Wednesday,
April 26, 2023
Market recap
Dow Jones
33,530.83
-344.57 (-1.02%)
S&P 500
4,071.63
-65.41 (-1.58%)
Nasdaq
11,799.16
-238.05 (-1.98%)
Top Story
Here are the details from Bed Bath & Beyond’s bankruptcy announcement and what it means for consumers vs. the economy.
Yes there are deals and “steep discounts” to be had. (Huzzah!) But there are also implications for the economy, commercial real estate, and other popular stores. We’ll break it all down for you.
US stocks finished lower Tuesday after another huge day of quarterly results
• General Motors (GM) beat top-and-bottom line estimates with adjusted earnings per share of $2.21 and revenue of $39.99 billion. According to GM, its cost-cutting measures, including its employee buyout program, impacted results faster than anticipated. The company also raised its full-year earnings guidance by $500 million to $11-13 billion.
• Nvidia (NVDA) announced a new software designed to prevent AI models from misstating facts, discussing harmful subjects, or opening security holes. Instructions adding these guardrails will be hardcoded into the execution logic, allowing companies utilizing AI language models to limit their focus to chosen topics and fact-check answers.
What to be on the lookout for today
• Reports for durable goods orders and the goods trade balance will be released. Notably, the US trade deficit widened to $91.6 billion in February due to a rising cost of living and higher borrowing costs. Investors will also get an update on the 30-year fixed-mortgage rate, which currently sits at 6.43%.
• Meta Platforms (META), Boeing (BA), and Roku (ROKU) will offer updates on their businesses. The last will likely discuss its recent rollout of Roku TVs.
Paying off credit card debt: Here’s how to pay your cards in full.
Paying off credit card debt can save you money on interest and may even help your credit score. Not sure how to tackle it? Consider one of these strategies:
Debt Avalanche: To do this, you pay off the card with the highest interest rate first, and make the minimum payments on your other accounts. Once that card is paid off, you move on to paying off the one with the next highest rate, making minimum payments on the others, and so on until all your debt is paid off. The major benefit of this strategy is that you’ll save on interest payments. And then, you could consider a new credit card that’s a good fit for your financial goals.
Debt Snowball: Using this strategy, you make the minimum payments on all your cards by the payment due date. Then, you put any remaining funds toward paying off the card with the lowest balance. Once that’s paid off, you move on to the card with the next lowest balance. The main advantage of this method is that it keeps you motivated to stick with it because it feels good to get a card paid off.
Recommended reading: Understanding Your Credit Card Statement
Today’s top stories
Up to 20% of US service support jobs could be overseas in the next decade, thanks to remote work. Overseas labor can help US companies save money. But this doesn’t necessarily mean your job is in jeopardy. Here’s what it does mean. Read more >> New federal rule raises mortgage costs for good credit homebuyers, benefiting those with lower credit scores. Good credit homebuyers face higher mortgage costs due to a new federal rule. Discover how this change impacts you and the housing market. Read more >> The average cost of raising a child to 18 in the US is about $13K per year. Being prepared is always a good idea. Learn the budget items you’ll need to plan for before taking the leap into parenthood. Read more >>Not-so-breaking news
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The US Space Force approved SpaceX to lease a rocket launch site at a military base in California. This complex will become the fifth launch site stateside for Elon Musk’s space company.
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Apple (AAPL) won its antitrust court battle with Epic Games, the maker of Fortnite. The legal battle was centered around the App Store’s payment policies.
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Disney (DIS) began the largest of its three planned waves of layoffs this week. It will bring the total number of cut roles to 4,000, with a final round expected this summer.
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Netflix (NFLX) is doubling down on K-content. The streaming giant plans to spend $2.5 billion over the next four years creating Korean dramas, movies, and reality shows.
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Spotify (SPOT) reported double-digit Q1 growth for monthly users and premium subscribers. This was the fifth consecutive quarter of monthly user growth for the music streaming company.
Financial planner tip of the day
“It’s best to contact your credit card company if you get behind on payments. Credit card companies may be willing to help you if you’ve fallen on hard times. They may offer a hardship plan, which can lower your monthly payments or reduce your interest for a set amount of time, and ultimately help you get back on your feet.”
Brian Walsh, CFP® at SoFi