Monday,
November 7, 2022
Market recap
Dow Jones
32,403.22
+401.97 (+1.26%)
S&P 500
3,770.55
+50.66 (+1.36%)
Nasdaq
10,475.25
+132.31 (+1.28%)
Top Story
Stocks Rise as October Jobs Report Paints Mixed Picture, Fed Officials Speak
• US stocks rose Friday as investors digested last week’s rate hike from the Fed and the October jobs report. The economy added 261,000 nonfarm jobs in October, which exceed expectations. But unemployment ticked up last month to 3.7%.
• This mixed jobs data may have helped boost sentiment, considering what impact it could have on the Fed’s thinking. Wall Street observers say the central bank’s rate hike campaign has clearly made an impact, while avoiding a complete crash of the labor market.
• Boston Fed President Susan Collins and Richmond Fed President Thomas Barkin commented that the central bank could look to slow down its rate hike campaign in the coming months. This is significant as the market looks for any sign of a dovish turn from the Fed, especially following last week’s 75-basis-points hike and ensuing comments from Chair Jerome Powell.
What to Be on the Lookout for Today
• The market gets a peek into how much money Americans collectively owe when the consumer credit level change report is published for September. In August, consumer credit increased 8.3% year-over-year on a seasonally adjusted basis.
• Sir Richard Branson’s Virgin Orbit (VORB) will share its Q3 earnings, which will reflect how current macroeconomic conditions have impacted the space industry. Additionally, the latest quarterly earnings from Take-Two Interactive (TTWO), a leading video game manufacturer, will keep us up-to-date on how many people are playing Grand Theft Auto and NBA 2K.
How Much Is Your Car Worth, Really?
The value of your car will change from year to year as it ages, and supply and demand shift. Staying on top of your car’s value can help you make informed decisions about your net worth, as well as decisions about when to sell or trade in your vehicle for a new car.
Now with Auto Tracker in the SoFi app, you can instantly monitor vehicle prices in this unprecedented market. Discover real-time vehicle values in just a few clicks.
A Few Headlines That Should Be on Your Radar
Disney (DIS) is set to report earnings this week. One topic that could come up is the affordability of the Disney parks. The “happiest place on earth” is financially out of reach for a stunning 92.6% of households, according to a recent survey. On the economic calendar, all eyes will be watching the latest inflation print. Is the Powell-led Fed having success with its hawkish strategy – or should we start mentally preparing to pay $10 for a cup of coffee in the near future? Read more >> If you have a FSA, the use-it-or-lose it deadline is approaching. Come December 31, you’ll be buying up a lot of bandages, heating pads, and sunscreen – unless you come up with a more useful way to spend those funds in the meantime. Anything you don’t spend goes back to your boss! Over the past couple years, employees were allowed to carry over FSA balances, due to the COVID-19 pandemic. Congress hasn’t permitted that this year. In 2019, 44% of participants forfeited money. Read more >> After a decade of near invincibility, Big Tech is finally at a point where it needs to start making cuts. Over the past year, nearly every major tech company has announced layoffs or hiring freezes. If you are freshly single from your employer, there are several things that you’ll need to be aware of. To start, you don’t want to resign or sign your severance package on the spot. Here’s what else to know. Read more >> Tomorrow’s U.S. midterm elections results can influence stock prices. While past performance is not indicative of future results, historically, the stock market has underperformed leading up to midterm elections and bounced back in the year following the elections. Read more >>Not-So-Breaking News
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Block (SQ) reported quarterly earnings that surpassed analyst expectations. The Twitter founder’s company, formerly known as Square, posted increased net profit, as its Cash App and point-of-sale business lines rose 51% and 29%, respectively.
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Q3 was a tough one for Carvana (CVNA) as the used car reseller’s business declined in almost every major metric, including revenue, profit, and retail units sold. That said, used car prices hit record highs in 2021, which makes it difficult to compare yearly numbers.
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Twilio’s (TWLO) share price plummeted after it fell short of analyst expectations for earnings and lowered its guidance. In September, the cloud communications software company announced that it would be laying off 11% of its staff, or over 800 employees.
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FuboTV (FUBO) announced a strong third quarter, growing both its revenue and subscribers. The sports-first streaming platform reported over 1.2 million paid subscribers in North America, up 31% from last year.
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Online food ordering giant DoorDash (DASH) delivered delicious earnings to investors in Q3, beating expectations on both sales and total orders. This indicates consumer spending remains resilient, despite historic levels of inflation.
Financial Planner Tip of the Day
“As the famous axiom goes, “buy low, sell high.” A stock market crash may present long-term opportunities to buy stocks at a lower, more attractive share price.”
Brian Walsh, CFP® at SoFi