Thursday,
April 13, 2023
Market recap
Dow Jones
33,646.50
-38.29 (-0.11%)
S&P 500
4,091.95
-16.99 (-0.41%)
Nasdaq
11,929.34
-102.54 (-0.85%)
Top Story
One-third of Americans feel their biggest financial mistake is paying for services they don’t use.
Fortunately, it could soon become a lot easier to cancel unwanted subscriptions. We’ll explain why.
US stocks finished lower Wednesday after inflation numbers left Wall Street wondering if the Fed’s hiking campaign is nearing its end.
• Headline CPI for March came in at 5% compared to the 5.2% forecast and the previous month’s 6% reading. Core inflation saw a slight year-over-year increase to 5.6%. This was in line with expectations, but still represented an upward move from 5.5% in February. Nevertheless, month-over-month inflation in both indices saw a decline, indicating a modest easing of consumer prices.
• The EPA has proposed new tailpipe pollution limits that could require as much as 67% of cars sold by 2030 to be electric. While the limits wouldn’t directly require EV sales, the standards would force the auto industry to sell considerably more EVs to meet the requirements.
• Triton International (TRTN) is set to be acquired by Brookfield Infrastructure (BIP) in a $13.3 billion take-private transaction. As the world's largest owner and lessor of intermodal containers, Triton’s buyout shows signs of a rebounding market after a weak year for mergers and acquisitions.
What to be on the lookout for today
• The Producer Price Index will be released. It measures wholesale inflation for producers and generally leads CPI by a month or two. The previous reading was a decline of 0.1% and the forecast is for the index to remain flat.
• Delta Airlines (DAL) and Progressive (PGR) will hand in their quarterly reports. Delta’s CEO said in a conference last month that demand was high and the company had its 10 best sales days ever.
Here are 4 extremely fun ways to use your tax refund — that are still responsible.
If you’re one of those people who has already paid off debt, is actively investing, has a solid retirement plan, and is proud of your savings account balance… Well, go you. You’re killing it.
You might have earned the right to book a fancy trip to Ibiza, but if you’ve already achieved all this, our guess is you’re looking for ways to use your tax refund that are fun and rewarding, while still financially responsible. Here are a few ideas:
1. Gift a Loved One: The IRS sets a limit on the gifts you’re able to transfer to family members and others without having to pay a gift tax. As of 2022, the limit is $16,000. This means you can send up to that much without triggering taxes for the person you’re gifting.
2. Fund Your Business Idea: Have you always wanted to start a small business? Now might be the time. You may be able to avoid taking out high-interest loans to start your venture by leveraging your tax refund!
3. Take a Class: Education can improve your life in so many ways. Take a class in a subject that interests you, or to learn a new hobby. If you look for courses at your local community college or adult ed program, you may be able to save significantly on tuition. Oh, and we’d be remiss not to mention SoFi’s Coursera offerings on Financial Literacy.
4. Try a Meal Subscription Service: Do you eat out all the time? It might make sense to put your tax refund towards a meal service that sends you ingredients and simple recipes each week. It’s not as affordable as cooking using grocery store ingredients, but it’s a fun upgrade from the norm!
5. Donate It: If there’s an organization you believe in and want to support, you might consider donating your tax refund to that group. It’ll have an incredible impact AND you may be able to deduct your donation on your taxes next year for a win-win.
If you’re still wrapping your head around the topic of taxes more generally, check out this guide to understanding your taxes.
Today’s top stories
The EPA introduced an ambitious proposal that may transform the auto industry. If finalized, the new rules could require EVs to comprise up to 67% of vehicles sold by 2032. Read more >> High fashion is out and secondhand style is in. Before you donate that box of old clothes, check the resale value online. Here’s why it might be higher than you think. Read more >> The latest Consumer Price Index (CPI) data is in and although cooler than last month, some components remain a concern. SoFi’s Head of Investment Strategy gives her thoughts on the market reaction to inflation and what it could mean for the Fed. Read more >>Not-so-breaking news
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Elon Musk laid off over 80% of Twitter’s workforce since taking over the company — roughly 6,000 employees. Musk said this action was necessary due to Twitter’s hefty losses.
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The FBI warned consumers against using public charging stations, which can be used to install malware on your phone. The Bureau recommends carrying your own charger and using an electrical outlet.
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Universal Studios (CMCSA) could use a reservation system similar to Disney’s (DIS) for its new park, Epic Universe. The unpopular policy may be necessitated by high demand for the new park.
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To offset inflation, the post office wants to raise the price of a first-class stamp to $0.66. If the Postal Regulatory Commission approves it, the increase would go into effect July 9.
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Delta Airlines (DAL) is adding more options for premium travelers. Since premium travel has higher profit margins, the airline hopes this will protect it against an economic downturn.
Financial planner tip of the day
“One place to begin when striving to nurture good financial habits is to write out individual money goals. Financial goals can serve as ‘external’ guideposts for kickstarting (and then sticking with) new habits.”
Brian Walsh, CFP® at SoFi