.
What to Be on the Lookout for Today
• The Chicago Fed will release the National Activity Index for July. The report is designed to help investors gauge overall economic activity and how itās being affected by inflation. Juneās reading held steady at -0.19, marking the second straight month of negative activity. Back-to-back negative readings had not happened since early 2020, when the pandemic was unfolding.
• Palo Alto Networks (PANW) is set to report earnings. In recent weeks, hackers have been taking advantage of a flaw in the cybersecurity firmās system, resulting in distributed denial of service (DDoS) attacks.
Member Events Calendar
Join us for some socializing this week! Weāre hosting two in-person networking events in L.A. and D.C. Or, join us virtually for another Your Next Dollar livestream. Save your seat in the SoFi app!
A Few Headlines That Should Be on Your Radar
Geoffrey is back! Toys āRā Us stores are now open at Macyās (M) locations in nine states. This weekās earning calendar features Macyās as retail remains in focus. Americans keep spending amid high inflation, and if the current plan holds theyāll have plenty of places to check out new toys during the coming holiday season. Read more >> Intel Corp.(INTC), Nvidia (NVDA), and Micron Technology (MU) have predicted an oversupply of chips. But, unless youāre in the market for a PC, donāt expect lower prices and speedier deliveries anytime soon. Chip manufacturing is product dependent and the touted oversupply seems limited to the PC market. Other industries are still struggling to keep up with demand and the backlog keeps growing. Read more >> Despite some price relief, Americans are still reeling from inflationās bite. Price declines in commodities like oil and lumber are surely welcome, but with prices generally still extremely elevated from a year ago, budgets remain stretched. The bright spots are in the housing market and at the pump. Read more >> By avoiding these pitfalls, you give yourself a better chance of sticking to your budget and meeting your financial goals. Smart budgeting is vital for maintaining financial stability and setting yourself up for success. Here are some common budgeting mistakes to avoid. Read more >>Not-So-Breaking News
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Foot Lockerās (FL) share price popped after announcing profits that exceeded Wall Street expectations, while revenue met estimates. The footwear company lowered its fiscal year outlook. It also announced Mary Dillon will replace CEO Richard Johnson, who is retiring at the end of this month.
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Deere & Company (DE) reported lower-than-expected profits but beat on revenue. The equipment manufacturer behind the John Deere brand stumbled amid rising costs and production inefficiencies. The company also cut its profit outlook.
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Bitcoinās (BTC) value sank below $22,000 on Friday joining a broader crypto sell-off. The cryptocurrency had hit $25,000 earlier in the week.
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Bed, Bath, Beyondās (BBBY) share price plunged after activist investor Ryan Cohen unwound his holdings in the company. Earlier this year Cohen bought over 7 million shares of the company, hand-picked board members, and ousted its CEO. The retailerās stock was swept up in the meme craze which at one point this month pushed the share price up 200%.
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Madison Square Garden Entertainment (MSGE) is considering a spinoff of its live entertainment business. The new company would include iconic venues such as Radio City Music Hall and Madison Square Garden arena in New York City. Holdings would also include the New York Knicksā and New York Rangersā licensing agreements, as well as MSG Networks.
Financial Planner Tip of the Day
"Real estate is one example of an alternative investment (along with cryptocurrency, emerging markets, and commodities) that can be attractive to some investors. Alternatives are not strongly correlated to stock market movements, so they may continue to perform well even when stocks are shaky. They can also hedge against inflation but should still only make up a small (yet valuable) part of your portfolio."
Brian Walsh, CFPĀ® at SoFi