Winner: Stocks rally ahead of big earnings
Stocks soared early Monday as investors assembled for a big week of corporate earnings. The moves come after a roller-coaster week on Wall Street that saw the S&P 500 log its fifth-largest intraday reversal from a low in history Thursday.
Bellwethers including Netflix (NFLX), Tesla (TSLA), and IBM (IBM) are scheduled to unveil results through Friday.
Fifty-one% of the workers have under $50,000 saved, while only 20% have more than $500,000. Only 8% have $1 million saved.
Apple will offer high-yield savings account from Goldman to card holders. Apple’s credit card currently offers up to 3% cash back on purchases.
Roblox shares popped 18% on September user growth. Daily active users were 57.8 million in September, up 23% year over year.
Winner: U.S. consumer is healthy
Consumers are financially resilient, despite high inflation and concerns the U.S. is nearing a recession, according to Bank of America CEO Brian Moynihan.
“Analysts might wonder whether the talk of inflation, recession and other factors could [result] in a slower spending growth. We just don’t see here at Bank of America,” Moynihan said.
The bank’s customers continue to spend freely, using their credit cards and other payment methods for 10% more transaction volumes in September. While price inflation accounts for some of that, the number of transactions also rose 6.
Customers’ account balances remain higher than before the coronavirus pandemic struck in early 2020, indicating that they were in a good position to continue spending.
Finally, consumer credit remains pristine, with late-payment metrics still well below pre-2020 averages, indicating that so far, people have had little difficulty keeping up with their debt.
Late-stage delinquencies are still 40% below pre-pandemic,”.
Loser: Ye, formerly Kanye West, buys social media platform Parler
Twitter has shown social media to be not so good at making money.
Ye, formerly Kanye West, the superstar rapper who has made several inflammatory and antisemitic comments in recent weeks, has agreed in principle to buy conservative social media platform Parler.
“In a world where conservative opinions are considered to be controversial we have to make sure we have the right to freely express ourselves,” said West.
Financial terms of the deal weren’t announced. The company previously said it had raised $56 million in funding from outside investors. The move comes after Ye was locked out of his Twitter and Instagram accounts for making antisemitic remarks.
Ye’s net worth is reportedly $2 billion. Much of his fortune comes from his Yeezy sneakers brand and partnerships with Gap and Adidas.