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Your money transfers could soon be received as quickly as text messages.
The Federal Reserve launched FedNow last week which could change the future of payment transactions.
US stocks finished higher Friday as the Dow continued its longest winning streak since 2017.
• American Express (AXP) reported a profit of $2.17 billion, or $2.89 per share, beating Wall Street expectations. However, the company's stock fell after news it set aside $1.2 billion for possible defaults on payments compared to $410 million the year prior. That said, American Express maintained its full-year forecast for earnings of $11 to $11.40 per share and revenue growth of 15% to 17%.
• Amazon (AMZN) announced it will invest $120 million in a satellite processing facility at NASA’s Kennedy Space Center in Florida. The move is part of Project Kuiper, a plan to build a network of 3,236 satellites in low-Earth orbit to provide high-speed internet access anywhere in the world. The facility is expected to be completed by the end of 2024, with the first production satellites processed in early 2025.
What to be on the lookout for today
• The S&P Global (SPGI) manufacturing PMI for the month of May will be released. In June, this metric hit a six-month low, signaling a decline in the health of the manufacturing sector, influenced by inflationary pressure and higher interest rates.
• Domino’s Pizza (DPZ) will kick off another busy week of earnings. Executives will offer insight on the pizza chain’s abrupt about-face regarding third-party delivery apps. After years of shunning apps like DoorDash (DASH), Domino’s recently announced a surprising partnership with Uber Eats (UBER) and Postmates.
What can we learn from the first half of the year, and what can we expect for the remainder of 2023?
There’s a common misconception about what moves stock prices.
Flip on the cable news and the vibe might have you believe that political statements, economic data points, natural disasters, or global unrest have some sort of predictable or unilateral effect on the stock market.
And they might! But in a slightly more roundabout way. These events may well change how investors feel about owning certain investments, which leads them to buy or sell those investments. And it is the forces of supply and demand that push asset prices higher or lower.
Said another way, investor sentiment, also known as market sentiment, can cause price volatility.
Join SoFi’s Head of Investment Strategy, Liz Young, for an overview of the market at the midpoint of 2023 and what to expect for the remainder of the year.
Today’s top stories
“Soon, no one will want to work without it.” At least, that’s how Microsoft is justifying the price tag for its AI subscription plan: $30 per month. Will a slew of tech earnings this week illuminate the future of AI pricing and regulation? Read more >> America’s workers are getting hot under the collar. The recent record-high heat wave poses a serious problem for many workers. Learn how some workplaces are already taking steps to address it. Read more >> Is it better to pay off your credit card or keep a balance? We’ll look at the pros and cons of paying off your credit cards in full versus over time. Read more >>Not-so-breaking news
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Following Meta’s (META) launch of Twitter competitor Threads earlier this month, user engagement on the microblogging app has already fallen 70%. The number of daily active users on Threads fell to 13 million, compared to 200 million on Twitter.
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United Airlines (UAL) pilots are refusing to accept the captain’s chair, according to CEO Scott Kirby. Many pilots reportedly do not want the unpredictable schedule that comes with the role.
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AMC (AMC) is dropping its plan to charge more for better seats. The program failed to encourage users to sit up front, even with reduced prices.
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Apple (AAPL) is reportedly developing its own ChatGPT-style AI chatbot, internally called Apple GPT. The iPhone maker doesn’t have plans to release this tech to consumers just yet.
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Walmart (WMT) released Walmart+ Assist, a more affordable version of its subscription service targeting customers receiving government assistance. The program offers many Walmart+ benefits at half the price.
Financial planner tip of the day
"A well diversified portfolio helps maximize the expected return for a given level of risk. It also helps smooth returns over time compared to the drastic swings of investing in one or two riskier investments."
Brian Walsh, CFP® at SoFi