Wednesday,
August 16, 2023
Market recap
Dow Jones
34,946.39
-361.24 (-1.02%)
S&P 500
4,437.86
-51.86 (-1.16%)
Nasdaq
13,631.05
-157.28 (-1.14%)
Top Story
Roll credits: the era of cheap streaming is over.
A bundle of top US streaming services will now cost you more than the cable bundle you thought you escaped. Here are the numbers â and the silver lining.
US stocks finished sharply lower Tuesday after disappointing data out of China raised concerns over global economic growth
• China's economic activity data for July, including retail sales, industrial output, and investment, failed to meet expectations, leading to worries over a deeper, longer-lasting slowdown in growth. China's central bank has cut interest rates, but economists warn the cuts are not big enough to make a meaningful difference.
• Fitch Ratings warned it may be forced to downgrade dozens of banks, including banking giants JPMorgan Chase (JPM) and Bank of America (BAC). Another downgrade of the industry's score from AA- to A+ would require Fitch to reevaluate ratings on over 70 US banks.
What to be on the lookout for today
• The minutes from the last weekâs Federal Open Market Committee meeting will be released. They should give investors more insight into the central bankâs current stance on interest rates. Additionally, investors will get an update on the 30-year fixed-rate mortgage, which currently sits just above 7%.
• TJX Companies (TJX) and Target (TGT) will keep the retail reports flowing. Target shareholders will tune in to hear more about the companyâs plan to allow customers to add Starbucks (SBUX) drinks to their online orders. Itâs part of the big-box retailerâs push to turn things around, after sales dipped 19% on a quarterly basis in its last report.
For investors who have experience with risk-taking, the options market may be a helpful way to take bets or hedge other positions.
Trading options can be a cost-efficient way to place bigger trades, because options contracts are linked to an asset (like stocks or another security). You donât have to buy the actual security â just the contract. This is why options trading gives investors flexibility, and potentially can lead to bigger gains than if you had to buy and trade securities outright. That said, options include the risk of loss â something all investors need to be aware of.
Think options might be a good addition to your investment portfolio? Here is a guide for beginners interested in options trading. It covers the basics of what options are, how they work, and some key strategies for trading them.
Todayâs top stories
Here is what Bidenâs Inflation Reduction Act accomplished in a year. The Inflation Reduction Act was designed to create clean energy jobs and give the economy a boost. Has it worked? Read more >> Something truly frightening is coming to stores this Halloween⌠Christmas decorations. âChristmas creepâ is coming even earlier this year. But companies have two legitimate reasons to deck the aisles with holiday merch as early as possible. Read more >> Itâs important to calculate stock profits and losses because it can impact your taxes. If you realize a gain, you may owe capital gains tax; if you realize a loss, you may be able to use the loss to offset your gains. Read more >>Not-so-breaking news
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Home Depotâs (HD) sales fell 2% last quarter as consumers tackled fewer home projects. The home improvement giant also confirmed it still expects a sales decline of 5% annually compared to last year.
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US retail spending jumped 0.7% from July. The spike was attributed to strong demand from consumers as well as elevated prices due to high inflation.
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President Biden is urging the United Auto Workers and the nationâs three unionized automakers to reach a deal and avoid a strike. The existing contract between the union and the âBig Threeâ of Ford (F), General Motors (GM), and Stellantis (STLA) is set to expire on September 14.
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Tesla (TSLA) just rolled out cheaper versions of its Model S and Model X. The lower-range models will be about $10,000 cheaper than their full-range counterparts.
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X, formerly known as Twitter, will no longer offer âpromoted accountâ advertisements. The decision comes as the company attempts to prioritize new content formats and products.
Financial planner tip of the day
âItâs not glamorous, and it is the last thing that so many people want to do on their precious weekends, but tracking spending is essential to financial wellness. There is real truth to the saying âWhat gets measured gets improved.â Thereâs no way to fix problems like overspending without understanding exactly what goes in and what goes out.â
Brian Walsh, CFPÂŽ at SoFi