Wednesday,
September 7, 2022
Market recap
Dow Jones
31,145.30
-173.14 (-0.55%)
S&P 500
3,908.19
-16.07 (-0.41%)
Nasdaq
11,544.91
-85.95 (-0.74%)
Top Story
Dow Loses 173 Points as Interest Rate Concerns Mount and European Energy Markets Roil
• US stocks fell Tuesday amid concern over higher future interest rates. Equities have been under pressure for weeks after the Fed renewed its commitment to fighting interest rates. Some investors worry this will lead to a protracted economic downturn.
• European stock exchanges rebounded as energy prices declined. Still, Russia’s decision to stop flows of natural gas through the Nord Stream pipeline has weighed on sentiment.
• The services sector received mixed signals. The ISM services index for August increased, beating expectations and hitting its highest level since April. On the flipside, S&P Global’s August services PMI declined.
What to Be on the Lookout for Today
• Investors will be paying close attention to Cleveland Fed President Loretta Mester. She’s scheduled to address the central bank’s monetary policy on a live webcast.
• July’s international trade balance is due. June’s deficit was narrower-than-expected at -$79.6 billion.
• The Fed’s Beige Book will be published. Also known formally as the Summary of Commentary on Current Economic Conditions, it’s released eight times per year.
• GameStop (GME) is set to publish its earnings for the second quarter of fiscal 2022. Last week it was revealed a film called “Dumb Money” is in the works, chronicling GameStop’s run as a meme stock in early 2021.
Men Are 13% More Likely To Forget This Monthly Financial Task – But They Can Blame It On The Pandemic.
The pandemic has given us lots of unwelcomed mental “gifts.” It’s no shocker that our mental health, in general, has suffered tremendously, but our memory has also taken a turn for the worse.
Researchers on memory have noted a dramatic uptick in forgetfulness for people of all ages. The cumulative stress of the last two and a half years has caused a general brain clutter that’s leaving little room for the essentials – like paying your bills.
A recent poll showed the top reason people gave for missing a credit card payment was just plain old forgetfulness. What’s more, men are 13% more likely than women to miss their bill just because it slipped their mind.
If you’re actually struggling to make your payments by a specific date, you might look into how to change the due date on your bills. But if you are financially stable and know you have the money in your account each month, you have a better option.
Rather than making that to-do list, setting alarms on your phone, or scribbling reminders on sticky notes, the easiest method is to not have to remember. Setting up auto-pay for your bills and individual savings goals with SoFi is easy, and an account with SoFi comes with loads of other perks.
You can sign up for a SoFi Checking and Savings account today, set up direct deposit of your paycheck, and collect a bonus of up to $300.* That’s more money to put towards your bills, and you can even get paid up to two days early.
The best part? You’ll never have to remember to stop by a physical bank … or where exactly you left that paper check…
A Few Headlines That Should Be on Your Radar
Volkswagen (VWAPY) has signaled it could sell off sports car brand Porsche, but is the IPO market ready to cooperate? Volkswagen contends selling the brand would help the company move toward the production of EVs and related software. It could also become one of the world’s largest listings in history, given the cachet and brand recognition associated with Porsche. Still, there are challenges associated with the IPO market at present. Read more >> An avian-influenza outbreak reduced turkey flocks, and consumers are looking at jacked-up prices this Thanksgiving. This is in combination with a years-long trend that saw farmers cut back on production due to declining demand. So will there be enough birds available this November? Plus, we’ve got what to expect at the grocery store. Read more >> Gas prices have been falling for 80 straight days as consumers drive less. Is this a lasting trend or momentary period of relief? The market for gasoline is incredibly complex, and many different factors play a role in influencing prices. What should you plan to pay at the pump moving forward? Read more >> Asset returns were broadly negative during the seasonally low volume month of August. SoFi’s Head of Investment Strategy does a deep dive on what impacted the markets last month. Read more >>Not-So-Breaking News
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Apple (AAPL) is set to hold its iPhone 14 kickoff event today in California. It’s also expected the tech giant will unveil new iPhone models, as that’s accompanied kickoff events during the last ten years. After COVID-19 disruptions this marks the first in-person kickoff event since 2019.
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CVS Health (CVS) says it’s reached a deal to purchase home health giant Signify Health (SGFY) for around $8 billion. The cash deal translates to $30.50 per share, and marks the first major push from CVS into the at-home healthcare space.
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Instagram (META) has been fined the equivalent of roughly $402 million by Ireland’s Data Protection Commission. The DPC says the photo sharing website allegedly failed to protect younger users’ data by allowing them to set up business accounts and setting their accounts as “public” by default.
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The New York City Medical Examiner’s Office has confirmed former Bed Bath & Beyond (BBBY) CFO Gustavo Arnal died by suicide last Friday. Amid the tragedy, it’s also a period of heightened uncertainty for the company, as they plan to lay off 20% of its work force and close around 150 stores.
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Sitio Royalties (STR) and Brigham Minerals (MNRL) have announced they will combine in an all-stock merger. Both companies are among the largest US public firms focused on oil and natural gas royalties in the Permian Basin. The newly formed entity has an approximate value of $4.8 billion.
Financial Planner Tip of the Day
“When applying for new credit cards or loans, lenders will look at your credit utilization. If it’s too high — most look for a rate of under 30% — you may not be approved for the card or loan. That’s why it’s important to stay on top of how much of your total credit you’re using and pay down your debt so you don’t have a high credit utilization rate in addition to costly interest.”
Brian Walsh, CFP® at SoFi