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- š” Home prices fall
Good morning investors! The market took a breather yesterday after an impressive 6-day run.
Today we cover:
Home prices fall
Musk and Google talk
About student loans
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š Economy and News
US Home Prices Fall
U.S. home prices dipped slightly by 0.1% in April on a seasonally adjusted basis, marking the first monthly decline since September 2022, according to a new report from real estate brokerage Redfin (NASDAQ: RDFN).
Despite the monthly drop, home prices were still up 4.1% year-over-year in April. However, that annual increase slowed from the 4.9% recorded in March, making it the most modest rate of yearly growth since July 2023.
Redfinās analysis also showed that prices fell in half of the 50 largest metropolitan areas in the U.S. on a seasonally adjusted basis. Charlotte, NC, and Virginia Beach, VA led the declines with a 1% drop each, followed by Miami with a 0.7% decrease. Meanwhile, some areas saw notable gains, including Nassau County, NY (up 1.8%), Warren, MI (1.3%), and New York City (1.2%).
Global hits:
UK economy to grow 1.0% in 2025; sentiment improves slightly. Also, the countryās FTSE 100 rose to a two-month high on Tuesday, as Diploma shares touched a record high after an upbeat forecast
Canadaās inflation slows to 1.7% as energy prices plunge.
UAE credit growth fuels property price rise, banks and entities prepared for potential downturn.
Australia cuts policy rate to 2-year low as inflation concerns continue to recede.
Controversial: AI poses a bigger threat to womenās work, than menās. Elsewhere, Cadillacās EVs are attracting new buyers, including more customers trading in Teslas.
Something about China: China cut benchmark lending rates for the first time since October on Tuesday, while major state banks lowered deposit rates as authorities work to ease monetary policy to help buffer the economy from the impact of the Sino-U.S. trade war.
Also, the unemployment rate among young people in urban areas of China saw a decrease in April.
In other news, Chinaās Contemporary Amperex Technology (CATL), the worldās largest electric vehicle battery maker, surged as much as 18% on its first day of trading in Hong Kong, shrugging off geopolitical uncertainties, making it year's biggest IPO.
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š Stocks
S&P 500 5,940.46 (-0.39%)
DJIA 42,677.24 (-0.27%)
NASDAQ 19,142.72 (-0.38%)
BRENT CRUDE 65.38 (-0.24%)
* Prices as of May 21st, 12:20 AM UTC
Big Tech With Big Announcements
Tesla and Musk: Elon Musk took center stage yesterday with some major announcements, including commitment to leading Tesla for next five years. Furthermore, he confirmed that robotaxis will be on the streets of Austin, Texas by next month.
He also has big plans for AI as, according to musk, his artificial intelligence company xAI aims to build a 1 million GPU facility outside Memphis, Tennessee. Furthermore, he added that Tesla and xAI plan to buy more chips from Nvidia and AMD, while talking to CNBC.
Musk seems to be changing gears and has plans to spend āa lot lessā on political donations in the future.
Alphabet: Google announced a new subscription tier for its AI services called āGoogle AI Ultraā priced at $249.99 per month. This includes Veo 3, an AI video generator that can also create and incorporate audio.
The company seems to be having great success as Googleās Waymo reached 10 million robotaxi trips, doubling in five months.
In other news, Xreal debuts first glasses to run Googleās Android XR operating system to take on Meta and Apple.
Home Depot: While Walmart acknowledged raising prices due to tariff pressure, Home Depot said it plans to keep most prices stable, but some products will disappear because of tariffs.
CFO Richard McPhail told The Wall Street Journal that while suppliers have been pushing for price increasesāmainly over who bears the cost of 30% tariffs on Chinese importsāHome Depot is doing what it can to resist.
About half of the company's products are sourced domestically, but the remaining imports are under scrutiny. McPhail said the company is working toward a goal where no single country accounts for more than 10% of its supply.
Despite tariff tensions, Home Depot kept its full-year forecast unchanged, like Walmart, though the latter warned future price hikes may still be on the table.
Home Depot's earnings fell slightly short of expectations, missing estimates by four cents per share, as comparable sales dropped 0.3%āworse than the expected 0.2% decline. This dip marks a setback after a return to positive growth in the fourth quarter, which had ended an eight-quarter streak of declines.
CEO Ted Decker called the results āin line with our expectations,ā while noting that foreign exchange rates negatively impacted sales.
Just in: FDA outlines stricter Covid vaccine booster approval standards for healthy people. In other news, Levi Strauss has agreed to sell Dockers to brand management firm Authentic Brands Group for $311 million.
Palo Alto Networks fell -4% as it expects a slowdown in revenue growth based on its current contract order book
š Crypto
Bitcoin $106,2140, (+0.23%)
Ether $2,523 (+0.01%)
Solana $165 (+0.05%)
Total market cap $3.35t (+0.35%)
* Prices as of May 21st, 12:20 AM UTC
Crypto Surges as Senate Advances Stablecoin Regulation Bill
Bitcoin, Ethereum, and Solana rallied after the Senate moved forward with the GENIUS Act, a bill aimed at regulating stablecoins.
Once stalled by opposition, the legislation cleared a crucial procedural vote, signaling a possible breakthrough in establishing clearer rules for the crypto industry. Bitcoin is now trading less than $4,000 below its all-time high.
Economic shifts can influence financial decisions. A fiduciary financial advisor can provide personalized insights into your portfolio, long-term investment approach, and risk management.
With Zoe Financial, you can explore vetted advisors and schedule free initial consultations.
šµ Personal Finance
How to Tell if Youāre Delinquent or in Default on Student Loansāand What to Do About It
As the federal government increases its student loan collection efforts, borrowers need to know whether theyāre delinquent or in defaultāa distinction that shapes the steps they should take next.
Many borrowers feel panicked about the possibility of wage garnishment or benefit offsets. However, these severe consequences apply only to those in default, not those simply delinquent.
A loan becomes delinquent the day after a missed payment. If it's 90 days past due, the status is reported to credit bureaus, potentially dropping credit scores by as much as 171 points. But a loan isnāt considered in default until no payments have been made for 270 days.
Delinquent borrowers should act quickly. Contact your servicer to request retroactive forbearance for missed payments and ask for a temporary pause while enrolling in an affordable repayment plan. Income-driven options can reduce monthly bills to as low as $0. Deferments for economic hardship or unemployment may also help.
For the more than 5 million borrowers already in default, options still exist. You can contact the Default Resolution Group to either rehabilitate your loanāby making nine affordable payments over ten monthsāor consolidate your debt after three full, on-time payments.
After resolving default, ask for a manageable repayment plan to avoid falling behind again. To get started, visit Studentaid.gov to locate your loan servicer and take the first step toward regaining good standing.
š° Be a Better Investor
āBefore you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give.
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