Monday,
February 27, 2023
Market recap
Dow Jones
32,817.05
-336.86 (-1.02%)
S&P 500
3,970.05
-42.27 (-1.05%)
Nasdaq
11,394.94
-195.46 (-1.69%)
Top Story
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Restaurant chains are the latest industry to offer paid membership programs. But consumers should be wary of subscription sprawl. Cost savings can easily morph into financial leaks.
US stocks finished lower Friday after inflation numbers jumped higher than expected.
• The Fed’s preferred inflation index, core PCE, rose 0.6% month-over-month and 4.7% year-over-year. Both figures were above analyst projections of 0.4% and 4.3%, respectively, and convincingly underscored the Fed’s need to continue its painful fight against rising consumer prices.
• The payments company Block Inc (SQ), formerly known as Square, missed on earnings estimates, but beat on revenue. The fintech darling posted $1.66 billion in gross profit for 2022, $848 million of which was generated by its Cash App business.
• Ford (F) is suspending production for its electric F-150 pickup truck. The announcement comes on the back of a battery issue that resulted in one of its vehicles catching fire.
What to be on the lookout for today
• January durable goods orders will be released. This data point measures orders of goods meant to last three years or more. In December, it soared 5.6% from November, the sharpest gain since July 2020.
• The week will kick off with earnings announcements from two top productivity companies, Zoom (ZM) and Workday (WDAY). After exploding in popularity during the pandemic, the sector has since come down to earth. Earlier this month, Zoom let go of 15% of its workforce.
You've likely heard the common expression 'time is money,' but what does that mean?
Balancing time and money can involve a trade-off. To make more money, some people spend more time on their careers and have less time for other obligations and pleasures in life, whether that means spending time with family, relaxing, or pursuing hobbies and passion projects. Working long hours can mean less time to clean, shop, and otherwise handle chores. If one makes enough by working, they can perhaps delegate those duties and hire someone to handle them.
For example, a lawyer might be able to afford to pay a landscaper $50 an hour to do yard work while they earn $300 an hour working with a client. The lawyer nets $250 by doing so. If the lawyer does the yardwork and not the landscaper, the lawyer loses the $300 they could have earned doing legal work. Seen through a financial lens, it could be sensible to embrace strategies that maximize your earning power with the limited time you have. If, however, you are a person who earns less than a lawyer and/or you love to garden and care for your property, you might well decide to do the yard work yourself.
A key benefit of managing time and money wisely is better quality of life. Effective time and money management will make all aspects of your life easier because you gain peace of mind and may stress less about your money and your schedule. You can take control of two very important variables.
What is the relationship between time and money? Here are tips for how to maximize both.
Today’s top stories
Target (TGT) commits $100 million to enhance its next-day delivery capabilities. How will other major retailers try to impress investors this week? Watch out for earnings from Costco (COST) and Dollar Tree (DLTR), as well as a host of economic updates this week. Read more >> For workers with disabilities, now could be a good time to reenter the workforce. If you’re looking to get back to work, consider taking advantage of these favorable market conditions. Here are two key programs you can use to do that. Read more >> The key to building credit? Start early. Your credit history dictates your future financial opportunities that can significantly affect your future life goals. The sooner you start building your credit, the better. Read more >>Not-so-breaking news
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Apple (AAPL) will price its first generation VR headset at $3,000, according to analyst Ming-Chi Kuo, with a second generation of both low- and high-end models expected to be available by 2025. Apple has not yet officially announced the product, but, after many delays, is set to in June.
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The payments company Block Inc (SQ), formerly known as Square, missed on earnings estimates but beat on revenue. The fintech darling posted $1.66 billion in gross profit for 2022, $848 million of which was generated by its Cash App business.
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Warner Bros Discovery (WBD) fell short of analyst expectations for revenue due to a soft ads market. However, the HBO Max and Discovery+ owner said its streaming subscriber base grew by 1.1 million during the quarter.
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Beyond Meat’s (BYND) sales shrank 20% in the fourth quarter — better than Wall Street expected. The alternative meat company will prioritize becoming cash flow positive over growing revenue, as sales are expected to keep falling in 2023.
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Commerce Secretary Gina Raimondo stated the US will build two semiconductor clusters by 2023. In the wake of a crippling chip shortage, these manufacturing hubs should help increase the domestic supply of chips used for cars, medical devices, defense applications, and more.
Financial planner tip of the day
“Your credit score is based on factors such as how often you pay your bills on time, how many loans and credit cards you have, what your debt is relative to your credit limits, and the average age of your accounts. It also considers negative financial events, such as judgments, collections actions, or bankruptcies.”
Brian Walsh, CFP® at SoFi