Thursday,
August 24, 2023
Market recap
Dow Jones
34,472.98
+184.15 (+0.54%)
S&P 500
4,436.01
+48.46 (+1.10%)
Nasdaq
13,721.03
+215.16 (+1.59%)
Top Story
The five-day workweek is getting the boot
Most workers prefer a shorter, four-day workweek. Here’s what they’re willing to sacrifice to make this a reality…
US stocks finished higher Wednesday as the 10-Year US Treasury yield fell to 4.2% after reaching its highest level in over 15 years earlier in the week
• US government bonds are now offering the highest post-inflation returns since 2007, ending the era of negative real yields that drove many investors to stocks. That said, higher real yields can dissuade investors from putting their money into riskier options, thereby potentially limiting economic growth.
• Foot Locker (FL) reported a sales drop of nearly 10% due to ongoing “consumer softness” during its last quarter. The company also saw a decrease in profits due to markdowns and theft. As a result, Foot Locker lowered its forecast for the second time this year.
• Mortgage rates increased to the highest level in 23 years last week as the average 30-year fixed-rate mortgage rose to 7.3%. As a result, mortgage applications dropped 5% for the week, 30% lower than the same week one year ago. Applications to refinance a home loan also fell 3% for the week, a 35% decline year-over-year.
What to be on the lookout for today
• Wall Street will receive an update on durable goods orders, which jumped 4.7% in June on the back of strong transportation equipment orders. Like every Thursday, the Labor Department will release initial jobless claims. Americans filing for unemployment benefits hit a seven-week high of 239,000 in the week ended August 12 but remains in line with pre-pandemic trends.
• Intuit (INTU), Dollar Tree (DLTR), and Affirm (AFRM) will hand in their report cards. Intuit is expected to speak on its partnership with OpenAI to bring generative AI to its considerable suite of software tools, including TurboTax, Credit Karma, QuickBooks, and Mailchimp.
Liz looks at: global cross-currents
Fed policy, US markets, and US economic data drove what investors cared and worried about over the past year and a half. But times are a-changin’ with international headlines becoming more important again.
Today’s top stories
Supermarket sushi takes over America Sales of grocery store sushi are up 70% in the past year. Supermarkets are using sushi rolls to lure customers back from restaurants. Here’s why it’s working. Read more >> Shoplifting is surging and retailers struggle to keep up Many major retailers have issued warnings over the rise of shoplifting affecting their bottom line. Read more >> Don’t let your budget ruin your shopping trip Here are 15 ways to save money on buying clothes. Read more >>Not-so-breaking news
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NVIDIA (NVDA) is planning to triple the production of a chip crucial to development of generative AI. The chipmaker expects to quadruple shipments of the $40,000 H100 processors next year, bringing them to 2 million.
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The UPS (UPS) Teamsters Union voted to ratify a new five-year contract, officially ending the threat of strike. The deal includes pay raises across the board and new, air-conditioned vans.
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San Francisco city officials requested GM (GM) subsidiary Cruise cut the number of self-driving taxis in the city by 50%. This comes after two collisions in the city involving autonomous cabs.
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Tickets to see the New York Red Bulls are averaging $483 for this weekend’s game against Inter Miami CF and Leo Messi – 10x the typical average of $46 per ticket.
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Starbucks (SBUX) is celebrating 20 years of the pumpkin spice latte by adding a new drink. The seasonal iced pumpkin cream chai latte will be available at the coffee chain starting August 24.
Financial planner tip of the day
“Working on your credit involves more than just making credit card payments on time. Access your credit report from Equifax, Experian, and TransUnion and review it for accuracy. Make sure the payments you’ve made are reported as on-time, and look at your list of trade accounts to make sure there are no errors.”
Brian Walsh, CFP® at SoFi