Wednesday,
October 5, 2022
Market recap
Dow Jones
30,316.32
+825.43 (+2.80%)
S&P 500
3,790.93
+112.50 (+3.06%)
Nasdaq
11,176.41
+360.97 (+3.34%)
Top Story
Stocks Rally For Second-Straight Day as Economic Data from Overseas and JOLTS Report Provide Boost
• US stocks rose Tuesday, continuing the fourth quarter’s strong start. Investors reacted positively after the Bank of Australia raised rates by a less-than-expected amount. The US dollar also weakened against the British pound. This boosts equities because most international trade is conducted in US dollars.
• The JOLTS report showed job openings fell 10% while layoffs increased in August. While this is a negative report for the jobs market, it also connects to the Federal Reserve. A less robust jobs market could help prices cool, reducing the pressure on the central bank to enact more rate hikes. Investors worry the Fed will push too hard in its fight against inflation, which could lead to a protracted downturn.
What to Be on the Lookout for Today
• ADP will release its private-sector employment report for September. The economy added 132,000 jobs in August, which was down from the 268,000 added in July.
• The MBA will publish the number of weekly applications for a mortgage, which is a key measure of real estate demand. As the average rate of a 30-year fixed mortgage rose, applications fell.
• Food company Lamb Weston Holdings (LW) will hand in its latest report card. It’s one of the world’s largest makers of frozen french fries and potato chips. The market will want to see how the company is navigating rising costs and the impact of inflation, which sent grocery prices soaring over the last year. Lamb Weston’s board of directors declared a quarterly dividend of $0.245 per share of its common stock to be paid out December 2.
• Helen of Troy Limited (HELE) is scheduled to hold a conference call concerning its second quarter fiscal year 2023 results. The over 50-year-old consumer products company started as a wig store in El Paso, Texas and now sells items under brands such as Pur Water, Honeywell, Braun, and Vicks. Last month, Helen of Troy introduced Vicks VapoPads, which are similar to its iconic VapoRub, just in pad form.
Recession Help Center
Although there is some debate around this topic, two consecutive quarters of decline in a country's GDP generally constitutes a recession.
Navigating a recession can be overwhelming, but being prepared for when an economic downturn hits can help you get through to the other side successfully. SoFi has created this hub to provide you with information and resources to help guide you through uncertain economic conditions and market volatility. Dive in!
A Few Headlines That Should Be on Your Radar
Apple’s (APPL) most recent privacy policy is hurting Google (GOOGL) and Facebook (META), but helping Apple’s own ad business. App Tracking Transparency (ATT) was a huge win for digital consumer privacy, but is driving mixed results for the advertising industry. Read more >> Amid declining sales and widening losses, Poshmark (POSH) sold to South Korean internet giant Naver for half its IPO price at $17.90 per share. For Naver, it’s a chance to gain a US foothold while reducing redundant costs. Here’s what else could be in store for the new Poshmark – and eCommerce in general. Read more >> Code-sharing is the latest strategy airlines are using to offer more flights and sell more tickets. Understand how the airline industry is regaining ground in response to negative COVID impacts and how this tactic may impact your upcoming travel. Read more >> September was a broadly negative month for most financial assets except the US Dollar. Take a look back at the market moves that happened in September with SoFi’s Head of Investment Strategy. Read more >>Not-So-Breaking News
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Short video app TikTok is reportedly looking for partners in a bid to launch its live shopping feature in the US. The Financial Times says TikTok is exploring a potential partnership with TalkShopLive, a California-based firm that could provide the necessary infrastructure.
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Ford (F) announced its sales rose nearly 16% from the year-ago period during the company’s third quarter. This is despite a larger-than-expected decline observed last month, in which sales were down 8.9% year-over-year.
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Amid declining revenue, Facebook (META) is selling new types of ads on both Messenger and Instagram. This includes a test run for augmented reality (or AR) ads, which will run in the Instagram feed and story feature. Analysts expect Facebook to show a second-straight quarter of declining revenue when the company shares its results later this month.
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Rivian Automotive (RIVN) announced it delivered a record number of vehicles in its third quarter, while upholding its production target of 25,000 vehicles for 2022. The EV maker’s positive news came on the heels of rival Tesla (TSLA) blaming supply chain disruptions after falling short of delivery expectations.
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Micron Technology (MU) says it will build a new computer chip factory in upstate New York. The semiconductor manufacturer plans to spend up to $100 billion on the project over the next two decades. A series of similar investments have been announced by chipmakers since the passage of the CHIPS and Science Act of 2022.
Financial Planner Tip of the Day
“Only 40% of Americans can pay for an unexpected $1,000 emergency expense (which means their emergency fund is effectively their credit cards). And that’s not the only reason an emergency fund is crucial—it can also keep you afloat if you suddenly lose your job or need to take unpaid time off work.”
Brian Walsh, CFP® at SoFi