Thursday,
January 5, 2023
Market recap
Dow Jones
33,269.77
+133.40 (+0.40%)
S&P 500
3,852.97
+28.83 (+0.75%)
Nasdaq
10,458.76
+71.78 (+0.69%)
Top Story
Only 13.7 million cars were sold in 2022, marking the worst sales total in over a decade. What’s in store for 2023?
We’re breaking down how different automakers stacked up against each other, and whether 2023 will be a good year to buy a car.
Read more >>
Stocks rise in choppy session as economic data spurs optimism, Fed minutes suggest more hikes
• US stocks wavered, but ultimately finished higher Wednesday. The major indexes originally rose in response to encouraging economic data, but then gave up those gains in response to the FOMC minutes from December. The notes suggested the central bank is eyeing more rate hikes in the coming months.
• The November Job Openings and Labor Turnover Survey slightly exceeded expectations. This shows the job market remains strong despite the Fed’s rate-hike campaign. The economy currently has 10.46 million open positions, while analysts predicted 10 million.
• The December ISM Manufacturing Index showed contraction within the sector, after 30 months of expansion. This suggests the central bank is making progress in its bid to cool off the economy.
• Oil prices continued their recent slide. Experts attribute this to concerns over tepid global growth.
What to be on the lookout for today
• ADP will release its December jobs report. This tracks private sector employment and wages through the payroll company’s internal data. In November of last year, the economy added 127,000 jobs.
• Jobless claims are also due from the Labor Department. Both initial and continuing claims will be published. Last week, the number of people filing for unemployment benefits increased to 225,000.
• Walgreens Boots Alliance (WBA) is set to report its quarterly earnings. The owner of Walgreens in the US and Boots in Europe just announced plans to participate in the 41st Annual JP Morgan (JPM) Healthcare Conference.
Holiday spending for 2022 put 35% of Americans into credit card debt. If you’re one of them, here are two tips to get back on track.
Even folks who closely track their spending go over their budget now and then. It happens, but diverging from your budget isn’t the main issue — how you recover is more important.
The most important thing to do, if you haven’t already, is to make a budget that includes holiday spending. This January, consider putting aside some money every month for holiday spending and gifts — even if it’s just a small amount, it can add up over the course of a whole year!
If you’ve already done the damage and charged way too much on your card, or cards, consider using a personal loan to pay off credit card debt. A small personal loan offers you the ability to pay off your holiday debt with a lower interest rate.
Use our personal loan calculator to compare a small personal loan to your current credit card debt. Lowering your interest rate can affect your monthly payment and save you money on the total interest you pay over the life of the loan.
Today’s top stories
For the first time in almost a decade, Meta Platforms (META) and Alphabet (GOOGL) did not control the majority of digital advertising dollars. Apple’s new privacy policy is impacting Facebook’s ad biz and it could be paving the way for these contenders to challenge Zuckerberg’s dominance. Read more >> We’re off to the races in 2023 and investors are collectively holding their breath. SoFi’s Head of Investment Strategy weighs in with what we might expect over the short term in the new year. Read more >> Water costs can take a bite out of your budget, and wasting H2O is bad for the environment too. Learn 12 ways to save on your water bill and lower your monthly expenses. Read more >>Not-so-breaking news
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US-listed shares of Alibaba (BABA) rose yesterday as investors bet the Chinese tech giant could soon face a more favorable regulatory environment. Relaxing regulation and the end of China’s zero-COVID policy could signal a more pro-business attitude from Beijing in 2023.
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Salesforce (CRM) laid off 10% of its workforce and announced office space reductions, saying it “hired too many people.” This follows CEO Marc Benioff’s public commitment to improving the software company’s profit margins, something investors have been calling for in recent years.
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Twitter lifted restrictions on political ads in one of the latest changes under new CEO Elon Musk. The social media company stated it would relax the 2019 ban on ”cause-based” ads and align its policy with those of other media outlets.
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Chinese EV maker Nezha is surging in popularity. With a focus on selling electric compound SUVs at budget prices, Nezha notably delivered more vehicles than its competitor Nio (NIO) in 2022.
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With interest rates on the rise yet again, mortgage demand plummeted at the end of 2022. At the end of last week, mortgage application volume was down 13.2% from two weeks earlier. The average rate on a 30-year fixed mortgage rose to 6.58% over the same period.
Financial planner tip of the day
“Making the minimum payment on your credit card can lead to paying back much more than your purchase. It is best to avoid costly interest and fees by paying off your balance in full every month.”
Brian Walsh, CFP® at SoFi