Friday,
November 18, 2022
Market recap
Dow Jones
33,546.32
-7.51 (-0.02%)
S&P 500
3,946.56
-12.23 (-0.31%)
Nasdaq
11,144.96
-38.70 (-0.35%)
Top Story
Stocks Fall as Fed Officials Dash the Market’s Hopes for a Less Aggressive Central Bank
• US stocks fell Thursday, as the market’s recent optimism concerning a possible dovish turn from the Fed appears to be fading. In particular, St. Louis Fed President James Bullard said rates still need to go higher in order to cool off the economy. Last week’s market rally was largely fueled by cooler-than-expected inflation data, and the hope for a less hawkish Fed. US government bond yields rose.
• Jobless claims fell by 4,000, pointing to a still robust labor market. This makes it more likely the Fed will remain aggressive in its fight against inflation, putting pressure on equities.
• UK Chancellor Jeremy Hunt unveiled the nation’s largest tax hikes and spending cuts in a decade. This follows an effort aimed at cutting taxes earlier this month, which caused upheaval in the UK bond market, and led to the resignation of former PM Liz Truss.
• Oil prices fell, with international standard Brent crude down around 3%. Traders blame this on subdued demand from China.
What to Be on the Lookout for Today
• October’s existing home sales will be published, clueing investors in as to whether or not we are entering a buyer’s real estate market. Also, watch for the Conference Board’s leading economic indicators report for October.
• Chinese ecommerce giant JD.com (JD) will release its Q3 earnings report. Investors will want to hear how China’s zero-COVID policies have impacted the company’s bottom line, especially as Beijing looks to relax those rules.
New Changes To The Student Loan Bankruptcy Process, Announced Yesterday, Will Make It Easier To Discharge Student Debt In Bankruptcy Court.
Historically, it has been extremely difficult to get out of federal student loans through bankruptcy. Currently, the Department of Education is directed to oppose all attempts to discharge student loan debt, even appealing cases where the court decided in favor of the student loan holder.
Under the new process, debtors will complete an attestation form confirming that they meet the definition of undue hardship. The bankruptcy judge, under guidance from the Justice Department and Department of Education, will assess the request and make a decision to fully or partially discharge the debt.
To learn more, visit this guide, which speaks to the new requirements, pros and cons of declaring bankruptcy, and alternatives to dealing with student loan debt.
Today’s Top Stories
Despite high prices for gas and airline tickets, the pandemic travel slump is officially over. AAA expects this Thanksgiving to be one of the busiest in decades. Plan on flying home for the holidays? Check out which airports are the best in the country — and which ones you should plan to arrive at hours ahead of your flight. Read more >> What’s on retail stores’ Christmas lists? According to Macy’s, snazzy clothes, shoes, and makeup are in, while pajamas, bedding, and home goods are out. The department store chain boosted its profit forecast, but held steady on its expectation for sales. Here’s how the retail giant is shaping up ahead of the all-important shopping sprint. Read more >> Google “DispatchHealth” and bookmark the page. The next time you have a medical issue, they may be able to help by sending expert medical care right to your home. DispatchHealth just received $330 million in funding to grow its in-home medical care service. With this new funding, it should be able to expand quickly — maybe even to a hospital near you. Read more >> Whether you’re hosting or traveling this November, we’ve got tips and tricks for doing Thanksgiving on a budget. Here’s 37 ideas to enjoy the holiday inexpensively. Read more >>Not-So-Breaking News
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General Motors (GM) is aiming to have its new EVs in-line with internal combustion engine models by 2025. CEO Mary Barra expects profits to climb significantly as a result of recent government incentives for the EV industry.
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Kohl’s (KSS) withdrew its full-year guidance, blaming the tough macroeconomic environment, as well as the company’s abrupt transition at CEO. Outgoing CEO Michelle Gass is set to step down next month. Kohl’s Q3 revenue also dipped 7% year-over-year.
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The deal between video game maker Activision Blizzard (ATVI) and Chinese internet technology firm NetEase (NTES) is set to expire following a 14-year run after the two companies couldn’t agree on a renewal. This means that Chinese gamers will lose access to games like World of Warcraft and Hearthstone.
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Alibaba (BABA) reported stagnant revenue and a surprising loss for the third quarter. Continued COVID-19 lockdowns and falling consumer confidence are likely to blame.
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Liberty Media (FWONA) is planning to give the Atlanta Braves its own tracking stock. The move will reclassify the Major League Baseball team as a publicly-traded company.
Financial Planner Tip of the Day
"One place to begin when striving to nurture good financial habits is to write out individual money goals. Financial goals can serve as ‘external’ guideposts for kickstarting (and then sticking with) new habits."
Brian Walsh, CFP® at SoFi