Thursday,
August 3, 2023
Market recap
Dow Jones
35,282.52
-348.16 (-0.98%)
S&P 500
4,513.39
-63.34 (-1.38%)
Nasdaq
13,973.45
-310.47 (-2.17%)
Top Story
Should you get in on the Global Entry gold rush?
Thanks to the travel boom, applications are skyrocketing for this program that helps you reenter the US more easily from overseas trips. But with approval times stretching to half a year, is it worth the wait to save time?
US stocks fell Wednesday after Fitch Ratings downgraded the United States’ long-term foreign currency issuer default rating from AAA to AA+
• Fitch Ratings agency cited multiple factors for the credit downgrade. These included expected fiscal deterioration over the next three years, an erosion of governance, and a growing general debt burden. The White House disagreed with Fitch’s downgrade, stating it “defies reality” to downgrade the US.
• Yum! Brands (YUM) reported mixed results, beating earnings estimates but falling short on revenue. KFC's same-store sales climbed 13%, fueled by demand in China, while Pizza Hut and Taco Bell's same-store sales disappointed at 4% each. However, Yum! Brands' digital sales increased nearly 30% in the quarter, accounting for nearly half of all order
• Mortgage demand from homebuyers decreased for the third consecutive week as interest rates continue to rise. The average contract interest rate for 30-year fixed-rate mortgage increased to 6.93% from 6.87%. Mortgage applications to purchase a home fell 3% last week compared to the previous week, as did applications to refinance a home loan.
What to be on the lookout for today
• The ISM Services PMI for July will be released. This metric jumped to 53.9 in June, implying the strongest growth in the services sector in four months. Investors can also expect reports for jobless claims, nonfarm productivity, and factory orders.
• Expect a jam-packed day of earnings, with reports coming in from Amazon (AMZN), Apple (AAPL), Airbnb (ABNB), and Booking Holdings (BKNG). Apple shareholders will be interested to hear about its plans to crack down on apps that collect data on users using device fingerprinting — as well as any new information on the Vision Pro.
Even if you’re “right” in one moment, you could be wrong in the next.
Inconsistencies and imbalances in this market make it tough to predict. If you’re a bear for six months and wrong, people will call you stubborn. If you’re a bull for six months and wrong, people will call you delusional.
What’s important is a strong conviction that’s backed up by the data, says Liz Young, SoFi’s Head of Investment Strategy. Here’s her outlook on what’s ahead, and what the hard data shows.
Today’s top stories
President Biden’s bulb ban tries to green light a greener future. The Energy Department estimates banning incandescent light bulbs will cut emissions by 222 million metric tons over the next 30 years. It could also help lower your electricity bill… Read more >> Rising temperatures are melting worker productivity. Pour yourself a tall glass of ice water as we break down the unprecedented heat wave’s hidden economic toll. Read more >> In 2000, a typical middle-income family could expect to spend $165,630 to raise a child to the age of 17. In 2023, that same family would spend $310,605. Housing, food, and child care/education are among the top three biggest expenses. The good news is, there are ways to manage expenses and still save for long-term financial goals. Read more >>Not-so-breaking news
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Taco Bell (YUM) is facing a class action lawsuit for $5 million. The lawsuit accuses the fast food chain of falsely advertising more meat in their products than customers actually receive.
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Hollywood writers and studios are ready to return to the negotiating table. The WGA’s nearly 100-day strike has brought the production of many movies and shows to a screeching halt.
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Lunchables (KHC) introduced a new version of its pre-packaged lunch featuring fresh fruit. The new snack is expected to roll out nationally in 2024.
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Meta Platforms (META) has begun blocking news access in Canada in the wake of new legislation requiring tech companies to pay media organizations for posting their content. Canadian users will no longer have access to news on Instagram and Facebook.
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Starbucks’ (SBUX) same-store sales increased 10% last quarter, falling short of analyst expectations. However, the coffee chain’s same-store sales in China boomed 46%.
Financial planner tip of the day
"When first setting off to invest in the stock market, an investor might be struck by the seeming barriers to entry. One such barrier is the perception that thousands of dollars may be needed to get started. Enter fractional shares. Instead of purchasing one share of stock at the value for which the stock is currently trading, it is possible to purchase a fraction of one share of a stock. And an investor can do so using whatever dollar amount they have available."
Brian Walsh, CFP® at SoFi