Monday,
September 12, 2022
Market recap
Dow Jones
32,151.71
+377.19 (+1.19%)
S&P 500
4,067.36
+61.18 (+1.53%)
Nasdaq
12,112.31
+250.18 (+2.11%)
Top Story
Stocks Rise to Close out the Week, BOE Postpones Policy Meeting, Bitcoin Rallies
• US stocks rose Friday following a week filled with volatile trading sessions, all while the Fed’s tightening monetary policy remains in focus. Investors have been reacting as central banks from around the world hike rates in a bid to cool off inflation.
• The Bank of England postponed its September policy meeting until September 22 following the death of Queen Elizabeth II. The BOE's last interest rate increase was its biggest since 1995 as inflation in the country topped 10% in July.
• Bitcoin also saw a bit of reprieve on Friday. After falling to $19,000, its lowest level since June, the cryptocurrency jumped above $21,000 on the final day of the week. Although Bitcoin has been heralded as an independent asset that is somewhat removed from macro-level news flow, the asset's jump coincided with a rally in stock futures.
• US wholesale inventories increased by less than what was initially thought. The Commerce Department revised July’s figure to a 0.6% increase, down from what had been 0.8%. In June, wholesalers stock’s increased 1.8%. Analysts say July’s decline is due to excess inventory that was accumulated in late 2021.
What to Be on the Lookout for Today
• The New York Fed will release its inflation expectations survey for August. July’s report showed significant declines in expectations for inflation over the short, medium, and longer term. Consumers also indicated they expect price increases for food and gasoline to slow considerably a year from now.
• Computer software giant Oracle (ORCL) will publish its results for Q1 fiscal 2023 after markets close. The company is expected to discuss strides it has made in the cloud computing space.
Member Events Calendar
This week’s calendar is filled with not-to-miss events—join us as we talk about financial stress with therapist, Nedra Glover Tawwab, or take a peek behind the recruiter curtain with Korn Ferry Advance career coaches! Save your seat in the SoFi app!
A Few Headlines That Should Be on Your Radar
A busy week on Wall Street includes the August CPI. Inflation and the Fed’s response will remain the market’s main focus for the time being. On the earnings front, Adobe (ADBE) has a new app that aims to take cameras to the next level. Also, BRP Inc. (DOOO) is set to hand in its latest report card after dealing with a cyberattack. Read more >> Summer blockbuster’s earned $3.43 billion total, 21% lower than pre-pandemic levels. But, the average gross per movie was up as theaters also only showed 22 major releases compared to 42 in 2019. Is “going to the movies” still a thing? Here’s what this summer’s box office tells us about the future of the movie theater industry. Read more >> In a bid to boost home ownership rates, both Bank of America (BAC) and Citi (C) have introduced new programs. The banks say it’s in a bid to help more Black and Latino families own homes. While lending institutions have a spotty record when it comes to mortgages and alleged racial discrimination, these programs are revisiting traditional downpayments, and hoping to take things in a different direction. Read more >> Cashing in your 401(k) to pay down debt isn’t your best option. Here are options to consider instead. While using your 401(k) to pay down debt is possible, it’s often not the best financial move you can make. That’s because 401(k) withdrawals often come with taxes and penalties that can eat up a third of your loan amount. Read more >>Not-So-Breaking News
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DocuSign (DOCU) beat analyst expectations on the top and bottom lines during its most recent quarter. The company also issued upbeat guidance and noted that it’s close to naming a new CEO.
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Cybersecurity firm Zscaler (ZS) posted results that easily exceeded Wall Street estimates while also delivering an upbeat forecast. Analysts contend the current macroeconomic environment is set up well for companies like Zscaler due to their ability to simplify cyber infrastructure while also reducing costs.
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EV giant Tesla (TSLA) says it could start building a lithium refinery sometime this year. The company is reportedly evaluating the feasibility of a lithium hydroxide refining facility in Texas. It comes as the lithium used in batteries represents a skyrocketing cost item for the entire EV industry, with the metal’s price up 120% this year.
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Zumiez (ZUMZ) shared disappointing results from its second quarter and issued downbeat guidance. The retailer blamed a combination of inflation, supply chain disruptions, labor concerns, and unfavorable foreign exchange rates.
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Regeneron (REGN) saw its share price move higher after it shared promising results from late-stage clinical trials involving an eye drug. Called EYLEA, the drug is used to treat two different types of blood vessel malfunctions associated with diabetes and old age.
Financial Planner Tip of the Day
“Where you put your 20% savings can help you reach your goals. High-yield savings accounts, money market funds, certificates of deposit, and cash management accounts are all vehicles that may pay more interest than a traditional savings account, helping your savings grow.”
Brian Walsh, CFP® at SoFi