Top Story
Stocks Fall and Bond Yields Rise as Market Reacts to Fedâs Latest Hike, Powellâs Comments
• US stocks fell Thursday as investors assessed the Fedâs latest rate hike and hawkish comments from Chair Jerome Powell. He asserted that itâs âprematureâ to discuss slowing down rate hikes, with inflation not yet under control.
• Government bond yields rose in response to the Fedâs latest hike. The yield on the US 2-Year Treasury hit its highest level since 2007, while the 10-Year also saw its rate increase.
• The Bank of England enacted a 75-basis-point hike, its largest since 1989. The UK central bank also predicted the nation faces a protracted recession. The British pound weakened and UK government bonds sold off.
• The US Department of Labor reported jobless claims fell slightly last week to 217,000. While this is good news for job seekers, it reasserts the Fedâs thinking that the labor market can handle additional rate increases.
What to Be on the Lookout for Today
• The Bureau of Labor Statistics will publish the October jobs report. This includes individual measurements such as the change in nonfarm payrolls, the unemployment rate, average hourly earnings, and the labor participation rate. Investors will be paying close attention to see if the labor market remains strong, as that could influence the Fedâs thinking concerning future rate hikes.
• Hershey (HSY) stands at-the-ready to let us know if this yearâs Halloween candy sales were more or less busy than last yearâs. The company was among several candy makers who discussed efforts to keep prices low in the months and weeks leading up to the holiday. The stock has also performed well this year, topping some of Big Techâs leading names.
Use Your Stage Of Life To Help Determine Your Investment Strategy
In a moment of economic uncertainty, one way to stay proactive is to thoughtfully determine your investment strategy. Depending on your stage of life and priorities, there are a few different strategies to consider.
If youâre a Baby Boomer, you might consider keeping cash on hand, staying invested in the market via retirement/investment accounts for the long haul, and continuing to diversify. These tactics can help in transitioning from a work-focus to focus on travel, health care, and retirement.
If youâre a Gen Xer, start building your nest egg, consider your financial goals, seek professional financial advice, and evaluate your risk tolerance. If youâre a professional in your 40s, your money has another 20+ years in the market before retirement â you may consider factoring in a bit more risk into your portfolioâs asset allocations. (Of course, itâs best never to risk more money than you can afford to lose.)
Millennials and Gen Z, you have the most to gain by investing early and staying in the game. A longer time horizon means youâre able to weather ups and downs. You may also consider exploring diversification via mutual funds or exchange-traded funds (ETFs).
If youâre interested in improving your financial literacy and staying on top of market trends, keep your eye on what SoFi has to say about investment strategy.
A Few Headlines That Should Be on Your Radar
The past few years have been a frenzy of homebuying, largely thanks to record low interest rates. If you havenât bought your own home yet, though, donât worry. This cyclical market might be coming back around in your favor. Ideally, higher interest rates should help curb demand and stabilize home prices over the coming years. Youâll still need a plan of action if you want to be a homeowner â hereâs what to know. Read more >> You might think of Etsy (ETSY) as an alternative place to buy cute decorations, craft materials, and other small tchotchkes, but itâs building a reputation, outperforming top competitors. While the ecommerce company did experience a dip in gross merchandise sales during Q3, it beat industry expectations, and is well-positioned for the upcoming holiday season. Learn why Etsyâs creators give it an edge. Read more >> Volocopter, an electric helicopter taxi company, recently raised $182 million to finalize its futuristic vision of bringing flying taxis to city skies. This Series E funding round brings the German startupâs total valuation to $1.87 billion. Volocopter will use this money to finalize its design and secure approval from proper authorities. It hopes to start offering paid rides as early as 2024. Read more >> Ready to build life skills while saving money? Weâve rounded up 20 of the top money-saving skills, from haggling to home improvement, that when mastered can help you cut costs. Read more >>Not-So-Breaking News
-
Nikola (NKLA) produced 75 vehicles in Q3 and brought in enough revenue to beat analyst expectations. But many investors trimmed their positions after the EV truck maker dropped its guidance for the rest of the year.
-
Pelotonâs (PTON) revenue dropped 23% annually, a worse fall than Wall Street anticipated. However, new CEO Barry McCarthy is upbeat about the direction of the company, citing improved gross margins and an increase in subscription revenue.
-
Moderna (MRNA) fell short of Wall Streetâs expectations for the third quarter as it missed on both revenue and earnings. On top of that, the COVID-19 vaccine maker slashed its sales outlook and said supply chain issues are pushing some deliveries into 2023.
-
Kelloggâs (K) beat Wall Street estimates for revenue during its third quarter and raised its guidance for the rest of the year. The cereal company credited the strong results to strength within its snacks division.
-
Planning on doing some online shopping ahead of the holidays this year? Googleâs (GOOGL) got you covered with a new Gmail feature that lets you know when a package was shipped, when itâs expected to arrive, and when a delay occurs.
Financial Planner Tip of the Day
âIf you want to build savings into your monthly financial plan, but canât imagine how, you have to begin by tracking your spending. Identify areas that you can cut back in so that you are then able to re-allocate those funds to your future.â
Brian Walsh, CFPÂŽ at SoFi