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    New car quality declined sharply this year with supply chain problems, says J.D. Power

    New vehicle quality declined by 11% this year amid parts shortages, shipping snarls and global trade disruption, according to J.D. Power’s 2022 Initial Quality Study.
    Buick, Dodge and Chevrolet topped the list while Volvo, Chrysler and Polestar landed in the bottom three.
    JD Power’s initial quality rankings are based on survey responses from new car buyers or lessees of current model-year vehicles who respond during their first 90 days of ownership.

    Billboards at the Ziegler Cadillac, Buick and GMC Dealership in Lincolnwood, Illinois, the United States. U.S. General Motors Co.
    Joel Lerner | Xinhua News Agency | Getty Images

    New vehicle quality declined by 11% this year amid parts shortages, shipping snarls and global trade disruptions, according to J.D. Power’s 2022 Initial Quality Study. Buick, Dodge and Chevrolet topped the list while Volvo, Chrysler and Polestar landed in the bottom three.
    The 2022 Initial Quality Study found four times as many new models were worse than their segment averages. Disruptions such as a semiconductor chip shortage and personnel dislocations contributed to vehicle problems reaching a record high in the 36-year history of the study, J.D. Power said Tuesday.

    “I knew we’d have challenges this year due to all the supply chain issues and everything else. I didn’t think it would be our worst year ever. We’ve never seen an 11% deterioration before,” David Amodeo, director of global automotive at J.D. Power, told CNBC.
    “The worst we ever saw was 3% year over year. That’s just massive! I didn’t have an appreciation for all of the challenges that everybody was going through until we saw the data and synthesized it.”
    J.D. Power’s initial quality rankings are based on survey responses from new car buyers or lessees of current model-year vehicles who respond during their first 90 days of ownership. The rankings consider long-term dependability, appeal of the cars’ features, and the sales or dealership experience in separate surveys.
    This year, General Motors managed to improve the quality of many of its offerings, landing it in the top spot among all automotive companies on the list. The quality of GM’s Buick rose from 12th place last year to the top spot for initial quality in 2022.
    Hyundai’s Genesis ranked highest among premium vehicles. Only nine of 33 ranked brands improved in vehicle quality year over year.

    Across the board, infotainment systems and mobile apps remain a pain point for most automakers. The greatest number of problems reported involved Google’s Android Auto and Apple CarPlay, which are designed to mirror smartphone apps such as Maps to a vehicle’s infotainment screen.
    With the exception of Tesla, mainstream automakers generally integrate Android and Apple systems that allow customers to mirror their phones in their vehicle’s central display. Tesla uses its own browser.
    For Tesla, which ranked 7th from the bottom this year, with the same initial quality score as Mitsubishi, panel alignment and poor paint quality were more common problems than customer issues with the company’s mobile app or infotainment.
    “When we think about what Tesla talks about, that they’re a software company that happens to build vehicles, that plays out in what we see in terms of their problem areas,” Amodeo said during a media briefing Tuesday.
    Electric vehicles on average had more problems than cars and trucks with traditional internal combustion engines, according to the survey. Amodeo expects that to change “rather rapidly” as production increases and customer acceptance grows. Tesla’s vehicles on average had less problems than EVs of other automakers, the study found.
    Elon Musk’s electric car venture improved its initial quality standing slightly and was included in the list officially for the first time this year. JD Power previously surveyed Tesla owners but did not consider their score official.
    Electric vehicle newcomer Polestar ranked last on the list with 328 problems reported per 100 newly sold or leased vehicles.

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    Job loss is a 'reality' of the business cycle, says labor expert. Take these 6 key steps after a layoff

    Companies such as Tesla and Coinbase have announced layoffs, and there are signs of impending cuts on Wall Street. A U.S. recession would add to the toll.
    Here are some key financial moves for workers to make after losing a job.

    Halfpoint Images | Moment | Getty Images

    1. Take a financial inventory

    Among the first things to do if you lose your job is take stock of financial resources at your disposal, according to financial advisors.
    Those may include other streams of income such as a partner’s salary, as well as emergency savings, company stock and financial accounts including a 401(k) or individual retirement account (more on this in a bit).
    Your resources may also include company benefits like severance pay or cashing out unused leave like vacation and sick days. Workers should also check to see if they can continue receiving benefits like company-sponsored health and life insurance.

