Monday,
November 28, 2022
Market recap
Dow Jones
34,347.03
+152.97 (+0.45%)
S&P 500
4,026.12
-1.14 (-0.03%)
Nasdaq
11,226.36
-58.96 (-0.52%)
Top Story
Stocks Rise as FOMC Minutes Hint at Smaller Rate Hikes in 2023, Jobless Claims Rise
• US stocks rose Wednesday after the FOMC minutes from this month’s meeting suggested the Fed will enact smaller rate hikes in the future. While the previous four rate hikes were 75-basis-points, many expect the central bank to announce a 50-basis-point hike at next month’s gathering.
• Jobless claims came in at 240,000 for the week ending November 19, which was higher than expected. This signals the labor market could be weakening, which also suggests the Fed could take a more dovish turn in 2023.
• The Commerce Department reported that single-family home sales rose in October on a monthly basis. This surprised analysts, given how mortgage rates have risen in recent months.
• There continues to be uncertainty regarding China and what officials will do regarding its COVID-19 restrictions. This has impacted the price of oil, given lockdowns within the world’s second-largest economy harm demand. The price per barrel slipped Wednesday for both international standard Brent crude and US benchmark West Texas Intermediate.
What to Be on the Lookout for Today
• The Dallas Fed will release its manufacturing index for November. The survey tracks manufacturing activity for the greater Dallas-Fort Worth area. In October, the index dropped 19.4%, which was more than expected.
• Chinese ecommerce giant Pinduoduo (PDD) will share its most recent earnings data, after its sister app Temu reached the top spot in the US app store last week. Investors will want to hear executives’ thoughts on the country’s ongoing uncertainty concerning COVID-19 rules and lockdowns.
Due To Inflation, Americans Are Carrying More Credit Card Debt Than Ever
With inflation at its highest pace in years, more and more Americans are struggling to keep up — and are turning to credit cards to get by.
Credit card balances have risen more than 15% for the July-to-September period — that’s the largest quarterly increase since 2007.
It’s not necessarily a problem to have a balance on your credit card — as long as you pay it off every billing cycle. In fact, using credit cards for rewards or to build credit can be a financially healthy choice. And getting into the habit of paying off your statement balance in full by the due date is important.
But if you start to carry a credit card balance, you’re not just paying for your purchases, you’re paying hefty interest charges on top of what you’ve spent. The debt can quickly pile up, even if you’re making the required minimum payments.
While it can seem like a steep, uphill climb, getting out of credit card debt is possible. It might take some serious planning and commitment, but with the right tools, it’s an achievable goal. Here are five steps to take to pay down credit card debt amid inflation and rising interest rates.
Today’s Top Stories
This week, a number of companies report earnings, along with exciting news of extended sponsorships and shiny new corporate headquarters. Ecommerce giant Pinduoduo (PDD) will share its most recent results, after its sister app just topped the US app store. Read more >> The average retiree, between the age of 65 and 74, has a total net worth of $1.2 million including $426k in their retirement account. How much will you need to comfortably retire? Learn what to expect during your golden years and how to create an action plan. Read more >> The end of the year is hectic, but it can also be the perfect time to reevaluate your financial plan. Learn ways to assess your financial goals and prepare for the upcoming tax season. Read more >> As you begin making your lists for holiday gifts and activities this season, you may be wondering how you can enjoy all the festivities without breaking your budget. Here are 41 genius ideas to get you started. Read more >>Not-So-Breaking News
- Embattled investment bank Credit Suisse (CS) issued a warning that it expects a pretax loss in excess of $1.5 billion during its fourth quarter. The company’s executives note the current macroeconomic environment has hurt client activity and wealthier clients have withdrawn investments and savings.
- John Deere (DE) posted upbeat results for its fiscal fourth quarter, easily exceeding revenue expectations by over $2 billion. The heavy equipment maker also increased its full-year forecast. Executives said positive farm fundamentals and infrastructure spending provided a boost.
- New York Governor Kathy Hochul signed a law last week that bans some bitcoin (BTC) mining operations, if they use carbon-based sources of power. This means proof-of-work mining companies will be required to use 100% renewable energy in order to expand or renew permits, over the next two years. In addition, no new entrants will be permitted during that time.
- High-end retailer Nordstrom (JWN) beat earnings expectations for its third quarter, but also cut its profit outlook, citing slower-than-expected early holiday shopping and ongoing supply chain inflation. The company is taking a hit as it offers discounts in a bid to clear out excess inventory.
- After shutting down due to COVID-19, Royal Caribbean Group (RCL) is bringing back “The Quest.” The popular 21-and-over scavenger hunt is a variable competition or game that tasks entrants with finding various items, and is considered more risqué than some cruise activities.
Financial Planner Tip of the Day
“Waiting until the end of the month to check in on accounts leaves consumers at risk for excess spending and potentially overdrawing a checking account or having a higher credit card bill than they anticipated. Checking in once a week leaves time to self correct and adjust the budget to help balance the numbers.”
Brian Walsh, CFP® at SoFi