Pfizer vaccine news is still moving markets, mortgage applications have dropped, and beware a scam text about stimulus checks. Here's how the headlines could affect your money.
Stocks rallied Monday after Pfizer and BioNTech's announcement of a promising experimental Covid-19 vaccine. By Tuesday, investors anticipating a post-pandemic return to normal led a tech sell-off in favor of value stocks. Markets ended mixed Tuesday, with a strong Dow, basically flat S&P, and a fallen Nasdaq.
In early Wednesday trading, the S&P and Nasdaq were higher while the Dow struggled.
Other than the bond markets, trading remains open on Veterans Day.
Mortgage applications last week dropped to their lowest level in six months, according to the Mortgage Bankers Association, despite record-low interest rates for 30-year fixed mortgages. MBA economist Joel Kan explains, "Inadequate housing supply is putting upward pressure on home prices and is impacting affordability."
It's good to remember that in some cases renting is financially smarter than buying. Take into account factors like your job stability and how long you plan to be in an area before deciding which makes more sense for you.
Video by Richard Washington
Reminder: There is, as yet, no plan for a second $1,200 individual stimulus check. Don't fall for any text scam that claims otherwise! One popular scam typically informs you that you have received a direct deposit but "further action" is required, usually involving your Social Security number.
The IRS is reminding people that it does not send unsolicited texts or emails.
Value stocks are underpriced compared to their earnings. This is as opposed to growth stocks, which have high valuations and strong upside potential. During the pandemic, investors have favored growth stocks over value stocks, drawing them toward Big Tech and away from the Dow. The S&P is more tech-heavy than the Dow and often sinks or swims with the Nasdaq.
Although the daily news can have an impact on your wallet, remember to take a long-term outlook when it comes to decisions on spending, saving, and investing.
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