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You’re studying Investor Junkie’s weekly e-newsletter that will get you caught up on the week’s monetary information in lower than 5 minutes.
Last week’s market abstract (June 20-24, 2022):
- S&P 500: +6.71%
- Dow: +5.31%
- Nasdaq: +8.51%
- Bitcoin: +3.04%
Gas costs are killer proper now. You know, I do know it, and so does President Biden which is why he simply proposed pausing federal taxes on fuel for the subsequent 3 months. But some lawmakers fear {that a} fuel tax vacation would profit oil tycoons greater than staff and households.
Would you think about Facebook and Netflix to be worth shares? Well, the Russell 1000 Value Index does after its newest annual rebalancing. And vitality shares now have a heavier weighting of their development index.
Last week, Kellog revealed plans to separate into three firms by the tip of 2023 because it seems to be to double down on snacks. We additionally discovered that a number of cash-strapped crypto firms are turning to billionaire Sam Bankman-Fried for assist.
Keep studying to get the total particulars on these tales and to search out out which financial occasions we’ll be monitoring this week.
Clint, Editor-in-Chief
What Everyone’s Been Buzzing About
Biden has requested Congress to move a 3-month fuel tax vacation. If acted upon, the pause on fuel taxes would final till September. In concept, the transfer may save shoppers 18 cents per gallon of gasoline and 24 cents for diesel. But representatives on either side of the aisle fear that vitality firms would pocket nearly all of the financial savings themselves to spice up their backside strains fairly than passing them alongside to shoppers.
FTSE Russell rebalances its benchmark indexes. Speaking of vitality firms, there’s now a heavier weighting of them within the Russell 1000 Growth Index (RLG) after the annual reconstitution which takes impact at present. And just a few tech firms have now been moved to the Russell 1000 Value Index (RLV) for the primary time, together with Netflix (NFLX), Meta (META), and PayPal (PYPL).
Kellogg is splitting into three separate firms. In a shock transfer, Kellogg introduced its plans to divide into three companies with distinct focuses: snacks, cereal, and plant-based meals. It’s been a decade since Kellogg’s first entered the snacks orbit by buying Pringles. Now, with cereal demand stalling, the corporate seems to be poised to lean even tougher into the snack class.
Bitcoin billionaire is bailing out crypto firms. As many cryptocurrency companies wrestle to outlive the newest value meltdown, just a few of them have obtained lifelines from firms run by billionaire Sam Bankman-Fried. FTX, his crypto change, offered a $250 million credit score line to BlockFi. And his quantitative analysis agency, Alameda analysis, provided $500 million in financing to Voyager. But even which may not be sufficient to maintain a few of these firms afloat if this newest downturn transitions right into a longer-term crypto winter.
Powell says that the Fed’s dedication to decreasing prices is “unconditional.” The Fed chair made that assertion throughout his testimony to members of Congress final Wednesday. Powell and his workforce appear resolute of their battle towards inflation, even when continued rate of interest hikes put the financial system in danger in different methods.
What To Keep Your Eye on This Week
May’s pending residence gross sales index. The pending houses gross sales index for May can be launched at present at 10 am. The index has fallen for six months in a row, together with a 3.9% decline in April. Analysts are predicting one other 4.0% drop this month as the continued residence affordability disaster continues to push down demand.
S&P Case-Shiller U.S. residence value index (year-over-year). Sticking with the housing market, we’re additionally wanting to see the S&P CoreLogic Case-Shiller Home Price Index for April. March’s replace confirmed that costs had elevated by a whopping 20.6% YoY. Potential homebuyers desperately want that charge of development to decelerate to a extra cheap stage.
Staff Favorites
Here are three tales from across the net that our workforce discovered attention-grabbing:
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