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Prime Day isn't just an event. This modern American holiday is something that Main Street and Wall Street eagerly await.
For deals and discounts, for sales statistics that partially dictate Amazon’s share price, and to paint a picture of overall retail spending and consumer sentiment. Here’s why shoppers and investors alike want to tune in to this year’s Prime Day.
US stocks finished higher Tuesday ahead of today’s key inflation data
• For‌ May, CPI saw a promising decline from 4.9% to 4% and Wall Street is expecting a similar drop to 3.1% for June. While the Federal Reserve has made it clear more rate hikes are to come, a cooler-than-expected figure could motivate the committee to revisit its future hiking path, stoking some optimism among investors.
• Bank of America (BAC) reiterated its buy rating on Amazon (AMZN), predicting that Prime Day will be stronger than last year's. The bank added that it believes the event will drive meaningful sales for Amazon and help it continue to take online retail market share.
What to be on the lookout for today?
• The inflation rate for June will be released. In May, inflation slowed for the 11th consecutive month to 4%, driven mainly by a decline in energy prices. As a key factor in the Federal Reserve’s policy decisions, investors will look to the updated numbers to gauge their interest rate path going forward.
Do you know where your employee benefits are? Taking advantage of stock options.
Stock options give employees an opportunity to buy stock in their company for below market price. Opting into the program is called exercising your options.
You can then sell your shares at market value for a profit, sell just enough to cover your initial cost (a “cashless exercise”), or hold on to all shares in hopes the stock price rises. Here are some steps you could take now:
• Know your vesting date. This is the date after which you can exercise your options (purchase company stock). You’ll want to have a strategy in place before your waiting period is over.
• Learn about ESOs vs. RSUs. We’re talking about Employee Stock Options (ESO). Restricted Stock Units (RSU) work differently, so make sure you know which you’re getting. Here’s a brief overview of the similarities and differences.
• Prepare to be taxed. When you exercise options, you’ll be taxed on the “spread” between the exercise price and the market price. You’re taxed again if/when you sell your shares at a profit (which may also bump you up a tax bracket or two). So you’ll need to put out enough cash to cover the shares, any associated fees, and your tax bill.
Ready to make the most of your investments? All-in-one investing starts here with SoFi Invest.
Source: Carta 2022 Employee Stock Options Report
Today’s top stories
Battle on aisle five? Grocery stores are duking it out with food producers. This is partially because prices for “center store” goods are still surging, up 12% in May. But there’s good news for consumers, because this conflict may have already reached a turning point. If you buy “dry goods” like napkins, chips, and pasta, we have all the details. Read more >> America’s supply of EVs is up 350% as shoppers pull the plug on their buying decision. Electric vehicles are all charged up with nowhere to go. Experts are blaming the lack of demand for EVs on two key reasons… Read more >> Credit card rewards can help make your next vacation more affordable. Learn how to use them, stack them, and track them. Maximizing your cards is important to get the most rewards that you can. Follow this advice to help squeeze every last drop of value from your cards. Read more >>Not-so-breaking news
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Twitter’s web traffic was down 5% for the first two days that Threads became available. Mark Zuckerberg’s Twitter clone has already racked up 100 million users.
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Senator Chuck Schumer wants the FDA to investigate Logan Paul’s “Prime” energy drink. The main concern behind the energy drink is its caffeine content, which is 200mg per can.
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Charter Communications (CHTR) will start offering a cheaper, sports-lite cable TV option. This move comes as customers have been ditching cable TV for streaming services.
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McDonald’s (MCD) is phasing out several items from its McCafe bakery by the end of the month. The items being discontinued include the apple fritter, blueberry muffin, and cinnamon roll.
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The CFPB has ordered Bank of America (BAC) to pay $100 million to customers and $60 million in fines. The second-largest US bank was accused of opening fake accounts and charging illegal fees.
Financial planner tip of the day
"Debt consolidation is like merging scattered puzzle pieces into a cohesive picture, allowing you to simplify debt obligations, potentially reduce interest rates, and create a structured plan to tackle your debts more efficiently."
Brian Walsh, CFP® at SoFi