Thursday,
September 22, 2022
Market recap
Dow Jones
30,183.78
-522.45 (-1.70%)
S&P 500
3,789.93
-66.00 (-1.71%)
Nasdaq
11,220.19
-204.86 (-1.79%)
Top Story
Fed Enacts Third-Straight 75-Basis-Point Hike, Stocks Widen Losses in Final Hour of Trading
• US stocks fell Wednesday after the Federal Reserve raised its target rate by 75 basis points. It marked the central bank’s fifth hike of 2022. In follow-up comments, Fed Chair Jerome Powell indicated the plan is to stay aggressive in the fight against inflation.
• Existing home sales declined for the seventh-straight month. This is the result of rising mortgage rates, which are impacted by the Fed’s tightening monetary policy. As rates rise, so does the cost of borrowing, pushing down demand.
• Oil prices fell after rising earlier in the day. The earlier advance could have been linked to comments from Russian President Vladimir Putin, who ordered the mobilization of the country’s reserves. Defense stocks also gained on the news.
What to Be on the Lookout for Today
• Initial jobless claims and continuing jobless claims are due. Last week, initial jobless claims fell for the fifth-straight week, highlighting the relatively robust labor market.
• Costco (COST) will hand in its latest report card. Food costs continue to climb, which is putting pressure on consumers. Investors want to understand how that is helping, or hurting, the company.
• Lennar (LEN), one of the nation’s largest homebuilders, will also report earnings. Earlier this week, data showed permits for the building of single-family homes plummeted in August. The real estate sector is facing increased costs, as well as rising mortgage rates, which harms demand.
Credit: It’s Like Your Financial Report Card
Your credit score is a critical part of your financial health. The number factors into whether you can qualify for loans or credit cards, auto or homeowner’s insurance, and the terms you’re offered on debt.
If you fall into the low credit score range, remember that it isn’t set in stone. There are steps you can take such as making on-time bill payments, keeping debt to a minimum (or consistently paying it off) and being mindful of opening and closing your credit cards. It won’t happen overnight — be aware of anyone who promises a miracle quick fix as this could be a scam.
Keep an eye on your progress and start tracking your credit score at no cost today, without hurting your credit.
A Few Headlines That Should Be on Your Radar
Credit card companies charge merchants up to 3% to process card transactions. Now, in the face of record inflation, merchants are starting to push back. New legislation aims to make the credit card industry more competitive. Here’s why that could be good news for you. Read more >> Wyndham Hotels & Resorts (WH) is attempting to adjust as travelers tend not to carry cash anymore. Now, you can tip your housekeeper, bellhop, and porter via app. The program is rolling out at the chain’s locations in the US and Canada, with an initial focus on housekeeping staff. It’s probably not surprising here in 2022 that a QR code is involved. Plus, we have a hotel tipping guide as well. Read more >> If the Fed had previously ordered their economy cooked “medium,” this meeting’s projections moved their order to “medium well.” SoFi’s Head of Investment Strategy weighs in on the ongoing fight against inflation and the latest move by the Fed to increase interest rates by another 75 basis points. Read more >> With interest rates rising, you might find better deals at a new bank. But should you go to the trouble of switching? Here’s 5 reasons why you should. Read more >>Not-So-Breaking News
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As Walmart (WMT) gets ready for the holiday shopping season, it plans to hire 40,000 additional workers. This includes part-time store associates and customer service employees, as well as permanent truck drivers. During last year’s busy holiday season, Walmart hired over three times as many workers, in addition to 20,000 supply chain employees.
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Fellow retailer Gap (GPS) is moving in the opposite direction, as it confirmed 500 corporate positions will be cut. The company is facing declining sales as well as the recent end to its partnership with Kanye West and his company Yeezy.
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Beauty and cosmetics company Coty (COTY) predicts its skincare sales will double over the next couple of years to reach between $500 million and $600 million annually by fiscal 2025. Ahead of its investor day, Coty announced its strategy is already underway in Hainan and mainland China.
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General Mills (GIS) reported fiscal first-quarter profit that beat expectations, and the consumer foods conglomerate also raised its outlook. The parent company of brands like Cheerios and Betty Crocker says strength in the North American market is offsetting weakness elsewhere.
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Investindustrial, a European private equity firm, is buying a majority stake in Eataly. In a joint statement, both companies noted this will accelerate the upscale Italian food chain’s global expansion. Similar to other retailers, Eataly struggled during the pandemic, while Investindustrial is expanding into the food sector.
Financial Planner Tip of the Day
"The 70-20-10 rule is a way to allocate your monthly income into three categories — living expenses, saving and investing, and debt repayment and donations. Using these categories can help organize the way you think about your income — how it comes in, and importantly, how it goes out. It’s a simple and often very successful way to get a personal budget in place."
Brian Walsh, CFP® at SoFi