Thursday,
May 4, 2023
Market recap
Dow Jones
33,414.24
-270.29 (-0.80%)
S&P 500
4,090.75
-28.83 (-0.70%)
Nasdaq
12,025.33
-55.18 (-0.46%)
Top Story
Airbnb (ABNB) just launched 4 new features to lure summer travelers away from hotels.
Weāll break down what the company is changing in response to customer feedback.
US stocks finished lower Wednesday after the Fed confirmed a unanimous 25-basis-point increase.
• In the summary of the Fed interest rate decision, prior language signaling more hikes was removed. However, the committee said it will continue reducing its balance sheet. In his speech following the increase, Chairman Powell emphasized that a decision on a pause was not made, as the Fed will remain data-dependent.
• CVS (CVS) beat analyst expectations with $85.28 billion in revenue and earnings per share of $2.20. The company saw a 12% increase in revenue for its health insurance segment and a 12.6% increase for health services. It lowered its full-year guidance due to acquisition-related costs.
• The ISM Services PMI, which measures non-manufacturing business activity nationwide, rose to 51.9 in April. While only slightly beating expectations of 51.8, the figure marked the fourth-consecutive month of expansion above 50.
• Johnson & Johnsonās (JNJ) consumer health business Kenvue is set to go public this week under the ticker KVUE. It will be the largest IPO in more than a year and includes some of the companyās most popular household products, including Tylenol, Band-Aid, Listerine, and Neutrogena.
What to be on the lookout for today
• An update to the balance of trade will be released. In February, the US trade deficit increased to $70.5 billion, the highest total in four months.
• It will be another busy earnings day, with reports coming in from Apple, Moderna (MRNA), Block (SQ), Booking Holdings (BKNG), and Lyft (LYFT). Apple, the worldās biggest company by market cap, will likely update investors on both its plans to expand in India and its new savings account.
How much mental energy should you spend on your credit score? Is it really that important?
If you ever plan on purchasing a car, renting an apartment, buying a house, or taking out a loan to fund your dream company, youāre going to want to track your credit score. Any of these long-term goals become more affordable and more streamlined with a higher credit score.
Once good credit has been established, using it wisely and responsibly can offer flexibility and freedom. Installment loans like mortgages, car loans, and student loans might make it easier to reach major life goals, while credit cards for smaller purchases can help build credit and possibly qualify for lower interest rates on those big purchases.
The good thing about long term goals is that you have more time to prepare to make them happen. Get a head start and track your credit score for free in the SoFi app, where the factors affecting your score are broken out to make them easier to understand.
Recommended reading: 8 Tips for Maintaining a Good Credit Score
Todayās top stories
Disney (DIS) bet big on the Star Wars franchise. So far, itās paid off handsomely. May the 4th be with you as we explore how Disney turned Star Wars into the second biggest franchise in the world. Read more >> The Fed raised rates ā but maybe for the last time in this cycle. As the saying goes, it aināt over ātil itās over. But what if this 10th rate hike is really the last one for 2023? Read more >> Knowledge is power when it comes to your hard-earned dollars. Learn tips for safeguarding your personal financial information ā and ways to avoid potential money scams. Read more >>Not-so-breaking news
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Ford (F) cut the price of its electric Mustang Mach-E once again. Depending on the model, the cost will drop anywhere from $1,000 to $4,000, to a starting price range of $42,995 to $59,995. This move comes as the automaker attempts to balance growth and earnings potential.
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Elon Musk threatened to reassign the official NPR Twitter account to another organization. The news network stopped tweeting last month in protest of being labeled āstate-affiliated mediaā by Elonās social media company.
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Tuesday Morning is officially going out of business and will close its 200 remaining stores. After nearly half a century, the discount retailer will wind down operations and offer 30% off its remaining merchandise.
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Apple (AAPL) gained nearly $1 billion in deposits within four days of launching its new savings account. More than 240,000 accounts were opened during that time period, representing 0.2% of Appleās US iPhone user base.
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Nordstrom (JWN) is closing two locations in downtown San Francisco. The major retailer cited unsafe conditions for customers and employers as the reason for the closure.
Financial planner tip of the day
āReaching your savings goals might happen faster by setting up automatic transfers from checking account to savings account each time youāre paid. If your paycheck is direct-deposited, you may also be able to split the deposit into more than one account, on a percentage or dollar-amount basis.ā
Brian Walsh, CFPĀ® at SoFi