Wednesday,
November 30, 2022
Market recap
Dow Jones
33,852.53
+3.07 (+0.01%)
S&P 500
3,957.63
-6.31 (-0.16%)
Nasdaq
10,983.78
-65.72 (-0.59%)
Top Story
Stocks waver as Wall Street remains focused on China and speech from Powell
• US stocks were mixed Tuesday as investors paid close attention to unrest in China, where residents are protesting the nationâs zero-COVID policy. Meanwhile, stocks got a boost in Shanghai and Hong Kong after Chinese officials announced nearly 66% of those aged 80 and older have received booster shots.
• The market is eagerly anticipating comments from Federal Reserve Chair Jerome Powell. These will be his last scheduled remarks ahead of the central bankâs next rate-setting meeting, scheduled for December 13 and 14. Wall Street is hoping for a dovish turn from the Fed, after this yearâs rate hikes have put pressure on equities and the housing market.
• The S&P CoreLogic Case-Shiller home price index fell 1.2% in September, marking the third-straight month in which it declined. But the Federal Housing Finance Agencyâs home price index rose for the same period, surprising analysts.
• The Conference Board reported that consumer confidence fell in November. The index slipped in October as well.
What to be on the lookout for today
• The labor market will be in focus, with both ADPâs private jobs report for November and the JOLTs for October due. Private payrolls rose 239,000 in October, which was better than expected. Similarly, job openings surged higher in the September JOLTs, or Job Openings and Labor Turnover Survey. These trends are notable considering the Fedâs attempts to cool off the economy with inflation at its highest level in decades.
• The second estimate of the US third-quarter GDP is due. A month ago, the initial estimate showed the economy grew at a 2.6% pace, which exceeded expectations.
• Software developer Salesforce (CRM) is set to hand in its latest report card. Earlier this month, the company announced plans to lay off more than 2,000 workers, which has been a recent theme in the tech sector.
• Discount store chain Five Below (FIVE) is hosting a conference call to discuss its third-quarter earnings. Investors are paying close attention to how retail companies are performing with the holiday shopping season underway.
ICYMI: the federal student loan payment pause was extended (again!)
Whatâs new: the payment pause on federal student loans has been extended beyond December 31.
Status of forgiveness plans: Bidenâs 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 donât have to make payments on your federal student loans, it doesnât mean you canât. If you are able, you may consider making payments anyway â 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.
Todayâs top stories
Amid rising mortgage rates, could home prices truly collapse? Some economists say itâs possible. The age-old formula involving supply and demand is being heavily influenced by mortgage rates. Single-family home sales have fallen for nine straight months. That has some economists convinced home prices could dip 20% as inventory concerns ease. Read more >> Glass Onion: A Knives Out Mystery debuted this past weekend in a limited release â a strategy that was a killer (pun intended) for Netflix (NFLX). There is evidently still money to be made by sending major films to theaters first. Hereâs how this will impact your viewing experience moving forward. Read more >> Elon Musk has made a few enemies since taking over as Twitterâs CEO â most recently, Apple (AAPL). There are at least two credible reasons why Apple might take steps to remove Twitter from the App Store: content moderation and in-app purchase revenue. Read more >> Want to get the full benefit from end-of-year charitable donations? Learn the ins and outs with this guide, and you may be rewarded with paying less in taxes this year. In addition to helping a nonprofit organization meet its operating costs for the year, you can feel good about what you are doing with your money, and you may also benefit from tax deductions. Read more >>Not-So-Breaking News
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Goldman Sachs (GS) expects OPEC+ to announce measures that will stem the price decline of oil at its upcoming meeting. Executives anticipate that oil could reach $110 per barrel by next year.
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Lordstown Motors (RIDE) received final regulatory approval and will start delivering electric trucks. The EV startup is now in the process of shipping its first electric pickups to a small batch of customers.
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Roku (ROKU) was downgraded by a group that had been bullish on the stock for an extended period. Analysts with advisory firm KeyBanc Capital (KEY) have expressed concerns that Roku is losing market share.
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DraftKings (DKNG) announced a partnership with Churchill Downs. Through this collaboration, the sports betting company will launch a horse race betting app ahead of the Kentucky Derby.
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Hibbett (HIBB) reported profit and sales earnings that failed to meet analyst expectations. The athletic fashion retailer blamed increases in wages and fuel costs, which hurt its margins.
Financial planner tip of the day
âSetting a financial goal is all about having your money serve you. When a budget is too harsh and punitive, you might wind up making impulse buys or otherwise overspending. If you know you have some cash stashed for mood-lifting purposes, you can stay on track.â
Brian Walsh, CFPÂŽ at SoFi