Tuesday,
August 8, 2023
Market recap
Dow Jones
35,473.13
+407.51 (+1.16%)
S&P 500
4,518.44
+40.41 (+0.90%)
Nasdaq
13,994.40
+85.16 (+0.61%)
Top Story
How much can you expect to pay in back-to-school shopping this year?
Back-to-school shoppers are facing a record-breaking year. We’ll break down the averages and one option that could potentially help you save.
US stocks finished higher Monday as markets rebounded from their losing week.
• Berkshire Hathaway (BRK.B) reported a rebound in insurance operations and a near-record cash stockpile of $147.8 billion. The conglomerate reported a 6.6% increase in operating earnings, totaling over $10 billion last quarter. Additionally, Berkshire disclosed roughly $26 billion of unrealized gain from its investments, with a significant portion coming from its stake in Apple (AAPL).
• Tesla's (TSLA) Chief Financial Officer, Zach Kirkhorn, stepped down from his position as of August 4th. Tesla appointed Vaibhav Taneja to take over the CFO role. Kirkhorn will remain with Tesla until the end of the year to help with the transition.
• Oil prices surged to their highest level since mid-April following an attack on a key Russian oil export hub and extended production cuts by Saudi Arabia and Russia. Saudi Arabia extended its voluntary crude oil output cut of a million barrels per day to the end of September. Meanwhile, Russia pledged to voluntarily trim oil exports by 300,000 barrels per day in September.
What to be on the lookout for today
• Investors can expect the NFIB Small Business Optimism Index. In June, this measure of business confidence edged up to a 7-month high. Still, nearly a quarter of all business owners cited high inflation as their biggest concern. Additionally, there will be an update to the US trade deficit, which sat at $69 billion as of May.
• Wall Street will receive report cards from Eli Lilly (LLY), UPS (UPS), and Twilio (TWLO). Investors have been patiently waiting to hear from UPS, after the shipping company’s report was delayed due to a looming strike from its Teamsters Union. More details are expected regarding the company’s new labor agreement, which staved off a 300,000-worker walkout.
Planning a baby? Here are a few ways to budget for childcare.
The cost of raising one child can be $300K+, with childcare accounting for 16% of that figure. Here are some ways to budget smartly.
Get childcare quotes early. Be prepared for months-long waiting lists for qualified daycare centers. Even if one parent plans to stay home, getting on a list will give you options. Going the nanny route? Plan to start interviewing 6 weeks before you want the nanny to begin work.
Opt into a dependent care FSA. This employer-sponsored savings account allows you to pay for childcare with pretax dollars. Because hiring childcare is a “qualifying event,” you can finalize your plans before you sign up. The max 2023 contribution is $5K.
Get creative. Some families lower the cost of childcare by nanny-sharing. Local parenting groups can be a great way to find nanny shares. You’ll want to set up a “care share agreement” for both families so everyone is on the same page.
Assess your “opportunity costs.” At first glance, having one parent stay home may look like the most economical choice. But factor in the lost promotions and salary bumps that result from their being out of the workforce. Talk with your partner and mentors and assess your career goals before making a decision.
Using a money tracker app can help parents-to-be adjust their budget and set a savings goal for future childcare costs.
Today’s top stories
Your next pair of Nike shoes (NKE) could be more expensive — and perhaps not for the reason you think. Younger workers in manufacturing hubs such as China, Vietnam, and Malaysia are gravitating away from factory jobs. We’ll look at the ways in which this generational shift could impact American consumers. Read more >> We’re living in the golden era of spiked beverages. These days, 21+ consumers can find a spiked alternative to just about any drink they desire – including AriZona, SunnyD, and Topo Chico (TAP). But has the trendy spiked beverage market become too saturated too quickly? Read more >> Have you ever wondered how sales tax works? Learn about the pros and cons of sales tax and see how your local tax rate stacks up against other states. Read more >>Not-so-breaking news
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Barbie (MAT) is set to surpass $1 billion in sales at the global box office. With the success of the film, Greta Gerwig broke a record for female directors, previously held by Wonder Woman’s (WBD) Patty Jenkins.
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US trucking company Yellow Corp has filed for bankruptcy. The trucking company struggled to repay its massive debt load and also had mounting tensions with its union.
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Tyson Food (TSN) missed analyst expectations for revenue and profit, citing falling pork and chicken prices. The meat packager has cut corporate jobs and closed chicken plants amid declining profits.
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Campbell Soup (CPM) is set to buy Sovos Brands (SOVO), the maker of Michael Angelo’s and Rao’ for $2.3 billion in cash. This deal will help the soup company expand its meals and beverages business.
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Nikola’s (NKLA) CEO, Michael Lohscheller, is leaving the company after just 18 months. Lohscheller is returning to Europe to focus on a family health emergency.
Financial planner tip of the day
“Many checking accounts charge monthly maintenance fees, but you may be able to have them waived if you can meet certain requirements. Most commonly, you can skip the monthly fees if you set up direct deposit or maintain a certain account balance.”
Brian Walsh, CFP® at SoFi