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The IRS is preparing to test a free, government-run e-filing system next year.
That could mean many different things, depending on who you ask. See what the supporters and critics of the new program are saying, and how it could impact you.
US stocks finished higher Wednesday as optimism over the debt ceiling grew stronger.
• Target (TGT) beat both top-and-bottom line estimates with earnings per share of $2.05 and revenue of $25.32 billion. Analysts projected $1.76 and $25.29 billion, respectively. While year-over-year sales improved only slightly due to a pullback in discretionary spending, the company continues to draw customers with everyday essentials like groceries. The retailer maintained its full-year outlook that comparable sales will range from a low single-digit decline to a low single-digit increase.
• Building permits in the US declined by 1.5% to 1.42 million in April. This marked the second-consecutive monthly decline, suggesting housing demand remains under pressure from higher interest rates.
• Tesla (TSLA) announced at its annual shareholder meeting that the company would deliver its first Cybertrucks later this year. Once production begins, the company expects to be able to deliver 250,000 to 500,000 electric trucks per year.
What to be on the lookout for today
• The number of jobless claims will be released. For the week that ended May 6, 264,000 Americans filed for unemployment benefits, the highest since October 2021.
• Investors will get an update on the number of existing home sales in the US during April. In March, existing home sales dipped 2.4% from February.
• Two of the world’s biggest companies, Walmart (WMT) and Alibaba (BABA), will report on their respective businesses. The former will offer greater insight into the health of consumers in the US, while the latter will give investors a better understanding of spending habits overseas.
Should you save — or pay off debt?
When ditching debt is a top priority, you might not want to divert your cash into savings until you’re free and clear. But in fact, saving money can help you get out and stay out of debt.
While overspending often puts you in the hole (a.k.a. lifestyle debt), a super common cause of debt is unexpected expenses — a car repair, a broken phone, a medical or dental bill, etc. The reason those curveballs hit hard is that most people don’t have cash socked away to cover them. Boom: Another couple hundred goes on the card.
So even if you’re paying down debt, set aside a little money on a regular basis so you have a cushion for those inevitable emergencies. And if a crisis strikes before your rainy day fund is fully operational, you can consider a low interest rate personal loan to close the gap.
Today’s top stories
A new feature from Apple (AAPL) will let your iPhone speak out loud… using your voice. “Personal Voice” was designed to assist people with speaking disabilities. But there’s concern over whether the feature could potentially be abused by hackers. Here’s what Apple users should know. Read more >> A resilient housing market can indicate a strong economy, but the underlying numbers — high demand despite historically high rates — are hard to parse. SoFi’s Head of Investment Strategy digs into what the mixed signals in today’s housing market might mean. Read more >> Debt is a slippery slope. The popular Avalanche Method of reducing debt can help reverse that momentum with a focus on paying down high-interest balances. We’ll explain who’s likely to benefit most from this strategy and how it works. Read more >>Not-so-breaking news
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Kraft Heinz (KHC) announced a new sauce dispenser offering more than 200 condiment flavors. This machine, called the Kraft Remix, could be in restaurants as soon as the end of the year.
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Elon Musk stated Tesla (TSLA) will start advertising to sell its cars, reverting a long-standing policy. The decision comes after economic uncertainty led the EV automaker to slash prices.
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Google (GOOGL) plans to delete personal accounts that have not been used in two or more years. By doing so, the tech giant intends to reduce security risks for its users.
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Target (TGT) is on pace to lose $500 million this year as a result of merchandise theft. The retailer has been forced to close stores in high-crime areas.
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EV automaker Fisker is interested in partnering with other companies to accelerate its growth. Regarding this decision, Fisker’s CEO Henrik Fisker stated buyers are no longer loyal to traditional brands.
Financial planner tip of the day
“It can be tempting to close older, unused credit accounts in an effort to keep your credit report from looking cluttered, but that might not be the best move. The age of your accounts is factored into your credit history, with older accounts in good standing having a positive effect.”
Brian Walsh, CFP® at SoFi