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Stocks finish lower in choppy session as November’s optimism fades from view
• US stocks fell Wednesday in an up-and-down session that continued this week’s slide. After optimism led to gains last month, traders seem more focused on the potential for a recession, and where interest rates are headed.
• After data showed the Federal Reserve could be winning the fight against inflation, stocks performed well throughout November. But now, stronger-than-expected economic data has the market convinced the central bank may stay aggressive in 2023. Still, a 50-basis-point hike is expected at this month’s meeting, after four straight 75-basis-point hikes.
• Consumer credit increased by a smaller-than-expected amount in October. This includes personal debts like credit cards and auto loans.
What to Be on the Lookout for Today
• Wall Street will be paying close attention to last week’s jobless claims. For the week ending November 26, the number of Americans filing first time claims decreased by 16,000 to 225,000 which was a steeper decline than expected. Continuing claims will also be published.
• It’s busy on the earnings calendar with Costco (COST), Lululemon (LULU), Chewy (CHWY), and DocuSign (DOCU) all set to report. Results from Costco and Lululemon will give the market a good sense of consumer spending at different price points, as the holiday shopping season continues.
How will you stay financially jolly this holiday season?
While holiday shopping may be dominating your financial thoughts right now, it’s important to remember the first priority of covering the basics. Once your housing costs, groceries, and other bills are paid, write out a budget for your holiday spending.
From there, diversification is key. Shopping online, in store, and via apps can help you find the best prices. Getting started early and spreading purchases out also helps manage your cash flow.
Holiday shopping doesn’t have to be stressful. Planning ahead can help the most wonderful time of the year live up to its name. Set monthly spending targets, and review your top spending categories with Financial Insights in the SoFi app to help stay on track.
Today’s top stories
Will housing become more affordable in 2023? Plus, how are homebuyers getting creative? These are the types of questions that Zillow’s (Z) 2023 Housing Prediction Report attempts to answer. Here’s a breakdown of what they foresee for the housing market. Read more >> Netflix (NFLX) has another winner on its hands. But these hit shows highlight the intense pressure streaming is under on the content side — keeping monthly prices high. After Dahmer and Stranger Things 4 hit 1 billion viewership hours, the Addams Family spin-off could be next. In the meantime, that monthly subscription isn’t getting any cheaper. Read more >> As the index approaches a resistance line, investors tend to get fidgety. Will it hold? Is the rally exhausted? In this week’s column, SoFi’s Head of Investment Strategy contemplates if we’re watching another failed breakout attempt in markets. Read more >> We surveyed parents and grandparents to find out what they really want this holiday season. Their top gift choices may surprise you and take a bit of stress off your holiday shopping. Read more >>Not-so-breaking news
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Bluebell Capital is calling for Larry Fink, the CEO of investment firm BlackRock (BLK), to step down, alleging that BlackRock does not adhere to the ESG standards it claims to support. The activist fund called BlackRock’s environmentally-friendly messaging “hypocrisy”.
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Southwest Airlines (LUV) reinstated its dividend payment. The major air carrier suspended its dividend in 2020, but is finally reversing this policy as air travel rebounds.
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The United Auto Workers union is voting over whether or not to establish representation for Ultium Cells LLC, an EV joint venture involving General Motors (GM). This vote may set a precedent for the electric vehicle industry at large.
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Pinterest (PINS) will add a member of Elliott Management to its board. This activist investment firm has extensive experience in tech and social media.
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Tesla (TSLA) announced an $860 discount to Chinese buyers who purchase an inventory car. This is yet another attempt by the EV leader to entice consumers in a nation still grappling with the COVID-19 pandemic.
Financial planner tip of the day
“IRAs offer individuals an opportunity to save money for retirement in a tax-advantaged plan, without relying on an employer-sponsored plan like a 401(k). In addition, with a few different types of IRAs to choose from, it’s likely that many people will find an account that fits with their needs and goals.”
Brian Walsh, CFP® at SoFi