Wednesday,
November 16, 2022
Market recap
Dow Jones
33,592.92
+56.22 (+0.17%)
S&P 500
3,991.73
+34.48 (+0.87%)
Nasdaq
11,358.41
+162.19 (+1.45%)
Top Story
Cooler-Than-Expected Inflation Data Gives Stocks a Boost, Plus More Positive News Out of China
• US stocks rose Tuesday as a cooler-than-expected inflation report boosted sentiment on Wall Street. The October PPI came in 0.2% higher from September, which was lower than the 0.4% analysts had predicted. This adds to the growing narrative that inflation has peaked, although market veterans say the Fed will need more convincing in order to slow rate hikes.
• The market also received more promising signals out of China. Beijing officials have announced plans to relax COVID restrictions, as well as rules that govern the purchasing of property. This is significant to the global financial system given China is the world’s second-largest economy.
• Oil prices rose while the yield on the benchmark US 10-Year Treasury fell. The notion that demand for energy will increase as China relaxes its rules contributes to oil’s rise.
What to Be on the Lookout for Today
• Seven noteworthy economic reports are due, including October’s retail sales, September’s business inventories, and the NAHB housing market index for November. In October, this survey of home builders’ sentiment signaled that builder confidence in the single-family home market is the lowest it has been in a decade.
• It’s the week’s busiest day in terms of earnings reports, with NVIDIA (NVDA), Cisco (CSCO), Lowe’s (LOW), the TJX Companies (TJX), Target (TGT), and Advance Auto Parts (AAP) all set to report. The retail sector will remain in focus with analysts certain to ask executives at Target and TJ Maxx about consumer spending.
Student Loan Debt Relief is Blocked: What’s New and What You Can Do
What’s New: One-Time Forgiveness Has Been Blocked
On Thursday, Nov. 11, a US District judge in Fort Worth, Texas, ruled in favor of plaintiffs who challenged the legality of Biden’s federal student loan forgiveness plan.
Application Status: Closed
The Department of Education has stopped accepting applications for federal student loan forgiveness and is holding those it has already received. The application itself on studentaid.gov is no longer open. Of the 26 million Americans who submitted applications, 16 million were approved, and more than 10 million of those borrowers expected to have their entire student loan balances erased.
Review: Pause Extended Through 12/31
In August, the US Department of Education announced a final extension of the pause on federal student loan repayment, interest, and collections through December 31, 2022. As of now, there are no comments from the White House on whether these new legal challenges will lead to another extension of the payment pause. With interest rates on the rise and the freeze on repayment set to expire at the end of the year, now could be a good time to refinance your federal student loans.
What You Can Do: Consider Refinancing Now
Consider refinancing unforgiven student loans with SoFi. Low rates could save you thousands or help you get out of debt sooner. SoFi is even paying off up to $1,000,000 in student loan debt for ten lucky winners. Enter before 12/31/22 and SoFi could wipe away up to $100K of your student loan debt. Click here to learn more about SoFi’s Forget Your Student Debt Sweepstakes^.
Today’s Top Stories
Major crypto exchange FTX went from industry darling to bankruptcy in just over a week. The details of the fall of FTX are still being revealed, but here is a brief overview of the FTX collapse. The exchange crashed amid a liquidity crunch and allegations of misused funds, followed by a large volume of customer withdrawals. Read more >> The global market for mortgage bonds, driven by institutional investors, has a major impact on mortgage rates. Right now, those bonds aren’t selling. This could offer an investment opportunity. With mortgage rates up near 7%, some investors may view mortgage bonds as a way to achieve relatively safe, high-yield income. While the financial crisis of 2008 is an example of the risk, mortgage bonds have been historically safe. Read more >> You should expect your energy bill to be 45% higher than average this winter — especially if you live in the northeast. Even though energy prices are expected to soar this winter, there are still a few strategies you can implement to stay warm while saving money. Read more >> Are you financially stable and on your way to financial freedom? Here are 10 signs that you’re mastering money management. Achieving financial stability can take time, but it’s possible if you’re using the right approach to managing money. Read more >>Not-So-Breaking News
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Walmart (WMT) reported better-than-expected earnings for the third quarter and raised its outlook for the rest of the year. The world’s largest retailer got a boost as consumers flocked to its cheaper groceries.
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Despite rising costs and economic uncertainty, Home Depot (HD) beat analyst expectations for revenue in the third quarter. The hardware giant saw growth from both its professional and DIY business lines.
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Krispy Kreme (DNUT) reported a larger-than-expected net loss for the third quarter. However, the legacy donut maker also experienced increased revenue and backed its guidance through the end of the year.
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Energizer (ENR) posted a net loss for the third quarter. However, its adjusted sales and profit came out ahead of analysts expectations.
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Some of the world’s most popular food brands have increased prices drastically. For example, the price of Heinz (KHC) Tomato Ketchup has jumped 53% from just two years ago.
Financial Planner Tip of the Day
“Investing isn’t just for the wealthy; it’s for anyone who wants to achieve financial goals. There are low-cost, simple, and effective investing options that are accessible to investors of all sizes.”
Brian Walsh, CFP® at SoFi