Tuesday,
January 17, 2023
Market recap
Dow Jones
34,302.61
112.64 (+0.33%)
S&P 500
3,999.09
+15.92 (+0.40%)
Nasdaq
11,079.16
+78.05 (+0.71%)
Top Story
Tax filing season is nearly here. We’ll explain how to get your refund ASAP.
A recent survey says 30% of Americans are relying on their refund to help make ends meet. Even with inflation cooling, consumers are still dealing with diminished spending power.
Read more >>
Stocks rise after starting day in the red, S&P and Nasdaq post best week since November
• US stocks rose Friday as the major indexes staged an intraday rally Investors weighed the possibility of a recession in 2023 but appeared confident that inflation will ease. Earnings results from several major banks were also heavily scrutinized, given the sector is closely linked to the economy as a whole.
• Stocks gained in Europe and the UK. This comes amid optimism the Eurozone can avoid a deep recession driven by higher energy costs.
• Oil prices increased. Both international standard Brent crude and US benchmark WTI saw their price per barrel rise. Traders are betting China’s post-COVID reopening will push energy demand higher.
• The University of Michigan released the preliminary results of this month’s consumer sentiment survey. From a historical perspective, the index remains low, although it increased for the second straight month – rising 8% from December.
• One-year inflation expectations declined in the University of Michigan’s survey to 4.0%, down from 4.4% in December. Meanwhile, five-year inflation expectations checked in at 3.0%, up slightly from 2.9%.
What to be on the lookout for today
• The January Empire State Manufacturing Index will be released, which highlights the general business activity in New York. This monthly metric declined in December as participants in the survey reported subdued optimism.
• This week will be heavily focused on the financial sector, with Goldman Sachs (GS) and Morgan Stanley (MS) set to kick things off. Last week, Goldman Sachs had one of its most significant rounds of layoffs since 2008, cutting ties with 3,200 employees. Investors will be eager for more insight from the banking giant concerning its outlook for the company and the broader economy.
Private vs. public college: which option is right for you?
When it comes to choosing a college, there are many things to consider, including whether to attend a private or public school. According to The College Board, the average cost of attending a four-year public college as an in-state student during the 2022-23 school year was $10,950, and $28,240 for out-of-state students. The average cost of attending a private four-year institution, including tuition, fees, and room and board was $39,400.
That said, private colleges and universities may award more scholarships, fellowships, and other kinds of need- or merit-based financial aid that can ultimately help offset higher costs. Some top-tier universities have even virtually done away with tuition for students whose families have certain levels of family income, making it possible for high-achieving students to actually get a better or comparable deal at a private institution depending on their family’s financial situation.
Students who are debating between private and public colleges should consider the pros and cons of each, especially when it comes to cost, quality of education, campus life, and how they plan to pay for college.
Private student loans can be used to pay for both private and public college. SoFi’s private student loans have a simple online application, flexible repayment plans, and absolutely no origination or late fees. After exhausting all federal loan and aid options, students may consider borrowing a private student loan to cover the cost of college.
Today’s top stories
Expect earnings reports this week from Netflix (NFLX), United Airlines (UAL), and Goldman Sachs (GS). Is Netflix really cracking down on password sharing? Has United Airlines reached a contract with its pilots? Investors will get answers this week on Wall Street… Read more >> The latest trend in real estate is… paying more money upfront? Mortgage buydowns, which allow you 1 to 3 years of decreased mortgage interest rates for a lump sum payment, can actually save homeowners significant amounts in the long run. See how much you stand to save. Read more >> Could your tax filing trigger an audit? Watch for these red flags. Receiving an inquiry from the IRS can be a scary thing, especially fresh after tax season. Here’s what to be aware of that could potentially put you in the hot seat. Read more >>Not-So-Breaking News
- JPMorgan Chase (JPM) beat Wall Street estimates for earnings and revenue in its fourth quarter. The bank also increased credit loss provisioning. CFO Jeremy Barnum echoed the company’s prediction that the US will enter a recession at some point this year.
- After falling short of year-end delivery estimates, Tesla (TSLA) will cut its prices in the US and Europe. The EV leader faces increased competition and decreased consumer spending amid higher interest rates. In the US, cutting prices may help Tesla qualify for more EV tax credits.
- Delta Air Lines (DAL) delivered a mixed report to close out last week. In the midst of turmoil across the industry, the airline’s Q4 revenue topped expectations, but its first-quarter forecast calls for increased labor costs. Meanwhile, Delta’s pilot union is reviewing a contract that would raise salaries 30% over four years.
- Insurance company UnitedHealth Group (UNH) exceeded analyst estimates for earnings in the fourth quarter, as its Optum division posted double-digit revenue gains. The company also upheld its full-year profit guidance.
- Streaming platform HBO Max (WBD) is raising prices for the first time since its debut in May 2020. The ad-free plan now costs $15.99, an increase of $1, and 50 cents higher than Netflix’s (NFLX) standard plan. HBO Max recently pulled several popular shows to save on costs
Financial planner tip of the day
"First-time home buyers can be bamboozled by the true cost of buying a home because there’s a lot more to consider than just principal and interest. Before buying a home, you should crunch and become familiar with the numbers for the total cost of your mortgage, including insurance, taxes, fees, bills, furniture, and so on. Only with a good grasp of what each line item will run can you make an estimate about the size of the mortgage, and therefore the home you can afford to buy.”
Brian Walsh, CFP® at SoFi