Wednesday,
June 28, 2023
Market recap
Dow Jones
33,926.74
+212.03 (+0.63%)
S&P 500
4,378.41
+49.59 (+1.15%)
Nasdaq
13,555.67
+219.90 (+1.65%)
Top Story
1 in 5 flights will be at a greater risk of delay or cancellation this summer.
Cellular service providers are switching to a new 5G frequency, which could interfere with outdated altimeters in nearly 20% of US airplanes. Here are some ways to set your summer travel plans to “airplane mode.”
US stocks finished higher Tuesday on the back of stronger-than-expected economic data
• New orders for US manufactured durable goods jumped 1.7% month-over-month in May. This follows an upwardly revised 1.2% rise in April and easily beats market expectations of a 1% decline. It also marked the third-straight month of rising orders and was largely led by a 3.9% increase in transportation equipment.
• According to the Case-Shiller national home price index, home prices in the US rose by 0.5% in April. That marks the third-consecutive month of increases. While prices are still down 0.2% compared to April 2022, they are recovering steadily and are now just 2.4% below their June 2022 peak.
• Walgreens (WBA) missed analyst expectations and lowered its full-year earnings guidance. The results were primarily driven by lower consumer spending and a drop in demand for COVID vaccines and testing. The company also announced an increase in the target for its cost-cutting program to $4.1 billion, and said it would take immediate action to increase profitability in its healthcare segment.
What to be on the lookout for today
• Jerome Powell, chair of the Federal Reserve, will follow up last week’s testimony to the US House and Senate with another scheduled speech. The Fed Chair will offer further insight into the central bank’s decision to not raise interest rates in June. Powell suggested in previous testimonies that further hikes might be seen throughout the year, but added the speed of said rate hikes is “not very important now.” Investors will also get an update to the average 30-year fixed-rate mortgage. It currently sits at 6.73%.
• Micron (MU) and General Mills (GIS) are set to report earnings. Micron will likely discuss its plans to invest $825 million in a new chip assembly plant in India, its first factory in the country. This follows pushes by fellow tech giants Apple (AAPL) and Alphabet (GOOGL) to expand operations in the South Asian nation.
Only about 44% of Americans could pay for an unexpected $1,000 emergency expense.
Most people would like to have an emergency fund. But it can be hard to prioritize saving for a rainy day when the sun is out and you want to plan a beach getaway…or just pay your bills.
Most financial experts say you should have at least three to six months’ worth of basic living expenses in your emergency fund. One way to hit that target faster is to open a high-yield savings account and let compound interest do its thing.
Let’s say you open a SoFi savings account with $1,000, then add at least $1,000 a month using split direct deposit, earning you a 4.30% APY. This time next summer, you’ll have $13,283. The summer after that, your balance will grow to $26,105.
By setting up direct deposit with a SoFi high-yield savings account, your emergency fund can earn up to 4.30% APY.
Today's top stories
Employees aren’t the only ones embracing remote contract work. Employers are also saying, “Gig is good.” The ratio of contractors to full-time employees in the average company has increased by 63% since 2019. What does this mean for the future of the gig economy? Read more >> Since 2021, the number of striking employees in the US has spiked by almost 500%. Approximately 119,000 workers have already gone on strike in the first five months of this year. We break down why, as well as the waves these protests could make across industries. Read more >> While the prices may look enticingly low, when it comes to how to buy a foreclosed house, you may be in for a lot of research, a long timeline, and financing issues. Here are the usual steps for buying a foreclosed house. Whether you qualify as a first-time homebuyer or someone who has purchased before, it can be wise to acquaint yourself with the process before searching for a home. Read more >>Not-so-breaking news
- Stellantis (STLA) is recruiting EV charging companies to assemble its own charging network. The owner of Jeep and Dodge has not yet commented on whether it will adopt Tesla’s (TSLA) connecting plug, as other major automakers like General Motors (GM) and Ford (F) intend to do.
- Lordstown Motors (RIDE) filed for bankruptcy. The EV automaker is also suing Taiwanese semiconductor company Foxconn, claiming it failed to provide $117 million of a $170 million funding deal.
- Meta Platforms (META) is updating its social platforms to be safer for kids. This decision comes as the Facebook owner faces heightened scrutiny from lawmakers regarding social media’s impact on children.
- NVIDIA (NVDA) will partner with Snowflake (SNOW) to enable its customers to build AI data models. Snowflake customers will now be able to use their own data to train proprietary AI algorithms.
- President Biden announced a $42 billion plan to bring internet access to every US household by 2030. The funds for this plan have already been allotted by Congress under the Bipartisan Infrastructure Law.
Financial planner tip of the day
"One way to improve/maintain your credit score is keeping your credit utilization low. Keeping it below 30% is a good starting point, but the lower the better."
Brian Walsh, CFP® at SoFi