Tuesday,
May 16, 2023
Market recap
Dow Jones
33,348.60
+47.98 (+0.14%)
S&P 500
4,136.28
+12.20 (+0.30%)
Nasdaq
12,365.21
+80.47 (+0.66%)
Top Story
The Silver Tsunami is about to make landfall on the US labor market.
Baby boomers are retiring, causing a labor shortage that could impact workers and companies for decades to come.
US stocks finished higher Monday on the back of positive debt ceiling developments.
• Treasury Secretary Janet Yellen stated the Biden administration and congressional Republicans are making progress in their negotiations over federal spending and raising the debt limit. President Biden is expected to host congressional leaders on Tuesday to continue discussions.
• The Empire State Manufacturing Index fell to -31.8 in May, its lowest reading in four months. After a sizable rebound in April, the latest figure points to a sharp drop in manufacturing activity in New York state.
• European Union regulators approved Microsoft's (MSFT) $69 billion acquisition of Activision Blizzard (ATVI). After the UK Competition and Markets Authority blocked the deal last month, the European Commission said Microsoft offered solutions in the cloud gaming industry that tempered its antitrust concerns.
• Total consumer debt surpassed $17 trillion for the very first time despite a pullback in home borrowing. Since the pre-pandemic era in 2019, the debt load has increased by $2.9 trillion, $150 billion of which came between January and March 2023.
What to be on the lookout for today
• A flurry of business reports will be released, including retail sales, industrial production, and business inventories. Notably, industrial production increased just 0.5% annually in March, the lowest increase in two years.
• The nation’s largest DIY home improvement store, Home Depot (HD), will give investors an update on its business. The construction chain’s revenue has declined for the past two quarters. Investors will look to see if this is becoming a long-term trend.
Here are 2 big reasons to prioritize paying off your debt.
In theory, getting out of debt would always be a priority. After all, debt = stress, financially as well as emotionally. But now with interest rates on the rise it’s even more important to get out of debt ASAP. Here’s why:
• You’ll owe more. If you have variable-rate debt (e.g. credit cards or certain types of loans or credit lines), higher rates mean that you’ll owe more over time — and nobody wants more debt!
• Debt affects your credit. Credit bureaus consider how much you owe in relation to how much you earn — i.e. your debt-to-income ratio. By paying down debt, you spruce up that score.
To protect yourself, be proactive. Consider consolidating your debt using a personal loan. It could lower your total interest rate and help you focus on the main idea: enjoying a debt-free life.
Today’s top stories
The pandemic changed how Americans are approaching car ownership. The average car on US roads is now more than a decade old and cars are getting older at the fastest rate since the 2008 Great Recession. Read more >> Let’s go to the mall to… play pickleball? America’s fastest-growing sport is stepping up to fill vacancies left from closing stores. We’ll tell you where the takeovers are happening and why mall owners are embracing the trend. Read more >> Combining your debts into a new, single loan can be a smart way to lessen debt, giving your brain and your budget some breathing room. We’ll take a look at what it means to consolidate debt and how it works. Read more >>Not-so-breaking news
-
Vice Media, once valued at $5.7 billion, filed for bankruptcy due to harsh economic conditions. The digital media company is being sold to a group that includes Fortress Investment, Soros Fund Management, and Monroe Capital (MRCC).
-
Amazon (AMZN) plans to use AI to deliver products more quickly. To do this, the ecommerce giant will use “regionalization”, a process that will ship your product from the closest Amazon warehouse.
-
Fanatics acquired the US assets of Australian online sportsbook operator PointsBet for $150 million. This deal embeds Fanatics further into the world of online sports betting.
-
Telly is a new startup offering dual-screen smart TVs. Its products will feature a smaller screen below the main screen displaying information like sports scores, news, weather, and ads.
-
Global demand for platinum is expected to spike by 28% this year. Platinum is becoming a common replacement for the palladium used in catalytic converters.
Financial planner tip of the day
"With the 70-20-10 rule, you aim to put 70% of your income into essential and discretionary spending, 20% toward savings or investing, and 10% toward debt paydown and charitable giving. These “buckets” can help you prioritize and achieve your financial goals."
Brian Walsh, CFP® at SoFi