Wednesday,
May 17, 2023
Market recap
Dow Jones
33,012.14
-336.46 (-1.01%)
S&P 500
4,109.90
-26.38 (-0.64%)
Nasdaq
12,343.05
-22.16 (-0.18%)
Top Story
Can sharing intimate details of your #paydayroutine on the internet help you stop living paycheck-to-paycheck?
TikTokers are hopping on the trend of sharing payday budgeting routines with their followers. Another case of oversharing on the internet? Maybe. But here’s why it could be a big benefit.
(P.S. Follow SoFi on TikTok for more fun finance videos!)
US stocks finished lower Tuesday as Wall Street digested lackluster retail sales data
• Home Depot (HD) beat analyst profit expectations by $0.02 at $3.82 per share, but fell short on revenue by roughly $1 billion at $37.3 billion. This marks its biggest revenue miss in over 20 years. Same-store sales also declined more than anticipated at 4.5%, which the company partially attributes to lumber deflation and weather conditions, especially at its West Coast locations. The retailer added it expects sales growth to remain flat year-over-year through fiscal 2023.
• Retail sales in the US saw a 0.4% month-over-month increase in April, following two-consecutive declines in February and March. The figure was still well below forecasts of a 0.8% rise. Excluding automobiles, gasoline, building materials, and food services — often referred to as core retail sales — the increase was 0.7%.
• Horizon Therapeutics (HZNP) saw its shares stumble after a report that the Federal Trade Commission is preparing to file a lawsuit aimed at blocking the company’s $27.8 billion sale to Amgen (AMGN). In early December, Amgen agreed to buy Horizon Therapeutics to strengthen its drug portfolio ahead of several patent expirations. The company said it isn’t aware of any decision made by the FTC, but the regulatory body could sue to stop the acquisition as soon as this week.
What to be on the lookout for today
• Investors will receive plenty of housing data, including building permits and housing starts. After surging 7.3% in February, housing starts decreased 0.8% in March on a month-over-month basis. Additionally, investors will get an update to the 30-year fixed mortgage rate, which currently sits at 6.48%.
• The earnings day will be dominated by retail, with Target (TGT) and TJX Companies (TJX) reporting. As two of America’s favorite shopping centers, these stores will offer a close look at how American consumers are spending.
Smart ways to pay off debt — and when to use them
You’ve heard about the snowball method vs. the avalanche strategy. They’re both effective ways to get out of debt. So how do you decide which one to use?
• What it is: “Snowballing” means paying down the smallest amount you owe, and working your way up to the largest.
When to use it: This method works well when you have several debts — e.g. cards, loans, lines of credit — and you need to organize and prioritize.
• What it is: With the avalanche strategy you pay off the highest interest-rate debt first. Then, add that payment to the next debt, working your way down to the lowest rate, until you’re done.
When to use it: If the bulk of your debt is with a couple of high-interest cards or loans, the avalanche method helps you take control.
If you’ve tried both, and need new ammo? Consider using a personal loan so you can consolidate your debt. It’s a sure and steady way to get to the finish line.
Today’s top stories
Microsoft’s (MSFT) power play: betting big on nuclear fusion. Microsoft took a bold step into the future of energy with a landmark nuclear fusion deal. Here's what you need to know about the startup behind this game-changing development. Read more >> With Google’s (GOOGL) new biopharma tools, AI has officially graduated from med school and is ready to enter the workforce. These new AI tools will be able to help companies bring you new medicine for just a fraction of the cost and time. Read more >> If you’re saddled with credit card debt, you’re not alone. The average US household owes $6,270 in credit card debt. We’ll break down ways to potentially get out — and stay out — of credit card debt. Read more >>Not-so-breaking news
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Taco Bell (YUM) filed a petition to cancel the trademark for “Taco Tuesday”. The common taco marketing phrase has been owned by competitor Taco John’s for 34 years.
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Delta (DAL) is considering placing a large wide-body aircraft order from Airbus. This decision comes as the airline looks to boost its fleet size in anticipation of a busy summer season.
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Emmanuel Macron held a summit with business leaders urging them to invest in France. The French president successfully garnered investments from 200 businesses, worth around $14 billion.
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In a senate hearing, OpenAI CEO Sam Altman urged legislators to regulate new artificial intelligence systems. The ChatGPT developer joined a chorus of tech executives and legislators pushing for more oversight of the rapidly emerging technology.
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Vodafone (VOD) is cutting 11,000 jobs in an effort to reduce the organization’s complexity and improve its competitiveness. This decision comes after years of poor performance from the telecom giant.
Financial planner tip of the day
"Traditional IRAs can help you lower your tax bill and are great for individuals who earn too much money to contribute directly to a Roth IRA. Higher-income earners might not get to deduct contributions from their taxes now, but they can take advantage of tax-deferred growth between now and retirement. An IRA can also be used for consolidating and rolling over 401(k) accounts from previous jobs."
Brian Walsh, CFP® at SoFi