Friday,
October 7, 2022
Market recap
Dow Jones
29,926.94
-346.93 (-1.15%)
S&P 500
3,744.52
-38.76 (-1.02%)
Nasdaq
11,073.31
-75.29 (-0.68%)
Top Story
Stocks Finish in the Red as Jobless Claims and Price of Oil Rise
• US stocks fell Thursday as investors look to make sense of the market’s recent volatility. Government bond yields climbed yesterday. The mood on Wall Street was anticipatory ahead of today’s jobs report.
• Initial jobless claims jumped 29,000 to 219,000, marking a five-week high. Investors reacted negatively to this report, which should show signs of a softening labor market. In recent weeks, so-called “good economic data” has been interpreted as “bad” due to the fact it could inspire the Fed to continue with rate hikes. In this case, a “bad” report led people to sell shares.
• Oil prices rose again, as both international benchmark Brent crude and US standard West Texas Intermediate saw their price per barrel increase. This is in response to Wednesday’s decision from OPEC+ to cut production by 2 million barrels per day, starting next month.
What to Be on the Lookout for Today
• A slew of employment data is on the way, including nonfarm payrolls as well as the unemployment rate for September. In August, total nonfarm payrolls rose by 315,000, while the unemployment rate ticked up to 3.7%. Also watch for last month’s labor force participation rate and average hourly earnings.
• The Fed is scheduled to publish August’s consumer credit numbers. The metric rose in July, but at a slower pace than the previous month.
• Cannabis company Tilray Brands (TLRY) is set to announce its first quarter fiscal 2023 results. Over the summer, shareholders filed a lawsuit against the Canadian firm in relation to last year’s Aphria Merger, which transformed Tilray into the world’s largest cannabis company by revenue. Former Aphria shareholders claim they were misled ahead of the merger agreement.
Your Home Is an Asset. Do You Know What It’s Worth?
Your house is much more than a home — it’s likely one of the biggest purchases you’ll ever make, with a value that makes up a significant proportion of most people’s net worth. As such, you’ve probably wondered from time to time what your home is worth.
Determining the answer is not as simple as referring back to your sales agreement or mortgage papers. What you paid for your house when you purchased it merely reflects what your house was worth to you — and the real estate market — at a specific point in time.
In reality, housing values are dynamic and they fluctuate based on a number of factors. Some things, such as keeping your house in good repair, are within your control. Other external influences, such as the market, mortgage rates, and other considerations, can also affect the value of your home.
We’ve made it easy to connect and track your real estate assets right alongside the rest of your money. Start tracking!
A Few Headlines That Should Be on Your Radar
OPEC+ announced it will cut oil production by 2 million barrels per day, starting next month. While gasoline prices are down significantly from their June peak, they had been edging up recently, and this could cause them to spike further. It’s never easy to accurately predict where prices will go for any asset. But in this case it’s especially confusing considering issues with US refineries, macroeconomics, and supply concerns are pushing and pulling. We’ll break down the possibilities. Read more >> Inflation is the highest it’s been in decades, which is making retailers sweat here in the fourth quarter. Holiday spending will likely come under pressure, since consumers’ dollars don't go as far as they did last year. To compensate, Target (TGT), Amazon (AMZN), and Walmart (WMT) are all doubling down on 2021’s successful holiday strategy. Here’s how that could impact the holiday shopping season. Read more >> Form Energy is a battery startup that just raised $450 million in a Series E funding round. The company is developing a brand new strategy to help batteries store renewable energy for days, not hours. This new battery storage strategy combines a common resource with a new scientific method to help keep the lights on even when the wind isn’t blowing or the sun isn’t shining. Introducing: “iron-air batteries”. Read more >> Many experts recommend having an emergency savings fund. The money is intended to cover bills or living expenses due to a job loss, medical issue, or unexpected repairs. The 52-week Savings Challenge makes building an emergency fund easier. Read more >>Not-So-Breaking News
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Reports indicate Apollo Global Management (APO) and Sixth Street Partners are no longer looking to provide financing for Elon Musk’s purchase of Twitter (TWTR). During earlier talks Apollo, Sixth Street, and other investors were said to be interested in committing over $1 billion. Musk revived the beleaguered deal for the social media platform this week when he agreed to a $44 billion purchase price, which matches his original offer.
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Beverage giant Constellation Brands (STZ) easily exceeded analyst expectations for its fiscal second quarter, posting $3.33 in per-share earnings if you exclude the company’s stake in Canadian cannabis company Canopy Growth Corp. (CGC). Constellation Brands says its beer business was strong in the most recent period, driven by sales of Modelo Especial and Corona Extra.
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Conagra Brands (CAG), the parent company of Reddi-wip, Slim Jim, and Birds Eye, beat expectations on the top and bottom lines. Executives say cost-of-goods inflation was offset by improved supply chain operations.
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McCormick & Co. (MKC) fell short of estimates for profit in its fiscal third quarter. The spices and seasonings mix company blamed continued supply chain issues and a longer-than-expected recovery period for certain constrained materials.
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Chemical products maker Venator Materials (VNTR) disappointed investors after it reported sales weakness in the third quarter. This includes titanium dioxide (TiO2) sales that are around 25% lower than what was observed in the previous three-month period. Titanium dioxide is used when making paper, ceramics, rubber, textiles, paints, inks, and cosmetics. Venator Materials says it will cut production at two facilities in Germany amid “persistently high” energy costs.
Financial Planner Tip of the Day
“According to the CFPB, a characteristic that all financially well people share is that they are committed to learning about how to manage their money. They understand that both the work and the education is a continuous process.”
Brian Walsh, CFP® at SoFi