Top Story
Stocks Edge Up Following Tuesday’s Sharp Sell-Off, Wholesale Prices Point to More Inflation
• US stocks rose Wednesday in a choppy session that saw the three major averages wobble back and forth between small gains and losses before finishing in the green. Investors remain focused on the Federal Reserve’s tightening monetary policy and the likelihood of higher rates in the coming months.
• The August PPI came in 8.7% higher on an annual basis. This key measure of wholesale prices shows inflation remains entrenched. That said, from July the PPI slipped 0.1%, which was in line with expectations.
• Oil prices rose, including global benchmark Brent Crude and US standard West Texas Intermediate. This helped energy stocks perform well.
• It was a down day for railroad operator stocks as the nation heads towards a possible rail strike. This negatively impacted the share price for CSX (CSX) and Union Pacific (UNP). It also has the potential to send inflation higher, if supply chains are disrupted.
What to Be on the Lookout for Today
• Jobless claims for the previous week will be released. The most recent report indicated fewer people filing for unemployment claims, hitting a three-month low and showing the job market remains tight.
• August’s retail sales are due. In July, sales were flat month-over-month, as lower gasoline prices cut into gas station revenue, and consumers did more online shopping.
• Adobe (ADBE) is set to report its third-quarter results for fiscal 2023. Last week, the computer software company announced it will launch a camera app that will cater to serious photographers.
• Aurora Mobile (JG) will publish earnings as well. The Chinese company provides customer engagement and marketing technology services.
What Credit Score Is Needed to Buy a House?
What’s your number? That’s not a pickup line; it’s what a lender will want to know. The number will range from 300 to 850, and it will weigh heavily in whether you qualify for a conventional or government-backed loan and at what interest rate.
What credit score is needed to buy a house? The numbers hinge on the economic climate, lender and type of loan, but those with imperfect credit often manage to secure home loans. The first step is to know your credit score, take time to improve it if needed, and compare lender offers.
Track your credit score for free in the SoFi app, where the factors affecting your score are broken out to make them easier to understand.
A Few Headlines That Should Be on Your Radar
The Detroit auto show is back after a three-year pandemic-induced hiatus. Fewer brands are participating, and the focus has shifted from new model reveals to special test drives and flying taxis. Industry executives say in-person events are becoming less important than virtual ones. Plus, dealers say most new car buyers do everything online — forgoing something that was always standard. Read more >> Youth sports are a great way to instill teamwork, communication, and disciplinary skills in your kids. But the high price tag could be keeping some families on the sidelines. We’ve got a precise breakdown concerning the cost of youth sports, including ways to reduce your financial obligation, and strategies on how to properly budget. Read more >> Self-checkout machines aren’t very popular. A recent survey found two-thirds of respondents have experienced machine failure when going to pay. The reality is: you might want to get used to them. Amid the state of the labor market and the machine’s cost effective nature, many companies are expanding self-checkout — including an ongoing pilot program. Read more >> This past Tuesday, on the heels of hotter-than-expected inflation reports, we saw the worst one-day drop in the S&P since June 2020. SoFi’s Head of Investment Strategy sheds light on this week’s CPI report and weighs in on what we might expect to happen next. Read more >>Not-So-Breaking News
-
The MBA says mortgage applications were down 29% last week on an annual basis, as the average rate on a 30-year fixed rate mortgage is over 6%. Week-over-week application volume was down 1.2%. Refinance demand has also fallen amid the rising-rate environment.
-
Inditex (IDEXY), the parent company of retailer Zara, posted better-than-expected sales during the first half of its fiscal year. The Spanish fashion giant also said it acted early to boost inventory levels with regard to its fall and winter collection, in order to overcome supply chain issues.
-
Comcast (CMCSA) announced it doubled its share buyback program to $20 billion dollars. Earlier this week the stock closed at its lowest price in over two years, continuing a slide that’s seen it underperform the broader S&P 500 throughout 2022.
-
Google parent Alphabet (GOOGL) lost its bid to have a fine overturned in the EU. The company must pay $4.13 billion for allegedly throttling competitors through use of its Android operating system. The amount was reduced from $4.35 billion on appeal, but remains a record.
-
Nucor Corp. (NUE) cited weakness in its steel mill business while issuing a third-quarter profit warning, although the company indicates its steel products division is performing well. Strong earnings from steel products has Nucor confident this will be the “most profitable year” in the company’s history.
Financial Planner Tip of the Day
"Despite coming with high fees, only 26% of actively managed funds beat their passive competitor over the last decade. Fees matter and if you pay a fee make sure you are getting what you are paying for."
Brian Walsh, CFP® at SoFi