    Households should also update their budgets to get a sense of current spending and how that could be adjusted without your paycheck.
    “You want to get clarity,” said financial advisor Winnie Sun, co-founder of Sun Group Wealth Partners in Irvine, California, and a member of CNBC’s Advisor Council. “We all think we don’t spend that much.
    “But most of us probably do.”
    These factors — your budget and money stash — will help dictate your timeline for finding a new job.

    2. Apply for unemployment insurance

    Unemployment insurance may also factor into your cash flow.
    Benefit amount and duration vary widely among states and also depend on factors like your earnings and work history. The average person collected about $363 a week over the 12 months through April 2022, according to the U.S. Department of Labor.
    Workers should apply right away (generally online or by phone) after a layoff, even if they think they’re not eligible, Nightingale said.
    Applicants generally submit a claim for benefits in the state where they worked, according to the Labor Department. You can consult the DOL’s state directory or CareerOneStop.org for agency contact and application information.

    Further, be prepared with relevant information like employment records for about the past two years, Nightingale said.
    “Don’t just pick up the phone and say, ‘I was working at XYZ Company,’ because you need more than that to apply,” she said.
    You may not be immediately eligible for unemployment insurance if you’re receiving severance pay. But you may be eligible for full or partial benefits depending on your individual circumstance and state rules. If you’re deemed ineligible, file a new claim once severance pay stops.

    3. Negotiate your exit

    There may be some wiggle room to negotiate on severance and other company benefits, Sun said. (Not all businesses offer severance, though.)
    If you are in good standing with your company, ask your manager if you can get a few extra months of severance pay, and an associated extension to medical and dental benefits.
    Or, similarly, ask if you can extend your employment (and delay the layoff) by a few months. This becomes especially important if you’re close to being — but aren’t yet — fully vested in benefits like a 401(k) match or company stock, Sun said.

    Typically, those who try get something.

    Winnie Sun
    co-founder of Sun Group Wealth Partners

    There may also be room to negotiate staying on part-time or as a freelancer — which may be particularly important for workers closer to retirement age who aren’t confident they’ll be able to find another job quickly, Sun said.
    “At this point, what’s the worst thing that’ll happen to you?” Sun said. “Typically, those who try get something.”

    4. Figure out which assets to tap, in what order

    Knowing where to draw money from can be a delicate balancing act, due to potential tax consequences.
    If you need to pull from financial accounts, cash from an emergency fund — if you have one — will generally be your first choice, according to financial advisors.
    Savers with Roth IRAs can typically withdraw their account contributions tax- and penalty-free. (That’s not true of investment earnings, though. Some limitations may also apply to pre-tax IRA contributions that were subsequently converted to Roth IRA funds.)
    Roth 401(k) accountholders can also pull out money tax- and penalty-free, under two conditions: The owner must be over 59½ years old and made a contribution at least five tax years ago.

    Those with long-term investments (held for more than a year) in taxable brokerage accounts can sell them for income at a preferential tax rate.
    Tax-deferred accounts like a pre-tax 401(k) or IRA should generally be a last resort, according to Ivory Johnson, a certified financial planner and founder of Delancey Wealth Management, based in Washington.
    Workers would owe income tax on that distribution, and those under age 59½ would pay an additional penalty. One exception: The “Rule of 55” allows a laid-off worker who’s at least 55 years old to withdraw 401(k) funds without that 10% early-withdrawal penalty.
    “You may be someone who always said, ‘I’ll never withdraw those retirement contributions,'” said Kevin Mahoney, CFP, founder and CEO of Illumint, based in Washington. “But under certain circumstances, that’s the most prudent move to make.”

    5. Network and build job skills

    10’000 Hours | Digitalvision | Getty Images

    It’s a given you should update your resume when looking for a new job. But make sure you have different versions depending on the type of job you want, since targeting will help you stand out, Nightingale said.
    Leverage your personal and professional networks to find opportunities — perhaps a union membership, professional association, business contacts, former colleagues, and friends and relatives. Connect with people on LinkedIn and ask for public endorsements, Sun said.
    Further, local job services offices offer free employment and training resources. There are about 2,500 offices around the country, Nightingale said. You can find a local office and other job resources at CareerOneStop.org.
    Those with free time may wish to get a certificate or acquire a new professional skill, said Johnson, a member of CNBC’s Advisor Council.
    “Use your time wisely,” he said. “It shows employers you weren’t just sitting around, you were trying to get better.”

