(KRON) – On today’s Winners & Losers, KRON4 financial expert Rob Black discusses stocks recovering from the recent sell-off, April’s cool-down in inflation, and Netflix’s plans to launch an ad-supported tier by the end of this year.
Winner: Stocks work higher as inflation eases a bit
Stocks turned positive as investors digested a key report on the state of inflation in the U.S., which came in hotter-than-expected across most major metrics.
Household debt nears $16 trillion despite rising rates and inflation. Controversial stablecoin UST aka terra — which is meant to be pegged to the dollar — plummeted below 30 cents.
Adjustable-rate mortgage demand surged to 14-year high, as homebuyers try to afford this pricey spring market. Mortgage applications to purchase a home rose 5% last week compared with the previous week.
The average contract interest rate for 30-year fixed-rate increased to 5.53% from 5.36%. The rate on a 5-year ARM was 4.47%. The share of ARMs increased to 11% of overall loans and to 19% by dollar volume.
RIP: iPod Touch. After a solid 20-year run, the company announced it’d be selling the Touch, which is the last remaining model in its lineup of music players, “while supplies last.” Get the rundown on the end of an era.
Loser: Inflation Slowed in April. It’s Still Sky-High.
Consumer prices climbed at an 8.3% annual pace in April versus 8.5% in March, ending a seven-month run of rising headline inflation as energy prices retreated.
The consumer-price index rose 0.3% last month, a sharp drop from March’s 1.2% increase.
Despite April’s cooldown, it is clear that inflation is still hot.
There were also substantial increases in prices for shelter, food, airfares, and new vehicles.
The food index, for instance, rose 0.9% in April as the food at home index rose 1%.
The falls in headline and core inflation in April should mark the beginning of a sustained decline, as base effects improve and supply shortages ease.
Loser: Netflix plans to launch ad-supported tier by end of 2022
Netflix’s newest service tier will save you money, but you’ll lose viewing time in the process.
The New York Times reported Tuesday that the streaming giant told employees that an ad-supported subscription plan could roll out by the end of 2022.
This version of Netflix would cost less than the standard $15.49 per month subscription.
There’s already a $9.99 per month tier that doesn’t include HD streaming, so perhaps this would replace or even undercut that one.
Including this ad-supported option would put Netflix on par with services like Hulu, HBO Max, Disney+, and Paramount+, all of which have cheaper subscriptions with ad breaks.
Aside from jacking up prices (4K streaming costs $19.99/mo, while other services like HBO include it for free), Netflix also wants to hike up costs for users who share their passwords with other people.
The optics of the biggest streaming service suddenly reversing course on ad inclusion aren’t great.