Wednesday,
August 31, 2022
Market recap
Dow Jones
31,790.87
-308.12 (-0.96%)
S&P 500
3,986.16
-44.45 (-1.10%)
Nasdaq
11,883.14
-134.53 (-1.12%)
Top Story
Hawkish Central Banks Cause Stocks to Drop. Plus, Warren Buffett Turned 92
• US stocks fell Tuesday. Sentiment on Wall Street has turned negative as central banks across the world strike an increasingly hawkish tone. Many in both the US and abroad are planning to raise rates to tackle inflation.
• Home prices rose by 18% in June on an annual basis. This is slightly less than the 19.9% annual gain seen in May. Meanwhile, the consumer confidence index came in at 103.2 for August, up from a July reading of 95.3.
• Warren Buffett turned 92 yesterday. From 1965 through 2021, Berkshire Hathaway's stock has returned an annualized rate of 20.1%. For comparison, the S&P 500 has returned 10.5% on an annualized basis.
What to Be on the Lookout for Today
• ADP will publish its retooled private payrolls report. The report has not been released since May as ADP has attempted to make it more reflective of the labor market. Wall Street has been paying close attention to jobs data amid the Fedās tightening monetary policy.
• Medical device firm Cooper Companies (COO) is scheduled to report earnings. Earlier this month Cooper announced it will be participating in the Wells Fargo (WFC) Healthcare Conference, scheduled for next Wednesday, which will be livestreamed.
The Risks of Paper Checks
Unbanked households tend to rely upon check cashing services to liquidate their paper checks.
The latest data from the Federal Deposit Insurance Corporation (FDIC) show 5.4% of US households manage their money without a bank account. That represents more than 7 million households that may receive paper checks even as mobile banking services continue to rise.
Receiving a paper check at work can invite several risks, including the possibility of losing your paycheck or slowing your ability to make quick bill payments. Workers who lose their paycheck may have to wait several days to receive a replacement check in the mail. Employers may ultimately encourage their workers to sign up for direct deposit, which requires a checking or savings account.
Most unbanked households use fee-based services to cash checks, pay bills, or send money orders. A mobile banking app, meanwhile, may eliminate the need to use fee-based check cashing services and can help your money grow. Members who set up direct deposit with SoFi can earn up to 2.00% annual percentage yield (APY) interest on all account balances in their Checking and Savings accounts.
A Few Headlines That Should Be on Your Radar
What is āthe Mergeā and how will it impact cryptocurrencies? Proponents say it has the potential to transform the Ethereum blockchain and the entire industry. The change involves a shift from a proof-of-work model to one known as proof-of-stake. But how do each of those work, and why is one considered better for the environment? Read more >> The cost of a Pumpkin Spice Latte from Starbucks is up 4% from last year. Rising prices and inflation have been downright scary in 2022, and your favorite seasonal drinks are not immune. Read more >> Clean energy and boosting US manufacturing of associated components is a major part of the recently passed spending bill. First Solar (FSLR) has pivoted in response and plans to build a factory in the US. While we know the new plant will be in the southeast, its exact location is expected to be revealed sometime before October. First Solar had planned to expand in India or Europe, but its CEO explains things have changed. Read more >> The end of a marriage does not have to mean an end to financial security. If you keep calm and make a careful post-divorce budget, you are more likely to stay fiscally fit. Going through a divorce can be tough emotionally as well as financially. Learn tips for budgeting post-divorce from SoFi. Read more >>Not-So-Breaking News
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Elon Musk is citing a recent whistleblower as yet another reason he wants to back out of his deal to buy Twitter (TWTR). He says allegations made by the social media platformās former security head, Peiter Zatko, support his claim that Twitter provided faulty data. Zatko says the company failed to track how many accounts were actually bots, which is one of Muskās main objections.
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Best Buy (BBY) reported better-than-expected results on the top and bottom lines. The consumer electronics company had lowered its outlook in July on weak demand, which it attributed to inflation-driven customer cutbacks on spending.
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Lucid (LCID) and Nikola (NKLA) plan to raise funds via future stock offerings. The electric vehicle manufacturers have been negatively impacted by the skyrocketing cost of batteries used in their cars.
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Sony (SONY) has established a new PlayStation mobile gaming division, which will operate independently of its console business. The global electronics company also purchased Savage Game Studios, a developer of mobile games.
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Big Lots (BIG) beat Wall Street projections on the top and bottom lines. The home goods retailer expects third quarter same-store sales will decline and plans to continue promotional offers.
Financial Planner Tip of the Day
āNo 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 itās easier for fraudulent charges to slip through.ā
Brian Walsh, CFPĀ® at SoFi