    6. Take a deep breath

    Lastly, don’t be too hard on yourself. Recognize that layoffs are often due to factors beyond an individual’s control instead of a personal failure.
    Take a deep breath. Use your available time to step back and reflect on your career — what’s important to you? Would you like to try something new?
    “Life is a long-term race, not a sprint,” Johnson said. “Sometimes it’s really a blessing to get laid off” even though it may not seem that way right now, he added.

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    30% of LGBTQ+ adults have experienced discrimination or exclusion from financial services, study finds

    Rainbow flags celebrate Pride Month in New York.
    Lev Radin | Pacific Press | LightRocket | Getty Images

    Members of the LGBTQIA+ community are still struggling, in some instances, to access financial services that would help them manage their money.
    Some 30% of LGBTQIA+ adults have experienced bias, discrimination or exclusion in the financial services sector, either from individuals or organizations, a survey from the National Endowment for Financial Education found. The online survey of more than 1,000 adults in the LGBTQ+ community took place from May 6 to May 17.

    Of those who experienced such barriers to accessing financial services, many noted that age and orientation were the top reasons they felt led to the experience. In addition, transgender respondents face the most discrimination, the survey found.
    More from Invest in You:Student loan forgiveness could narrow racial wealth gapDo this with 529 college savings plan if student debt’s forgivenHere’s how to get the most money towards college
    “As a member of the LGBTQIA+ community who has personally experienced many layers of bias within financial services, this issue hits close to home,” said Billy Hensley, president and CEO of the National Endowment for Financial Education, in an email.
    “I think it’s easier to ignore the subjugation, prejudice, bias, phobias and ‘isms’ that happen within personal finance if we cater to the assumption that financial and social advancement rests solely on the individual’s decisions as measured only by financial outcomes,” Hensley said. “If we average everyone together, we ignore the authentic, unique and diverse lived experiences of all.”
    He added that these experiences further hinder the wealth of a group that’s been historically marginalized in the U.S.

    “While not specific to this data, we do know that among gender, people of color and those in the LGBTQIA+ community, there are barriers toward building wealth and income disparity that certainly factor into establishing a level playing field for financial well-being,” he said.

    What can be done

    In addition to feeling unwelcome in the financial services industry, nearly 40% of those surveyed said they were discouraged by how financial services were marketed or offered, meaning fee structures, applications or approval requirements kept them from seeking money help.
    The report found that while roughly half of LGBTQIA+ respondents said the quality of their financial life is what they expected, about 39% said it’s worse than they anticipated. In addition, 60% are living paycheck to paycheck, according to the report.
    This can be helpful data to financial services providers such as banks, insurance companies and more. In addition to providing inclusive environments for all, they can review these other barriers to entry.

    “Representation is key,” said Hensley. “We need greater national awareness of just how often discrimination, bias and exclusion takes place among all populations.” He added that a greater understanding of the current landscape is attainable with better data to inform positive public policy and regulation.
    There’s also a financial incentive for banks, insurance companies and other financial services firms to be more inclusive. Today, more Americans than ever before identify as LGBTQIA+ and the demographic represents one of the fastest-growing population segments, according to census data. In addition, the community has close to $1.4 trillion in spending power, according to The Pride Co-op, a LGBTQ-focused market research and intelligence agency.
    “When you restrict the ability of anyone to participate in the economy fully and fairly, you prohibit them from living their best financial life,” said Hensley. “It also negatively impacts the economic health of the country.”
    SIGN UP: Money 101 is an 8-week learning course to financial freedom, delivered weekly to your inbox. For the Spanish version Dinero 101, click here.
    Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns. More

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    NASA begins return to the moon with low-cost CAPSTONE mission, launched by Rocket Lab

    Rocket Lab launched a small spacecraft bound for the moon from its New Zealand facility early on Tuesday, a mission that represents firsts for both the company and NASA.
    The company’s Electron rocket carried a special version of its Photon satellite platform, which itself is carrying the microwave oven-sized CAPSTONE spacecraft.
    With a price tag just shy of $30 million, NASA hopes the mission will verify that a specific type of moon orbit is suitable for a space station that the agency aims to launch later this decade.

    The company’s Electron rocket carrying the CAPSTONE mission lifts off from New Zealand on June 28, 2022.
    Rocket Lab

    Rocket Lab launched a small spacecraft bound for the moon from its New Zealand facility early Tuesday, a mission that represents firsts for both the company and NASA.
    The company’s Electron rocket carried a special version of its Photon satellite platform, which is carrying a 55-pound, microwave oven-sized spacecraft called CAPSTONE.

