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Dow Erases 370-Point Gain August Jobs ReportSparked Morning Rally
• US stocks fell Friday, with all three major averages finishing down for the week as a whole. The August jobs report sparked an early rally that fizzled as the session moved into the afternoon.
• The economy added 315,000 jobs in August while the unemployment rate ticked up to 3.7%. On the flipside, many market watchers agree this keeps the central bank on track for a 75-basis-point rate hike at this month’s FOMC meeting.
• The market continues to assess the central bank’s hawkish stance. After Fed Chair Jerome Powell indicated the willingness to disrupt industries and the economy as a whole in order to rein in inflation, stocks have come under pressure.
• Oil prices rose while natural gas fell. International standard Brent crude saw its price per barrel climb, potentially due to stalled nuclear talks between the US and Iran. That makes Iranian oil hitting the global market less likely. Meanwhile, natural gas shortage fears in Europe seem to be easing.
What to Be on the Lookout for Today
• The services sector will be in focus, as S&P Global will release its final revision of August’s services PMI. July’s final reading was down from June, indicating the sharpest fall in output for the services sector since May 2020. The Institute for Supply Management will also release its services for index August, which rose month-over-month in July, backed by higher demand.
• Kingsoft Cloud (KC) will hold a conference call with analysts to discuss its second-quarter results. The Chinese cloud computing company faces delisting concerns amid tension between Washington, DC and Beijing and filed for an IPO in Hong Kong earlier this summer.
The Five Things You’re Missing Out on Without Direct Deposit
Everybody knows that if they sign up for direct deposit, payday gets paperless and presumably simpler. But that’s just for starters. You’re missing out on tons of benefits and advantages if you don’t put your salary on direct deposit.
1. Getting Your Money Quicker
You can expect a direct deposit to arrive in your bank account between 12 a.m. and 6 a.m. on the day your employer sends them out. By the time you wake up, your money is ready and waiting for you–and is available for any auto-pays you’ve set up.
2. Upping the Safety Factor
Unlike a direct deposit, cash or a paper check can be lost or stolen, and someone can fraudulently cash a check not made out to them. There’s zero risk of a digital check getting lost or stolen when it’s deposited automatically.
3. Nailing Federal Protection
Safely deposited, your money is guaranteed by the Federal Deposit Insurance Corporation, a US government agency that insures money placed in banks.
4. Getting Better at Budgeting
Having control over where the paycheck goes is another way direct deposit provides convenience and planning ability. This way, you can direct funds to go toward a savings account or other financial goal.
5. Enjoying Special Benefits
Members who set up direct deposit with SoFi can earn up to 2.00% annual percentage (APY) interest on all account balances in their Checking and Savings accounts.
A Few Headlines That Should Be on Your Radar
Meme stocks will soon hit the big screen as Hollywood prepares to chronicle GameStop’s (GME) 2021 run, fueled by Reddit investors. Elsewhere this week on Wall Street, services sector data and Cleveland Fed President Loretta Mester will speak. The “meme stock movie” that’s in production features a star-studded cast. Read more >> Studies show that people are tipping less now than they were during the pandemic. This trend is known as “tip fatigue” and it could continue if inflation doesn’t slow down. Quick-service diners haven’t changed their tipping habits as much as take-out customers. What kind of impact could “tip fatigue” have on the country’s economy and the debate over raising the federal minimum wage? Read more >> Elevated home prices and rising rents have made for a challenging housing market in recent years. Now, mortgage rates are rising significantly, making life even more difficult on would-be homebuyers. There is some good news: rising mortgage costs have pushed down demand and that seems to be slowing the advance of home prices. Still, how do you know if it's the right time to buy? Experts say it's all about the ratios involved. Read more >> If you feel as if you can’t control your spending and your money management is suffering from it (such as debt is piling up), know that you can take steps to regain control. Impulsive or compulsive shopping can harm your finances. Here are tips on understanding these shopping behaviors and stopping them. Read more >>Not-So-Breaking News
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US tech giants Meta Platforms (META) and Qualcomm (QCOM) signed a multi-year agreement that will focus on developing custom chipsets for virtual reality products. The move is in line with Facebook-parent Meta’s 2021 pivot toward focusing on the metaverse, while the project will be powered by Qualcomm’s Snapdragon extended reality platforms.
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After stepping down as the CEO of hygiene company Reckitt (RBGLY), Laxman Narasimhan has been named as the new CEO of coffee giant Starbucks (SBUX). He’ll reportedly take over the role as chief executive in April of next year, after taking time to learn about the company’s current plans, beginning next month.
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Apparel company Lululemon (LULU) posted earnings that beat Wall Street expectations on the top and bottom lines. The company notes this is despite inflation making an impact on consumer spending, adding inventories are up 85% year-over-year, due to 2021’s supply chain disruptions.
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Amazon (AMZN) lost its bid to overturn this past April’s historic union election in New York City. A National Labor Relations Board official said Amazon’s objections should be rejected, a decision which can be appealed. Workers at a warehouse on Staten Island voted to form the ecommerce giant’s first US union.
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Launch and space systems company Rocket Lab (RKLB) says it successfully completed a launch of a reused Rutherford first stage rocket. This is a first for Rocket Lab, which describes the launch as a “significant technical achievement” in the ongoing bid to develop the first reusable orbital small rocket.
Financial Planner Tip of the Day
“Review your bank account and other statements regularly to make sure everything is as it should be. You want to make sure you are not coming too close to a negative balance or leaving a nice sum of money in checking that could go towards a savings account or somewhere else.”
Brian Walsh, CFP® at SoFi