Monday,
August 7, 2023
Market recap
Dow Jones
35,065.62
-150.27 -(0.43%)
S&P 500
4,478.03
-23.86 (-0.53%)
Nasdaq
13,909.24
-50.48 (-0.36%)
Top Story
It should be fairly easy to find a new job.
According to the Bureau of Labor Statistics, the US economy added 187,000 jobs in June. We’ll take a look at what this news means, especially given the broader economic climate.
US stocks rose Friday after a slew of major earnings and employment data.
• The US economy created 187,000 jobs in July, which was below expectations of 200,000, but still roughly double the 70,000 to 100,000 necessary to keep up with growth. The unemployment rate in the US also decreased to 3.5% in July from 3.6% in June, offering another sign of a still-tight labor market, despite an aggressive hiking campaign by the Fed.
• Apple's (AAPL) earnings showed a decline in sales for its hardware products, including the iPhone, iPad, and Mac. However, the company's services business, which includes subscriptions, warranties, licensing fees, and Apple Pay reported an all-time revenue record in categories such as advertising, App Store, and music. While sales of iPads and Macs are expected to decline, Apple anticipates better performance for iPhone sales.
• Amazon (AMZN) CEO Andy Jassy's cost-cutting efforts led to the company's biggest earnings beat since the fourth quarter of 2020. The company reported an 11% increase in revenue for the second quarter, which exceeded analysts' expectations. Total net income was $6.7 billion compared to a loss of $2 billion in the same quarter last year. For the third quarter, Amazon also expects sales growth between 9% and 13%.
What to be on the lookout for today
• Used car prices will be released. This metric, which tracks the prices of used cars sold at wholesale auctions, dropped 10.3% annually in June.
• Data analytics company Palantir (PLTR) will release its earnings report, giving investors a highly anticipated update on its AI platform. According to CEO Alex Karp, the new platform is “without precedent.” Meanwhile, meat-substitute company Beyond Meat (BYND) and EV automaker Lucid Group (LCID) will also report.
Growing your family this year? Here’s how much you might pay.
Did you know that more babies are born in August than any other month? The swarm of summer newborns inspired us to look at the first costs associated with having a fun-size human:
Awww, baby’s first bills. Whether you’re hoping to conceive naturally, using IVF, or adopting, your first step is to understand the benefits your employer and/or insurance carrier offers. After all, the average cost of one cycle of IVF is $12,000, with many couples needing 3 or more rounds. And international and domestic adoptions can cost $20,000 to $60,000.
Prenatal care and childbirth. Out-of-pocket costs for childbirth come to nearly $3,000 on average. If you have a high-deductible health plan, switching to a low-deductible plan before becoming pregnant could save you thousands.
Potential big-ticket expenses. Is your home big enough to comfortably hold a baby and all their gear? Will you need a new or bigger car? The longer your timeline, the better prepared you can be. Find more budgeting for baby tips here.
SoFi offers family planning loans that can cover the cost of IVF, adoption, surrogacy, or pregnancy.
Today’s top stories
Why is record summer heat driving up gas prices? Even as inflation cools across most of the economy, gasoline prices have surged to nine-month highs. We’ll take a look at how refineries are factoring into the equation. Read more >> AMC’s (AMC) “Barbenheimer” win could be its last one for a while. The dual opening of Barbie and Oppenheimer helped the movie chain set a 103-year-old revenue record. But will this momentum be enough to offset the ongoing Hollywood strike? Stay tuned during the week ahead on Wall Street. Read more >> Exchanging currency when traveling can get expensive due to fees and exchange rates. We’ll explain where and how to get a good deal on converting currencies. Read more >>Not-so-breaking news
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Hyundai (HYMTF) and Kia (KIMTF) are recalling 91,000 vehicles due to fire risks. Electronic controllers may contain damaged components that cause the pump to overheat.
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Airbnb (ABNB) raised its revenue guidance to $3.4 billion for the rest of the year, ahead of analyst expectations. The rental company expects gains from a boom in urban and international travel.
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Tupperware (TUP) may not go out of business after all. After teetering on bankruptcy, the plastic storage maker has secured new funding and more favorable credit terms.
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Papa John’s (PZZA) sales were down 1% last quarter as consumers pushed back against higher prices. This news comes as franchise operators raised prices at a faster rate than company-owned locations.
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Anheuser-Busch (BUD) reported a 7.2% spike in global revenue for its most recent quarter. Strong international sales helped to offset a 10.2% drop in US sales.
Financial planner tip of the day
"If you are leaving a job with an employer-sponsored retirement plan, you can roll over your 401(k) into an IRA to potentially give yourself better investment options and lower fees. Before doing so, review the options and fees of your 401(k) to make sure it makes sense."
Brian Walsh, CFP® at SoFi