Tuesday,
November 15, 2022
Market recap
Dow Jones
33,536.70
-211.16 (-0.63%)
S&P 500
3,957.25
-35.68 (-0.89%)
Nasdaq
11,196.22
-127.11 (-1.12%)
Top Story
Choppy Session Ends with Stocks in the Red, Inflation Expectations Rose in October
• US stocks fell Monday as the mood on Wall Street shifted back and forth in what was a choppy session. The major indexes rose off their session lows after Fed Vice Chair Lael Brainard said it may soon be appropriate to slow down the central bank’s rate-hike campaign.
• Those comments clashed with what fellow Fed Governor Christopher Waller said over the weekend, as he argued an end to rate hikes is still a ways away. Zooming out, the market still remains laser focused on interest rates, and where they will be headed in the early part of 2023.
• The New York Fed released its survey concerning consumer’s inflation expectations for October. Respondents are anticipating higher prices, largely due to elevated gasoline costs.
What to Be on the Lookout for Today
• The October PPI, or Producer Price Index, is due. This key measure of wholesale prices rose 0.4% month-over-month in September, and 8.5% on an annual basis.
• The November Empire State Manufacturing Index will be published, as well as real household and mortgage debt for the third quarter. The November Empire State Manufacturing Index will be published, as well as real household and mortgage debt for the third quarter.
• Two heavy hitters in the retail space, Walmart (WMT) and Home Depot (HD), will post their latest earnings data. Investors will be watching Walmart in particular, as the world’s biggest retailer, for further insight into consumer spending and other trends.
Did You Know? Having Good Debt Could Actually Help Your Credit Score.
Having a diverse mix of credit products can have a positive impact on a person’s credit, accounting for 10% of a credit score calculation.
Opening at least one credit card is a good step for most borrowers. Using a personal loan to finance a large purchase with a relatively low interest rate, and paying off that personal loan on time, can also have a positive impact on a person’s credit. Student loan refinancing can be another way to diversify your credit mix, while potentially lowering your interest rate.
However, while having a mix of credit can help your standing as a borrower, it’s not a good idea to open a line of credit that’s not needed just to increase your mix of credit types. Instead, stick to applying only for credit you actually need and that you’re confident you can afford to pay off.
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.
Today’s Top Stories
It’s the holiday shopping season! The 2022 story features a new main character: inventory management. Its cousin “supply chain” plays a mere supporting role this year. A veritable who’s who of retailers – such as Target (TGT), Under Armour (UA), and Kohl’s (KSS) – are marking down products aggressively in order to clear out old inventory. That means discounts, but it could also be a real drag on the in-store shopping experience. Read more >> Black Panther: Wakanda Forever debuted this weekend and backflipped to an $180 million gross domestically. This opening weekend was the second-highest this year. The Black Panther’s win comes at a much-needed time for both Disney (DIS) and major movie theater chains. The question is, with no more superhero flicks until 2023, will theaters be able to tread water long enough? Read more >> If you’re traveling in the coming months, you can expect to find lower-quality rooms – even if the price tag doesn’t reflect it. While trying to keep the lights on during the pandemic, most hotels redirected cash to paying the lease, employees, and bills. Many hotel rooms are now months behind on maintenance. However, hotel execs are adamant that this will be a short-term issue. Read more >> What’s an investor do when inflation is on the upswing? Often, it means adjusting investment portfolios to protect assets against rising prices and an uncertain economy. Learn what adjustments you can make to your portfolio to protect against rising inflation. Read more >>Not-So-Breaking News
- Oatly’s (OTLY) earnings fell short of analyst expectations. The dairy-alternative company blamed its subpar results on COVID-19 restrictions in Asia and a stronger dollar, which hurts its overseas business lines.
- Due to soaring input costs, Tyson Foods’ (TSN) profit came in lower than expected. The rise in the cost of poultry squeezed the massive meat producer’s margins, shrinking its bottom line.
- Beijing officials announced plans to ease lending restrictions within China’s real estate sector. This will make it easier for Chinese citizens to buy property and could help bring an end to the country’s real estate troubles.
- Elon Musk’s private space company SpaceX just bought one of the largest advertising packages from Twitter, which is also owned by Musk. This package typically costs $250,000 and will promote SpaceX’s satellite internet system Starlink at the top of Spanish and Australian users’ timelines for a full day.
- Amazon (AMZN) founder Jeff Bezos stated that he plans to give away most of his $124 billion fortune. Bezos declined to share specifics, but the fourth-richest man in the world has said he wants to fight climate change as well as “division” in American society.
Financial Planner Tip of the Day
"Risk tolerance means the level of risk you’re comfortable taking; risk capacity is the level of risk you can actually take. You may be comfortable with risk but that does not mean you should, for example with an emergency fund. The opposite is also true for long-term money where your capacity is much higher."
Brian Walsh, CFP® at SoFi