Wednesday,
November 23, 2022
Market recap
Dow Jones
34,098.10
+397.82 (+1.18%)
S&P 500
4,003.58
+53.64 (+1.36%)
Nasdaq
11,174.41
+149.90 (+1.36%)
Top Story
Stocks Edge Higher With Focus Largely Overseas, Oil Price Volatile Amid Mixed Reports
• US stocks rose Tuesday in what was a relatively quiet session ahead of the holiday break. Traders are betting that the Fed will look to slow its rate hike campaign in 2023. That said, Wall Street remains concerned that China could tighten its COVID-19 rules after more deaths were attributed to the virus.
• Oil prices rose after Saudi Arabia denied a report suggesting it could look to increase production. In October, OPEC+ announced it would cut output, sending oil prices higher.
• The Redbook Index was boosted by pre-Thanksgiving shopping and grew 7.5% for the week ending November 19. This is a weekly survey of retail locations, tracking same-store sales activity.
What to Be on the Lookout for Today
• Wall Street will be paying close attention as the Federal Open Market Committee meeting minutes will be published. During its November meeting earlier this month, the Fed raised interest rates for the sixth consecutive time, bringing the federal funds rate to a range of 3.75% to 4%.
• Last month’s new home sales are due, as well as durable goods orders for October. New home sales will be on investors’ radar after the category plummeted 10.9% month-over-month in September.
• Heavy equipment manufacturer John Deere (DE) will hold a call with analysts to discuss its earnings. Last week, the company received two CES® Innovation Awards from the Consumer Technology Association for work in robotics and in vehicle intelligence.
🚨Breaking: Federal Student Loan Payment Pause Extended (Again!)
What’s new: the payment pause on federal student loans has been extended beyond December 31.
Status of forgiveness plans: Biden’s federal student loan forgiveness plan was blocked in court earlier this month. According to a tweet from President Biden , those legal challenges are what lead to this extension of the payment pause.
When do payments resume? As of right now, the exact date is unclear. According to a press release by the Department of Education , these are the two most likely ways this could go:
• If student loan forgiveness happens before June 30, 2023, payments will begin 60 days after the forgiveness is implemented.
• If student loan forgiveness does not happen before June 30, 2023, payments will begin 60 days after June 30.
What happens now: The case for student loan forgiveness will go through the courts, possibly making its way up to the Supreme Court. In the meantime, the 16 million applicants who were approved for forgiveness are waiting in limbo.
What you can do: Even though you don’t have to make payments on your federal student loans, it doesn’t mean you can’t. If you are able, you may consider making payments anyway — especially if you have more than $10k or $20k in student loans. Interest rates are set at 0% during the pause, so any money put toward payments will go straight to the principal balance.
Today’s Top Stories
Before you hit the road for the holidays – or if you’re already on your way – we’ve got some pointers. First up: home-cooked turkey or takeout? It’s not such a crazy question when you compare how the cost of dining out and eating at home have advanced in the past year. Plus, some last minute travel tips for anyone hitting the road or skies. Read more >> No, money still can’t buy you love. But for a small monthly fee, it can help you invest in finding a fulfilling relationship. Match Group’s earnings show the number of people paying for dating apps is on the rise, despite record-high inflation. Paid users on dating apps typically report having a better experience than on the free version. Read on to learn exactly why that is. Read more >> Thanks to high inflation and stagnant wages, financially-stressed Americans are giving less to charity this year. Despite the hard economic times, many people tend to still feel guilty about not giving to charity, even if it’s their wallet holding them back. If this sounds like you, there are a few ways that you can still give to your favorite charity without actually spending money. Read more >> Some traders see the season between Thanksgiving and News Year’s Day as one where they can work hard and make some strategic gains in the market — taking advantage of the period when many other traders take time off. Here’s a look at how the holiday season can affect the stock market, which can help you navigate the season no matter what kind of investor you are. Read more >>Not-So-Breaking News
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Best Buy (BBY) reported third quarter earnings that surpassed analyst expectations. The electronics retailer also reaffirmed its guidance for the end of the year despite facing multiple headwinds.
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American Eagle (AEO) beat analysts expectations for third quarter revenue and net income. The popular apparel company says it expects strong margins during the holiday season.
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Jack in the Box (JACK) reported better-than-expected profit for the third quarter. However, the fast food chain lowered its guidance for the remainder of the year, citing how inflation has eaten into margins.
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Warner Music Group (WMG) exceeded Wall Street’s top and bottom line estimates during the third quarter. The record label’s profit expanded faster than its revenue, signaling that its margins are expanding as well.
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Oxfam filed shareholder resolutions against several oil giants, including Exxon Mobil (XOM), Chevron (CVX), and ConocoPhilips (COP). The international relief charity argues the industry’s tax practices are secretive and undermine the public’s interest.
Financial Planner Tip of the Day
"For money you’ll use in three to seven years, you may be prepared to take slightly more risk than a savings account but still want to take less risk than your retirement money. You might choose to use a brokerage account where you can invest that money in stocks, bonds, cash, or other asset classes. Just be sure to keep your comfort with risk in mind."
Brian Walsh, CFP® at SoFi