Tuesday,
February 28, 2023
Market recap
Dow Jones
32,889.09
+72.17 (+0.22%)
S&P 500
3,982.24
+12.20 (+0.31%)
Nasdaq
11,466.98
+72.04 (+0.63%)
Top Story
Are gas prices headed up or down? That depends on these four trends.
These conflicting trends make it difficult to predict how much gas might cost over the summer. In order to plan ahead, here are the stories you should keep an eye on.
US stocks rebounded higher Monday following the worst week for equities since the start of 2023
• Durable goods orders, which measure the cost of manufactured goods meant to last at least three years, fell 4.5% month-over-month. The figure was notably below analyst forecasts of -4% and largely driven by a 13% slump in orders for transportation equipment.
• Pending home sales in the US decreased 24.1% year-over-year, marking the 20th consecutive decline. Month-over-month pending home sales, however, unexpectedly surged 8.1% for the largest increase since June 2020, which easily surpassed market forecasts of just 1%.
• Fisker (FSR) confirmed its Ocean EV deliveries would begin this upcoming spring. The electric vehicle startup said it’s on track to build more than 40,000 cars in 2023 to start meeting its roughly 65,000 reservations.
What to be on the lookout for today
• Investors will get reports for the year-over-year change in home prices, retail and wholesale inventories, as well as the current trade balance. In December, the US trade deficit widened to $90.3 billion.
• In earnings news, we’ll be hit with multiple reports, including earnings from Rivian (RIVN), Virgin Galactic (SPCE), and Target (TGT). In particular, Target recently committed $100 million to ramp up its next-day delivery capabilities to compete with other top retailers.
The question isn’t “How much can I spend on rent?” — it’s “How much should I spend on rent?”
Although no two financial situations or budgets are exactly the same, there’s been a long-standing rule of thumb that says people shouldn’t spend more than 30% of their after-tax income on housing.
In September 2021, the US Bureau of Labor Statistics released how people in the United States are spending their income, percentage-wise, in key categories. Here is an overview:
• Housing: 33.8%
• Transportation: 16.4%
• Food: 12.4%
• Personal insurance/pensions: 11.8%
• Healthcare: 8.1%
• Apparel and services: 2.6%
This shows that, on average, people are slightly above the recommended percentage for housing expenses.
Next, let’s dig into how to figure out the amount you can spend on rent every month. We mentioned a ballpark figure, but remember: There’s no single magic formula, and everyone’s situation is different.
That said, there are several formulas out there that you can use as a guide. Here are three strategies for figuring out how much to spend on rent.
Today’s top stories
With less foot traffic in downtown metros, expect more businesses to pop up in suburban areas. City workers are spending thousands less at local businesses. Here’s how this trend might reshape your neighborhood. Read more >> Following a recent labor board ruling, departing employees may walk away with smaller severance payouts. The NLRB will no longer allow employers to require laid-off employees to stay quiet about certain aspects of their job or severance agreement. This could change layoff negotiations, for better or worse. Read more >> Here are 15 ways you can pay less on fuel for your car and home heating system. These are some of the easiest ways to reduce the pain both at the pump and when paying for heating costs. Read more >>Not-So-Breaking News
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Southwest Airlines (LUV) will now offer iced coffee on all its flights. The beverage will be available on 4,000 flights per day across 100 destinations, for a $4 charge.
- Disney World (DIS) has a new dining incentive to lure guests back to its park. If you purchase a non-discounted 5-night, 4-day vacation package, Disney will send you a dining promo card worth up to $750.
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Amazon (AMZN) is teaming up with Martha Stewart to enhance its home goods section. The online retailer will now feature a curated selection of Martha Stewart products, called World of Martha.
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Patrick Doyle, who led Domino’s (DPZ) during its resurgence, is the new CEO of Burger King’s parent company, Restaurant Brands (QSR). He plans to revitalize the burger joint’s technology, but believes the Whopper sandwich already gives Burger King an edge over McDonald’s (MCD).
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Pfizer (PFE) is in the early stages of acquiring cancer drugmaker Seagen. If the deal passes, it would value Seagen at several billion dollars.
Financial planner tip of the day
“Payment history makes a bigger impact on a person’s credit score than anything else. A borrower’s credit score summarizes their health and strength as a borrower, and payment history makes up 35% of that score. So the most important rule of credit is this: Don’t miss payments. Timely payments are crucial, and making at least the minimum payment on a revolving credit line can make a positive impact on a person’s credit score.”
Brian Walsh, CFP® at SoFi