Friday,
May 12, 2023
Market recap
Dow Jones
33,309.51
-221.82 (-0.66%)
S&P 500
4,130.62
-7.02 (-0.17%)
Nasdaq
12,328.51
+22.07 (+0.18%)
Top Story
As media companies max out subscribers for their video streaming services, they could look to other forms of content for profit.
Netflix (NFLX) and friends are stepping away from the race for streaming subscribers, focusing instead on profitability. Find out what big disruptor they could be after next.
US stocks were mixed Thursday as Wall Street mulled a new round of earnings and inflation data.
• Disney (DIS) reported a 13% increase in revenue at $21.82 billion and earnings per share in line with estimates at $0.93. The company was able to narrow the losses from Disney+ by roughly 26% to $659 million, but it also lost 4 million global subscribers.
• The Producer Price Index, which measures inflation at the wholesale level, increased less than expected in April. It grew 0.2% month-over-month, after a downwardly-revised 0.4% drop in March. Roughly 80% of the increase was driven by a 0.3% rise in services costs due, in large part, to an increase in portfolio management prices.
• PacWest (PACW) saw its shares slide after reporting a 9.5% decline in deposits last week. During the first quarter, the regional bank’s total deposits declined 16.9%, which prompted a strategic asset sale to reshore its balance sheet. PacWest now has $15 billion in liquidity compared to $5.2 billion in uninsured deposits.
What to be on the lookout for today
• Monthly figures for import prices and export prices will round out the week. In March, import prices fell 0.6%, while export prices fell 0.3%.
Make sure your financial goals are S.M.A.R.T. with this strategy.
To achieve your short-term financial goals, the things you’re aiming to do in the next few months or years, you need to be smart about it. By this we mean using the acronym S.M.A.R.T. This is how it works:
Specific: A goal should identify exactly what you’re saving for, whether that’s paying off credit-card debt or buying a used car.
Measurable: How much is your goal? How much do you need to save? That would be your measurable goal.
Attainable: Make sure your goal is realistic. For instance, if you want to buy a house, use a home affordability calculator to see what you can comfortably afford.
Relevant: Check that your goal really matters to you. Do you need to take an expensive vacation?
Time-bound: Set “by when” dates for your goals to stay accountable. If you want to save $3,600 for an emergency fund within a year, figure out how you’ll come up with the $300 per month to put aside.
Are you financially stable and on your way to financial freedom? Here are 10 signs that you’re mastering money management.
Today’s top stories
The US government wants to change its hiring practices to close the pay gap. There’s one hiring question that could potentially keep a worker trapped in a cycle of low earnings for their entire career. See how the country’s biggest employer plans to fix it. Read more >> Discover Salsa’s $10M secret recipe. The startup plans to spice up payroll and bring the heat to legacy players like ADP (ADP) and Intuit (INTU), all while making it easier for you to get paid. Read more >> When making an offer on your dream home, it’s good to know how the game works in both a buyer’s and seller’s market. These strategies could give you a competitive edge when you’re up against multiple offers. Read more >>Not-so-breaking news
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Best Buy (BBY) is revamping its membership program in an attempt to drive demand as consumers pull back spending. The new three-tiered program will feature perks like exclusive discounts and access to popular products.
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Microsoft (MSFT) will not extend salary increases to full-time employees this year. During the announcement, the massive tech company cited economic conditions and its large investment in AI.
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Panasonic (PCRFY) delayed the release of a new EV battery to improve its performance. The battery, which will be used in new Tesla models (TSLA), is scheduled to begin production in April 2024.
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Disney (DIS) is integrating Hulu into Disney+ to create a one-app streaming experience. The entertainment giant will still offer standalone packages for Disney+, Hulu, and ESPN+.
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Wholesale prices of eggs dropped significantly during the first week of May. This should lead to a decrease in the price consumers pay for eggs at the grocery store.
Financial planner tip of the day
"Once you know where you stand with your budget and your savings goals, you may want to start by building a sort of 'starter' emergency fund, sometimes called an account buffer—then move forward with a personal debt reduction plan, like the debt avalanche, debt snowball, or the hybrid debt fireball, which focuses on paying high-interest debt in a way that can build momentum and keep you motivated."
Brian Walsh, CFP® at SoFi