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These days, even your favorite burger joint might have hidden fees.
It’s not just tipflation anymore. Roughly 15% of US restaurants have added surcharges to customer bills this year. Here are some reasons why your next restaurant bill might be 3% to 5% higher than expected.
US stocks finished higher Tuesday on the back of continued earnings success from the financial sector
• Bank of America (BAC) reported second-quarter earnings above analyst expectations. America’s second-largest bank brought in revenue of $25.33 billion compared to the projected $25.05 billion. Despite prior concerns about the bank's net interest income due to slowed loan and deposit growth, Bank of America's CEO Brian Moynihan said the bank continues to see a healthy US economy growing at a slower pace with a resilient job market.
• Retail sales in the US rose 0.2% month-over-month in June, below forecasts of a 0.5% rise. Following the previous month’s upwardly revised 0.5% increase, the data continues to point to resilient consumer spending despite interest rates remaining elevated.
• Goldman Sachs (GS) revised down the odds a US recession could occur in the next 12 months. It cut the probability down to 20% from 25% on the back of positive economic activity. The investment bank’s chief economist said the main reason for the cut was recent data suggesting a recession would not be necessary to bring inflation down to an acceptable level.
What to be on the lookout for today
• Building permits for June will be released. In May, building permits increased 5.6% to just under 1.5 million. Investors will also get an update to the 30-year fixed-rate mortgage, which currently sits just above 7%.
• Ally Financial (ALLY) and Goldman Sachs will keep the financial earnings reports flowing. Meanwhile, Netflix (NFLX) will offer an update on its password-sharing crackdown and discuss plans to get into the video game business.
3 ways being a first-time homebuyer can (literally) pay off
If you’ve never owned a home, or if you haven’t owned a home as your principal residence for the last three years, you’re considered a first-time homebuyer. That’s good news because there are a variety of programs that can help make home ownership more affordable for first-timers like you.
Federal programs
These include FHA loans, which typically come with lower down payments and closing costs and easier qualification requirements. There are also VA home loans and USDA loans, both of which require no down payment. (P.S. SoFi now offers VA home loans to the heroes who have served our country. Let’s turn your dreams of homeownership into reality!)
State and local programs
You may find down payment assistance grants and loans available locally. There might also be some nonprofit programs for first-time buyers. Check with your state housing finance agency to see what’s out there. You can also use our handy First-Time Homebuyer Guide to find programs in your state.
Employer-sponsored programs
Some companies help their employees buy homes. They may invest in affordable housing for workers or offer down payment assistance. Check with your HR department.
And, of course, getting the right loan as a first-time buyer is key. SoFi offers fixed-rate home loans with competitive rates and just 3% down to borrowers who qualify.
Today’s top stories
Do you trust your toaster? Cybersecurity is no longer limited to your computer or smartphone. The US government has proposed a new cybersecurity labeling system for smart devices, from TVs to fitness trackers to refrigerators. It could change the game for consumers and companies alike. Read more >> Don’t expect your remote colleagues to respond if you email them during these hours. According to Microsoft (MSFT) Teams, both in-person and remote workers have developed notable peaks and valleys of productivity. Do you find yourself off-the-clock during the new “dead zone”? Read more >> Here’s the scoop on how long it takes to buy a house and get the keys in your hand. Discover 4 signs that you’re ready to buy a home, and find out how to save significant time on each of the main steps of a typical home buying experience. Read more >>Not-so-breaking news
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United Airlines (UAL) added flights to Tokyo, Manila, and Taipei. This news comes in response to surging international bookings due to pent-up post-pandemic demand.
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Chipotle (CMG) plans to expand to the Middle East with two locations in Dubai and two in Kuwait. The fast casual restaurant signed Kuwait-based Alshaya Group as a franchise partner.
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AmeriCorps recovered $84 million in overlooked deductions for low-income taxpayers in 2023. The independent government agency helps ensure low-income taxpayers receive all eligible tax breaks and credits.
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OpenAI signed a two-year deal with the American Journalism Project to help fund local outlets. This is part of the ChatGPT-owner’s initiative to work closely with journalism companies.
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India cracked the top 5 iPhone markets for the first time. Following Apple’s (AAPL) push to expand throughout the country, the South Asian nation contributed close to 4% of all iPhone sales in the second quarter.
Financial planner tip of the day
"Despite coming with high fees, only 26% of actively managed funds beat their passive competitor over the last decade. Fees matter and if you pay a fee make sure you are getting what you are paying for."
Brian Walsh, CFP® at SoFi