Wednesday,
August 23, 2023
Market recap
Dow Jones
34,288.83
-174.86 (-0.51%)
S&P 500
4,387.55
-12.22 (-0.28%)
Nasdaq
13,505.87
+8.28 (+0.06%)
Top Story
American workers demand nearly $80,000 to accept a new job.
Between the pandemic-era worker shortage and rising costs from groceries to rents, Americans demand better pay — but men are asking for much more than women.
US stocks were mixed Tuesday after the credit rating of multiple smaller banks were cut and a slew of major retailers reported earnings
• Home improvement retailer Lowe's (LOW) reported mixed second-quarter results, beating earnings expectations but missing on revenue. Spring projects, online growth, and momentum with home professionals lifted sales as lumber prices fell. However, Lowe's relies more on do-it-yourself shoppers than top competitor Home Depot (HD), and demand for DIY projects dropped.
• Home sales fell nearly everywhere in the US in July with the exception of the West. The Northeast faced the steepest drop. That said, the median price of a home sold in July was $406,700, — a 1.9% increase from the previous year. Despite challenges like higher interest rates, limited housing supply has led to increased competition among buyers. At the end of July, there were 1.1 million homes for sale, nearly 15% below the July 2022 level.
• S&P Global and Moody's downgraded the credit ratings of multiple US banks, citing funding risks and weaker profitability. S&P downgraded the ratings of Associated Banc-Corp (ASB), Valley Bank (VLY), UMB Financial Corporation (UMBF), Comerica Bank (CMA), and KeyBank (KEY). The downgrades came two weeks after Moody's cut the ratings of 10 banks by one notch and placed six banking giants, including Bank of New York Mellon (BK), US Bancorp (USB), State Street (STT), and Truist (TFC) on review for potential downgrades.
What to be on the lookout for today
• A flurry of mortgage data will be released, including applications, refinancings, and an update to the 30-year fixed-rate mortgage rate, which currently sits at 7.2%. Also, investors will get an early look at August industry activity in manufacturing and services through the S&P Global (SPGI) flash PMI, ahead of the full reports next week.
• On Wednesday, investors will get the latest earnings from NVIDIA (NVDA). Last quarter, the chipmaker got a major boost from the popularity of AI, catapulting it into the $1 trillion market cap club. Cloud computing company Snowflake (SNOW) will also report.
Investing in certificates of deposits (or CDs) can be a smart way to go — if they suit your savings goals.
Investing in CDs may be a good fit for you if you’re looking for a relatively low-risk way to boost your savings over the short-term. But investing in CDs comes with certain constraints:
• Your money will typically be tied up until the CD matures – else you could incur a penalty.
• While the interest rate is guaranteed and usually higher than for traditional savings accounts you forfeit the option to invest your money in something else at a higher rate.
If you’re wondering about how CDs work, how to invest in them and where they might fit in your personal finances, here’s a beginners guide to investing in CDs.
Today’s top stories
America’s luxury shoppers are getting thrifty. Designer deals are taking Millennials and Gen Z by storm as both generations are finding ways to sport high fashion on a budget. Read more >> Higher housing costs are reshaping homes across America — literally. In response to surging prices, both homeowners and homebuilders are looking to downsize. Buying a smaller home might bring down the asking price. But is it a better deal? Read more >> Here is what you need to know about personal loans. Taking out a personal loan can be stressful. Learn if it is the right choice for you. Read more >>Not-so-breaking news
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Meta’s (META) Threads is rolling out a web application in an effort to compete with X. Despite the social platform’s early success, its limited functionality has drawn user criticism.
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The American Airlines (AA) pilots union approved a new contract including an immediate 21% pay bump. Rival carriers Delta Air Lines (DAL) and United Airlines (UAL) both secured deals with their unions earlier this year.
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Solar development is roaring since the Inflation Reduction Act earmarked $100 billion for clean energy projects. The Department of Energy expects the US to create 25.2 gigawatts of solar capacity in 2023, enough to power more than five million homes.
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British chipmaker Arm filed paperwork for an initial public offering. If successful, this listing has the potential to be the year’s biggest IPO.
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Nearly a third of new Ferrari buyers are under 40, according to Ferrari (RACE) CEO Benedetto Vigna. Despite accelerating demand, the luxury carmaker has no plans to supercharge production.
Financial planner tip of the day
“It is important to understand that not every mortgage refinance will save you money on interest. For example, if you extend the loan terms, you may have smaller monthly payments, but you’ll end up paying more money over the course of the loan.”
Brian Walsh, CFP® at SoFi