Top Story
If you spent $1,000 on Taylor Swift tickets, you might not be the only one paying for it — thanks to a phenomenon known as “fun-flation.”
Americans are spending freely on fun excursions like nights out, travel, and concerts. But these experiences could have a surprising long-term cost. Read more >>
US stocks finished lower Friday as the Nasdaq solidified its first losing week since mid-April
• Bullish sentiment on Wall Street has tapered following hawkish remarks from Chairman Powell and other Fed members. A number of speeches last week suggested the future of interest rate policy may be murky, despite June’s pause. Markets are now pricing a roughly 75% chance the Fed will hike rates by another 25 basis points at its next meeting.
• Goldman Sachs (GS) is expected to take a large write-off for its acquisition of fintech lender GreenSky after seeking to unload the business. The bank is continuing negotiations with a smaller group of bidders in the hopes of ratcheting up the ultimate price. The acquisition was announced with a $2.24 billion valuation, but it was worth closer to $1.7 billion by the time the transaction closed half a year later. Current bidders reportedly value GreenSky between $300 and $500 million.
• Ford (F) is reportedly preparing for a new round of layoffs for its salaried workers in the US. The automaker did not specify the number of cuts, but they are expected to affect employees at the company's EV, gas, and software units. Last August, the company said it would cut a total of 3,000 salaried and contract positions.
What to be on the lookout for today
• The Federal Reserve Bank of Dallas will release its manufacturing index for June. This metric measures productivity within the Lone Star State. In May, it sank by 5.7 points, the lowest decrease since the pandemic.
• Carnival Cruise Line (CCL) will report. The major cruise operator is still struggling to recover from the pandemic and posted just a fraction of pre-pandemic annual revenue in 2020, 2021, and 2022. With travel restrictions in the rearview and a busy summer season forecast, investors may be expecting sunny skies ahead.
Make your money work for you
Putting your money in a checking or savings account is like giving a loan to the US banking system. Data from the Federal Deposit Insurance Corporation (FDIC) show commercial banks and savings institutions have more than $17 trillion in domestic deposits as of March 31.
Depending on where you bank, some FDIC-insured bank accounts generate little to no return on your deposits.
The average interest-bearing checking account has a 0.07% annual percentage yield (APY), while the average savings account has a 0.40% APY. This is according to the latest FDIC data for all US deposit accounts.
Making your money work harder than the US average is possible. Members who set up direct deposit with SoFi can earn 4.30% APY on their savings balances and 1.20% APY on their checking balances.
Today’s top stories
What does Micron (MU) have in common with Apple (AAPL), Alphabet (GOOGL), and Tesla (TSLA)? These companies have all adopted a similar growth strategy — and investors will tune into the chipmaker’s earnings report next Wednesday to see if it belongs in the ranks of these tech giants. Read more >> The Pregnant Workers Fairness Act promises better working conditions for expecting workers We break down the changes the new legislation could make for pregnant women, recent mothers, and the workforce as a whole. Read more >> The average cost of raising a child to 18 in the US is about $13K per year. Here are the budget items you’ll need to plan for before taking the leap into parenthood. Read more >>Not-so-breaking news
- A new law in Canada will require Google (GOOGL) and Meta (META) to pay outlets for news stories posted on the digital platforms. In response, Meta confirmed it will no longer make news available to Canadian users of Facebook and Instagram.
- 3,500 Starbucks (SBUX) employees will strike this week on claims the coffee chain has banned pride decorations in stores. Starbucks denies these claims and states it has not changed its policy.
- Honda (HNDAF) issued a recall on almost 1.2 million minivans and SUVs for malfunctioning rear view cameras. The automaker has received over 274,000 warranty claims, but no reports of injuries so far.
- 3M (MMM) agreed to pay $10.3 billion to settle a suit of “forever chemicals” contaminating US water supplies. The company also agreed to stop using cancer-linked chemicals in its products by 2025.
- TikTok’s chief operating officer Vanessa Pappas is stepping down. Pappas will still consult for the video platform, while focusing on “entrepreneurial passions.”
Financial planner tip of the day
“If you’re looking to pay off your debt faster, it’s a good idea to take a look at your spending and income, find some ways to reduce your non essential spending, and then funnel any money you free up towards your debt repayment plan.”
Brian Walsh, CFP® at SoFi