Tuesday,
August 23, 2022
Market recap
Dow Jones
33,063.61
-643.13 (-1.91%)
S&P 500
4,137.99
-90.49 (-2.14%)
Nasdaq
12,381.57
-323.64 (-2.55%)
Top Story
US Stocks Fall, Driven Lower By Fading Optimism For a Dovish Fed
• US stocks fell on Monday. Anxiety has started to creep back into Wall Street over concerns that the Federal Reserve will continue to enact rate hikes to tame inflation. All eyes are on Fed Chairman Jerome Powell, who will speak at a symposium in Wyoming this Friday.
• The CBOE Volatility Index, or VIX, climbed yesterday toward levels not seen in nearly three weeks. This coincided with a sell-off in assets that are perceived to be riskier. On the flipside, safe haven assets like the US dollar were scooped up by investors driving the greenback higher against other currencies.
What to Be on the Lookout for Today
• S&P Global will publish its preliminary manufacturing PMI and services PMI for August. The PMI or purchasing manager index is a survey that shows whether these sectors are expanding or contracting. July’s manufacturing PMI checked in at its lowest level in two years, while the services PMI declined for the first time in two years. Also watch for July’s new home sales.
• Macy’s (M) will post its second-quarter results. This follows last week’s heavy focus on retail earnings, as well as a report that showed retail spending held steady in July despite inflation. As of earlier this month, Toys R’ Us locations have opened in Macy’s stores across nine states. More are slated to open by mid-October, in time for the holiday shopping season.
Why You Should Check Your Credit Score
Monitoring your credit score is important, and to do it for free is that much better. Here are some of the most important reasons to review your numbers:
• You can spot discrepancies or potential fraud. Unordinary activities will reveal themselves when you keep tabs on your credit scores. You can immediately spot red flags when something seems unusual (say, a score drops 40 points for no reason). This way, you can act right away, work toward getting your score back on track, or file a dispute if you detect fraud.
• You can gain insight into your financial situation. Understanding your credit scores can help you determine when it’s a good time to purchase a home or refinance your mortgage. For example, if a score is less than ideal, you may want to hold off on making big moves until you boost your score. The delay may help you qualify for more favorable terms and interest rates.
• You can better compare financial products. Lenders have different criteria and credit score requirements to qualify for specific products. So knowing your credit scores can help you determine if applying for a particular product is worth it or if you should explore other options.
• You can pinpoint ways to improve your scores. Having a handle on a credit score and the factors used to calculate it can help you optimize it. Some resources and websites may offer simulations so you can see how changing certain factors will alter your credit score.
Knowing and optimizing your credit scores is one important part of being financially responsible. Check your credit score for free in the SoFi app, where you can easily keep track of your credit score and what affects it.
A Few Headlines That Should Be on Your Radar
It’s National Cheap Flight Day! Prices are about to come down on airfares until the holiday season starts picking up. We take a look at the state of the industry and the costs of travel, and examine why Florida is the source of so many airline issues. Plus, here’s when industry executives expect staffing issues to get back to normal. Read more >> Big-name companies like Warner Bros. Discovery (WBD) and Facebook’s Meta (META) are bemoaning the decline in ad revenue. Meanwhile, top ad agencies ask: what slowdown in advertising? Companies like WPP (WPP) & Omnicom Group (OMC) are bumping up their guidance as revenues get a boost from strong demand that is not expected to abate anytime soon. Read more >> SmileDirectClub (SDC) isn’t finding much to smile about. As its lower-income customer base gets buffeted by inflation, it seems for many straight teeth isn’t a priority. Since its 2019 IPO the company’s valuation has plummeted about 90%. It’s attempting to refine its go-forward strategy, but besides the unfavorable economic environment, it’s facing an unsustainable cash burn rate. Read more >> Your 40s are a complicated decade where sound financial planning is crucial for a secure future. With some wise money moves, you’ll be set to make the most of this decade and beyond. Here are financial tips for people in their 40s to help manage money better. Read more >>Not-So-Breaking News
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AMC (AMC) share prices plummeted following the announcement its competitor Cineworld (CINE) may file for bankruptcy. The stock was also impacted by AMC’s issuance of new preferred shares.
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Signify Health (SGFY) saw its share price soar on the news that Amazon (AMZN), CVS (CVS), and UnitedHealth (UNH) are interested in buying the home health care services company. The sale price could be upwards of $8 billion.
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Tesla’s (TSLA) Elon Musk said the cost of Full Self-Driving assistance software will increase by 25% next month. The cost of the premium driver assistance package will rise from its current $12,000 price tag to $15,000.
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Berkshire Hathaway (BRKA) has been cleared to purchase up to a 50% stake in Occidental Petroleum’s (OXY) common stock. Shares of the chemical company popped after the Federal Energy Regulatory Commission gave the transaction the green light.
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Ford (F) executives said they will appeal a $1.7 billion verdict that a defective roof on its pickup caused the death of two occupants in a rollover crash. In the trial plaintiffs alleged there have been about 80 similar accidents resulting in crushed Ford truck roofs.
Financial Planner Tip of the Day
“It can be tempting to close older, unused credit accounts in an effort to keep your credit report from looking cluttered, but that might not be the best move. The age of your accounts is factored into your credit history, with older accounts in good standing having a positive effect.”
Brian Walsh, CFP® at SoFi