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Robust Job Openings Send Stocks Lower, China’s COVID Policy Change Boosts Oil Prices
• US stocks fell Tuesday as the new month got underway and investors braced for new action from the Fed. The major averages opened in the green, but fell after September’s job openings came in higher than expected. This arguably keeps pressure on the Fed to remain hawkish in its fight against inflation.
• The S&P US Manufacturing PMI for October slipped, suggesting subdued growth. Similarly, the ISM Manufacturing Index for October declined.
• Overseas, reports suggested China may be leaning towards relaxing its zero-COVID policy, which has led to repeated lockdowns and diminished production. Oil prices gained on the news, which suggests global demand for energy could increase.
What to Be on the Lookout for Today
• he market is eagerly anticipating the Federal Reserve’s rate-hike decision and comments from Chair Jerome Powell. While it’s widely anticipated that the central bank will enact yet another 75-basis-points hike, investors are looking for clues as to what could happen in December. If Powell hints that 50-basis-points hikes will be preferred going forward, the market may react positively.
• Zillow (ZG) will help illuminate the direction of the US housing market when it shares earnings. Meanwhile, CVS (CVS), KFC-owner Yum! Brands (YUM), eBay (EBAY), Etsy (ETSY), and American International Group (AIG) are all reporting as well.
Yes! Current Students Can Apply for Biden's Loan Forgiveness
Current students are eligible for President Biden’s one-time student loan debt forgiveness of up to $20,000 if their federal loans were disbursed before June 30, 2022, and if income criteria is met. If the student is a dependent, the annual income the FSA will be looking at is that of the parents, not the student. That income can’t exceed $125,000 for a single parent or $250,000 for the household.
Find out if you qualify and how to apply. Plus, take a deeper look which loans are eligible for forgiveness, and the legal obstacles the debt relief plan may face.
A Few Headlines That Should Be on Your Radar
The holiday season is rapidly approaching and many people are starting to book their flights home for Thanksgiving. But the prices are nothing to celebrate. Here are some strategies that you can use to save on flight tickets this year – including picking the right day to fly, working remotely, and leveraging credit card sign-up bonuses. Read more >> Over 30% of Millennials aren’t saving enough for retirement. The pandemic kicked off the financial hardship, followed by rampant inflation. Let’s get back to retirement basics and be creative. Read more >> Despite the current energy crisis, Europe’s gas reserves are still about 90% full. This should be enough to get them through the winter – but what about next year? Russia has completely cut off the flow of gas into Europe and it’s not clear how they’ll refuel once the reserves have run dry. This is leading to social unrest and lots of finger-pointing. Read more >> A recession has followed every time a Philadelphia baseball team wins the World Series. But does correlation imply causation? The current World Series match-up between the Phillies and Astros has caused investors to look for any relationship between the winner and how it may impact the direction of the stock market and the economy. Read more >>Not-So-Breaking News
- Uber (UBER) posted a net loss of $1.2 billion in its most recent quarter but beat analyst expectations for revenue. Executives attributed the strong sales to booming travel, easing lockdowns, and shifts in consumer spending. Uber also delivered upbeat guidance for the fourth quarter.
- Pfizer (PFE) delivered a beat-and-raise during its Q3 earnings report. The pharmaceutical giant expects to rake in $34 billion from sales of its COVID-19 vaccine by the end of the year.
- Johnson & Johnson (JNJ) is looking to boost growth in its medical device division by acquiring Abiomed (ABMD) for $16.6 billion. This valuation represents a 50% premium based on Abiomed’s share price at the time of the announcement.
- With its third quarter profit coming in at $8.2 billion, BP (BP) is the latest energy giant to post a quarterly record. During the same time period last year, BP posted $3.3 billion in earnings. Oil companies are benefiting from surging commodity prices following Russia’s invasion of Ukraine.
- Delta Air Lines (DAL) is negotiating a new contract with its pilots union — and the talks have been dragging on. Earlier this week, the union voted to authorize a strike if an agreement isn’t reached soon.
Financial Planner Tip of the Day
“Before you start shopping for a car loan, it's important to understand how you might look to a potential lender based on your credit history. Reviewing your credit reports and credit scores can provide you with some perspective on what kind of loan terms you're likely to qualify for.”
Brian Walsh, CFP® at SoFi