Top Story
Stocks Rise In Choppy Session with Housing and Job Market in Focus
• US stocks rose Thursday as investors took a deep dive on the Fed’s July meeting minutes and the latest earnings data. The market is looking for clues as to where the central bank is headed in terms of rate hikes, given soaring inflation. Analysts say the Fed is wary of the risk associated with pushing rates too high, as well as the downside if they aren’t aggressive enough.
• Existing home sales fell in July, marking the sixth straight month of decline. Analysts have attributed this trend to high home prices and rising mortgage rates. Similar effects have been observed in homebuilding, which was confirmed in a separate report this week.
• Staying with housing, the median sales price dipped last month to $403,800. June’s number set a record at $413,800.
• Jobless claims fell 2,000 to 250,000 overall. The previous week’s number was also revised downward. Analysts suggest the job market may be softening slightly, although the Fed described it as “strong” in their meetings released Wednesday.
What to Be on the Lookout for Today
• The second quarter’s advance report on services is due. Prepared by the US Census Bureau, the survey tracks total revenue on a monthly and annual basis for a selected group of services, such as hospitals, real estate, and education.
• Athletic footwear and apparel retailer Foot Locker (FL) is scheduled to post earnings. Earlier this month, Foot Locker released a statement noting it has donated $54 million to Black-owned businesses and Black charities since George Floyd’s death in 2020. Deere & Company (DE), owners of the John Deere brand, will report its third-quarter earnings as well.
Ways to Save for College Students
College is expensive — on this, we can all agree. In addition to tuition, students have to come up with funding for room and board, books, supplies, clothing, and entertainment (because, hey, a lot of learning happens outside the classroom).
Plenty of options exist for financing college, including scholarships, loans, and part-time work. But there are a few other ways to save that may feel small, but can have a big impact on each month’s expenses!
Take advantage of student discounts. Clothing, shoes, movies, art museums, and sporting events can be purchased at a discount if you find the right retailer who honors a valid student ID.
Consider buying your books used. Then try re-selling the book after you’re done with it.
Cook meals at home and bring food with you when you can. Americans spend about 10% of their disposable income on food, and an increasing share of that has gone to restaurant meals.
Look for student volunteer opportunities — like becoming a resident assistant (R.A.) — that have great benefits, like discounted housing and meals. Some also get a stipend!
Take advantage of family discounts. You may have left home, but you don’t necessarily need to cut the cord on the family’s phone or car insurance plans. If you’re under 26-years-old, you should be eligible to stay on your parents’ health insurance plan, which may be less expensive than purchasing your own.
If you’re attending class virtually more often or going to school in a bike-friendly environment, consider giving up your car. All associated costs (insurance, repairs, gas, on-campus parking) rack up quickly!
Finally, be smart with your money management. Pay your bills on time to avoid late fees and unnecessary interest payments. Consider switching to a bank account with high APY to earn as much interest as possible—SoFi’s Checking and Savings account just increased its APY offering to members with direct deposit to 2.00%. Consider opening an account and setting up Direct Deposit with SoFi today.
A Few Headlines That Should Be on Your Radar
Stop us if you’ve heard this one before: the auto industry is having supply chain problems. This time, it’s related to a drought in China. Tesla (TSLA) is among the automakers asking for power to be diverted to the car parts manufacturers in the Sichuan province. What could the recent challenges mean for the automobile industry as a whole? Read more >> Share prices of Coca-Cola (KO) and Hershey’s (HSY) are surging as people seek post-pandemic refuge in junk food. The companies are unlikely outliers in a down market as products that are seemingly discretionary spends take high priority in consumer budgets. It’s not so much chips and cookies driving the market, but energy. Read more >> Adam Neumann, former CEO of WeWork (WE), gets backing from Andreessen Horowitz. The venture capital firm invested $350 million to fund apartment building construction in the southeast. Neumann’s new company, Flow, will launch in 2023 with ambitions to build 3,000 apartments in Miami, Fort Lauderdale, Atlanta, and Nashville. But for people who need a place to live amid soaring home prices and asking rents, could this fundamentally change the housing market? Read more >> Is it possible to retire with $1 million at 55? Major influencing factors include geography, lifestyle, number of dependents, healthcare needs, and more. Read more >>Not-So-Breaking News
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Kohl’s (KSS) posted better-than-expected results on the top and bottom lines, but lowered its guidance after experiencing an 8.1% drop in sales from the prior year. The discount department store cited reduced demand from inflation-hampered customers.
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Cisco (CSCO) beat analyst estimates for both profit and revenue during its fiscal fourth quarter. The technology company also offered a better-than-expected financial outlook due to strong demand.
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Estée Lauder (EL) reported profit and revenue above Wall Street projections, while issuing guidance below expectations. The beauty products company has been negatively impacted by terminating license agreements, adverse foreign currency movements, and the Russia-Ukraine war.
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Tapestry (TPR), the company that owns Coach, Kate Spade, and Stuart Weitzman, announced better-than-expected earnings, but missed on revenue. The company plans $1 billion in dividend payments and share buybacks this year.
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Toast (TOST) published its Q2 Restaurant Trends Report. The restaurant software company found inflation hasn’t taken a bite out of tips despite the 7.6% increase in the cost of eating out compared to a year ago.
Financial Planner Tip of the Day
"Understanding exactly how much you’re spending helps you appreciate how much you’re able to save. Your savings rate is the most important component for determining your ability to accomplish financial goals like homeownership, starting your own business, or being able to retire."
Brian Walsh, CFP® at SoFi