Wednesday,
August 9, 2023
Market recap
Dow Jones
35,314.49
-158.64 (-0.45%)
S&P 500
4,499.38
-19.06 (-0.42%)
Nasdaq
13,884.32
-110.07 (-0.79%)
Top Story
Bakeries are dusting off an old recipe known as the âCroissant Theory.â Is it working?
When implemented correctly, the benefits are significantâŠbut it can also backfire.
US stocks finished lower Tuesday after Moody's downgraded the credit ratings of 10 small- and mid-sized US banks
• Moodyâs (MCO) cited interest rate and asset-liability management risks with implications for liquidity and capital as reasons for the downgrade. The credit ratings agency also placed several big Wall Street names on negative review.
• Eli Lilly (LLY) raised its full-year guidance as second-quarter profit jumped 85% from the same period a year ago. The company reported $8.31 billion in sales for the quarter, up 28% from a year ago. The revenue growth was driven by sales of its breast cancer pill Verzenio, which rose 57% to $926.8 million, as well as Type 2 diabetes treatments Jardiance and Mounjaro.
• Philadelphia Fed President Patrick Harker, a voting member of the FOMC, suggested the central bank could be at the end of its current rate-hiking cycle. He stated the Fed may be at a point where it can hold rates steady, allowing the monetary policy actions the FOMC has taken over the past year to do their work. On a less dovish note, Harker also indicated there are unlikely to be rate cuts anytime soon.
What to be on the lookout for today
• A flurry of reports related to US mortgages will be released. Wall Street will get fresh numbers for refinances, applications, and the average 30-year fixed-rate mortgage, which currently sits at 6.93%.
• Disney (DIS) will deliver its latest quarterly results. The entertainment giant appears to be considering its succession plan for another post-Bob Iger era, who just tapped two former Disney executives to help advise.
Planning baby #2? Hereâs how to prepare.
Second-time parents already know the cost of diapers and have a lot of secondhand gear. Hereâs how to prepare your finances as you go from one to two (or more) children.
Set aside more money for daycare. The biggest immediate expense youâll have is childcare. If your first child isnât in school yet, it may make more financial sense to pay two tuitions for daycare rather than hire a nanny.
The average weekly cost of a nanny for two children is $726/week. Two kids in daycare will run you $510/week. But those prices can be much higher in urban areas. Whatever you choose, be prepared to shell out between 10% and 20% of your income. Thankfully, the Child Care Tax Credit can help you recoup some of your costs.
One 529 or two? Should you create two 529 plans? It depends. While a 529 plan can have only one beneficiary, you can set it up so the money can be used for any child. On the other hand, setting up separate 529s can give you additional state tax breaks, depending on where you live. Learn more about 529 plans and how they can help you save for your childrenâs college education.
As you navigate the joys â and financial implications â of parenthood, hereâs more things to consider when going from one child to two.
SoFi savings accounts allow you to create multiple Vaults to earmark funds for a specific purpose â like childcare. Simply log into your SoFi savings account and click on âAdd Vaultâ next to the Vaults icon to get started.
Todayâs top stories
Champagne problems: bubbles meet climate troubles. As champagne sales fizzle to $6.9 billion, climate threats may soon pop the celebratory bubble⊠and introduce us to a whole new taste. Read more >> Autonomous taxis face an unexpected speed bump. Self-driving taxis from Waymo (GOOGL) and Cruise (GM) have officially hit the streets in some cities. But theyâre being met with unexpected backlash from residents⊠Read more >> On the popular credit score spectrum of 300 to 850, where does a score start breaking bad? Hereâs how to know if you have a bad credit score â and what to do about it. Read more >>Not-so-breaking news
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Disney (DIS) is creating a task force to explore how AI can be used across the company. The news comes as Hollywood writers and actors are battling to limit using AI throughout the industry.
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Microsoft Dynamics 365 (MSFT) is growing faster than all other product categories. A direct competitor to Salesforce (CRM), Microsoftâs sales software product contributed $5.44 billion in revenue during the 2023 fiscal year, up 16% year-over-year.
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DISH Network (DISH) and EchoStar (SATS) are merging in an all-stock deal. This deal will reunite two businesses that have been separated for about 15 years.
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Mattel (MAT) announced a limited edition âWeird Barbieâ priced at $50. The toy is based on Kate McKinnonâs character from the blockbuster movie.
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Google (GOOGL) is moving forward with plans to delete accounts that have been inactive for over two years. The accounts wonât be deleted until December 1, 2024, but Google will start sending warning messages over the coming weeks.
Financial planner tip of the day
âAsset allocation is the strategy of balancing risk and reward by divvying up a portfolio into different asset types. The goal of diversification is to invest in such a way that not all investments perform the same or even similarly during different periods over the course of an investment journey.â
Brian Walsh, CFPÂź at SoFi