Top Story
Markets Take Massive Tumble due to Recession Fears
• US stocks fell precipitously on Friday. After the Federal Reserve enacted another 75-basis points rate hike last Wednesday, and said another is on the way in November, investors grew concerned the hawkish campaign could tip the US into a full blown recession.
• Consumer discretionary and energy stocks sold off along with mega-cap growth stocks. This includes major players like Apple (AAPL), Amazon (AMZN), Microsoft (MSFT), and Meta Platforms (META).
• On the economic front, the Flash US PMI Composite Output Index fell to 49.3, which is in contraction territory. That said, this is better than the August reading of 44.6.
What to Be on the Lookout for Today
• The Chicago Fed National Activity Index for August is due. This is a monthly report that’s designed to gauge overall economic activity as well as the related impact of inflation. While recessionary fears grip the market at present, the Chicago Fed’s index pointed to a pickup in economic growth in July, coming in at +0.27, up from -0.25 in June.
• CorpHousing Group (CHG) is scheduled to report its second-quarter results and hold a conference call with analysts. The Miami-based real estate company manages short-term rental apartments across the country. As talks of a more severe recession grow, analysts will be curious to hear about the company’s outlook, especially as it relates to business and leisure travel.
The Week Ahead at SoFi
Calling all Residents and MDs—join us this week for a special med school debt webinar. We’ll break down all your options when it comes to repayment. Save your seat in the SoFi app!
A Few Headlines That Should Be on Your Radar
The Fed’s preferred inflation-gauge is due this week, after it moderated in July. As rates rise, the housing market also comes into focus for Wall Street in the days ahead. It’s a busy earnings calendar with Nike (NKE), Micron Technology (MU), and Carmax (KMX) all set to report later this week. Meanwhile, Cintas (CTAS) will hand in its latest report card – after announcing it will be testing out a new fuel cell prototype in collaboration with Ford (F). Read more >> Falling down the rabbit hole of social media may seem like a harmless way to pass the time, but have you checked your wallet lately? The reality is that social media can influence how you manage your money in a number of ways. If you’re wondering how Twitter or Facebook can impact your finances or whether Instagram and Snapchat are contributing to your lack of cash, here are some financial side effects to consider. Read more >> Partially motivated by the fear of missing out, as well as the digital landscape’s tantalizing potential, companies are hiring metaverse executives. Job requirements include being fluent in AR and VR, as well as sales and marketing. The desire to sell clients on the metaverse’s upside is driven by research, as consultants suggest one in four people could spend an hour in the metaverse daily by 2026. It could be a $5 trillion business by 2030. One company is going entirely digital in its approach – meet Leon. Read more >> Saving $10,000 in a year may sound like a lofty or even impossible goal, but it is indeed doable. Provided you take the right steps, that is. Learn 12 helpful ways to help you save $10,000 in a year. Read more >>Not-So-Breaking News
- The NFL announced a multiyear agreement with Apple Music (AAPL) in which the tech giant will sponsor the Super Bowl Halftime Show. This will kickoff in February of next year. Meanwhile, sources indicate Apple is among the companies bidding to become the next home of NFL Sunday Ticket, which lets fans access each weekend’s games.
- Boeing (BA) has agreed to pay $200 million to settle charges related to misleading investors following two deadly crashes of its 737 MAX jetliners. The two crashes killed 346 people and grounded the planes from March 2019 until late 2020. Former CEO Dennis Muilenburg will also settle charges by paying $1 million.
- Raytheon Technologies (RTX) has won a $985 million contract from the US Air Force to develop and demonstrate hypersonic cruise missiles. The aim will be to move the Hypersonic Attack Cruise Missile, or HACM, out of its prototype phase. The HACM can reportedly fly multiple times the speed of sound and maneuver mid-flight, making them harder to track and shoot down.
- US chipmaker Qualcomm (QCOM) says its automotive business pipeline has expanded dramatically to $30 billion. That’s $10 billion more since the company last announced results in late July. Executives attribute the growth to the company’s Snapdragon Digital Chassis, which offers cloud connectivity, in-car infotainment, and autonomous driving technology.
- FedEx (FDX) is rolling out a new cost-cutting strategy and hiking its rates amid weakening global demand. Express, Ground, and Home Delivery rates are going up by 6.9% on average. FedEx recently saw its share price dip after reporting preliminary sales and profit figures that failed to meet expectations.
Financial Planner Tip of the Day
“To help curb your impulse to pull out of the market when it is low — and continue investing instead — you may want to consider dollar cost averaging.”
Brian Walsh, CFP® at SoFi