    “Perfect Electron launch!” Rocket Lab CEO Peter Beck tweeted Tuesday.
    CAPSTONE, an acronym for Cislunar Autonomous Positioning System Technology Operations and Navigation Experiment, is a low-cost mission that represents the first launch under NASA’s Artemis lunar program.
    With a price tag just shy of $30 million, NASA hopes the mission will verify that a specific type of moon orbit is suitable for the lunar Gateway space station that the agency aims to launch later this decade.
    Gateway’s success does not depend on this data, NASA’s Christopher Baker, executive of the small spacecraft technology program, explained to CNBC before the launch. But he added that CAPSTONE does allow the agency to ground its orbital calculations “in actual data” and give “operational experience in the near-rectilinear Halo orbit.”
    Currently in orbit around the Earth, Photon will next fire its engine multiple times over the coming days before sending the CAPSTONE spacecraft on a trajectory that will take about four months to reach the moon. Once there, CAPSTONE will stay in orbit around the moon for at least six months to collect data.

    The CAPSTONE spacecraft mounted on top of the company’s lunar Photon spacecraft.
    Rocket Lab

    CAPSTONE also represents the first Rocket Lab mission going into deep space, or venturing beyond the company’s typical target of low Earth orbit.
    NASA turned to a small cohort of companies to make CAPSTONE happen. In addition to Rocket Lab’s Electron rocket and Photon spacecraft, Colorado-based Advanced Space developed and will operate CAPSTONE, while two California companies built the small spacecraft and provided its propulsion system — Terran Orbital and Stellar Exploration, respectively.
    “Every major component here is actually coming from a company that has within the last 10 years received a small business award from the government to develop the technology that is being used for this mission,” Baker said.
    “We’re very interested in how we can support and leverage U.S. commercial capabilities to advance what is capable — and one of the things we’ve really been pushing for over the years has been how we extend the reach of small spacecraft beyond low Earth orbit to challenging new destinations,” Baker added.

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    Chinese electric vehicle maker Li Auto to raise $2B from U.S. investors in a new stock offering

    Chinese EV maker Li Auto said it will raise $2 billion via an “at-the-market” offering of stock to U.S. investors.
    The company competes with rivals like Nio and XPeng in China’s hot “smart vehicle” market.
    Li Auto will use the funds to develop new models and new tech including more advanced driver-assist systems.

    The Li One electric car from Li Auto is displayed at the Moonstar Global Harbor shopping mall in Shanghai, China, May 10, 2021.
    Costfoto | Barcroft Media | Getty Images

    Chinese electric vehicle maker Li Auto said Tuesday that it plans to raise $2 billion from U.S. investors through an “at-the-market” stock offering, in which share prices are determined at the time they’re sold.
    The funds will be spent to develop new technologies, including for autonomous driving, and for the development of future models, the Beijing-based company said in a filing with the Securities and Exchange Commission.

    A company raising funds via an at-the-market offering will generally sell a designated amount of stock over time through investment banks at prevailing market prices. Li Auto said that Goldman Sachs, UBS Securities, Barclays Capital, and the Hong Kong unit of China International Capital Corporation will be its agents for the new stock offering.
    Li Auto is one of several Chinese electric vehicle companies to have drawn attention from U.S. investors in the last several years, along with rivals including Nio and XPeng. Founded in 2015, the company specializes in upscale electric SUVs with so-called “range extenders”, which are internal-combustion engines that act as generators to recharge vehicles’ batteries while driving.
    While more electric vehicles are sold in China than in any other country, there are still parts of China where EV chargers are relatively scarce. A range extender can offer reassurance for customers in those regions and for drivers elsewhere who aren’t quite ready to go 100% electric.
    Li’s two SUV models, the midsize ONE and flagship L9, offer 188 km (about 117 miles) and 180 km (about 112 miles) of electric-only range, respectively.
    Li’s U.S.-listed shares were down about 3.3% in early trading following the announcement.

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    ARK Invest's Cathie Wood says the U.S. is already in a recession

    Ark Invest CEO Cathie Wood said Tuesday that the U.S. is already in an economic downturn, and she admitted that she underestimated the severity and lasting power of inflation.
    “We think we are in a recession,” Wood said on CNBC’s “Squawk Box” Tuesday. “We think a big problem out there is inventories… the increase of which I’ve never seen this large in my career. I’ve been around for 45 years.”

