Wednesday,
March 15, 2023
Market recap
Dow Jones
32,155.40
+336.26 (+1.06%)
S&P 500
3,920.56
+64.80 (+1.68%)
Nasdaq
11,428.15
+239.31 (+2.14%)
Top Story
Markets rebounded despite a downgraded outlook from Moody’s
Even with Moody’s Investor Service downgrading the outlook for the banking sector, the markets Tuesday indicated that perhaps investors think the worst of the banking turmoil is in the past. Here’s what you need to know.
US stocks finished higher, led by a bounce in some of the financial stocks that have suffered the most from recent liquidity concern.
• Many regional banks that saw their shares fall on Monday saw a rebound. First Republic Bank (FRC) rallied to close up roughly 26% after closing down 61% the day before.
• The latest CPI numbers show core inflation easing for the 8th-consecutive month to 5.5%. Meanwhile, headline CPI hit its lowest level since September 2021 at 6%. Both numbers were in line with market forecasts, but showed inflation increasing 0.4% month-over-month. The reading remains three times the Fed’s target level of 2%.
• United Airlines (UAL) topped Wall Street’s profit estimates at $843 million due to the post-pandemic travel demand and consequent higher airfares. However, the company also slashed its first quarter guidance, projecting a loss of $0.60 to $1 per share after previously anticipating a profit of $0.50 to $1.
What to be on the lookout for today
• Producer price inflation will be published. This metric increased 0.7% on a monthly basis in January, the highest jump seen in seven months. Investors will also get information on retail sales and a weekly update for the 30-year fixed mortgage rate, which currently sits at 6.79%.
• Adobe Inc (ADBE) and Five Below (FIVE) will both report earnings. The latter expects its full-year sales to come in toward the higher end of its guidance after a successful holiday season for the discount retailer.
Maximize the enjoyment you get out of your home while also adding ROI value.
Many renters and homeowners feel that annual or biannual itch to spruce up their living space. That might mean a fresh coat of paint, upgraded appliances, or a kitchen remodel. Depending on the level of your upgrade, the cost of home remodel can come in anywhere from a few hundred to tens of thousands of dollars.
If you’re making upgrades that will improve a home’s value, the cost may be made up when selling the house later. Here are the top home improvement projects to increase your home’s value.
And if you need a little more cash on hand to help with your project, using a personal home improvement loan can help you focus on the renovation instead of fretting about costs. Plus, if you get an unsecured loan, you won’t have to worry about putting your home equity on the line as collateral.
Today’s top stories
With “eggflation” leaving cracks in many consumers’ budgets, some are skipping the eggs and buying chickens instead. The popularity of owning egg-laying hens is on the rise. But without proper planning, this strategy will leave you running around like a chicken with your head cut off. Here’s what to know first. Read more >> A warmer-than-expected winter is easing home gas prices. Inventory levels for natural gas are expected to end March 16% higher than the five-year average. Here’s what that means for your gas bill. Read more >> A salary inflation calculator shows how your paycheck is keeping up with inflation (or not). Read on for more information on historic and current inflation rates, how to use an inflation calculator to assess your salary, and how to plan for what’s next. Read more >>Not-so-breaking news
-
Etsy (ETSY) has restored payment processing for some of its sellers, following the closure of SVB. The homemade goods marketplace stated that 0.5% of its merchants experienced payment delays over the weekend, but it has begun correcting these issues.
-
Southwest Airlines (LUV) says it will increase staffing and improve its tech for the 2023 holiday season. The airline hopes to avoid a repeat of its mass cancellations in the tail end of 2022.
-
Boeing (BA) is set to sell 78 of its 787 Dreamliner planes to two Saudi airlines. The order – one of the defense contractor’s largest in recent months – is reportedly worth almost $37 billion.
-
Meta Platforms (META) is laying off 10,000 employees in another round of job cuts. Insiders say the Facebook-parent over-hired during the pandemic and is now correcting for this decision.
-
Amazon (AMZN) revealed Project Kuiper, an internet network designed to challenge SpaceX’s Starlink. The “standard” version of this satellite antenna should cost the tech giant less than $400 per unit to produce.
Financial planner tip of the day
“Payment history is the main factor that affects a person’s credit score, accounting for 35% of an overall FICO® score. By making on-time payments, limiting the number of new inquiries on their credit file, and working to pay down credit card balances, home buyers could potentially boost their credit score and qualify for a lower mortgage rate.”
Brian Walsh, CFP® at SoFi