Wednesday,
August 30, 2023
Market recap
Dow Jones
34,852.67
+292.69 (+0.85%)
S&P 500
4,497.63
+64.32 (+1.45%)
Nasdaq
13,943.76
+238.63 (+1.74%)
Top Story
The annual cost of home insurance is up 20% from last year
With the average premium priced over $1,400, some homeowners are opting to drop home insurance altogether. But this decision comes with some serious risks…
US stocks rose on Tuesday as bond yields headed lower
• Best Buy's (BBY) quarterly results exceeded Wall Street's expectations. However, the retailer lowered its sales outlook for the year due to a decline in electronics spending. While the pandemic drove a spike in big ticket purchases, Best Buy is seeing a reversion to pre-pandemic sales volumes, as consumers contend with inflationary pressures.
• The number of job openings in July declined by 338,000 to 8.8 million, reaching the lowest level since March 2021. The figure was the third-straight decline as the U.S. labor market continues to recover from the pandemic-era worker shortage. That said, the number of open jobs is still well above the pre-pandemic level.
• U.S. banking regulators will require regional banks to issue debt to protect depositors in the event of future bank closures. The new requirement will apply to all American banks with at least $100 billion in assets.
• The District of Columbia Court of Appeals ruled in favor of investment manager Grayscale (GBTC) in a lawsuit against the SEC, paving the way for bitcoin ETFs. The court found the SEC unlawfully denied Grayscale's application to convert the Grayscale Bitcoin Trust to an ETF.
What to be on the lookout for today
• The GDP growth rate for the second quarter will be released. The advance estimate showed the U.S. economy expanded at an annualized rate of 2.4% between April and June, 0.4% higher than the previous period. Additionally, there will be an update to the 30-year fixed-rate mortgage, which currently sits at 7.3%, the highest since 2000.
• It will be the busiest earnings day of the week, with reports coming from cybersecurity firm CrowdStrike (CRWD), discount retailer Five Below (FIVE), petcare e-commerce company Chewy (CHWY), and software giant Salesforce (CRM). Salesforce shareholders will be eager to learn about the company’s investment in the $4.5 billion AI startup Hugging Face.
How much should you budget for car repairs?
There are many ways to save money on car maintenance. But as the cost of new and used cars continues to rise, five-figure repair bills are increasingly common.
Creating a sinking fund for car maintenance costs can help make the bill less painful.
1. How much? The average cost of maintenance and repairs on a new car is about $1,200 a year. Setting aside $100 per month (more if your car is older or has expensive parts) will help you avoid a big credit card bill.
2. Be proactive about maintenance. Getting your car serviced regularly can help prevent big-ticket problems. In general, local mechanics charge less than dealerships. However, a dealership may know more about your make and model and have better access to specific parts, particularly if your car is a luxury vehicle.
3. Know your financing options. Sometimes, a really expensive issue crops up. Mechanics may offer financing, but this can come with fees and high interest rates. If you don’t have a robust emergency fund to cover the cost, you may want to look into options like a personal loan or a 0% interest credit card.
Keep your maintenance fund in a high-yield bank account, and watch your money grow. SoFi offers up to 4.50% APY and up to $250 cash bonus when you set up direct deposit.
Today’s top stories
As more companies are asking “Would you like to round up?” many more customers are now answering, “No, thanks.” The number of customers who donated to charity at checkout dropped since 2021. Here’s why these charity appeals aren’t going away anytime soon. Read more >> Robotaxis are coming. Autonomous vehicle companies Cruise (GM) and Waymo (GOOGL) are racing toward the road. Will legal frameworks and regulations catch up in time? Read more >> Is a modular home right for you? Modular homes come to the building site partially assembled, making them more affordable and faster to build. Here’s what you need to know if you’re considering owning one. Read more >>Not-so-breaking news
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Farmers Insurance will lay off 2,400 employees, amounting to 11% of its workforce. This news comes as the insurance provider limited its policy offerings in disaster-prone states like Florida and California.
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Yesterday, all flights from Tampa International Airport were canceled due to Hurricane Idalia. The hurricane is expected to make landfall in Florida as a Category 3 storm today.
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General Motors (GM) is partnering with Google (GOOGL) to use generative AI to improve operations across its different business segments. The automaker previously worked with Google to develop its AI-powered OnStar Interactive Virtual Assistant.
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ChatGPT is coming to an office near you: OpenAI launched ChatGPT Enterprise, specifically marketed to businesses. The new AI chatbot promises to be “the most powerful version of ChatGPT yet.”
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Amazon (AMZN) raised its free shipping minimum for non-Prime members from $25 to $35. Prime members will continue to enjoy free shipping on over 300 million products.
Financial planner tip of the day
“One strategy to approaching home additions is to create your dream list, then have alternate choices in mind if your budget, material availability, or other external factors create a need to alter the project down the road. For example, you may love the look of marble flooring, but its price point might be higher than you’d initially estimated — or perhaps it doesn’t blend in with the rest of your house once you’ve started laying out the plans. Having a back-up plan — and one that’s cost-efficient at that — could help keep your budget in check.”
Brian Walsh, CFP® at SoFi