    The innovation-focused investor said inflation has turned out to be hotter than she had expected due to supply chain disruptions and geopolitical risks.
    “We were wrong on one thing and that was inflation being as sustained as it has been,” Wood said. “Supply chain … Can’t believe it’s taking more than two years and Russia’s invasion of Ukraine of course we couldn’t have seen that. Inflation has been a bigger problem but it has set us up for deflation.”
    Inflation measured by the consumer price index rose 8.6% in May from a year ago, the fastest increase since December 1981.
    Wood said consumers are feeling the rapid price increases, reflected in sentiment data that’s fallen to record lows. She pointed to the University of Michigan’s Surveys of Consumers, which showed a reading of 50 in June, the lowest level ever.
    The popular investor has had a tough 2022 as her disruptive technology darlings have been among the biggest losers this year in the face of rising interest rates. Her flagship active fund Ark Innovation ETF (ARKK) is down a whopping 52% year to date, falling 66% from its record high set in February 2021.

    Still, Wood said her clients are mostly sticking with her and new money is coming in as investors seek diversification in a down market. ARKK has had more than $180 million in inflows in June, according to FactSet.
    “I think the inflows are happening because our clients have been diversifying away from broad-based bench marks like the Nasdaq 100,” Wood said. “We are dedicated completely to disruptive innovation. Innovation solves problems.”

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    Home price increases slowed for the first time in months in April, says S&P Case-Shiller

    Prices rose 20.4% nationally in April compared with the same month a year ago, according to the S&P CoreLogic Case-Shiller Index.
    In March, home prices grew 20.6%. The last slight deceleration was in November of last year.
    In a change from the last five months, when most of the 20 cities saw month-to-month price gains, only nine cities saw prices rise faster in April than they had done in March.

    People walk into a house for sale in Floral Park, Nassau County, New York.
    Wang Ying | Xinhua News Agency | Getty Images

    Home price increases slowed ever so slightly in April, but it is the first potential sign of a cooling in prices.
    Prices rose 20.4% nationally in April compared with the same month a year ago, according to the S&P CoreLogic Case-Shiller Index. In March, home prices grew 20.6%. The last slight deceleration was in November of last year.

    The 10-city composite annual increase was 19.7%, up from 19.5% in March. The 20-city composite posted a 21.2% annual gain, up from 21.1% in the previous month.
    In a change from the last five months, when most of the 20 cities saw month-to-month price gains, only nine cities saw prices rise faster in April than they had done in March. Cities in the South continued to see the strongest monthly gains, including Atlanta, Charlotte, Dallas, Miami, and Tampa.
    “April 2022 showed initial (although inconsistent) signs of a deceleration in the growth rate of U.S. home prices,” Craig Lazzara, managing director at S&P DJI, wrote in a release. “We continue to observe very broad strength in the housing market, as all 20 cities notched double -digit price increases for the 12 months ended in April. April’s price increase ranked in the top quintile of historical experience for every city, and in the top decile for 19 of them.”
    Tampa, Miami and Phoenix continued to lead the pack with the strongest price gains. Tampa home prices were up with a stunning 35.8% year-over-year price increase, followed by Miami with a 33.3% increase, and Phoenix with a 31.3% increase. Nine of the 20 cities reported higher price increases in the year ending April 2022 versus the year ending March 2022.
    Cities with the smallest gains, although still in double digits, were Minneapolis, Washington, D.C., and Chicago.

    It is important to note that not only are these price gains for April, but the index is a three-month moving average. The average rate on the 30-year fixed mortgage just crossed the 5% mark in April after rising from around 3% in January. By June it had crossed 6%.
    “We noted last month that mortgage financing has become more expensive as the Federal Reserve ratchets up interest rates, a process that had only just begun when April data were gathered. A more challenging macroeconomic environment may not support extraordinary home price growth for much longer,” said Lazzara.
    The housing market is already cooling, with slower sales and reports of price drops among some sellers. The supply of homes for sale has also increased steadily, as more listings come on the market and homes already on sit longer. Active inventory last week was 21% higher than it was the same week one year ago, according to Realtor.com.
    “For buyers and sellers, the road ahead will require more flexibility in pricing, brushing up on negotiation skills, and acknowledging that market conditions today are different than even six months ago,” said George Ratiu, senior economist at Realtor.com.

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