Thursday,
August 31, 2023
Market recap
Dow Jones
34,890.24
+37.57 (+0.11%)
S&P 500
4,514.87
+17.24 (+0.38%)
Nasdaq
14,019.31
+75.55 (+0.54%)
Top Story
Budget airlines, top-shelf beverages
The cheaper the plane ticket, the better the booze: Allegiant (ALGT), Frontier (ULCC), and other budget airlines are stepping up their drinks offerings.
US stocks rose on Wednesday as Wall Street extended its winning streak to three days ahead of today’s key inflation numbers
• HP (HPQ) fell short of analyst expectations, reporting $13.2 billion in revenue. The company cited less-than-ideal improvements in PC pricing as a factor. However, analysts are more concerned about the long-term prospects of HP's printing business, which has been affected by a slow recovery in China and a pessimistic economic outlook.
• Job creation in the U.S. slowed more than expected in August, according to a monthly report from ADP, with private employers adding 177,000 jobs, well below the revised total of 371,000 added in July. The report also showed pay growth slowed for both workers who changed jobs and those who stayed in their current positions.
• The second estimate for Q2 GDP showed the U.S. economy grew at an annualized rate of 2.1%. This marked a decline from the initially reported 2.4% estimate.
• Warner Bros Discovery (WBD) named Mark Thompson the new CEO and chairman of CNN. Thompson previously served as CEO and president of The New York Times from 2012 to 2020, as well as director-general of the BBC from 2004 to 2012.
What to be on the lookout for today
• Another inflation measure, the PCE price index will be released. The Federal Reserve uses this inflation metric as the benchmark for its round 2% target rate. In June, the core PCE, stripping out volatile energy and food prices, rose 4.1% annually. Investors will also look out for July reports on personal income and spending. In June, American spending rose at a faster pace than incomes.
• Dollar General (DG), Lululemon (LULU), Dell (DELL), and chipmaker Broadcom (AVGO) will all hand in report cards. Investors will look to see if the wave of organized theft plaguing the retail sector has impacted Dollar General or Lululemon’s bottom lines.
Do you really save money by ditching your car?
Whether your household is considering downsizing from two vehicles or going car-free altogether, giving up a car seems to have a lot of financial upside. But how much would carless living really save you?
Let’s say your monthly car payment is $500, insurance is $150, and gas and repairs are another $150 — that’s $800!
But wait. Without a car, you’ll likely still rack up costs for commuting, rideshares, and car rentals. There are ways to save on commuting, but exactly how much you spend will depend on your location and lifestyle. For example, if we estimate $100 for public transit, 10 rideshare trips at $25 each, and one weekend rental a month at $200. The total: $550.
That’s $250 in savings, which is great, but far less than initially thought. Could you save almost as much without giving up your car? For instance, you might start a carpool and charge a weekly flat fee to cover gas and wear-and-tear. Or rent out your vehicle on a P2P site to cover some of your monthly payment. You could even trade in your newer car for an older one that you pay for outright.
But by comparing rates, you may be able to figure out how to get cheaper car insurance. Here’s how to lower your car insurance costs.
With SoFi Protect, you can compare your current auto insurance to rates from top companies.
Today’s top stories
The US housing market is locked in a fierce stalemate between buyers and sellers The average 30-year fixed-rate mortgage is 7.31% — more than double what it was in 2021 and the highest in more than two decades. So why haven’t home prices gone down? Read more >> Here’s why the 9-5 workday may be dead Tired of the 9-to-5 grind? You're not alone. The workday is transforming as employees and companies find a new balance between office life and remote work. Read more >> Electrical issues are the third most common cause of house fires in the United States Houses with old or dangerous electric wiring often need to be replaced in order to keep your home safe. We’ll break down the average costs to rewire a house. Read more >>Not-so-breaking news
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Regulators ordered Tesla (TSLA) to provide information on the company’s Autopilot system. Specifically, they want to know how many people use the “Elon Mode” configuration that doesn’t remind people to leave their hands on the wheel.
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Goldman Sachs (GS) estimates AI could replace or diminish roughly 300 million full-time jobs worldwide. AI stocks are surging in part due to their potential to eliminate human labor, saving companies time and money.
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Amazon (AMZN) CEO Andy Jassy said it’s “past time” for workers to return to the office. In March, roughly 30,000 workers signed a petition protesting the company’s RTO policy.
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Burger King (QSR) faces a class action lawsuit over the actual size of the Whopper compared to advertisements. This is the latest in a string of lawsuits against major fast food brands.
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The Apple (AAPL) iPhone 15 and iPhone 15 Pro could be unveiled this fall. The new smartphone is expected to have new color options, a better battery, and a switch to USB-C charging.
Financial planner tip of the day
"Don’t be afraid to seek out and take advantage of the many 'freebies' or heavily discounted services offered on campus. That means a wide range of services are offered for free, or deeply discounted for the student body. Pay close attention during orientation to determine services the campus might offer. From on-campus movie nights to free choral concerts or speakers, there’s often lots of free entertainment to engage with on campus."
Brian Walsh, CFP® at SoFi