Monday,
May 8, 2023
Market recap
Dow Jones
33,674.38
+546.64 (+1.65%)
S&P 500
4,136.25
+75.03 (+1.85%)
Nasdaq
12,235.41
+269.01 (+2.25%)
Top Story
Despite a tough economy, both men and women still show a willingness to splurge on this item.
Hereās what the so-called Bourbon Barometer says about the US economy.
US stocks finished higher Friday on the back of a rebound in regional bank stocks and positive quarterly results from Apple
• Apple (AAPL) beat both top-and-bottom line estimates with earnings per share of $1.52 and revenue of $94.84 billion. Analysts expected $1.43 and $92.96 billion, respectively. The positive numbers were largely driven by stronger-than-anticipated iPhone sales of $51.33 billion. However, the companyās overall sales fell for a second consecutive quarter and it continued its trend of forgoing formal guidance.
• The unemployment rate fell to 3.4% in April, compared to market expectations of an increase to 3.6%. The figure matches the 50-year low previously seen in January. The US economy unexpectedly added 253,000 jobs, notably surpassing forecasts of 180,000, though still below the six-month average of 290,000. The bulk of the jobs came from services, health care, and hospitality sectors.
• Beleaguered used car retailer Carvana (CVNA) said it expects to achieve positive adjusted earnings during the second quarter of this year. After overspending in 2022, the company saw its stock fall by roughly 98%, but it has since instituted a restructuring plan in its quest toward profitability.
What to be on the lookout for today
• Investors will get a look at wholesale inventories and consumer inflation expectations. In March, inflation expectations increased to 4.7% after an almost two-year low of 4.2% in February.
• In earnings news, weāll kick off the week with alternative asset management company KKR (KKR). Over the last 2 years, KKR has beaten earnings estimates 100% of the time, so investors will be interested to see if they can keep that streak alive.
Give your budget a spring cleaning. Follow the 50/30/20 rule.
Just like you spring-clean your home, spring cleaning your finances helps you put things in place for a successful financial future. The first step: Creating a budget you can live with using the 50/30/20 rule.
To do it, allocate your take-home income into three main categories by percentages:
50% to Needs: These are things you have to pay. This includes your rent, utilities, car payments, groceries, and student loans.
30% to Wants: This is the fun stuff you could live without, such as concerts, dinners out, and streaming services.
20% to Savings: This is the money you save for future financial goals, like retirement fund contributions and savings for a down payment on a house.
The 50/30/20 budget helps you prioritize the 20% portion, so youāre saving for the future. And if you arenāt saving 20% of your income right now, thatās okay. Setting up the 50/30/20 budget will help you find out where your money is going so you can identify and cut back where you need to. A budget planning tool makes it even easier to get started. By prioritizing saving, a 50/30/20 budget can help you reach your financial goals.
Recommended reading: How to Manage Your Money: 11 Tips to Do It Right
Todayās top stories
Are plant-based foods truly the future or just another fad? The once-booming industry has experienced stagnant sales since 2020. Beyond Meat (BYND) will offer more insight when they report earnings this Wednesday. Hereās more to watch this week. Read more >> Workersā need to be valued is clashing with companiesā economic caution. Employees are advocating for higher pay, but companies are looking to cut costs. Here's how to walk this fine line. Read more >> Need a better handle on your debt? Consolidation may help. Keeping track of multiple debts can be tough, especially when they all have different terms. Combining them under one lender can help simplify your repayment plan. Read more >>Not-so-breaking news
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Warner Bros Discovery (WBD) posted a hefty loss for the first quarter. However, its streaming business led by HBO Max managed to turn a profit ā a rarity in the streaming industry.
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Porsche (POAHY) is betting big that efuels will be a viable alternative to electrifying its fleet. The luxury automaker has invested $100 million in developing this new power source, which pulls carbon from the atmosphere to create fuel.
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Adidas (ADDYY) warehouses are still packed with boxes of unsold Yeezy shoes after parting ways with Kanye West in October. The athletic apparel company is reportedly āclose to making a decisionā on what to do with $1.3 billion in unsold Yeezy stock.
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Floridaās Senate passed a bill allowing the tourism board appointed by Governor Ron DeSantis to cancel development agreements its predecessor body signed. This marks another move in the Governorās ongoing legal dispute with Disney (DIS).
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Google (GOOGL) just announced its first-ever foldable phone, the Pixel Fold. The new smartphone will feature āthe most durable hinge on a foldable phoneā as well as a price tag of $1,700.
Financial planner tip of the day
āReview your bank account and other statements regularly to make sure everything is as it should be. You want to make sure you are not coming too close to a negative balance or leaving a nice sum of money in checking that could go toward a savings account or somewhere else.ā
Brian Walsh, CFPĀ® at SoFi