Tuesday,
November 1, 2022
Market recap
Dow Jones
32,732.95
-128.85 (-0.39%)
S&P 500
3,807.30
-29.08 (-0.75%)
Nasdaq
10,988.15
-114.31 (-1.03%)
Top Story
Stocks Slip To Close Out October’s Rally, Agricultural Commodities Rise on News From Russia
• US stocks fell Monday as October’s comeback ended on a down note. The market is waiting on this week’s rate hike decision from the Fed. Last month’s gains came despite somewhat mixed third-quarter earnings data.
• Corn and wheat futures rose after Russia announced it will no longer participate in the export of agricultural products from ports in Ukraine. Food price inflation has been intense throughout 2022, and some officials have issued warnings concerning the potential for famine in parts of Africa and Asia.
• The October Chicago PMI fell to 45.2 from 45.7 in September. This indicates slower activity at factories in the midwest and generally bodes poorly for the nation’s output overall.
What to Be on the Lookout for Today
• The October S&P Manufacturing PMI — or Purchasing Managers’ Index — will be released. This is a key measure of economic trends in manufacturing that will provide the market with an update into the state of US manufacturing. In September, the strengthening US dollar caused export demand to decline at its fastest pace since May 2020.
• Also watch for October’s auto sales and September’s total number of job openings. Auto sales rose both year-over-year and month-over-month, on a seasonally-adjusted basis. August’s total job openings fell 10% from July and came in around 1 million below expectations.
Why Do Credit Scores Matter So Much, Anyway?
Having a high score can help consumers in a number of scenarios.
They will save money, and potentially a great deal of money if they gain access to lower interest rates.
The higher a score is, the more credit someone will be able to access as well.
Consumers can reach their financial goals quicker and utilize better products. For example, they may get approved for a credit card that offers perks like bonus travel rewards or a high cash-back rewards rate. They might also be able to use a card with a 0% introductory APR or 0% balance transfer rate for a certain period.
People with a high score may be able to rent a better apartment or home since landlords will check prospective tenants’ credit.
They may gain access to better car insurance rates and be able to avoid paying deposits to utility companies and cellphone providers.
Improving a credit score could take time, but it’s worth it because in the long run, consumers will save money and potentially reach their financial goals that much faster.
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
The only time most Americans use paper checks is to pay the rent. But even that could be going away. JPMorgan has been developing a platform called Story, which aims to be an inclusive property management system. By creating an automation platform for tenants and property owners, the hope is to make things easier – while also gathering useful data. The process could even help determine asking rents. Read more >> A new law in New York City will make it illegal for companies to post a job listing without “good faith” information on pay. Job seekers may never have to hear the words “we offer a competitive starting salary” again. For job seekers, this means that you’ll be able to see exactly what a company plans to offer you for a position, right in the job listing. Read on to learn what this means for the national job market. Read more >> After hitting a peak in July, October marked the third straight month of declining prices for new cars. Auto industry execs are hopeful that prices will remain elevated for the foreseeable future. Here’s what that means for your next auto purchase. Read more >> If you have moved since the last time that you've ordered checks you may be wondering if they are still good to use. Read on to learn when it’s possible to use checks with an old address. Read more >>Not-So-Breaking News
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Shanghai’s Walt Disney World Resort (DIS) closed abruptly yesterday while guests were still inside after 10 people tested positive for COVID-19. This follows China’s zero-COVID stance, which has negatively impacted the nation’s economy due to repeated lockdowns and suspended activity.
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Investment banking company Blackstone (BX) is in the process of buying a majority stake in Emerson Electric’s (EMR) climate technologies unit. This deal will include $9.5 billion upfront, values the business at $14 billion, and should be finalized in the first half of 2023.
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Howmet Aerospace (HWM) disappointed investors by posting $80 million in sales, which fell short of revenue estimates. Howmet spun off from Arconic (ARNC) in 2020 and manufactures jet engines, fasteners, and structures used in the construction of spacecraft.
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For the third quarter, Global Payments (GPN) delivered record revenue of $2.29 billion. CEO Jeff Sloan says he is pleased the Fortune 500 company posted such good results while also making “substantial progress on our strategic and financing initiatives during the period.”
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Eurozone inflation hit 10.7% in October, the highest reading since the 19-member economic bloc was formed. This puts even more pressure on the European Central Bank as it continues efforts aimed at curbing this persistently-high inflation.
Financial Planner Tip of the Day
"One important thing to understand about investing is the tradeoff between risk and reward: you cannot have one without the other. Higher risk generally should come with a possibility of higher reward, and that risk usually comes in the form of volatility. Because higher-risk assets can go through periods of significant downside, they are generally only recommended for money that you won’t need for a while."
Brian Walsh, CFP® at SoFi