Wednesday,
March 29, 2023
Market recap
Dow Jones
32,394.25
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S&P 500
3,971.27
-6.26 (-0.16%)
Nasdaq
11,716.08
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Top Story
If you’re expecting a tax refund this year, there are a few things you can do to get your money faster.
With Tax Day just around the corner, we’ll share the information you need to know to ensure a seamless filing process and speedy refund.
US stocks finished lower Tuesday as pressure from rebounding bond yields weighed on investors.
• As a looming Fed pivot appears less likely, the 2-year yield has rallied back over 4%. Currently, markets are pricing roughly a 40% chance the Fed opts for another 25-basis-point increase at its next meeting.
• Walgreens (WBA) surpassed the Street’s top-and-bottom line expectations with $34.86 billion in revenue and earnings per share of $1.16. The drugstore chain saw its quarterly profit decline more than 20% due to lower COVID vaccine demand, but it reaffirmed its full-year guidance, projecting mid-20% earnings growth over the next two quarters.
• Alibaba (BABA) announced it plans to split into six businesses in an effort to unlock shareholder value and foster market competitiveness. Each business will have its own CEO and will revolve around Alibaba’s strategic priorities: cloud intelligence, online shopping, international e-commerce, food delivery, logistics, and digital media.
What to be on the lookout for today
• Investors will get an update on pending home sales for February. Home sales unexpectedly surged 8.1% last month, and investors will be eager to see if this momentum continues. There will also be a revision to the 30-year mortgage rate, which currently sits at 6.48%.
• Two major B2B suppliers, Cintas Corporation (CTAS) and Paychex (PAYX), will offer insight into their latest quarters. As a major provider of HR, payroll, and benefits resources, Paychex’s report will specifically highlight how companies are currently managing their workforces.
Here are some ways to make your tax refund work harder for you.
If you are carrying any high interest debt, one smart move might be to put your tax refund towards minimizing that debt — or, if possible, wiping it out all together.
Doing this can help you avoid spending more money just on interest charges, and may also help boost your credit score (which may help you qualify for loans and credit cards with lower interest rates in the future).
Or, you might consider using your tax refund to jump-start one of your current savings goals, such as building up an emergency fund, a downpayment on a home, or buying a new car.
For an emergency fund or savings goals you hope to accomplish within the next few years, you may want to put your refund in a high-yield savings account or checking and savings account.
These options typically offer a higher return than a traditional savings account, but allow you access your money when you need it.
Your tax refund can also help you start saving for the longer term, such as retirement or paying for a child’s education. Using a tax refund to buy investments can help you create additional wealth over time.
Today’s top stories
Side hustles are on the rise, with nearly half of American workers taking on a side gig to make ends meet. If you’re looking for alternate ways to fight back against inflation, there are a few options that could save you both money and time. Read more >> Would you pay to access your social media profile? Twitter continues to flesh out its paid subscription service — and other companies like Meta Platforms (META) are following suit. Read more >> Buying a duplex can be a great opportunity to own two properties, perhaps occupying one and earning rental income on the other. Here’s a look at the pros and cons, as well as the implications for your finances. Read more >>Not-so-breaking news
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Disney (DIS) cut its entire metaverse department in its latest round of layoffs. This is part of Bob Iger’s plan to restructure the media conglomerate and cut costs.
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United Airlines (UAL) and Archer (ACHR) are combining forces to launch air taxis in Chicago. The trips, which travel downtown from the airport, are set to cost about $100, carry four United passengers, and begin operating in 2025.
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The US and Japan signed a trade agreement over raw materials used in batteries for electric cars. The deal will help Japan source requirements for EV subsidies, while helping the US decrease its dependence on China’s energy supply chain.
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Lyft’s (LYFT) co-founder is stepping down from the CEO position and will be replaced by David Risher, an early Amazon (AMZN) employee. The ride-hailing giant has struggled to reach profitability and to compete with its main rival, Uber (UBER).
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Kakao, a South Korean internet company, became the largest shareholder in SM Entertainment. The internet company beat out several rivals to gain control over the iconic K-Pop music agency.
Financial planner tip of the day
“Traditional IRAs or 401(k)s allow you to contribute pre-tax dollars to an account. You can save money on taxes now and only pay taxes on your investments when you withdraw from the account.”
Brian Walsh, CFP® at SoFi