Wednesday,
September 28, 2022
Market recap
Dow Jones
29,134.99
-125.82 (-0.43%)
S&P 500
3,647.29
-7.75 (-0.21%)
Nasdaq
10,829.50
+26.58 (+0.25%)
Top Story
Stocks Mixed, S&P 500 Hits New 2022 Low, Home Prices Slow Their Advance
• US stocks were mixed Tuesday with the S&P 500 and Dow Jones Industrial Average moving further into bear market territory. The market initially got a boost after Chicago Federal Reserve President Charles Evans expressed concern over rising rates too quickly. That said, some investors remain concerned the central bank will push too hard in its fight against inflation and potentially push the economy into a recession.
• A rally in the British pound fizzled as the day wore on. This is significant because the US dollar is strong right now in comparison to other major currencies, and that puts pressure on equities. International trade is routinely conducted in US dollars, and the unfavorable exchange rate can cause problems – as well as diminished profits for international corporations.
• Home prices advanced at a slower pace in July, likely due to rising mortgage rates. The S&P CoreLogic Case-Shiller US National Home Price Index showed home prices rose 15.8% in July, which is down from June’s 18.1% year-over-year jump. That 2.3% difference between the two months is the largest deceleration ever recorded by the index.
What to Be on the Lookout for Today
• Investors will be studying new housing market data, with the pending home sales index for August due. This leading indicator is organized by the National Association of REALTORS® and looks at signed contracts for the purchase of homes. In July, pending transactions plummeted 19.9% on an annual basis, further demonstrating how high prices and rising mortgage rates have impacted demand.
• Cintas (CTAS) is holding a webcast to present its results for the first quarter of fiscal year 2023. The Ohio-based corporation provides services to businesses such as uniform rentals, fire extinguishers, and cleaning supplies. Cintas asked the Supreme Court for help earlier this month as it tries to resolve a three-year-old dispute concerning its retirement plans.
Bear Market Investing Strategies
It can be scary for investors to see their portfolios decline in value because of market turmoil. During periods of steep market declines known as bear markets, selling may seem like the best thing to do to stop further losses. But by doing this, investors could miss out on potential gains from utilizing bear market investing strategies instead.
For investors with a long-term wealth-building goal, it’s important to remember that bear markets are often relatively short. Rather than panic, it can help to look for potential investment opportunities that may help your portfolio survive during bear market downturns. Here are some strategies for how to invest in a bear market.
A Few Headlines That Should Be on Your Radar
Hertz (HTZ) recently inked a partnership with an unlikely ally, oil behemoth BP (BP). BP is going to be helping Hertz scale its electric fleet by building and operating a charging network. Scaling an EV fleet is no small task. But, if Hertz reaches its 2024 goals, there could be a huge upside for US consumers. Read more >> In July home prices grew at a slower year-over-year pace, suggesting rising mortgage rates are impacting prices. From June, prices actually fell slightly. Things are shifting rapidly in the housing market for both buyers and sellers, as higher borrowing costs cut out some of the competition. Here’s why that’s giving would-be buyers a window of opportunity. Read more >> Travel companies are so focused on customer loyalty, they’re willing to pay users who log into their app on a daily basis. This is true for Hopper with its Carrot Cash, while other apps are installing games that encourage people to open the app on a regular basis. Industry executives say it’s all about avoiding the search engine. Read more >> Simplifying your financial lifestyle can help build wealth. Here, we share some tips for downsizing and saving money. Thinking of ways to simplify and cut out unnecessary costs? You aren’t alone. Many people are considering how to lower their expenses, ditch some stress, and save more as part of the bargain. Read more >>Not-So-Breaking News
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Cryptocurrency exchange FTX US announced it won the auction and secured the assets of crypto brokerage firm Voyager Digital, which previously declared bankruptcy. The winning bid is valued at around $1.4 billion per Voyager. It must still be approved by the United States Bankruptcy Court.
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Oracle (ORCL) will pay $23 million to settle charges brought by the SEC after the firm was accused of violating the Foreign Corrupt Practices Act for a second time. The SEC had accused Oracle of bribing foreign officials to secure business. Oracle did not deny or admit to the charges as part of the settlement agreement.
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Chipotle (CMG) said it’s planning to test an autonomous robotic tortilla maker nicknamed “Chippy” at one of its California restaurants. The robot, made by Miso Robotics, will get to work next month. Chipotle also announced it’s working on a system that reduces food waste.
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Restaurant and retail operator Cracker Barrel (CBRL) beat analyst expectations for profit and upped its guidance, offsetting a revenue miss. Same-restaurant sales rose 6.1% for the company’s fiscal fourth quarter. Cracker Barrel now predicts revenue to grow between 7% and 8% in fiscal 2023.
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Nautilus (NLS), the fitness company that makes Bowflex, is considering several different options, including possibly selling itself. The company released a statement saying the goal is to accelerate Nautilus’ shift from a product-focused hardware company to one that’s more digitally connected and consumer-led.
Financial Planner Tip of the Day
"It can be a good idea to save money right after getting paid — before the cash sits in checking long enough to spark the urge to spend it. So, why not save automatically upfront? Automating can make saving money less of a chore."
Brian Walsh, CFP® at SoFi