Wednesday,
October 26, 2022
Market recap
Dow Jones
31,836.74
+337.12 (+1.07%)
S&P 500
3,859.11
+61.77 (+1.63%)
Nasdaq
11,199.12
+246.50 (+2.25%)
Top Story
Market on Three-Day Winning Streak as Falling Yields Boost Stocks
• US stocks rose Tuesday, as government bond yields declined. Some Wall Street veterans maintain this market activity suggests investors are betting on a less hawkish Fed in the coming months.
• The S&P CoreLogic Case-Shiller Home Price Index declined 1.1% in August, month-over-month. Thatâs the biggest such decline since December 2011. The FHFA House Price Index also declined in August. This trend is most closely linked to rising mortgage rates, which push down demand.
• The Conference Board says its Consumer Confidence Index fell in October, as inflation weighs on Americans. The index had been on the rise over the previous two months.
What to Be on the Lookout for Today
• Septemberâs new home sales are due. This will provide further insight into the US real estate market. In August, 685,000 new houses were sold, up 28.8% from July.
• Watch for a highly-anticipated report from Meta Platforms (META), who will update the market on its risky metaverse play. Additionally, two major manufacturers in Boeing (BA) and Ford (F) are set to share results. Each firmâs results can help the market understand the current state of transportation in America.
Trying to Improve Your Credit Score With Credit Card Debt
Youâll notice that a lot of information around improving your credit scores focuses on debt reduction. After all, 30% of your FICO Score is based upon outstanding debt. By paying that down on time, you may be able to boost your credit score. One potential action item for those trying to strengthen their credit history is to work on paying down credit card debt.
Credit card debt may be the highest-interest debt youâre carrying. After all, the average credit card interest rate is currently around 15%, compared to federal student loans, currently at 4.99%, and the average mortgage, hovering around 6.9%. That means if you have credit card debt, it could be your fastest growing debt. By getting rid of it, you may be able to significantly reduce your outstanding debt.
One way to get out of credit card debt is to consolidate it into a lower-interest option. With a balance transfer credit card, you can move your high-interest debt to a 0% interest card. The catch is that the 0% interest is temporary, and after a given amount of time (typically six to 21 months), the interest rate shoots up.
One other tip for potentially boosting your credit score: Thoroughly review your credit report for errors. Mistakes happen, and some of them can bring down your score. You can file a dispute online to correct or remove the information.
Track your credit score for free in the SoFi app, where the factors affecting your score are broken out to make them easier to understand.
A Few Headlines That Should Be on Your Radar
In August, home prices posted their largest month-over-month decline since December 2011. In fact, some analysts are ready to call this a âbuyerâs market.â The rise of mortgage rates has put a dent in the demand for real estate, and home prices are falling as a result. For both would-be buyers and sellers, the question is, when will rates moderate? Read more >> The candy aisle is experiencing some of the biggest price increases at the grocery store. Candy makers are attributing these higher costs to the price increases for ingredients like sugar, milk, and flour. With Halloween just a few days away, many consumers are being vocal about these price hikes. But at least two major candy companies are adamant that they are doing their best to keep prices down. Read more >> Rising energy costs are making it more expensive for Americans to heat their homes. At the same time, the Inflation Reduction Act has introduced several incentives for clean energy alternatives to heating your home. One alternative for heating your home this winter is to use a heat pump. This furnace-alternative could improve your homeâs air quality and potentially save you money. Read more >> The runup to, and results of, the midterm elections in the U.S. can influence stock prices. While past performance is not indicative of future results, historically, the stock market has underperformed leading up to midterm elections and bounced back in the year following the elections. Read more >>Not-So-Breaking News
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Coca-Cola (KO) beat analyst expectations for the third quarter and also raised its guidance for the end of the year. The beverage giant is pursuing a two-pronged strategy of increasing prices on certain products while offering more affordable options.
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Despite rising fuel costs, strong travel demand and increased ticket prices helped JetBlue (JBLU) post a $57 million profit for the third quarter. The budget airline is set to merge with competitor Spirit Airlines (SAVE) in the coming months, pending federal approval.
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General Motors (GM) handily beat analyst expectations during the third quarter while maintaining its guidance for 2022. The legacy automaker says it hasnât felt any negative impact from inflation, but adds it will remain cautious through the end of the year.
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Amazon (AMZN) shoppers will now be able to check out using the money transfer app Venmo (PYPL). This partnership, as well as a similar agreement with Affirm (AFRM), is part of Amazonâs strategy to offer customers more ways to pay.
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The future of cryptocurrency and NFTs is becoming murkier as many attempt to to figure out the new rules. Leading the way is Apple (AAPL), which recently established a set of parameters for how companies on its App Store are allowed to use these new technologies.
Financial Planner Tip of the Day
âYour credit score is based on factors such as how often you pay your bills on time, how many loans and credit cards you have, what your debt is relative to your credit limits, and the average age of your accounts. It also considers negative financial events, such as judgments, collections actions, or bankruptcies.â
Brian Walsh, CFPÂŽ at SoFi