Tuesday,
February 14, 2023
Market recap
Dow Jones
34,245.93
+376.66 (+1.11%)
S&P 500
4,137.29
+46.83 (+1.14%)
Nasdaq
11,891.79
+173.67 (+1.48%)
Top Story
No, your significant other isn’t stealing your Valentine’s Day chocolate. The box is just deliberately oversized.
Overpackaging, a close cousin to shrinkflation, is the latest way companies are cutting corners. Read on to learn what overpackaging is — and how to avoid it.
US stocks finished higher Monday leading into today’s big CPI release
• Chairman Jerome Powell, among other Fed members, have made it clear that ongoing rate increases remain appropriate. They maintain the committee still has a long way to go in its fight against rising consumer prices. That said, positive January CPI numbers could have a meaningful impact on where interest rates ultimately land.
• Twilio (TWLO) announced plans to cut around 1,500 employees, or 17% of its workforce, after trimming 11% of its payroll in September. Meanwhile, a report suggested Facebook-parent Meta Platforms (META) is also planning a new round of layoffs. The social media giant already let go of 11,000 employees and is now looking to cut costs further as part of what CEO Mark Zuckerberg called the “year of efficiency.”
What to be on the lookout for today
• Investors will learn whether the Fed is achieving its goal of hitting an economic “soft landing” with the release of the Consumer Price Index, or CPI, along with the core inflation rate. In December, the average rate of inflation slowed for the 6th-straight month but still came in at a relatively-high 6.5%.
• In earnings news, a week of outsized focus on the real estate sector begins with Airbnb (ABNB). The home rental pioneer is coming off a strong Q3 2022 – it posted a record profit of $1.2 billion. Coca-Cola (KO) and the car rental company Avis (CAR) will also hand in report cards.
A wise woman once sang: If you like it, then you should put a ring on it.
In finance terms, that translates to: If you like it, you should put a direct-deposit on it. Basically, we’ve been together for a while, and since it’s Valentine’s Day we think it’s time we made it official.
Make the commitment to sign up for direct deposit today and we’ll commit to you, too: with 3.75% APY, no-fee Overdraft Coverage, and 2-day-early paycheck to celebrate a beautiful banking relationship.
Shall we make this a real thing? Set up direct deposit in your SoFi app.
Today’s top stories
It costs 21% more to hire a babysitter today than it did two years ago. As the cost of childcare heads for the stratosphere, Americans find creative ways to save. Read more >> The Fed expects to reach its goal of 2% inflation by the end of the year, which will most likely lead to a recession. To reach its inflation target, the Fed is watching these three sectors very closely. But don’t fear – here’s how you can use this forewarning to prepare for an incoming recession. Read more >> Good economic news isn't always good news for the stock markets. Learn how good economic data can lead to higher interest rates and lower stock prices. Read more >>Not-so-breaking news
-
Norfolk Southern (NSC) will likely be required to pay for damages and clean up at the East Palestine train derailment site. The leading transportation provider has already received a "General Notice of Potential Liability" from the Environmental Protection Agency.
-
Meta Platforms (META) delayed setting its team budgets as it preps for more layoffs. The Facebook owner already laid off 11,000 employees, or 13% of its workforce, last November.
-
Oil prices slipped as investors await the US inflation report. If the Federal Reserve continues to raise interest rates, Wall Street is concerned economic activity and oil demand will slow.
-
Ford (F) plans to build a $3.5 billion plant in Michigan. The legacy automaker wants to rapidly scale its EV production to make the vehicles more accessible for consumers.
Financial planner tip of the day
“When getting ready to buy a house, after assessing your budget and affordability, you may want to give yourself time to save up for a larger down payment. Buyers who put down less than 20% may end up paying private mortgage insurance, which typically costs between 0.3% and 1.5% of your loan amount annually.”
Brian Walsh, CFP® at SoFi