Top Story
Stocks Post First Positive Session in August, Services Sector Advances, Factory Orders Rise
• US stocks rose Wednesday after encouraging economic data and a series of strong earnings reports combined to lift sentiment. Meanwhile, House Speaker Nancy Pelosi’s trip to Taiwan seems to have passed without incident, despite warnings from China. The ensuing geopolitical tension weighed on equities the day prior.
• The ISM services index continued to advance in July. It also marks the index’s highest level in three months. This generally tracks businesses like restaurants, hotels, and health care.
• June’s factory orders rose, beating expectations. Spending on equipment exceeded expectations, suggesting strength in the US manufacturing sector despite rising interest rates.
What to Be on the Lookout for Today
• Jobless claims will be released by the Labor Department. Last week’s number of initial claims fell after hitting an eight-month high.
• June’s trade deficit is due. In May, the trade deficit narrowed while exports hit a record high. Some analysts say imports were held back by reduced domestic demand and rising interest rates.
• Pharmaceutical company Eli Lilly (LLY) is scheduled to hold an earnings call. In late June, the drugmaker announced it would supply the US government with additional doses of its COVID-19 antibody drug so as to meet demand through the latter part of this month.
Average College Tuition has Increased 96% since 1991
The average college tuition continues to increase. In 1991, the college tuition at a private four-year institution was just $19,360 and in 2022 it was $38,070. There are a number of reasons for increasing tuition rates, including factors like a dramatic decrease in state funding, lack of regulation, and an increase in operating costs at colleges and universities.
Numerous college financing options exist for students. Students can tap into various options to pay for costs. Undergraduate students received an average of $14,800 of financial aid 2020-2021, according to the College Board’s Trends in College Pricing and Student Aid, which includes the following:
• $10,050 in grants
• $3,780 in federal loans
• $880 in education tax credits
• $90 in federal work-study (jobs for college students)
Students may rely on scholarships, grants, work-study, and student loans, in addition to personal savings to pay for their education. In the case that financial aid, including federal student loans, isn’t enough — private student loans may be an option to consider. If you think a private student loan is a fit, consider SoFi.
A Few Headlines That Should Be on Your Radar
A survey released this month shows American parents are cutting back elsewhere and taking on additional jobs to cover back-to-school shopping. More than half say they’re reusing old items or switching to generic brands. While inflation has prices spiking, more students are headed back to in-person class as COVID-19 restrictions change. Meanwhile, we’ve got something you’ll want to study before heading to the store — how to save some money and still make those essential purchases. Read more >> How to navigate the hot rental housing market without getting burned. More Americans are abandoning the American dream and seeking refuge from the sky-high costs of buying a home. Unfortunately, they are finding that renting doesn’t offer much relief. If you’re thinking of moving to achieve a lower cost of living, some markets are better than others. Here are some tips to win at the rental housing game. Read more >> Based on Q2 results, earnings season hasn’t been as terrible as feared, but this environment is challenging for most businesses and we likely haven’t seen the end of downward revisions. SoFi’s Head of Investment Strategy explains why you shouldn’t use earnings revisions as a market timing mechanism. Read more >> To enjoy a secure retirement as a couple, you’ll need to create a detailed financial plan with room for various contingencies. First determine your retirement expenses by projecting costs for housing, transportation, food, health care, and nonessentials like travel. Then consider all sources of retirement income, such as Social Security, retirement accounts, and pensions. Read more >>Not-So-Breaking News
-
Under Armour (UAA) reported results in line with analyst expectations, but cut its full-year guidance for profit. The sportswear company’s earnings were eroded due to apparel promotions.
-
Moderna (MRNA) exceeded expectations on the top and bottom lines, but took a $500 million loss on expiring vaccine inventory. The biotech company announced it will provide the US government with 66 million doses of a reformulated COVID-19 vaccine designed to protect against the BA.4 and BA.5 subvariants.
-
CVS (CVS) beat Wall Street estimates on the top and bottom lines. The healthcare company benefited from strong same-store sales as customers bought COVID-19 test kits in addition to cold and flu medications.
-
Match’s (MTCH) share price plunged after the company posted revenue that missed analyst expectations and issued a tepid outlook. The company’s new CEO Bernard Kim announced he has a variety of changes planned, including dialing back metaverse and crypto initiatives on its platforms.
-
Blockchain company Solana (SOL) reported that thousands of its wallets have been hacked, draining over $5 million in digital coins. An investigation is underway into what vulnerability was exploited and the identity of the perpetrator.
Financial Planner Tip of the Day
"Don’t be afraid to seek out and take advantage of the many 'freebies' or heavily discounted services offered on campus. That means a wide range of services are offered for free, or deeply discounted for the student body. Pay close attention during orientation to determine services the campus might offer. From on-campus movie nights to free choral concerts or speakers, there’s often lots of free entertainment to engage with on campus."
Brian Walsh, CFP® at SoFi