Friday,
December 2, 2022
Market recap
Dow Jones
34,395.01
-194.76 (-0.56%)
S&P 500
4,076.57
-3.54 (-0.09%)
Nasdaq
11,482.45
+14.45 (+0.13%)
Top Story
Stocks waver as investors weigh recessionary risk, while data suggests inflation is slowing
• US stocks were mixed Thursday as investors attempted to balance recessionary risks against the prospect of slowing inflation. A day earlier, optimism was high on Wall Street after comments from Federal Reserve Chair Jerome Powell suggested smaller rate hikes in the future.
• The October PCE, which is the Fed’s preferred measure of inflation, came in 0.2% higher month-over-month. That’s cooler than expected and points to the Fed’s aggressive efforts aimed at reining in price increases. At large, consumer spending held steady in October as well.
• Oil prices rose as traders anticipate the US-led plan to cap the price of Russian oil next week. The EU’s executive body called on its member states to approve a $60 per barrel cap.
What to be on the lookout for today
• The November jobs report is due. This includes individual metrics such as the unemployment rate, which ticked up to 3.7% in October. Last month’s nonfarm payrolls, labor force participation rate, and average hourly earnings are also part of the report. Investors will be paying close attention to this slew of labor market data to try and predict how the Fed will react.
• Footwear-focused retailer Genesco (GCO) will hand in its latest report card. Last month, the company unveiled its new corporate headquarters in Nashville, Tennessee.
Paying down debt can be an important financial priority, but should you use your savings in order to do so?
It can be tempting to throw your savings at debt to avoid racking up expensive interest charges. But draining your savings account — or failing to save at all — in favor of debt payoff might not be a smart strategy. With little or no savings, you’ll be less prepared for any emergency expenses in the future, which could lead to even more debt. Consider building your savings while paying off debt by creating a budget, cutting your expenses or boosting your income, and finding (and sticking to) a debt repayment strategy.
To gain a bird’s eye view of your financial picture, try setting up Financial Insights in the SoFi app. You can connect all of your accounts into one convenient mobile dashboard, set multiple financial goals, track your spending, and more — all in one place.
Today’s Top Stories
Netflix (NFLX) plans to improve its original movies and shows by expanding the Netflix Preview Club. This program currently allows a small percentage of users to watch shows and offer feedback to the creators before the content is debuted across the entire platform. Here’s what the expansion means for consumers. Read more >> Many retailers are embracing their higher-than-normal inventory levels. After two years of shortages, could “too much” be a good thing? Retailers have little to worry about as long as consumer demand remains strong — and there’s no better gauge of that than Black Friday. Here’s what the initial data from the holiday tells us about both retailers and shoppers. Read more >> Clinical trials tend to be a thorn in the biotech industry’s collective side. Startup Vial just snagged $67 million from private equity investors, as it looks to make them better organized. It’s a big area of investment, after the FDA made changes due to COVID. Major pharmacy providers like Walmart (WMT), CVS (CVS), and Walgreens (WBA) are also getting in on the action. Read more >> Whether you’re eyeing a new smart TV or looking to upgrade your phone, electronics can come with a hefty price tag. Before making your next big purchase, consider these 12 smart ways to save money on electronics. Read more >>Not-So-Breaking News
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Kroger (KR) reported third quarter sales that beat analyst expectations. The grocery giant also raised its outlook for the rest of the year, citing increased prices for eggs, milk, and other staples.
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Dollar General (DG) reported lower-than-expected earnings and reduced its guidance for the rest of the year. The discount chain blamed delays in securing additional warehouse space to hold its excess inventory, among other factors.
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Lastly, Designer Brands (DBI) missed on its third quarter earnings expectations and lowered its full-year outlook. The DSW owner stated it is struggling with high inventory levels, making it difficult to clear the way for new products.
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In China, Tesla (TSLA) is recalling 435,000 combined Model 3 and Model Y vehicles to fix an issue with the rear lights. Just last month, Elon Musk’s EV giant was forced to recall vehicles for a similar issue in the US.
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Experts predict India will become the third-largest economy in the world by 2030, beating Germany and Japan. This assumes that India’s nominal GDP grows by an average of 6.3% annually.
Financial Planner Tip of the Day
"The first step to tackling high interest debt is understanding your overall debt load. List out all debt including balance, payment, and interest rate. Any debt with an interest rate greater than 7% is considered high, so separate those out and develop a plan to pay them down."
Brian Walsh, CFP® at SoFi