Thursday,
October 27, 2022
Market recap
Dow Jones
31,839.11
+2.37 (+0.01%)
S&P 500
3,830.60
-28.51 (-0.74%)
Nasdaq
10,970.99
-228.12 (-2.04%)
Top Story
Disappointing Results from Big Tech Drag on Market, New Home Sales Fall Almost 11%
• US stocks were mixed Wednesday, snapping a three-day winning streak for the tech-heavy Nasdaq, as well as the S&P 500. The Nasdaq came under pressure following disappointing results from Google-parent Alphabet (GOOGL) and Microsoft (MSFT).
• The US dollar weakened after the Bank of Japan and several Chinese state-owned banks sold off dollar holdings. Bankers in Asia are attempting to strengthen their own currencies in the process.
• September’s new home sales slipped 10.9% month-over-month. The housing market continues to soften as rising mortgage rates push down demand.
What to Be on the Lookout for Today
• Last week’s initial and continuing jobless claims are due. Also, watch for the initial estimate of the third-quarter GDP, as well as September’s durable goods and core capital equipment orders.
• Tech giants Amazon (AMZN) and Apple (AAPL) are set to publish quarterly results. Household names McDonald’s (MCD), Caterpillar (CAT), and Honeywell (HON) will report earnings as well. And, in the travel sector, Spirit Airlines (SAVE) will hand in its latest report card. Analysts will be sure to ask about the company’s merger with JetBlue (JBLU).
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A Few Headlines That Should Be on Your Radar
Adidas (ADDYY) and Gap (GPS) distance themselves from singer and fashion icon Kanye West in the wake of his recent antisemitic comments. Ye’s future in fashion and business are arguably in jeopardy, while his contractual agreement with Def Jam Records has also come to an end. Read more >> If you’re looking for ways to build your retirement savings, you could try going after-tax. Some plans let you add to retirement savings even when you’ve maxed out your pre-tax contributions. Meanwhile, another survey shows the amount needed to retire comfortably is going up, as is the retirement age. We’ve got a full breakdown of the options you have while trying to get there. Read more >> Since buying a home is a personal decision, there is never a “right” or “wrong” time to buy. That said, higher interest rates are leading to lower demand, which could mean we are entering a buyer’s market. If you’re in the market to buy a new home, here are four strategies you’ll want to keep in mind to ensure you’re minimizing your financial burden. Read more >> Interest rates for CD accounts and high-yield savings are on the rise, but how do you decide which type of savings account is right for you? The best option will likely depend on how and when you want to access your money. We’ll review 5 types of savings and the key differences between them. Read more >>Not-So-Breaking News
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Boeing (BA) generated nearly $3 billion in free cash flow, but still posted a third quarter loss. Executives say supply chain and labor issues will continue to be problematic for the aerospace company heading into 2023.
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In a new ruling by the EU, Apple (AAPL) will have to make its products compatible with USB-C chargers by 2024. To date, Apple products have only supported charging from its proprietary Lightning charger.
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For Chipotle (CMG), higher prices lifted Q3 revenue enough to beat analysts expectations. At the same time, CEO Brian Niccol made a point of saying that the chain’s bestselling chicken burrito bowl still costs under $9.
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Harley-Davidson (HOG) executives and investors cranked the throttle after beating analyst expectations on the top and bottom lines. The motorcycle manufacturer’s management attributed the solid performance to higher shipments and strong pricing.
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Kraft Heinz (KHC) reported strong earnings for its latest quarter following multiple price increases. CEO Miguel Patricio says supply chain issues and inflation will likely lead to more price increases next year.
Financial Planner Tip of the Day
“Lenders want to see accounts maintained in good standing for a long time. When debt accounts are closed, though, that history ends, and eventually closed accounts drop off the credit report entirely. A credit history looks better when it has a solid number of accounts in good standing that have been open for a long time.”
Brian Walsh, CFP® at SoFi