Tuesday,
December 13, 2022
Market recap
Dow Jones
34,005.04
+528.58 (+1.58%)
S&P 500
3,990.56
+56.18 (+1.43%)
Nasdaq
11,143.74
+139.12 (+1.26%)
Top Story
Thereās plenty of commotion following Elon Muskās takeover at Twitter, and fellow microblogging site Tumblr hopes to take advantage.
Tumbler launched an ad campaign on Twitter, hoping to take advantage of some usersā dislike for changes brought on by new CEO Elon Musk. One of Tumblrās most defining features is being different from platforms like Facebook (META), Instagram, and TikTok. Rather than focusing on the viral or popular, Tumblr caters to the nichĆ© and quirky.
Dow adds over 500 points, stocks finish in the green ahead of new inflation data and Fed decision
• US stocks rose Monday, surging even higher in the final hour of trading, kicking off an important week on Wall Street. The market has been highly volatile lately, rallying in November but taking a step back last week. Some analysts contend inflation and Fed rate hikes have peaked, while others worry about a possible recession.
• The New York Fed released its inflation expectations survey. One-year inflation expectations came in at their lowest level since 2021. This is significant because the central bank closely monitors the rise of prices, as well as how consumers perceive that rise.
• Oil prices rose, including global benchmark Brent crude. Energy markets have been in a push-and-pull lately as China relaxes its COVID-19 rules. This will arguably boost demand, but some traders are worried about viral flare-ups that could result from the process.
What to be on the lookout for today
• The market will be closely watching as the latest inflation print is due. The November CPI will show whether the Federal Reserveās rate-hike campaign is slowing inflation, as intended. The CPI rose 0.4% month-over-month in October, although the inflation rate slowed to 7.7% on an annual basis, coming in below forecasts.
• Photronics (PLAB), the third largest semiconductor photomask supplier, will speak on its third quarter progress. Investors will be tuning in to hear more about the companyās prospects and the semiconductor industry as a whole.
With the federal student loan payment pause extended again, here is what you might consider doing in the meantime.
As of right now, the exact date of when payments resume 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 you can do: Even though you donāt have to make payments on your federal student loans, it doesnāt mean you canāt. If you are able, you may consider making payments anyway ā 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.
What you can do: Even though you donāt have to make payments on your federal student loans, it doesnāt mean you canāt. If you are able, you may consider making payments anyway ā 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.
Todayās top stories
Marketers may have finally figured out exactly what content Gen Z consumes, where they watch it, and for how long they do so. The global pandemic altered the economic landscape and obscured marketersā readings on Gen Zās tastes. However, this new report is finally offering some clarity. Read more >> Thanks to the strength of the US dollar, Americans are flocking overseas to maximize their spending on luxury goods. If youāre like most Americans, your weekend plan probably doesnāt include flying to Paris just to save $300 on a Louis Vuitton bag. But itās still important to note the pricing disparity between the dollar and the euro. Hereās what you should know. Read more >> The cost of buying clothes can quickly add up and has the potential to ruin any budget. There are ways you can cut down on your clothing expenses but still score some pieces you canāt wait to wear. Hereās 15 suggestions on how you can save money on clothes without feeling deprived or out of sync with the latest styles. Read more >>Not-so-breaking news
- Rivian (RIVN) announced that it is halting plans to produce electric commercial vans in Europe with Mercedes Benz (MBGYY). For now, the EV manufacturer wants to focus on its consumer business in the US.
- Microsoft (MFST) announced a 10-year cloud deal with the London Stock Exchange (LNSTY). Through this deal, Microsoft will build a new data infrastructure for the financial information company in exchange for a nearly 4% stake.
- Airbnb (ABNB) announced a ban on one-night bookings for New Yearās Eve. This is part of an effort to curb parties and will be enforced in 11 countries, including the US.
- Thoma Bravo is buying Coupa Software (COUP) for $6.15 billion in cash. The cloud software company stated that acquisition is the āoptimal path forwardā amidst the broader tech slump.
- Amgen (AMGN) announced plans to buy Horizon Therapeutics (HZPN) for $26.4 billion. With the deal, Amgen will control distribution of Tepezza, a bestselling drug that treats thyroid eye disease.
Financial planner tip of the day
āFees can affect the upfront and overall cost of both personal and business loans, so itās a good idea to be clear on what youāre paying. Some of the more common fees you might see with both types of loans include origination, application, packaging, and underwriting fees, and late payment and prepayment penalties.ā
Brian Walsh, CFPĀ® at SoFi