Initial unemployment claims in the US have risen to their highest level in nearly 9 months, suggesting a potential shift in the job market. Weekly jobless claims increased by 22,000 to 231,000, along with a rise in continuing claims. This follows a strong hiring report in April and a decline in job openings. While the overall job market remains healthy, the increase in jobless claims has raised concerns about a possible economic slowdown.
Robinhood, a popular online brokerage, recently reported better-than-expected financial results for the first quarter. Earnings per share and revenue set new records, driven by growth in cryptocurrency transactions and an increase in funded customers. Despite ongoing regulatory scrutiny related to its crypto business, shares of Robinhood rose in after-hours trading.
Airbnb's disappointing guidance led to an 8% drop, while Robinhood's beat estimates and surged 6%. Klaviyo's strong revenue outlook caused a 7% rise. Arm Holdings fell 6% on lower-than-expected guidance, while Equinix gained 11% on strong earnings. AppLovin's impressive earnings pushed it up 10%, and SolarEdge declined nearly 7% due to a wider loss and weak revenue guidance.
In a surprising move, BBVA, a Spanish bank, launched a hostile takeover bid for its rival, Banco Sabadell, after Sabadell rejected BBVA's previous offer. Experts describe the situation as unusual in the European banking sector, where such aggressive takeovers are rare. The takeover bid faces opposition from the Spanish government, which believes it could negatively impact the financial system. Despite the challenges, the offer from BBVA has been met with interest from shareholders due to its premium pricing.
Bank of England Governor Andrew Bailey is scheduled to hold a press conference at 7:30 a.m. ET, where he will discuss the bank's recent decision on monetary policy.
In the US, the 30-year fixed-rate mortgage is common – borrowers take the loan with a fixed interest rate for the entire loan term, making their monthly payments predictable. This type of mortgage is unique to the US due to its deep financial markets, which allows mortgages to be bundled and sold as investments. Unlike in many other countries, borrowers in the US can lock in low rates for long periods without refinancing or adjusting their interest rate.
College students protesting Israel's actions in Gaza have faced disciplinary action, including suspensions and expulsions. This has financial consequences such as losing scholarships, paid tuition, access to meal plans, and housing. Suspended students cannot complete courses, face early repayment of student loans, and potential transfer difficulties due to the disciplinary action on their transcripts. The consequences vary depending on the institution and the severity of the disciplinary action, but can be significant.
With soaring home values, more Americans are facing capital gains taxes on profits from selling their homes. Married couples filing jointly can exclude up to $500,000, while single filers can exclude $250,000. To reduce taxes, homeowners can increase the "basis," or original purchase price, by adding capital improvements to their homes.
Just like you can't predict which baseball card will make it big, you can't know which stock will perform well. To reduce risk, invest in many stocks or the entire stock market, like buying multiple baseball cards to ensure you get the next All-Star. This diversification helps you tap into potential growth and spread your risk across different areas of the market.
Social Security's finances have slightly improved due to a stronger economy, extending the depletion date of its funds to 2035. However, experts warn that without reforms, the program will still face severe challenges. Lawmakers need to act to prevent cuts or tax increases, and possible solutions include gradually raising the retirement age or allowing for more immigration to bolster the workforce paying into the system.
HD Hyundai Marine Solution, a ship-repair company, recently had a successful IPO in South Korea, making it the biggest in the country since early 2022. The stock soared on its first day of trading, almost doubling in value. This IPO raised a significant amount of money, valuing the company at over $3.7 billion. The offering included newly issued shares, as well as shares sold by existing investors, such as HD Hyundai Group and investment firm KKR.
British digital bank Monzo has raised $610 million this year, boosting its valuation to $5.2 billion. It plans to use the funds to develop new products and expand internationally, including launching a pensions product and focusing on its U.S. operations. Monzo's goal is to become the one-stop shop for all financial needs, diversifying its revenue streams through services like lending, savings, and investments.