Monday,
December 12, 2022
Market recap
Dow Jones
33,476.46
-305.02 (-0.90%)
S&P 500
3,934.38
-29.13 (-0.73%)
Nasdaq
11,004.62
-77.39 (-0.70%)
Top Story
After experiencing a huge boost during the pandemic, legal weed sales have declined so far in 2022.
Despite the slowdown, this is hardly Mary Jane’s last dance. Here’s what’s causing the decline in marijuana sales and why the weed industry should come back higher (pun intended) than ever.
Read more >>
Stocks waver as hotter-than-expected wholesale prices keep inflation and rates in focus
• US stocks were mixed Friday as investors reacted to the latest economic data. The November PPI rose 0.3% from October, showing wholesale prices are continuing to rise. This is despite the Fed’s rate-hike campaign that aims to fight inflation.
• The market is hoping for a more dovish turn from the central bank as we head into 2023. Investors were more optimistic on this front during November, when stocks rallied. Now, recessionary concerns and uncertainty over the pace of future rate hikes have put pressure on equities once again.
• Overseas, major stock indexes gained in China, as property stocks led the way. Wall Street has been closely watching developments out of China, the world’s second-largest economy, as the Asian nation looks to relax its strict COVID-19 rules.
What to be on the lookout for today
• The US monthly budget statement for November will be released. The deficit sat at $88 billion in October — well below the $165 billion deficit from the same period last year. This report will also offer insight on individual and corporate taxes, defense spending, and payment on interest for Treasury debt securities.
• Oracle (ORCL) will share its third-quarter earnings. The software company will likely give insight into the massive cloud-computing contract it co-signed with the Pentagon. The veteran software company will join forces with Amazon (AMZN), Google (GOOGL), and Microsoft (MSFT) to build infrastructure technology for the US Department of Defense. The contract could grow to $9 billion by 2028.
There’s a lot of chatter about student loan forgiveness right now. But what does that really mean, and is it actually a new concept?
Forgiveness of your loan means that you are no longer required to repay some or all of that student loan. In this context, “forgiveness” means absolving or giving up all claims on account of debt, loan, obligation, or another claim.
Before the CARES Act pause was put into action, student loan forgiveness was connected to your type of job (public-service careers were targeted), how long you had made qualifying payments, and sometimes which populations you served.
For the loan forgiveness programs that have existed for several years, like Public Service Loan Forgiveness, eligibility is based on the type of federal student loan you received, your chosen career, and how long you’ve received it. Here is an overview of PSLF, including who is eligible and how to apply.
Today’s top stories
This week on Wall Street, will the Fed really slow its rate hikes? This decision from the Fed will impact interest rates on everything from mortgages to credit cards. On top of that, expect earnings reports from Oracle (ORCL), Adobe (ADBE), and Accenture (ACN). Read more >> What is a Santa Claus rally, and is it coming to Wall Street this year? Going back almost 100 years, stock performance tends to surge before the calendar switches over. There’s no definitive consensus as to why these rallies occur. What could it mean for 2023? Read more >> In the past, there have been huge Congressional fights over raising the debt ceiling, which has caused turmoil in the financial markets. The debt ceiling is the maximum amount of money the US government can borrow, a limit set by Congress. Read on to learn how it impacts the economy and markets. Read more >>Not-so-breaking news
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High inflation now outranks COVID-19 as the biggest concern for Americans. Second and third on this list are violent crime and poor governmental leadership, respectively.
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TSMC (TSM) sales surged 50% year-over-year, helping it avoid the general slowdown across the semiconductor industry. The chipmaker provides materials necessary to produce Apple (AAPL) iPhones, which contributed to this growth.
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Chinese tech giant Huawei is licensing its treasure trove of 5G patents in hopes of bringing in fresh revenue. This decision comes after the US issued sanctions that hurt its smartphone business.
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Li Auto (LI) reported a wider-than-expected loss during the third quarter. However, the Chinese EV company anticipates stronger sales and more deliveries for the fourth quarter.
Financial planner tip of the day
"One thing to know about investing is that consistency can pay off in the long run. Even if you’re only able to invest a little money at a time through 401(k) contributions or by purchasing partial or fractional shares of stock, those amounts can add up as the years and decades pass."
Brian Walsh, CFP® at SoFi