Tuesday,
April 25, 2023
Market recap
Dow Jones
33,875.40
+66.44 (+0.20%)
S&P 500
4,137.04
+3.52 (+0.09%)
Nasdaq
12,037.20
-35.25 (-0.29%)
Top Story
The next time you see a new “Big Pony” polo shirt from Ralph Lauren (RL), it might be a sign that the economy is improving.
“Stealth wealth” is a fashion trend popular during economic downturns that swaps gaudy, expensive-looking clothing for more understated looks. Here’s what it means for retailers near you.
US stocks were mixed Monday as Wall Street looked ahead to a busy week of earnings.
• Coca-Cola (KO) beat analyst expectations with $10.96 billion in revenue and earnings per share of $0.68, compared to the $10.8 billion and $0.66 estimates. The company’s organic revenue grew 12% in the first quarter, largely driven by higher prices aimed at offsetting the impact of inflation. Volume also increased for nearly all its major products and the company reiterated its prior forecast of 4-5% earnings growth for 2023.
• The economic front, the Dallas Fed Manufacturing index decreased to -23.40 in April, its lowest level in nine months. Any reading below 0 indicates a contraction in factory activity, so the latest figure and ongoing trend highlight a weakening manufacturing sector in Texas.
• Disney (DIS) started its second round of layoffs, which will bring its running total to 4,000 once complete. Earlier this year, the company said it would cut 7,000 jobs as part of reorganization to cut costs by $5.5 billion.
What to be on the lookout for today
• Housing reports will take the spotlight with the new home sales data and Case Shiller index. This home price metric rose 2.5% year-over-year in January, the smallest increase seen since 2019. Meanwhile, new home sales in February increased 1.1% month-over-month to 640,000.
• We have the busiest earnings day of the week. Reports are expected from — deep breath — Alphabet (GOOGL), 3M (MMM), Chipotle (CMG), Microsoft (MSFT), McDonald’s (MCD), Raytheon (RTX), UPS (UPS), and Spotify (SPOT). Investor’s eyes will be trained on Microsoft and Google in particular for updates related to ChatGPT, Bard, and the future of artificial intelligence.
How to read your credit card statement: 3 things to watch out for.
A credit card statement can be overwhelming, but learning how to read it could help you save. Here’s what to zero in on:
1. Payment Information: Check your balance. If you pay it in full, you can typically avoid accumulating interest charges. Then, look at the minimum payment due. This is the amount you must pay by the due date. If you don’t, you could be charged a late fee and possibly also a higher penalty annual percentage rate (APR). It may even negatively impact your credit score.
2. Minimum Payment Warning: This section explains how long it will take to pay off a credit card balance and how much interest you’ll owe if you make only the minimum payment. Generally, making only the minimum payment is more costly over time if you factor in compound interest. A credit card interest calculator can show you how much interest you’ll pay.
3. Fees and Interest Charges: This lists interest charges by type of transaction. For instance, you usually pay a higher interest rate for cash advances. Know what different kinds of transactions may cost you in interest before you make them.
Recommended reading: Guide to Avoiding Interest Payments on Credit Cards
Today’s top stories
Recent studies suggest depending on superstar employees might actually inhibit long-term success. Over time the team less becomes less adaptable and ultimately less successful. Learn how to avoid falling into this common trap. Read more >> Why are voice memos cutting through the noise? Voice notes are making a comeback in our digital lives, offering a personal touch to text, dating apps, and even workplace communication. Here’s why this trend is changing how we connect. Read more >> Caught yourself overspending? Virtually everyone has done it. Here are 15 causes of overspending to look out for — and how to avoid them. Read more >>Not-so-breaking news
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LVMH (LVMUY) — the parent company of Louis Vuitton, Moët & Chandon, and Hennessy — became the first European company to surpass $500 billion in market value. The luxury goods conglomerate’s brand portfolio also includes Givenchy, Bulgari, and the Sephora stores.
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Bed Bath & Beyond (BBBY) filed for bankruptcy protection. The decision came after years of poor sales, mounting losses, and various failed turnaround plans. The company’s stores and websites will remain open for the time being as it looks to liquidate its assets.
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Worldwide military spending hit a record $2.24 trillion in 2022. This likely was due to spending increases in response to the Russia-Ukraine war. The US alone spent $877 billion — more than the next 10 countries combined.
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Twitter restored the Blue checkmark for select celebrity accounts, including those of Lebron James, Stephen King, and William Shantner. Elon Musk said he was “personally paying” for a handful of subscriptions.
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NBCUniversal CEO Jeff Shell and Comcast (CMCSA) mutually agreed to part ways over Shell's "inappropriate conduct." The media industry has seen multiple high profile executives ousted in response to investigations into bad behavior.
Financial planner tip of the day
"Short-term money is any money you might need in the next couple of years, such as an emergency fund (so long as you have fast access to this money), travel fund, wedding fund, or down payment savings. The priority is it is there when you need it, which is why many people use a high-yield savings account or another cash equivalent."
Brian Walsh, CFP® at SoFi