Top Story
Apparel companies are lobbying the FTC to replace clothing tags with QR codes.
Patagonia and Ralph Lauren (RL) are among the retailers leading the charge. But the QR code takeover is surprisingly controversial. Where do you stand on this hot-button issue?
US stocks finished lower Wednesday as Wall Street awaits the final stages of the debt ceiling compromise proposed by Washington leaders
• Advance Auto Parts (AAP) reported a significant miss with revenue of $3.42 billion and per share earnings of $0.72. Despite pricing actions, the company said supply headwinds and unfavorable product mix negatively impacted its first-quarter earnings, which inspired a reduction of its quarterly dividend to $0.25 per share compared to the $1.50 announced in February. The supplier also offered disappointing guidance, reducing its earnings per share forecast by roughly 40%.
• The average 30-year fixed-rate mortgage in the US jumped 22 basis points to 6.91% in the week ended May 26th, the highest level since early November. Mortgage applications to purchase a home also declined 3% for the week and 31% compared to a year ago, while applications to refinance declined 7% and 45%, respectively.
• Amazon (AMZN) employees are planning to walk off the job to protest recent layoffs, the company's environmental record, and a return-to-office mandate. Approximately 1,900 employees worldwide are expected to walk out to highlight a "lack of trust in company leadership's decision making.”
What to be on the lookout for today
• The ISM Manufacturing PMI will be released. In April, this metric of economic activity rose to 47.1 from a low of 46.3 in March. This suggests that higher borrowing costs are increasing the risk of a recession.
• Expect earnings reports from Lululemon (LULU) and Asana (ASAN) as well as the discount retailers Dollar General (DG) and Five Below (FIVE). Investors will expect a solid report from Dollar General, since it is reportedly working with major brands to offer higher quality products.
What if-proof your summer: Cover yourself
Insurance is the ultimate beach cover-up. Here are three often-overlooked policies that can save your savings and your stuff in case your summer goes sideways.
1. Travel insurance. It can help you recoup your expenses from lost luggage or a canceled tour. Just read the fine print before you pick a policy. Even “cancel for any reason” insurance can still have exceptions — like a trip must be canceled at least 48 hours in advance.
2. Renter’s insurance. This can protect your property, but many renter policies also protect you financially if you cause damage to someone else’s personal property. Liability coverage comes into play if, say, your 2-year-old flushes her favorite stuffed animal down your toilet, causing a blockage and water damage to the unit below.
3. Flood insurance. Floods aren’t covered in typical homeowner or rental policies. Flood insurance is an additional policy that’s usually purchased through the National Flood Insurance Program. There are two types: One that covers the building and another for personal possessions.
Today’s top stories
Home sweet… hotel? Extended-stay hotels are the latest trend in travel. Be sure to check out these 3 hotel brands when planning your next trip. Read more >> What do public businesses and school dances have in common? Both are rife with teens filming viral dances — and might soon require adult supervision. Due to increasingly disruptive TikTok trends and other social media challenges, supervision policies are growing in popularity among public businesses. Are you this weekend’s chaperone? Read more >> Time to look around: What’s happening with inflation and earnings worldwide? SoFi’s Head of Investment Strategy casts an eye abroad to gauge whether markets outside the US might offer investors new opportunities. Read more >>Not-so-breaking news
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Yesterday, the US dollar hit its highest point since mid-March. This surge is attributed to new data that shows inflation in Europe is cooling while China’s recovery is sputtering.
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Amazon (AMZN) is discontinuing celebrity Alexa voices. Users will no longer be able to change their smart home’s voice to that of Samuel L. Jackson, Melissa McCarthy, or Shaquille O'Neal.
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Air New Zealand (ANZFF) now requires airplane passengers to weigh themselves before international flights. The country’s industry watchdog reportedly requires the information to calculate the balance and weight of planes before takeoff.
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American Airlines (AA) raised its profit forecast for the second quarter, citing cheaper gas prices and strong travel demand. The airline still faces uncertainty surrounding ongoing labor negotiations with its pilots union.
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Demand for new mortgages is down 31% from last year. This is likely due to the increasing cost of borrowing, as the 30-year fixed rate for a mortgage just clocked in at 6.91%.
Financial planner tip of the day
"It may be difficult to tackle your debt efficiently if you don’t actually know how much you currently owe and what the terms are. The first recommended step is to track exactly what you need to pay back. You can start with a simple spreadsheet, or try a budgeting app like SoFi Relay to help track your spending."
Brian Walsh, CFP® at SoFi