Tuesday,
October 18, 2022
Market recap
Dow Jones
30,185.82
+550.99 (+1.86%)
S&P 500
3,677.95
+94.88 (+2.65%)
Nasdaq
10,675.80
+354.41 (+3.43%)
Top Story
Stocks Gain as Third Quarter Earnings Season Presents Market With Its Latest Challenge
• US stocks rose Monday as investors studied a new round of earnings data. Both Bank of America (BAC) and Bank of New York Mellon (BK) reported upbeat results. The market pays close attention to the banking sector’s results in order to gain insight into demand for loans and mortgages, as well as the impact of rising rates.
• Overseas, the British pound gained as the UK government reversed key aspects of its tax plan. The nation’s bond market has been in turmoil in recent days. Meanwhile, the Shanghai Composite gained 0.4% after Chinese President Xi Jinping gave a speech defending the nation’s zero COVID policy.
• The New York Fed released its Empire State Manufacturing Index for October. It showed that manufacturing activity declined for the third-straight month.
What to Be on the Lookout for Today
• The NAHB-Wells Fargo Housing Market Index for October is due. This tracks confidence among builders of single-family homes. In September the index fell for the ninth-straight month.
• Also keep an eye out for September’s capacity utilization rate and industrial production index. These help investors study an economy’s efficiency and how well it is reaching its potential, examined across different sectors.
• Netflix (NFLX) is set to report its earnings which should be interesting given that the movie streamer is currently at a crossroads. To make up for a declining subscriber base, Netflix management is launching an ad-supported version beginning next month. Given that this essentially turns streaming back into a product resembling cable TV, the move has been negatively received by users so far.
IKYMI: The Department Of Education Is Now Accepting Applications For Federal Student Loan Forgiveness.
The Department of Education is officially accepting applications for federal student loan forgiveness via its StudentAid site .
Once you submit an application, the DOE says it will contact you if it needs more information. Otherwise, your loan servicer will contact you when your relief has been processed.
Reminder: The White House announced the new one-time plan this summer to cancel up to $10,000 in federal student loan debt for individuals making less than $125,000 a year or as much as $20,000 in federal student loan debt for eligible borrowers who were also Pell Grant recipients. We will continue to follow this and bring you the latest here in the Daily newsletter, at our On the Money page, and through our Forgiveness Guide.
A Few Headlines That Should Be on Your Radar
Thanks to record inflation, more US customers are choosing to buy clothes from budget retailers located overseas. The shift in consumer preference toward fast fashion retailers is creating a massive imbalance between supply and demand for more expensive outlets. Typically, the best way for these retailers to unload their unsold inventory is to offer steep discounts. Read more >> The cost of candy is up over 13% this year compared to last Halloween. Inflation is lurking around the corner like a scary monster – but it doesn’t have to wreck the holiday’s fun. It’s all about the raw material costs, with sugar and flour up significantly. Here’s how you can get the candy, costumes, and decor without saying RIP to your wallet. Read more >> While the future of EV charging in America is very bright, it also has a long way to go – and investors will want to pay attention. There’s little doubt that the future of American automobiles will be electric. Subsequently, there will be a massive need for electric vehicle charging stations. But investors need to be careful not to put all their eggs in one basket. Read more >> Dentistry can be a rewarding career with the potential to earn a healthy salary right from the start. However, you’re likely to have a significant loan debt when you graduate from dental school. Fortunately, balancing your goals with some smart saving, investing, and loan repayment strategies can help you get your finances on firm footing. Read more >>Not-So-Breaking News
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Shares of the metaverse gaming company Roblox (RBLX) surged 20% on reports that its daily active user base hit 57.8 million, a 23% yearly jump. The company says it remains focused on growing its user base and plans to use advertising as well as 3D shopping to fuel growth.
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Kanye West plans to buy the conservative social media platform Parler. This move comes after West was banned from Twitter (TWTR) and Instagram (META) for making anti-Semitic comments.
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Following the FDA’s recent rule change, Walmart (WMT) is selling over the counter hearing aids without a prescription or medical exam. Customers 18 and over with mild to moderate hearing loss can now purchase hearing aids OTC and online.
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TSA data shows that 2.495 million travelers went through checkpoints on Sunday. This is the highest number since Feb. 11, 2020, before COVID-19 shut down the country. Airline stocks soared on the news.
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Oil giant BP (BP) announced that it will acquire renewable natural gas producer Archaea Energy. This acquisition will help BP diversify itself as the world’s economy slowly attempts to transition away from natural gas.
Financial Planner Tip of the Day
“The further away a person is from hitting their credit limit, the healthier their credit score will be, in most circumstances. A borrower’s debt-to-credit ratio, also known as the credit utilization rate, should ideally be no more than 30%. Higher utilization rates can negatively affect a person’s credit score. Paying revolving credit lines in full each month can have a positive impact on a person’s credit score because doing so essentially lowers the credit utilization rate.”
Brian Walsh, CFP® at SoFi