Monday,
September 19, 2022
Market recap
Dow Jones
30,822.42
-139.40 (-0.45%)
S&P 500
3,873.33
-28.02 (-0.72%)
Nasdaq
11,448.40
-103.95 (-0.90%)
Top Story
US Stocks Fall Amid Earnings Data Concerns, Consumer Sentiment Rises Less-Than-Expected
• US stocks fell Friday as investors studied a new round of earnings reports. Over the past week, Goldman Sachs (GS) reported it plans to cut jobs, while General Electric (GE) noted ongoing supply chain problems. That suggests the labor market could come under pressure, while delayed deliveries have contributed to inflation.
• Oil prices rose but fell for the week as a whole. The market for energy is in a bit of a push-and-pull right now as a recession would shrink demand and cause oil prices to fall. That said, there are supply-side concerns, and the winter’s colder temperatures can push prices higher.
• The University of Michigan released its September consumer sentiment report as well as its inflation expectations survey. While expectations for rising prices eased further, sentiment rose less significantly than what was forecast.
What to Be on the Lookout for Today
• The September NAHB Home Builders' Index is due. Last month, builder confidence tumbled for the eighth straight month. The negative sentiment is mostly related to ongoing supply chain issues, high home prices, and elevated interest rates.
• AutoZone (AZO) will hold its fourth quarter earnings call. At the end of August, shares of Advance Auto Parts (AAP) tumbled after higher inflation and fuel costs caused the company to miss on both the top and bottom lines. Investors want to know if AutoZone is facing the same headwinds.
Member Events Calendar
Do you understand the tie between spending, inflation, and the fed raising rates? If not, you’ll definitely want to join this week’s Your Next Dollar. Save your seat in the SoFi app!
A Few Headlines That Should Be on Your Radar
What’s going on in the real estate space? A handful of important earnings calls and economic reports will tell us this week. Plus, it’s gametime for the Federal Reserve. The central bank announces a rate hike decision this week. Rising rates continue to put pressure on the stock and housing markets. Why is the Fed raising rates and how far will they go? Here's a brief refresher before the big announcement this week. Read more >> The Biden administration has released its first-ever framework concerning the regulation of cryptocurrency and the sector’s future. It follows the president’s March executive order. Within the proposed guidelines, the White House addresses ways to crack down on crime and options toward improvement. There are three main areas of focus that you should know about. Read more >> In typical Elon Musk fashion, a tweet about potentially buying Manchester United has helped send the stock up 35% in the past three months. But is Elon really going to invest? Investing in professional sports franchises isn’t just for billionaires. There are a handful of teams and leagues that you can buy stock in currently. Read more >> Many of us don’t realize how much we spend on coffee. The expenses can add up and mess up your budget. Here are 17 ways to save money on coffee. Read more >>Not-So-Breaking News
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FedEx (FDX) missed expectations for both sales and profit in its first quarter while also withdrawing its full year guidance. CEO Raj Subramaniam later said he fears the global economy is nearing the start of a recession.
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Intuitive Machines, a lunar-focused space technology company, plans to go public via a SPAC at a valuation of around $1 billion. The deal is expected to close in the first quarter at which time the stock will trade using the ticker symbol “LUNR” on the Nasdaq.
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Uber (UBER) said it’s investigating a cybersecurity incident of some kind amid reports the company was hacked. The New York Times (NYT) indicates an employee’s Slack account was compromised, leading to the breach. Meanwhile, Uber’s former security chief is currently on trial concerning a 2016 theft of records that victimized 57 million drivers and customers.
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Kanye West is ending his business relationship with Gap (GPS) after saying the clothing retailer failed to meet the terms of their agreement. The musical artist’s attorney sent a letter on behalf of West’s company Yeezy, saying Gap failed to properly distribute products or create dedicated YZY Gap stores.
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JetBlu (JBLU) increased its third-quarter outlook for growth in revenue per available seat mile, saying the airline is continuing to see robust demand both this month and beyond. The company also raised its fuel price forecast and revised its third-quarter capacity estimate.
Financial Planner Tip of the Day
“If your income is not keeping you from qualifying for a loan, but you lack a credit history, a guarantor added to the loan agreement might be an option to consider. A guarantor is legally responsible for the repayment of the loan if the borrower defaults, but has no legal claim to any property the funds were used to purchase.”
Brian Walsh, CFP® at SoFi