Thursday,
July 20, 2023
Market recap
Dow Jones
35,061.21
+109.31 (+0.31%)
S&P 500
4,565.72
+10.74 (+0.24%)
Nasdaq
14,358.02
+4.42 (+0.03%)
Top Story
Bus ridership surged 63% year-over-year during the Fourth of July weekend.
With flight costs creeping up and the conveniences of flying trending down, many Americans are weighing the pros and cons of booking a bus ticket to get to their destination.
US stocks finished higher Wednesday as the Dow extended its longest winning streak since 2021.
• Goldman Sachs (GS) reported mixed results, beating on revenue but missing analysts' expectations on profit. The company's profit fell 58% to $1.22 billion due to declines in trading and investment banking, as well as a $504 million impairment tied to GreenSky and $485 million in real estate write-downs.
• The average fixed-rate mortgage decreased last week from 7.07% to 6.87%, leading to a 7% increase in applications to refinance home loans. Applications for mortgages to purchase a home fell 1% for the week and were 21% lower year-over-year.
What to be on the lookout for today
• Investors will learn how many Americans filed for unemployment last week. For the week that ended July 8, roughly 237,000 Americans filed initial jobless claims. This marks a decrease of 12,000 from the week prior. Additionally, data for existing home sales in the US will be released. In May, the number of existing home sales increased just slightly by 2.3%.
• A pair of airline earnings are due. Both American Airlines (AAL) and United Airlines (UAL) will fill investors in on the state of the skies, with Capital One (COF) also reporting earnings. Notably, American Airlines could discuss how it plans to fight “skiplagging,” the practice in which passengers book a flight with a layover and skip the second leg to save money.
Markets are made of choices. But it doesn’t have to be a zero-sum game.
For all investors, the goal is the same — to make money. But how we choose to get there may be very different.
In her column titled "This or That?" SoFi’s head of investment strategy, Liz Young, looks at opposing trades and compares investment options such as:
• Puts vs. Calls: Puts represent those who are betting the market will fall (purchasing the option to sell at a certain price), and calls represent those who are betting the market will rise (purchasing the option to buy at a certain price).
• Tech vs. Treasurys: Tech stocks have steadily climbed higher, while Treasurys have been more volatile and are down 0.2% YTD.
• US Dollar vs. Gold: The dollar has lost value and gold has seen a nice rise this year.
Curious to know which trades Liz favors in each scenario? Find out in this week’s column.
Today’s top stories
Looking to buy a home? You might find a better deal right now on a new home. People who locked in a competitive mortgage rate over the past few years aren’t selling right now. Accordingly, new homes are becoming an increasingly attractive option for prospective homebuyers, with 56% of builders offering additional incentives. Read more >> Big tech beware: Changes are coming to how the government evaluates corporate mergers. Amid concerns over the unchecked expansion of Big Tech, new draft guidelines from the FTC and DOJ are poised to reshape the way mergers are scrutinized, with far-reaching implications. Read more >> Buying your first home can be an intimidating experience. Use this simple guide to better understand the process, including how to pick the right mortgage, choose a lender, and navigate the closing process. Read more >>Not-so-breaking news
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AT&T (T), Verizon (VZ), and other network providers reportedly left thousands of lead-covered cables throughout the US. Analysts believe this issue marks an unquantifiable long-term liability for these companies.
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Oddity Tech (ODD) had a successful IPO, helping its shareholders raise roughly $424 million. The direct-to-consumer company uses AI to develop beauty and wellness products. SoFi Securities offered eligible members the opportunity to participate in the IPO.
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Taco John’s is ending its fight with Taco Bell (YUM!) over the trademarked phrase “Taco Tuesday.” The smaller taco chain does not want to spend resources fighting the trademark battle in court.
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Microsoft (MSFT) announced a new AI Office 365 subscription service for $30 per month. This subscription includes generative AI tools that work with Teams, Excel, and other applications.
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Johnson & Johnson (JNJ) is paying $18.8 million to settle a suit with a cancer patient. The man claimed that he developed the disease after being exposed to the company's talc-based powder.
Financial planner tip of the day
"It can be a good idea to save money right after getting paid — before the cash sits in checking long enough to spark the urge to spend it. Automating can make saving money less of a chore."
Brian Walsh, CFP® at SoFi