Tuesday,
July 18, 2023
Market recap
Dow Jones
34,585.42
+76.39 (+0.22%)
S&P 500
4,522.79
+17.37 (+0.39%)
Nasdaq
14,244.95
+131.25 (+0.93%)
Top Story
A new law is reshaping how Americans plan for retirement. If you have a 401(k) or Roth account, then this could impact you.
Congress recently changed the rules regarding catch-up contributions for your 401(k). This rule change means that some high-earning Americans will pay more in taxes.
US stocks finished higher Monday, with Wall Street's eyes fixed on today's crucial earnings reports
• Microsoft (MSFT) and Sony (SONY) signed a 10-year deal to keep the Call of Duty series available on PlayStation after Microsoft's acquisition of Activision Blizzard (ATVI). The deal aims to address concerns that Microsoft would use its power in the gaming market to cement dominance by making games exclusive to its Xbox console. Nevertheless, Microsoft stated it will ensure Call of Duty remains available on more platforms.
• United Airlines (UAL) and its pilots’ union reached a preliminary labor deal that includes pay increases of up to 40.2% over four years, depending on aircraft type. The deal also includes overtime pay, holiday pay, and scheduling improvements. However, the contract won’t be finalized until it’s ratified by the company’s 16,000 pilots.
What to be on the lookout for today
• June’s retail sales and industrial production figures are due. Retail sales rose 0.3% from April to May, while industrial production decreased 0.2%.
• The housing market index will be released. In June, this metric signaled positive builder confidence for the first time in nearly a year thanks to solid demand, lack of existing inventory, and improved supply chain efficiency.
• We will kick off the week with a flurry of financial earnings reports from Bank of NY Mellon (BK), Charles Schwab (SCHW), and Morgan Stanley (MS). Notably, Charles Schwab will likely address the its most recent data breach which likely impacted thousands of clients. Lockheed Martin (LMT) will also provide investors with updates.
Christmas in July? Now’s the time to budget and save for year-end holidays.
The best time to think about end-of-year holidays is when you’ve got burgers on the grill and beach towels hanging to dry. Planning for the added expenses of holiday celebrations, gifts, and travel can help keep your budget on track. First, create your holiday savings strategy:
1. Look back at last year. Analyze how your spending changed in November and December. In addition to buying gifts, you may be giving end-of-year tips to mail carriers and other service people, booking babysitters more often, and paying for seasonal maintenance and snow tires.
2. Assess your sinking fund. A sinking fund is money set aside to pay for expenses outside your everyday budget. Setting up a money-market account or high-yield savings account is one way to stash funds until you need them. Some banks and credit unions also have Christmas clubs, a short-term savings account designed for holiday spending.
3. Get your loved ones on board. Are you traveling or hosting for the holidays? What are family expectations when it comes to gifts? Now is a great time to align on expectations, so you can make affordable holiday plans.
A SoFi Checking and Savings account can help you save for the holidays. You’ll earn a super competitive APY and pay no account fees, which can help your money grow faster.
Today’s top stories
America’s love affair with ice cream is melting thanks to 3 factors. The average American eats roughly 1/3 less ice cream today when compared to decades’ past. But, do years of declining sales mean that the industry is on its way out? Read more >> Welcome to the suite life: Marriott (MAR) & MGM (MGM) team up for a hotel-gaming hybrid. It’s somewhat similar to the Jet Blue (JBLU) and American Airlines (AAL) partnership, which a judge just ruled against. That will be one thing to watch, but in the meantime loyalty members for both company may have just hit the jackpot… Read more >> Paying down debt can be an important financial priority, but should you use your savings in order to do so? Here’s why it may not always make sense to use savings to pay off debt and ideas and strategies to help you speed up your debt repayment without sacrificing your savings account. Read more >>Not-so-breaking news
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Ford (F) announced a round of price cuts on its electric F-150 Lightning pickup. The cheapest model will now start at $50,000 which is a price cut of roughly $10,000.
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The Associated Press licensed its archive of news stories to OpenAI. OpenAI will be able to train ChatGPT on the AP’s text archive, while the AP will get access to OpenAI’s tech and product expertise.
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Tickets for Lionel Messi’s US debut are selling for as high as $110,000. That’s one of the highest ticket prices ever recorded for an MLS match.
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Major storms in the northeast are causing mass flight delays and cancellations. Over 1,450 flights were cancelled Sunday evening, according to the flight tracking website FlightAware.
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Twitter’s revenue has dropped 50% and it is now cash-flow negative. The micro-blogging app also faces pressure from Facebook’s knock-off app, Threads, which has already passed 100 million users.
Financial planner tip of the day
"Risk tolerance means the level of risk you’re comfortable taking; risk capacity is the level of risk you can actually take. You may be comfortable with risk but that does not mean you should, for example with an emergency fund. The opposite is also true for long-term money where your capacity is much higher."
Brian Walsh, CFP® at SoFi