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US Stocks Rise Ahead of Comments From Jerome Powell in Jackson Hole
• US stocks rose Thursday ahead of the widely anticipated remarks from Fed Chair Jerome Powell this morning in Jackson Hole. It’s been an up and down week for equities so market participants are looking for more direction today.
• The only data released yesterday were jobless claims and the second quarter GDP revision. Initial filings fell last week, coming in at 243,000 which was below estimates of 255,000. Meanwhile, the second quarter GDP revision painted a slightly more upbeat picture of overall economic growth. Instead of a decline of 0.9%, GDP contracted by 0.6%.
What to Be on the Lookout for Today
• The July PCE will be printed. Also known as the Personal Consumption Expenditures Price Index, this tracks the price of goods over time in a manner similar to the CPI. This metric includes how much is spent on services, as well as durable and non-durable goods. The PCE is also the Fed’s preferred inflation metric. June’s reading set a new 40-year high. Personal income and personal spending for July are also due to round out the week.
• Chinese food delivery giant Meituan (MPNGY) will publish its second-quarter earnings. This comes as the company’s share price has been under pressure due to reports Tencent (TCEHY) plans to divest its $24 billion stake.
• Fed Chair Jerome Powell will deliver a speech in Jackson Hole, Wyoming at 10am ET for an annual economic policy symposium hosted by the Kansas City Federal Reserve. Wall Street will be watching for any comments about the pace of future interest rate hikes.
Q&A: Making Sense of Student Loan Forgiveness
So the announcement for student loan forgiveness has been made – but what does that mean with your student loans now?
Join SoFi Financial Planner Brian Walsh as we breakdown everything you need to know and what’s exactly going on with you and your loans. Save your seat in the SoFi app!
A Few Headlines That Should Be on Your Radar
It now costs more than $300,000 to raise a child, according to a recent Brookings Institution study. With sky-high inflation driving up the cost of living, Americans face a heightened need to evaluate priorities, including whether to start or expand their family. Read more >> Coffee shops are showing resilience amidst the current inflationary environment. The continued popularity of buying coffee out may be the result of people returning to work, wanting to socialize, and finding little ways to treat themselves, as an offset to other inflation-motivated sacrifices. Read more >> During the pandemic, approximately one in five households adopted a pet. More pets means more trips to the vet. Venture capitalists are taking note of this trend. Petfolk, a tech-enabled veterinary practice, just announced a $40 million Series A round. It expects to see over 40,000 pets this year representing 5,000% year-over-year growth. Read more >> Is student loan consolidation right for you? When weighing the pros and cons of consolidating vs. refinancing, it’s important to know your options and to consider your goals. Read more >>Not-So-Breaking News
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Peloton’s (PTON) share price plunged after it reported results that were significantly below analyst estimates. The connected fitness company, which is in the midst of a restructuring, also issued a downbeat near-term outlook.
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Snowflake (SNOW) saw its share price pop after it announced revenue that blew through Wall Street estimates. The cloud data company’s product revenue grew 83% over the last year, reflecting business organizations’ push to move workloads to the cloud.
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Dollar Tree (DLTR) reported earnings that beat expectations by a slim margin and revenue in line with analyst projections. The discount retailer cut its full-year outlook as it plans to roll out more competitive pricing.
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Amazon (AMZN) announced it will pull the plug on its telehealth service, Amazon Care. The service will be discontinued at year end. Company executive, Neil Lindsay, said the operation wasn’t “the right long-term solution for our enterprise customers.”
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Abercrombie & Fitch’s (ANF) share price slid after it reported lower-than-expected results on the top and bottom lines. The company cited the negative impact of inflation and “a shift away from core categories to more fashion-driven products” as the reason for the miss.
Financial Planner Tip of the Day
“Using a personal loan to finance a large purchase (home renovation, hospital bill, or similar expense) with a relatively low interest rate, and paying off that personal loan on time typically will have a positive impact on a person’s credit. Student loan refinancing can be another way to diversify your credit mix, while potentially lowering the interest rate being paid.”
Brian Walsh, CFP® at SoFi