Tuesday,
October 25, 2022
Market recap
Dow Jones
31,499.62
+417.06 (+1.34%)
S&P 500
3,797.34
+44.59 (+1.19%)
Nasdaq
10,952.61
+92.90 (+0.86%)
Top Story
Stocks Finish in the Green as Busy Earnings Calendar Beckons
• US stocks rose Monday as investors focused on encouraging third-quarter earnings data. Investors are also hoping for smaller rate hikes from the Federal Reserve.
• Overseas, Chinese tech stocks slumped after President Xi Jingping secured an unprecedented third term. The market is wary of President Xi’s historical preference for the public sector. Meanwhile, Tesla (TSLA) announced it would cut prices in China to stay competitive.
• In the UK, former Treasury Chief Rishi Sunak is set to become the nation’s next prime minister. This helped stabilize the nation’s bond market, which has been in turmoil since outgoing PM Liz Truss announced a series of planned tax cuts.
• S&P Global released its manufacturing and services PMI for October, both of which came in lower on a monthly basis. Each index declined for the fourth-straight month. The surveys showed weakening client demand as rising rates and inflation make an impact on the economy.
What to Be on the Lookout for Today
• The S&P Case-Shiller US National Home Price Index for August will give investors insight as to where the housing market is headed. In July, single-family home prices rose 15.8% on an annual basis, sharply lower than the 18.1% year-over-year increase observed in June.
• The October Consumer Confidence Index is due. In September, the index rose, beating expectations and defying recessionary fears.
• It’s a busy day on the earnings calendar, with major tech companies like Google-parent Alphabet (GOOGL), Microsoft (MSFT), and Spotify (SPOT) all set to report. These results will collectively shed light on how Big Tech is faring. Meanwhile, Coca-Cola (KO), Visa (V), and UPS (UPS) will give investors a look at the pace of consumer spending.
Student Loan Forgiveness: What’s New and What You Can Do
What’s New: Forgiveness Temporarily Paused
On Friday, a federal appeals court temporarily blocked President Biden's student loan forgiveness plan to cancel billions of dollars in federal student loans as it considers a motion from six Republican-led states to stop the program.
But: Those Eligible Still Encouraged to Apply
While this latest challenge prevents debt from being discharged until the appeals court makes a decision, the temporary order does not prevent eligible borrowers from applying for relief. The application on studentaid.gov remains open and nearly 22 million people — more than half of qualifying borrowers — have already signed up.
Review: Pause Extended Through 12/31
In August, the U.S. Department of Education announced a final extension of the pause on federal student loan repayment, interest, and collections through December 31, 2022. With interest rates on the rise and the freeze on repayment set to expire at the end of the year, now could be a good time to refinance your federal student loans.
What You Can Do: Consider Refinancing Now
Consider refinancing unforgiven student loans with SoFi. Low rates could save you thousands or help you get out of debt sooner. SoFi is even paying off up to $1,000,000 in student loans in which ten winners could each wipe away up to $100K of their student debt. Click here to learn more about SoFi’s Forget Your Student Debt Sweepstakes^.
A Few Headlines That Should Be on Your Radar
In response to inflation, the IRS is boosting the maximum allowable contribution to retirement accounts in 2023 by 9.8% — similarly to how tax brackets will be increased. While the adjusted tax brackets could mean more take-home pay for workers next year, the changed retirement limits also present a savings opportunity. Here’s what you need to know in order to take full advantage. Read more >> Meet Joyspun, Walmart’s (WMT) new intimates and sleepwear brand. To create Joyspun, Walmart took a hot $1 billion private label brand and doubled down to improve quality, design, and branding. Ever since the work-from-home revolution, brands are more eager than ever to get into your bedroom. But don’t be creeped out — this style of competition is actually a great thing for consumers. Read more >> Tupperware (TUP) is a rare example of a company whose business doesn’t live up to its brand. Despite being a household staple, this food storage company earned a profit of just $18.6 million in 2021. To fix this, Tupperware is courting Gen Z by tapping into its 8,500 owned patents, renewing focus on sustainability, and partnering with one of Gen Z’s favorite retailers. Read more >> If you’re feeling fearful about the economy, you’re not alone. These are the five most common recession fears and how to cope with them. Read more >>Not-So-Breaking News
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President Xi Jinping of China paved his way toward an unprecedented third term as the Asian nation’s leader. Because President Xi has a history of favoring the public sector over the private sector, Chinese tech stocks suffered.
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Beyond Meat (BYND) is launching a steak substitute that’s hitting grocery stores this week. This is some much-needed good news for the plant-based meat company, which recently cut ties with its COO and struggled with declining sales. The company also announced plans to lay off 19% of its workforce this month.
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Medtronic (MDT), the world’s largest standalone medical device maker, is spinning off two of its smaller businesses into a new company. This move should help unlock growth for the newly-created firm, which will operate in patient monitoring and respiratory interventions.
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Philips (PHG) reported a larger-than-expected loss for the third quarter. In the wake of the news, the Dutch multinational conglomerate is immediately cutting 4,000 jobs, which translates to around 5% of the company’s workforce.
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In China, Tesla (TSLA) cut the price of its Model 3 and Model Y by as much as 9%. This move was made in order to help Tesla stay competitive in China’s crowded EV market.
Financial Planner Tip of the Day
“Stock market investing can be more appropriate for big goals in the distant future, such as saving for a child’s education or your own retirement, which could be 20 or 30 years down the line. This relatively long time horizon not only gives your investments a chance to grow, but it means that you also have the time to ride out market downturns that may occur along the way.”
Brian Walsh, CFP® at SoFi