Thursday,
July 13, 2023
Market recap
Dow Jones
34,347.43
+86.01 (+0.25%)
S&P 500
4,472.16
+32.90 (+0.74%)
Nasdaq
13,918.96
+158.26 (+1.15%)
Top Story
Meta Platforms (META) and Google (GOOGL) have been accused of showing targeted ads based on user tax data.
In an alleged breach of privacy, the tech duo — along with tax prep companies like H&R Block (HRB), TaxSlayer, and TaxAct—have been accused of illegally sharing taxpayer information. We’ll look into the call for investigation and the potential implications.
US stocks finished higher Wednesday on the back of positive inflation numbers.
• The consumer price index increased by 3% compared to the previous year, the lowest level since March 2021, and below expectations of 3.1%. On a monthly basis, the index rose by 0.2%, which was also lower than expected. Core CPI, which excludes volatile food and energy prices, rose by 4.8% annually and 0.2% monthly compared to the 5% and 0.3% estimates.
• A group of lawmakers is urging the Biden administration to investigate the potential illegal sharing of taxpayer information with tech platforms like Meta (META) and Google (GOOGL). According to an earlier investigation, tax prep software companies TaxSlayer, H&R Block (HRB), and TaxAct had shared sensitive financial information with Meta's Facebook and Google. They are calling for an investigation and prosecution where necessary, highlighting the importance of new policies to mitigate the issue in the future.
What to be on the lookout for today
• What to be on the lookout for today. In May, producer prices decreased 0.3% on a monthly basis. Additionally, a statement regarding the US government’s monthly budget will be released. In May, the US government reported a budget deficit of $240 billion, up on a yearly basis.
• We’ll receive earnings reports from Pepsi (PEP), Progressive (PGR), and Delta (DAL). In particular, Pepi’s CEO will likely discuss the company’s controversial, yet profitable, decision to remain open in Russia despite its conflict with Ukraine.
Extremes don’t last forever.
While current economic data may be conflicting, one thing is relatively certain: The economic cycle tends to move in phases.
After an unpredictable and tumultuous first half of the year, SoFi’s Head of Investment Strategy, Liz Young, weighs in on:
• conflicting signals from economic data and financial markets
• why personal income, payroll employment, and industrial production are fighting the idea that rate hikes cause economic destruction
• the future of rate hikes and a new phase of monetary policy
Check out Liz’s full column, Liz looks at: The Second Half, for more on what could be coming in the months ahead.
Today’s top stories
ARMs may not be working as well as some would have hoped. ARMs were once seen as a way to save money on a mortgage, but with rates still elevated, they're not as appealing to some potential borrowers. Are they right for you? Here’s what to consider. Read more >> $1.86 billion: That’s how much car giants could collectively lose per week starting this September. A looming strike between the United Auto Workers union and America's Big Three automakers could spark seismic shifts in the industry. Given the recent wave of support for organized labor, here’s what could be in store this fall. Read more >> There’s one thing that people who use credit cards to their advantage have in common. They know how to avoid paying interest on their cards. Consider these smart strategies when using a credit card to reduce your borrowing costs. Read more >>Not-so-breaking news
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Chipotle (CMG) is developing a robot that can cut, core, and peel avocados for its guacamole. The mexican grill is hoping that this will reduce expenses amidst rising wages and a shrinking workforce.
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Huawei could potentially return to the 5G phone market by the end of this year. If successful, it would mark a significant victory for the Chinese phone company, whose business was decimated after a US ban.
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Domino’s Pizza (DPZ) just struck a deal with Uber Eats (UBER). This is a surprising reversal for the pizza company which, until now, has refused to work with delivery apps.
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KPMG and Microsoft (MSFT) will invest $2 billion in AI technology over the next 5 years. These new tools will impact all of the accounting firm’s business lines – audit, tax, and advisory.
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A Ticketmaster (LYV) glitch has left Taylor Swift fans unable to get tickets. In the past, outages like this one have prompted lawmakers to investigate whether or not Ticketmaster is a monopoly.
Financial planner tip of the day
"Origination fees are like the hidden pebbles on your financial path, but understanding their impact is key. By carefully considering and factoring these fees into your financial decisions, you can navigate the terrain more confidently and ensure that your overall financial journey remains on a solid footing."
Brian Walsh, CFP® at SoFi