Tuesday,
May 23, 2023
Market recap
Dow Jones
33,286.58
-140.05 (-0.42%)
S&P 500
4,192.63
+0.65 (+0.02%)
Nasdaq
12,720.78
+62.88 (+0.50%)
Top Story
Are ghost jobs haunting your job search?
"Ghost jobs" create a false sense of opportunity in the job market. Here's what you need to know about this phantom menace — and how to bust through it in your own job search.
Read more >>Â
US stocks were mixed Monday as debt ceiling negotiations continued
• Janet Yellen reaffirmed the June 1 debt ceiling deadline on Sunday. The Treasury Secretary insisted Washington has until early next week to reach a resolution or short-term extension to avoid default.
• Minneapolis Fed President Neel Kashkari said he is open to a pause in interest rate raises at the next meeting. However, he cautioned that a pause wouldn’t necessarily indicate the hiking cycle is over — simply that the Fed is waiting on more information. Markets are currently pricing a 77% chance of a pause at the June 14 meeting.
• The world’s seven largest economies agreed at a summit in Japan to begin diversifying supply chains away from China. According to a joint statement, the policy approach is not intended to harm China or stifle its economic progress, but is rather a move toward greater diversification and economic resilience.
What to be on the lookout for today
• Lorie Logan of the Dallas Fed will follow up Jim Bullard’s comments with a speech of her own. The new home sales report will also be released. This metric surged 9.6% month-over-month in March 2023.
• Reports will come in from AutoZone (AZO), Lowe’s (LOW), Dick’s Sporting Goods (DKS), and Intuit (INTU). Notably, Intuit-owned TurboTax has come under fire recently after announcing a $141 million-dollar settlement for using deceptive marketing to steer low-income Americans away from free tax-filing services.
Buying a home: how much house can you afford?
Purchasing your own home is a major rite of passage and often a path to building personal wealth. An important step is defining your house-buying budget:
• Define your down payment. The average down payment currently is 13%, but some first-time homebuyers can put 3% or even zero down. However, the bigger the down payment, the lower the monthly costs.
• Do the math on your monthly expenses. An online mortgage calculator can help you look at what your payments would be like.
• Get preapproved or prequalified for a mortgage. Not only does this step help you see how much you can spend, it shows buyers that you are a serious, qualified bidder and can give you a leg up. Plus, you’ll learn about the different types of mortgages so you can find the right fit for your finances
Today's top stories
Dollar store dilemma: saving grace or invasive species? Dollar stores are America’s fastest-growing retail segment by far — but there are upsides and downsides to this growth. Read more >> There are enough parking spots in the US to pave over the entire state of Connecticut Mandatory parking minimums have played a significant role in shaping the composition of American cities as we know them today. Here’s how they’re changing and how urban planning may change with them. Read more >> You don’t need a particular down payment amount, salary, or a credit score over 700 to become a homeowner. What you do need is insight into the process, preparation, and a game plan. To help you move ahead with your home-owning dreams, read this guide. Read more >>Not-so-breaking news
- General Motors (GM) confirmed plans to build an all-electric version of its popular Cadillac Escalade. The Escalade IQ will join Cadillac’s roster of EV’s which includes the Lyriq and Celestiq.
- Meta Platforms (META) will pay a $1.3 billion fine for misusing users’ data. The social media conglomerate was charged with transferring EU customers’ data to the US.
- Chevron (CVX) announced its $7.6 billion acquisition of its regional rival PDC Energy (PDCE). This deal will help the oil giant increase production in the US by 246,000 barrels of oil and gas per day and sidestep geopolitical tensions in Russia.
- Ford (F) revealed ambitious plans to grow its EV business. But the automaker is also focused on cutting costs, which are about $7 billion higher than its competitors.
- Target (TGT) has recalled nearly 5 million candles after reports of their jars cracking. Any customer who purchased a Threshold Glass Jar Candle may now return it for a full refund.
Financial planner tip of the day
“The best time to invest is when you’re prepared; you know you’re in it for the long haul; you have the funds; you understand your risk tolerance, and you’ve identified your financial goals. When these fundamentals are in place for the long term, the market’s short-term ups and downs become far less relevant. The best time to invest is when you start.”
Brian Walsh, CFP® at SoFi