Tuesday,
April 18, 2023
Market recap
Dow Jones
33,987.18
+100.71 (+0.30%)
S&P 500
4,151.32
+13.68 (+0.33%)
Nasdaq
12,157.72
+34.26 (+0.28%)
Top Story
After 50 years, standard barcode technology is getting an upgrade.
2D barcodes are here and will provide consumers with a treasure trove of data about the products they purchase.
US stocks finished higher Monday as the first-quarter earnings season continued.
• Charles Schwab (SCHW) reported better-than-expected results with $0.93 earnings per share, compared to the $0.90 estimate. The brokerage giant lost $41 billion in deposits in the first quarter, largely driven by challenges in the regional banking sector, though this was less than what analysts expected. Shares of Charles Schwab are down nearly 40% this year after a more than 30% drop in March, marking the worst month in the company’s history.
• Volkswagen (VWAGY) revealed its new ID.7 electric vehicle which will serve as the company’s flagship product in its growing line of EVs. The range of the fully-electric sedan will exceed 300 miles and is expected to challenge Tesla’s Model 3. Production for the ID.7 will begin arriving in North America in 2024.
• In a "60 Minutes interview", Alphabet (GOOG) CEO Sundar Pichai warned society to brace for the impact of AI acceleration, adding that its progression is not for any one company to decide. He suggests society must adapt as more AI tools like Google’s ChatGPT competitor Bard continue to hit the market.
What to be on the lookout for today
• Building permits and housing starts will offer investors a closer look at the current state of the housing market. The previous month’s building permits were revised to a five-month high. Wall Street will be looking to see if that trend continues.
• Bank of America (BAC), Goldman Sachs (GS), Johnson & Johnson (JNJ), and Lockheed Martin (LMT) will all hand in their first-quarter report cards. The Street will also get earnings results from the recently-closed Silvergate Capital (SI) and Signature Bank (SBNY).
How to budget for home repairs: Know the 1% rule.
Things fall apart. Nobody knows this better than homeowners. When a pipe bursts or the roof loses shingles, you can be on the hook for thousands of dollars.
While you can’t predict what’s going to conk out next — an overloaded outlet or your whole heating system — it’s wise to budget as if something will go wrong.
One popular method homeowners use to budget for unexpected home repairs is the 1% rule: Set aside 1% of your home’s value each year to cover regular maintenance and emergency repairs.
For a $500K home, that means saving $5K a year, or $416 per month. If that sounds like a lot, consider that the average household spends about $3,000 on maintenance and $2,300 on emergency repairs each year — more in states experiencing extreme weather (which seems like most of them).
When an especially big repair bill catches you by surprise, consider a personal loan. An unsecured personal loan may be funded more quickly than a secured loan, because there’s no collateral required. And interest rates are typically much lower than for credit cards.
Tomorrow, we’ll look at other ways to prepare for future home repairs.
Recommended reading: What Are the Most Common Home Repair Costs?
Today’s top stories
Trade programs are increasing in popularity. Affordability and a clear career path are enticing an increasing number of students to pursue trade programs over traditional educational degrees. We’ll look at some of the potential pros and cons. Read more >> Higher prices at the pump are expected as we head into the summer months. Learn two main reasons behind the increase in gas prices — and why prices will likely continue trending upward. Read more >> Do you feel uncomfortable asking your employer for more money? You’re not alone. Negotiating a starting salary or asking for a raise can sometimes feel like a confrontation. These strategies could help you climb higher on the compensation ladder and earn what you’re worth. Read more >>Not-so-breaking news
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McDonald’s (MCD) most recent strategy for increasing sales involves upgrading its core products, namely chicken and beef sandwiches. The burger giant plans to use softer buns, gooier cheese, and more sauce to enhance the taste of its signature sandwiches.
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Chegg (CHGG) is combining forces with ChatGPT to launch CheggMate, an AI-powered study buddy. The education technology’s CEO Dan Rosensweig is calling CheggMate, “A tutor in your pocket.”
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Target (TGT) is expanding its partnership with plant stylist Hilton Carter to launch new home decor products. Adding more faux plants and greenery will help the retailer compete more closely with Home Depot (HD) and Lowe’s (LOW).
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Sega (SGAMY), the company behind Sonic The Hedgehog, announced it’s buying Rovio (RVTTY), the company behind Angry Birds. Angry Birds was the first mobile game ever to reach 1 billion downloads.
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Merck (MRK) is buying Prometheus Biosciences (RXDX) for $11 billion. This acquisition will give the pharmaceutical company experimental treatments for ulcerative colitis and Crohn’s disease.
Financial planner tip of the day
“Lenders want to see accounts maintained in good standing for a long time. When debt accounts are closed, though, that history ends, and eventually closed accounts drop off the credit report entirely. A credit history looks better when it has a solid number of accounts in good standing that have been open for a long time.”
Brian Walsh, CFP® at SoFi