Wednesday,
March 1, 2023
Market recap
Dow Jones
32,656.70
-232.39 (-0.71%)
S&P 500
3,970.15
-12.09 (-0.30%)
Nasdaq
11,455.54
-11.44 (-0.10%)
Top Story
Will President Biden’s student loan cancellation plan make it through the Supreme Court? A debate before the court yesterday indicates it won’t be easy.
The US Supreme Court heard arguments challenging President Biden’s proposed debt cancellation of up to $20,000 in federal loan debts, with some justices expressing skepticism that Biden can relieve nearly half a trillion in debt without Congressional involvement.
US stocks finished lower Tuesday after another eventful day of quarterly results
• Target (TGT) topped Wall Street’s earnings expectations for the first time in a year with a modest 1% year-over-year increase in holiday sales. However, the big-box retailer also revealed shrinking profits and margins, alongside lackluster guidance that suggested a challenging road ahead.
• Zoom (ZM) reported a slight beat on revenue and earnings per share of $1.22, far exceeding analyst expectations of 81 cents. Like Target, the video chat company highlighted growth concerns that would imply a decline in revenue for 2023. But it also projected an adjusted earnings per share significantly higher than the Street’s initial estimates.
• The Chicago PMI, which measures the performance of the city’s business sectors, fell for a second consecutive month. The index dropped to 43.6, below market forecasts of 45 and well below the 50 mark, signaling another overall contraction in business activity in the region.
What to be on the lookout for today
• The ISM manufacturing PMI will be released. This measure of factory activity fell to 47.4 in January, the lowest since the height of the pandemic in May 2020. Investors will also get an update on the 30-year mortgage rate, which rose to 6.62% for the week ended February 17th.
• In earnings news, Dollar Tree (DLTR) will hand in its quarterly report card. Discount stores seemed well-positioned amid inflation, but competitor Dollar General (DG) recently reported disappointing results. Investors will look to Dollar Tree to expand on this negative insight.
Women are 21.05% less likely to pay their full credit card balance each month than men.
When you don’t completely pay off your credit card balance each cycle, the debt can quickly pile up — even if you’re making the required minimum payments.
If you start to carry a credit card balance, you’re not just paying for your purchases. You’re also paying hefty interest charges on top of what you’ve spent.
And since women typically have lower incomes than men, it is harder to pay off the debt that has accumulated.
The racial wealth gap created by historical inequalities and injustices make it even harder for women of color to pay off debt.
This Women’s History Month, SoFi is hosting a Women’s Financial Empowerment Webinar Series. Join SoFi’s CFP®, Kendall Meade to learn what exactly debt is and the ways to pay down and confidently handle it.
Today’s top stories
To fill the void in the US school system, TikTok is emerging as a de facto source of financial education for many Americans. People tend to turn to each other in search of information. When it comes to personal finance, that’s a great place to start – but it shouldn’t be the end. Read more >> Many manufacturers are raising prices at a rate higher than inflation – and some consumers say enough is enough. Diminished savings and lower purchasing power leaves many consumers in an increasingly precarious position. But as spending habits adjust accordingly, here’s how it could turn around. Read more >> Buying a house from a family member has potential advantages, like a gift of equity or help with closing costs. Here’s what to look out for when buying a house from a relative. Read more >>Not-So-Breaking News
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Target (TGT) beat analyst earnings expectations for the fourth quarter, despite shrinking profit and margins. CEO Brian Cornell stated that groceries, beauty items, and household essentials buoyed sales.
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Southwest Airlines (LUV) is making changes to its boarding process in hopes of generating faster turn times. A few changes include self-serve kiosks at gates and playing music on the jet bridge.
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Microsoft’s (MSFT) Windows 11 will feature its new ChatGPT-powered Bing search engine front and center on the taskbar. The AI assistant will be able to directly access files and settings, as well as perform web queries.
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Canada is banning TikTok from all government devices, according to the country’s Treasury Board. The short-form video app is already banned from government devices in the US.
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Meta Platforms (META) announced a new tool to help the company crack down on revenge porn. The tool, called Take It Down, asks users to assign a digital footprint to explicit photos so that Facebook can track if those photos are reposted.
Financial planner tip of the day
“If you have savings that is not currently earmarked for a specific financial goal, take some time to think about what goal you’d like to apply it to. A great first saving goal is to have three to six months of living expenses in an emergency fund. After that, it might be good to turn your attention toward retirement savings and investing.”
Brian Walsh, CFP® at SoFi