The Weekly Scan November 14, 2022

Welcome to the Weekly Scan. Here’s what we’re following for the week of November 14, 2022. Plus, our Certified Financial Planner Lauren Anastasio gives advice on how to respond to the news.

Let’s rally. The stock market had its biggest rally since 2020 on Thursday, in response to a new report suggesting that inflation may have peaked. The Dow Jones Industrial Average (DJIA increased 3.7% to 33,715.37. The S&P 500 rose 5.4% to 3,956.37, and the Nasdaq Composite surged 7.35% to 11,114.15. Treasury yields, meanwhile, fell in anticipation that the Federal Reserve (the Fed) might slow down its plan of raising the benchmark interest rate to try to curb inflation. The 10-year Treasury yield decreased 30 basis points to 3.81%, and the 2-year Treasury yield dropped 30 basis points to 4.32%.

• Lauren’s take: Did you know that the market’s best days tend to happen within weeks of the worst days? Further proof a buy-and-hold approach will serve you well in the long run. If you had sold when the market was down, you would have missed the upside! 

CNBC

Inflation on ice. The Consumer Price Index (CPI) rose 0.4% in October from the previous month, less than the 0.6% predicted increase, suggesting that inflation might be slowing down. The annualized headline inflation rate also fell to 8% for the first time in eight months. The value of the U.S. dollar weakened in response to the news, while other currencies such as the Japanese yen and the British pound strengthened. 

• Lauren’s take: Regardless of what the monthly data says, if you feel your personal expenses are climbing, consider swapping your credit card for a debit card. Studies show consumers who use a debit card spend as much as 9% less than they would with a credit card. 

Reuters 

In-school suspension. A federal judge from Texas struck down President Biden’s student loan forgiveness plan in the latest challenge to the initiative. A conservative group known as the Job Creators Network Foundation filed a lawsuit on behalf of two individuals who don’t qualify for Biden’s loan forgiveness proposal. While the Biden Administration has said that the 2003 HEROES Act gives the Secretary of Education the power to discharge student loan debt, the judge is arguing that the executive branch does not have that authority. The Justice Department plans on challenging the suit, but the forgiveness plan is on hold. 

• Lauren’s take: Forgiveness may be on hold, but the application to apply is still available. If you qualify under this plan, you could still see thousands of dollars of debt forgiven and freed up for you to focus on other goals.   

CNN

Taking off early. United Airlines will give pilots a 5% raise months earlier than anticipated as the airline and pilots struggle to come to a contract agreement. During the pandemic, United said that it would give pilots a 5% pay bump once travel picked up and the company started earning consistently. The raise, which was previously scheduled for May 2023, is designed to be an olive branch to pilots who are reportedly planning to picket later this month. The pilots union voted recently to reject a proposal that would increase their wages 14.5% over 18 months. 

• Lauren’s take: If air travel is in your future, plan now. Setting price alerts, booking flights early, and being flexible on your dates and times are some of the best tips to save money on tickets.  

Wall Street Journal

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