Tuesday,
September 20, 2022
Market recap
Dow Jones
31,019.68
+197.26 (+0.64%)
S&P 500
3,899.89
+26.56 (+0.69%)
Nasdaq
11,535.02
+86.62 (+0.76%)
Top Story
Stocks Rise With Many In āWait-And-Seeā Mode, Homebuilder Sentiment Falls Yet Again
• US stocks fell Monday as the market braces for this weekās expected rate hike from the Federal Reserve. There had been optimism earlier this summer that the central bank could slow its tightening campaign, but thatās largely faded as the August CPI showed inflation remains persistent.
• Investors are also waiting on a fresh round of corporate earnings reports, due in early October. While robust earnings data has helped boost sentiment throughout 2022, there have been some worrying signs recently from firms like FedEx (FDX) and General Electric (GE).
• Homebuilder sentiment declined for the ninth-straight month. This shows the housing market is continuing to soften up as mortgage rates rise, harming demand. Some builders say theyāve started lowering prices in response.
What to Be on the Lookout for Today
• August building permits and housing starts are due, which will shine additional light on the real estate sector. Permits for homebuilding slipped 1.3% in July, again largely due to higher mortgage rates and increased costs of materials.
• Stitch Fix (SFIX) is scheduled to report its latest earnings. There used to be a lot of focus on clothing subscription businesses. Trunk Club, for example, was acquired by Nordstrom but has since been shut down. Wall Street wants to know how Stitch Fix is planning to become profitable and what its outlook is for the future.
Why You Should Check Your Credit Score
Monitoring your credit score is important, and to do it for free is that much better. Here, some of the most important reasons to review your number:
• You can spot discrepancies or potential fraud. Unordinary activities will reveal themselves when you keep tabs on your credit score. You can immediately spot red flags when something seems unusual (say, your score drops 40 points for seemingly no reason). This way, you can act right away, work toward getting your score back on track, or file a dispute if you detect fraud.
• You can gain insight into your financial situation. Understanding your credit score can help you determine when itās a good time to purchase a home or refinance your mortgage. For example, if your score is less than ideal, you may want to hold off on making big moves until you boost your score. The delay may help you qualify for more favorable terms and interest rates.
• You can better compare financial products. Lenders have different criteria and credit score requirements to qualify for specific products. So, knowing your credit score can help you determine if applying for a particular product is worth it or if you should explore other options.
• You can pinpoint ways to improve your score. Having a handle on your credit score and the factors used to calculate it can help you optimize it. Some resources and websites may offer simulations so you can see how changing certain factors will alter your credit score.
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 Federal Reserve is planning to raise interest rates by 0.75% this week. This will make it more expensive to borrow money, and have far-reaching effects on the economy. The Fedās actions directly impact banks, not consumers. However, there are lots of trickle effects that youāll need to prepare for. Hereās everything you need to know. Read more >> As the market prepares for Porscheās initial public offering later this month, parent company Volkswagen (VWAGY) faces some challenges. This includes sky-high inflation, fears of a recession, and the war in Ukraine ā all of which have put pressure on the IPO market. VW created 911 million shares in honor of the iconic 911 sports car model. Could the deal unfreeze the European IPO market? A number of high-profile potential public listings await on the sideline with watchful eyes. Read more >> Last week Adobe (ADBE) agreed to buy startup Figma for $20 billion. The price tag and a recent downbeat earnings report have some worried about the health of Adobeās core business. Figma has earned rave reviews from creators and collaborators who have worked remotely throughout the pandemic. Itās considered more user-friendly than Adobeās products. Still, amid a surge of enthusiasm for the ācreator economy,ā Adobe is shrugging off outside criticism and pointing to past successes. Read more >> President Joe Bidenās federal student loan forgiveness plan may have tax implications in certain states. States are not prohibited from imposing and collecting taxes on federally forgiven loans. Read on to learn the tax implications that residents of Arkansas, California, Indiana, Minnesota, Mississippi, North Carolina, West Virginia, and Wisconsin may face. Read more >>Not-So-Breaking News
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Rockstar Games parent Take-Two (TTWO) said it suffered a ānetwork intrusionā that allowed a hacker to record footage of its new Grand Theft Audio videogame. The company noted its extreme level of disappointment at the leaked details, which include things like location, main characters, and some other features.
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Starlab, a private space station being developed by Voyager Space Holdings and Lockheed Martin (LMT), is set to work with hotel giant Hilton (HLT). In a partnership that marks the first of its kind in the private space station space, Hilton will design astronaut facilities such as hospitality suites and sleeping arrangements, in addition to taking on a role in marketing.
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Ralph Lauren (RL) outlined its new strategic growth plan and said it plans to return close to $2 billion in excess cash flow to shareholders through 2025. This will be in the form of share buybacks and dividends. The clothing retailer also said it will elevate and energize its lifestyle brand with a focus on consumerās evolving lifestyles.
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Auto parts retailer AutoZone (AZO) beat analyst expectations on both the top and bottom lines during its fiscal fourth quarter. The company cited strength in its commercial business and noted it repurchased $1 billion worth of its shares in the most-recent three month period, which represents 2.4% of AutoZoneās total capitalization.
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Genelux Corp., a California-based biotech company that focuses on treating difficult-to-treat tumors, has set the terms of its initial public offering. Itās expected to trade under the stock symbol āGNLXā on the Nasdaq. The company is looking to raise upwards of $17.5 million, which translates to somewhere between $6 and $7 per share.
Financial Planner Tip of the Day
"A stock margin calculator can help you know your margin balances when trading with borrowed funds. With changing stock prices and when holding multiple positions, account margin levels can vary minute by minute. Understanding the risks and responsibilities or margin investing is critical before deciding if it is right for you."
Brian Walsh, CFPĀ® at SoFi