Monday,
January 9, 2023
Market recap
Dow Jones
33,630.61
+700.53 (+2.13%)
S&P 500
3,895.05
+86.95 (+2.28%)
Nasdaq
10,569.29
+264.05 (+2.56%)
Top Story
After being taken private three years ago, Barnes & Noble is starting a new chapter.
Despite the global pandemic and recession, the major bookstore has plans to open 30 new locations in 2023 — including in storefronts formerly owned by Amazon (AMZN).
Read more >>
Stocks close out the week on a high note after economic data suggests Fed is making progress
• US stocks rose Friday after economic data suggested inflation may be leveling off. The December jobs report indicated average hourly earnings fell. Given wage growth is a key driver of inflation, this is significant.
• The ISM Services Index for December also showed the non-manufacturing sector contracted. This suggests the Federal Reserve’s hawkish monetary policy is having an impact and helping to cool off the economy.
• Bond yields fell in response to the December jobs report. Oil prices rose to close out the week, continuing a rally after posting losses during the year’s first few trading days.
What to Be on the Lookout for Today
• The Federal Reserve will release November’s consumer credit figures. In October, consumer credit increased at a seasonally-adjusted rate of 6.9%. Revolving credit, such as credit cards, rose 10.4%.
• The New York Fed will publish the results of its December inflation expectations survey. In addition to actual inflation, the central bank pays close attention to how consumers perceive the rise of prices.
• Lighting company Acuity Brands (AYI) will announce its fiscal first-quarter results. Last month, the firm announced it had entered into a technology transition agreement with Dhyan Networks and Technologies.
• Cannabis company Tilray Brands (TLRY), warehouse membership company PriceSmart (PSMT), and lubricant manufacturer WD-40 (WDFC) are also scheduled to report. Last month, several cannabis stocks tumbled after the SAFE Banking Act failed to pass for the third time.
Are you in the market for a new home? Here’s five smart reasons to buy in the winter.
While spring is traditionally known as house-hunting season, buying a home in the winter can be a wise move. The so-called “off season” has some serious potential benefits for those who are looking to snag their dream home at a great deal.
1. Having Less Competition for Homes. Fewer people shopping for homes means there’s less likelihood of being caught up in a bidding war. Buyers may be more likely to land their desired home closer to the asking price (or even below).
2. Profiting from a Buyer’s Market in Winter. Some sellers only put their home on the market during winter out of necessity, such as for work relocation. As a result, winter sellers may be more willing to negotiate on price, closing costs, and closing date.
3. Understanding a Home’s Condition More Clearly. Seeing a house in the winter can give buyers a chance to understand how it holds up under tougher conditions and potentially increase buyer bargaining power.
4. Hiring Movers Can Be Easier in Winter. Fewer people buying homes means less demand for movers, which in turn could mean more competitive pricing.
5. Getting More Time and Attention from Realtors. Real estate agents may have more availability in the “off season” to spend time helping individual buyers find the house that meets their exact needs.
If you are in the market to buy, our home affordability calculator can help get you started. Just input five quick numbers, and find out how much house you could really afford.
Today’s top stories
What will the year’s first inflation print tell us? How will the Fed respond? We have all that and more, this week on Wall Street. Plus, grocery giant Albertsons (ACI) and a slew of major US banks are scheduled to report earnings. How is food inflation impacting the supermarket business? Read more >> Remember that joke about how the streaming industry might just turn into cable? It’s starting to come true. As the industry matures, massive losses are no longer acceptable — Wall Street wants profitability. Here’s how this change in expectations will impact the industry and your viewing experience. Read more >> Inflation is falling, but the labor market and consumers remain strong. What gives? We have a lookback at what happened in December. Read more >>Not-so-breaking news
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Apple (AAPL) is expected to announce its mixed-reality headset this coming spring. While originally anticipated for this month, analyst Ming-Chi Kuo said on Twitter he now expects the announcement to come at Apple’s annual developer conference or a special spring event.
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Southwest Airlines (LUV) expects to post a loss for the fourth quarter as a result of its holiday travel meltdown. Between Christmas and New Year’s Eve, the company canceled more than 16,700 flights, shaving between $725 million and $825 million off its bottom line.
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Delta Air Lines (DAL) announced it will begin offering free in-flight WiFi on over 500 planes, beginning February 1. This will be in partnership with T-Mobile (TMUS), covering what Delta refers to as its “most popular routes”.
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OpenAI, the startup that created viral chatbot ChatGPT, is in talks to sell some of its own shares. The deal would value the company at $29 billion, potentially making it one of the most valuable US startups, despite limited revenue.
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Costco (COST) reported upbeat December sales, giving the stock a boost after its share price hit a half-year low in premarket trading Friday. Analysts consider this a positive sign for retailers and a turnaround from November’s trends.
Financial planner tip of the day
“If you’re looking to pay off your debt faster, it’s a good idea to take a look at your spending and income, find some ways to reduce your non essential spending, and then funnel any money you free up towards your debt repayment plan.”
Brian Walsh, CFP® at SoFi