Wednesday,
January 4, 2023
Market recap
Dow Jones
33,136.37
-10.88 (-0.03%)
S&P 500
3,824.14
-15.36 (-0.40%)
Nasdaq
10,386.99
-79.50 (-0.76%)
Top Story
Here’s a New Year’s resolution we can all get behind: pay less in taxes.
In response to record inflation, the IRS has made several updates to the tax code, which could save you a bundle in the 2023 tax year. Here’s everything you need to know.
Read more >>
Stocks sell off with rates and inflation still in focus, along with mixed economic data
• US stocks fell Tuesday as the first trading session of 2023 was marked by familiar concerns. Traders remain wary of a potential recession, as well as the prospect of rising rates.
• Investors are also closely watching China. After following a strict zero-COVID policy during recent years, Beijing has embraced a global reopening. How that process unfolds will have a major impact on the world’s economy.
• The US factory sector continued to contract in December, with the S&P Global Manufacturing PMI falling from November. On the flipside, US construction spending rose 0.2% in November.
What to Be on the Lookout for Today
• The Fed will release its minutes from the central bank’s most recent meeting. This will provide the market with further insight into the central bank’s plans for 2023. December’s ISM manufacturing index is also due, as well as the November job openings and quits survey.
• Uniform and workwear company UniFirst (UNF) is scheduled to report quarterly results. In October, the company settled a dispute with the Department of Labor, concerning alleged gender-based pay discrimination.
Starting good money habits can be hard, but it helps to start small.
If you know that you should save more but you’re like, “I’m up to my eyeballs in debt, I’m trying to buy a house, and my retirement portfolio is sadder than All Too Well (10 Minute Version) (Taylor’s Version),” we hear you.
Even if you’re not ready to save more right now, consider opening some savings or investment accounts anyway. It’s about having the infrastructure in place and setting habits. A sort of “if you build it, they will come.”
This way, if you get a surprise gift, bonus, or class-action settlement, you can throw it into one of these buckets instead of your checking account. Consider automating a monthly payment — even if it’s just $10 a month — to each account, because you probably won’t even notice a difference if it’s taken out before you see it. This will get you into the habit, which is the best place to start. And as you gain practice and see your money grow, you may feel motivated to increase the amounts.
And to help, Financial Insights in the SoFi app makes it easy to know where you stand, what you spend, and how to hit your financial goals — all in one place.
Today’s top stories
January is routinely marked by returned holiday purchases – but this year, the stakes for retailers are especially high. We’re also looking beyond this month, examining how a slowdown in consumer spending could impact the broader economy. Read more >> Canceled flight? The US Department of Transportation proposed new legislation to make it easier for airline passengers to get full refunds. In the wake of the recent meltdown by Southwest Airlines (LUV), which resulted in 16,000 canceled flights over the holidays and left thousands of people stranded, the legislation would introduce rules designed to help consumers and hold airlines accountable. Read more >> While tax audits are seemingly rare, they do happen for various reasons. Learn 11 red flags that can trigger a tax audit from the IRS. Even the most fastidious of filers can get sweaty-palmed at the mere thought of receiving an audit notice from the IRS. So you likely want to do your best to avoid going through that process. Read more >>Not-so-breaking news
- SpaceX is currently raising $750 million at a valuation of $137 billion. Elon Musk’s rocket company told investors that venture capital firm Andreessen Horowitz will likely lead this funding round.
- Musk’s EV company Tesla (TSLA) made 1.3 million deliveries in 2022, a year-over-year increase of 40%. Still, Tesla’s fourth-quarter delivery numbers fell short of analyst expectations.
- Starbucks (SBUX) is continuing to bet on cold drinks, unveiling a Pistachio Cream Cold Brew yesterday. Available for a limited time, Starbucks says the pistachio flavor is the perfect compliment to the winter season.
- Warner Bros. Discovery (WBD) signed a deal with audience-measuring company VideoAmp as an alternative means of providing advertisers with data. VideoAmp is a startup that competes with Nielsen’s (NLSN) ratings and audience insights.
- With inflation taking a bite out of Americans’ spending power, nearly 40% of respondents say they feel “financially unhealthy,” according to a survey conducted by The Harris Poll.
Financial planner tip of the day
“According to the CFPB, a characteristic that all financially well people share is that they are committed to learning about how to manage their money. They understand that both the work and education is a continuous process.”
Brian Walsh, CFP® at SoFi