Tuesday,
August 1, 2023
Market recap
Dow Jones
35,559.53
+100.24 (+0.28%)
S&P 500
4,588.96
+6.73 (+0.15%)
Nasdaq
14,346.02
+29.37 (+0.21%)
Top Story
New avocado, who dis?
It’s Luna — a variety of avocado that’s been in development for over 50 years. It could solve major issues posed by the standard Hass. But will it pass the picky eater test?
US stocks finished higher Monday to close out another month in the green
• As Ford (F) loses billions on its electric vehicle business, it is working on a slate of new hybrid models. While the company is still committed to its EV push, it's also planning to bring more hybrid options to market, driven by the success of its current gasoline-electric options.
• According to a LendingClub report, 61% of adults say they are living paycheck-to-paycheck. The report found lower-income workers have been hit the hardest by price spikes, particularly for food and other staples. Many consumers are relying on credit cards or dipping into savings to afford their day-to-day lifestyle, making them financially vulnerable.
What to be on the lookout for today
• The ISM manufacturing PMI will be released. The index fell to 46 last month, pointing to a faster rate of contraction and the lowest level of manufacturing activity since 2020.
• Investors can expect earnings reports from Pfizer (PFE), Caterpillar (CAT), Starbucks (SBUX), and Uber (UBER). In particular, investors will want to hear the details behind Pfizer’s sale of its rare disease gene therapy portfolio to AstraZeneca (AZN) for $1 billion.
Do you have the right credit score to buy a house? (And what to do if you don’t.)
For most types of mortgage loans, the credit score needed to purchase a house is at least 620. The lowest rates usually go to borrowers with scores of at least 740.
Is your score not quite there? You may want to wait a bit before you start home shopping. Working to build credit over time before applying for a home loan could save you a lot of money in interest.
Here are 3 strategies that could help strengthen your credit in the meantime.
1. Pay your bills before they’re due. If you’ve been late with bills in the past, it could take up to six months of making on-time payments to see a significant improvement.
2. Pay down debt. Revolving debt like credit cards and lines of credit play a major role in your credit utilization ratio. A general rule of thumb is to keep your credit utilization below 30%.
3. Keep credit cards open once you’ve paid them off. You might want to keep them open by charging a few items to the cards every month and paying the balance. That can help your credit utilization stay low.
An excellent credit score is not always necessary to buy a house, but it helps in securing a lower rate.
Ready to shop for a home? SoFi offers fixed-rate mortgage loans with competitive rates and perks.
Today’s top stories
​​In a face-off between retail giants and credit card companies, a bill is pushing to disrupt a system affecting billions of transactions daily. We’re diving deep into the bipartisan push to encourage competition against Visa (V) and Mastercard (MA) — and the impact it could have on your wallet. Read more >> Prime’s (AMZN) famous “two-day delivery” is no longer fast enough. Amazon hit record-high shipping speeds this year, and has invested heavily in making sure it doesn’t slow down anytime soon. Here’s how it plans to make same-day delivery the new norm. Read more >> The average Airbnb host earns over $13,800 per year, or $163 per night. If the rental is in a high-demand area, it could be much more. It’s an interesting way to make money, but how does Airbnb work for owners? Let’s take a look at Airbnbs, how they work, and what’s involved in running one. Read more >>Not-so-breaking news
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Yellow Corporation (YELL) halted operations and laid off all 30,000 workers. The 99-year-old trucking company reportedly had $1.5 billion in unpaid debt on its books.
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Apple’s (AAPL) iPhone 15 and 15 Plus will feature a USB-C compatible charging port and titanium edges. The charging update complies with new regulation from the EU.
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Walmart (WMT) paid $1.4 billion to buy out Tiger Global’s stake in Indian ecommerce hub Flipkart. This news comes as the retail giant looks to expand its footprint in India.
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Georgia Power (SO) announced its new nuclear power plant near Augusta is ready to launch. This will be the first all-new American nuclear power plant built in decades.
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San Francisco is pushing back against Elon Musk’s new “X” headquarters. City officials say it might be violating permitting rules, while residents claim the building’s sign is too bright.
Financial planner tip of the day
“No matter how you prefer to pay for purchases, checking your bank and credit card statements regularly for suspicious or erroneous charges can help you spot fraudulent activity right away. You may want to do this daily during periods of high usage, like around the holidays when it’s easier for fraudulent charges to slip through.”
Brian Walsh, CFP® at SoFi