Monday,
January 23, 2023
Market recap
Dow Jones
33,375.49
+330.93 (+1.00%)
S&P 500
3,972.61
+73.76 (+1.89%)
Nasdaq
11,140.43
+288.17 (+2.66%)
Top Story
Why do analysts say the housing market is at a turning point? Because homebuilders are becoming more confident.
Mortgage rates slipped last week, meaning more demand from would-be homebuyers. So, construction could finally get going, which will help bring down prices.
Stocks rise but ultimately finish lower for the week as a whole with economyâs health in question
• US stocks rose Friday, helping the Dow and S&P 500 pare their losses, while the Nasdaq posted its third-straight winning week. The rally that marked the start of the year has faded from view. Optimism had been riding high due to cooler inflation, but recessionary concerns are more prominent now.
• The marketâs momentum to start January was rooted in hopes for a less-hawkish Fed. On that front, Philadelphia Fed President Patrick Harker delivered comments at weekâs end, saying he anticipates 25-basis-point hikes in the coming months.
• The National Association of Realtors reported existing home sales fell in December. That marks the 11th straight month of decline. Home salesâ annualized pace is also at its lowest since 2010, when the nation was in the midst of a housing crisis.
What to be on the lookout for today
• The Conference Board will release Decemberâs Leading Economic Index, which aims to forecast future economic activity. The index declined 1.0% in November, following a 0.9% drop the month before.
• Oil field services company Baker Hughes (BKR) is scheduled to hold a conference call discussing its results for the fourth quarter and 2022 as a whole. Oil prices have been highly volatile over the past 12 months, and thatâs continued lately, as traders speculate what Chinaâs post-COVID reopening will mean in terms of demand for energy.
By the end of January, you should receive tax documents from employers, brokerage firms, and others you did business with.
Waiting until the last minute to prepare for tax filing is never advisable. Taxes may not be as complicated for people with one employer, but for those who have side gigs or are self-employed, tax returns can take a while to fill out.
You should receive a Form W-2 by Jan. 31 or, with any mail delay, soon thereafter. The same deadline applies to certain 1099-MISC forms for independent contractors. Each financial institution that paid you at least $10 of interest during the year must send you a copy of the 1099-INT by Jan. 31 as well.
Whether your goal is to lower your taxes or just file them on time, the key is preparation. To answer your tax questions, weâve compiled a selection of informational articles on such key tax topics as capital gains, retirement savings, stock options, refunds, and more.
Todayâs top stories
Get ready for an action-packed week of earnings reports from Tesla (TSLA), Microsoft (MSFT), Southwest (LUV), and dozens more Fortune 500 companies. On top of that, fresh economic data will be released related to Americaâs GDP and American citizensâ spending and income⌠this week on Wall Street. Read more >> Netflix (NFLX) ended the year on a strong note, adding 7.7 million new subscribers in Q4 2022. However, user growth alone wonât cut it as Netflix enters what amounts to a new era for the streaming pioneer, thanks to a bombshell announcement â a step not taken in 25 years. Read more >> Getting a jump start on your taxes? Donât forget to count your crypto. Cryptocurrency earnings are subject to taxation. Use this guide to help you understand when and how to report your digital income. Read more >>Not-So-Breaking News
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Google-parent Alphabet (GOOGL) will lay off 12,000 employees, according to an email sent Friday by CEO Sundar Pichai, amid a series of job cuts within the tech sector due to recessionary concerns. Amazon (AMZN) and Microsoft (MSFT) recently let go a combined 28,000 workers.
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The FDA rejected a request to fast track approval of an Alzheimer's treatment, âdonanemabâ, in development by drugmaker Eli Lilly (LLY). The company said it will release Phase 3 trial data by the middle of the year.
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Nordstrom (JWN) reduced its full-year profit guidance, citing weaker-than-expected holiday sales. CEO Erik Nordstrom said higher income customers are continuing to shop at the companyâs stores, but sales over the holiday season fell below pre-pandemic levels.
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Crypto lender Genesis filed for bankruptcy late last week, as the FTX contagion continues to disrupt the sector. In November, Genesis froze withdrawals following FTXâs collapse. The company filed for Chapter 11 protection, in service of âan optimal outcomeâ for the firmâs clients.
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Instagram (META) is rolling out âquiet modeâ, designed to limit in-app interactions when users want to focus. When activated, the app will auto-reply to direct messages and notifications will not be sent. The feature is reportedly a tool to help teens study and get proper rest.
Financial planner tip of the day
âWhen you approach homeownership focusing on the size and amenities of the property rather than what you can realistically afford to pay each month, you may be putting yourself in a precarious financial position. A mortgage payment is one piece of your overall financial puzzle, and can be treated accordingly.â
Brian Walsh, CFPÂŽ at SoFi