Thursday,
November 3, 2022
Market recap
Dow Jones
32,147.76
-505.44 (-1.55%)
S&P 500
3,759.69
-96.41 (-2.50%)
Nasdaq
10,524.80
-366.05 (-3.36%)
Top Story
Stocks Tumble After Fed Chair Powell Indicates More Rate Hikes Are on the Way
• US stocks fell Wednesday after the Federal Reserve enacted its sixth rate hike of 2022 — the fourth straight 75-basis-points hike. Losses widened after Chair Jerome Powell said it’s “premature” to discuss slowing rate hikes, adding that inflation remains too high.
• Prior to yesterday, the market had been looking for signs the Fed could look to soften its stance toward inflation. Powell’s comments effectively dashed those hopes and indicated more rate hikes are likely coming.
• The job market remains strong, which reinforces the Fed’s hawkish stance. Yesterday, the October ADP employment report showed the economy added 239,000 private jobs, which exceeded expectations. Tuesday’s JOLTS report also showed increased job openings.
• Overseas, Chinese stocks continued to rally. This is connected to reports suggesting Beijing could look to relax the Asian nation’s zero-COVID policy.
What to Be on the Lookout for Today
• Last week’s initial and continuing jobless claims are due. The number of people filing for unemployment benefits ticked up last week, but remains historically low.
• September’s trade balance will shed insight as to how the US stacks up in the global trade network. The US trade deficit decreased in August amid an uptick in exports.
• It’s a busy one on the earnings calendar, with reports coming from major payment and crypto companies like Paypal (PYPL), Block Inc (SQ), and Coinbase (COIN). This could help provide insight into consumer spending and ecommerce trends over what’s been a volatile year for crypto investors.
• The market will also get a look at food and beverage trends when Kellogg’s (K), Starbucks (SBUX), and DoorDash (DASH) hand in their latest report cards. Also, look for Moderna (MRNA) to post earnings and discuss numbers surrounding the sale of COVID-19 vaccines.
Paying Off Debt Does Affect Your Credit Score, But Not Always In The Way That You Might Think
How paying off a debt affects someone’s credit score depends on the person’s overall credit profile. Paying off a credit card typically helps your credit score because the account remains open, lowering your credit utilization. Paying off a loan can hurt your score because the loan is then closed, potentially reducing your credit mix and age. Generally, though, borrowers shouldn’t let credit score concerns prevent them from taking actions that are in their financial interest.
Use the SoFi app to benefit from free credit monitoring and gain a bird’s eye view of your financial picture. You can connect all of your accounts into one convenient mobile dashboard, set multiple financial goals, track your spending, and more — all in one place.
A Few Headlines That Should Be on Your Radar
Netflix’s (NFLX) long-awaited ad-supported tier is finally live. This tier will cost just $6.99 and will show users 4-5 minutes of commercials per hour. By choosing to show ads, the streaming giant hopes to increase its average revenue per user. But this pivot is far from a sure thing. Read more >> Some people think the Fed’s rate hikes are reckless, and could cause a recession. But the Fed’s job is to control prices and maintain employment, not to avoid recessions. SoFi’s Head of Investment Strategy argues that if inflation stays too high, it would likely throw us into a recession anyway due to the pressure it puts on consumers and businesses. Read more >> After their habitat was disrupted during the 2020 remote work revolution, it’s finally time for the Great Office Migration, as U.S. employees flock back to their nesting grounds. What can you do if that’s not best for you? A recent survey shows that 66% of employers are requiring employees to return to the office. But, if you prefer a hybrid lifestyle, it might be the perfect time to negotiate your ideal working environment. Here are a few tips on how to do that. Read more >> The nonfarm payroll report is just one of many economic indicators that investors can use to gauge the economy’s strength. The report measures the number of jobs added in the U.S. each month. Read more to learn how this jobs report impacts the stock market. Read more >>Not-So-Breaking News
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Political advertisers are opting to show ads on streaming platforms this election cycle, instead of Facebook (META). The reason? Political consultants say Apple’s (AAPL) new privacy policy is making Facebook ads much less effective.
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Paramount Global (PARA) failed to meet analyst expectations for revenue after reporting sales were down 5% in the third quarter, year-over-year. The dip is being attributed to increased cord-cutting and a drop in ad revenue.
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Yum! Brands (YUM) reported strong revenue, but fell short of estimates in the third quarter. The owner of KFC, Taco Bell, and Pizza Hut largely attributed its struggles to the strengthening US dollar and unfavorable exchange rates.
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Maersk (AMKBY) posted a record EBITDA of $10.9 billion in the third quarter on the back of higher ocean shipping freight rates. The Danish shipping giant anticipates that a looming global recession could slow demand for freight in the future.
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The New York Times (NYT) posted a net income of $36.6 million in its most recent quarter which was higher than anticipated. The legacy newspaper now has a subscriber base of 9.33 million.
Financial Planner Tip of the Day
“Waiting until the end of the month to check in on accounts leaves consumers at risk for excess spending and potentially overdrawing a checking account or having a higher credit card bill than they anticipated. Checking in once a week leaves time to self correct and adjust the budget to help balance the numbers.”
Brian Walsh, CFP® at SoFi