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Stock Market Today: Ukraine Talks Bring Out the Bulls
Fresh signs of at least the potential of a resolution in Eastern Europe whetted risk appetites Tuesday, even as the ominous 2-10 yield curve came even closer to inverting.Â
During the latest round of talks with Ukraine today, Russian Deputy Defense Minister Alexander Fomin said his country’s military would “drastically” remove its military presence from Kyiv. That triggered another day of buying from investors, who weren’t deterred by a U.S. official’s skeptical comment to news outlets that Russia’s moves indicated “a redeployment, not a withdrawal.”
- SEE MORE The 22 Best Stocks to Buy for 2022
Wall Street also wasn’t put off by a potential inversion of the two- and 10-year Treasury rates â “potential” being the key word, as various data sources conflicted on whether the two-year’s yield merely equaled the 10-year yield or surpassed it.
Even then, Lauren Goodwin, economist and portfolio strategist at New York Life Investments, warns against using a yield inversion as an egg timer.
“While curve inversion has historically been an important market signal of recession risk, it does not tell us much about when recession might likely occur,” she says.
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Real estate investment trusts (REITs) including mall operator Simon Property Group (SPG, +4.8%) and Public Storage (PSA, +3.4%) enjoyed the biggest gains Tuesday, with the sector up 2.9% to lead the S&P 500 (+1.2% to 4,631). The Nasdaq Composite had an even better day, up 1.8% to 14,619, while the Dow Jones Industrial Average recorded a 1.0% gain to 35,294.
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Other news in the stock market today:
- The small-cap Russell 2000 roared ahead by 2.7% to 2,133.
- U.S. crude oil futures retreated 1.6% to end at $104.24 per barrel.
- Gold futures fell 1.4% to settle at $1,912.20 an ounce.
- Bitcoin slid 0.5% to $47,720.70. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
- Shares of Robinhood (HOOD) spiked 24.2% after the financial services platform said it extended trading hours for clients. Customers on HOOD’s platform will now be able to trade between 7 a.m. through 8 p.m. ET, giving them an additional four hours. This big upside move put a dent in HOOD’s year-to-date deficit. Heading into today, shares were down nearly 28% for the year-to-date.
- FedEx (FDX) gained 3.7% on news Fred Smith will step down as CEO, effective June 1. Smith has been overseeing the delivery giant since he founded the company in 1973. He will be succeeded by Raj Subramaniam, current president and chief operating officer of FedEx. “We anticipate a seamless transition as FedEx appears to have been grooming Mr. Subramaniam to be the company’s next CEO,” says Oppenheimer analyst Scott Schneeberger (Perform). “In recent years Mr. Smith appeared to have been ceding an increasing amount of operational and investor-facing responsibility to his top reports, particularly Mr. Subramaniam.”
Push Back on Inflation
We’ll find out March’s jobs tally later this week, but another data point on Wall Street’s watch list is the core Personal Consumer Expenditures (PCE) price index.
- SEE MORE 5 Superb Stocks to Shield Against Stagflation
That report, due out Wednesday, represents the Federal Reserve’s favored gauge of inflation â another critical factor in the market’s direction from here.Â
“We believe it is important to point out the historical impact that inflation can have on equity market valuation,” says John Lynch, chief investment officer for Comerica Wealth Management. “Specifically, high levels of inflation ⦠have historically pressured the price-to-earnings (P/E) ratio for the S&P 500 Index. Historically, when the CPI approaches 8.0%, the average [trailing 12-month] P/E for the S&P 500 is ~12, which could bring the index to unspeakable levels.”
Given that the S&P 500 currently trades at more than 26 times trailing earnings, that would be very bad news, indeed.Â
You can swat back at inflation via just about any investment type you like. Those looking to make concentrated bets against rising prices can consider these five stocks poised to push higher in an inflationary environment, while those who prefer a diversified approach might instead prefer these five mutual funds.
But some of the most interesting tools in the tool box are inflation-fighting exchange-traded funds (ETFs). Several of these ETFs simply happen to be positioned in areas of the market that do well as prices expand, but in some cases, an inflation-resistant portfolio is the explicit goal.
- SEE MORE Warren Buffett Stocks Ranked: The Berkshire Hathaway Portfolio
Opening a Business Bank Account: How Business Bank Accounts Work
Business bank accounts can help owners keep professional transactions separate from personal banking and aid in their business cash management. These accounts often come with special conditions and requirements, and they may have various fees. Here, weâll take a closer look at these accounts, their pros and cons, and what it takes to open one. […]
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When to Change Tax Withholdings â and How to Do It
Wondering when you need to change your tax withholdings â and how to actually do so? We break it all down quicker than you can say âW-4.â
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
Calculating Margin for Stock Trading
Margin allows you to buy securities with borrowed funds. Traders find several margin balances when they open a margin trading account. It can be overwhelming trying to calculate and understand each one, but having a grasp on these figures can help you control risk and manage your profit and losses. A stock margin calculator can […]
The post Calculating Margin for Stock Trading appeared first on SoFi.
How to Destroy Your Debt and 3 Things to Do Next
Comparing Monster vs. LinkedIn for Employers Seeking Workers
Are you an employer looking for workers? We did a side-by-side comparison of Monster vs. LinkedIn to see which one is better for you.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
Guide to Cash Balance Pension Plans
A cash balance pension plan is a defined benefit plan that offers employees a stated amount at retirement. The amount of money an employee receives can be determined by their years of service with the company and their salary. Employers may offer a cash balance retirement plan alongside a 401(k) or in place of one. […]
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5 Hotel Stocks to Buy for a Summer Travel Boom
It’s a volatile stock market out there right now as investors eye the start of the Federal Reserve’s first rate-hike cycle in years and geopolitical uncertainty stemming from the war in Ukraine.Â
With so much attention focused on these two issues, many investors might be missing opportunities available in a recovering travel industry, particularly among hotel stocks.Â
Since mid-January, new COVID-19 cases in the U.S. are down nearly 98% from their mid-January high, according to data from the Centers for Disease Control and Prevention.Â
- SEE MORE 20 High-Volatility Stocks for the Market’s Next Swing
And while TSA data shows that current travel volumes are running about 10% or so below 2019 levels, recently upgraded forecasts from airlines suggest a vigorous rebound later this year.Â
Airlines certainly give us insight into current and future travel demand, but they might not be the best investment option at the moment given their exposure to oil prices and high levels of debt. Hotel stocks, on the other hand, have much better economics and pricing power. Further, hotels didn’t have to dilute shares and borrow money as excessively as airlines during the pandemic. And many were able to use the downturn to improve operating margins.Â
With this in mind, here are five hotel stocks to buy amid a summer travel boom. To create the list, we examined only top-rated stocks in the Stock News POWR Ratings universe. The stock-rating tool measures more than a hundred different factors â from balance-sheet strength to analyst sentiment to momentum â to find which names are poised to outperform the market. All of the hotel stocks listed here have Buy or Strong Buy ratings.Â
- SEE MORE The 22 Best Stocks to Buy for 2022
Data is as of March 27. Dividend yields are calculated by annualizing the most recent payout and dividing by the share price.
Guide to Employee Stock Ownership Plans
An employee stock ownership plan (ESOP) is a type of defined contribution plan that allows workers to own shares of their company’s stock. While these plans are covered by many of the same rules and regulations that apply to 401(k) plans, an ESOP uses a different approach to help employees fund their retirement. The National […]
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