Tuesday,
September 5, 2023
Market recap
Dow Jones
34,837.71
+115.80 (+0.33%)
S&P 500
4,515.77
+8.11 (+0.18%)
Nasdaq
14,031.81
-3.15 (-0.02%)
Top Story
The higher up you are in your company, the more likely you are to trust it
According to a new survey from Edleman, frontline workers are the least likely to trust their employees while executives are the most likely. However, Americans still trust their employer more than these three other entities…
US stocks were mixed on Friday following the release of a fresh batch of jobs data
• The U.S. unemployment rate unexpectedly rose to 3.8% in August, up from 3.5% in July. While that’s the highest level since February 2022, it is still near historic lows. The U-6 unemployment rate, which includes people who want to work but have given up searching and those working part-time because they cannot find full-time employment, increased from 6.7% to 7.1%, the highest since May 2022.
• The U.S. economy added 187,000 jobs in August slightly more than in July. It was the third straight month with fewer than 200,000 jobs created, a sign that the labor market continues to cool.
• The Federal Trade Commission has allowed Amgen (AMGN) to proceed with its $27.8 billion acquisition of Horizon Therapeutics (HZNP). The government agency filed a lawsuit in May to block the deal on the grounds that it would "stifle competition" in the pharmaceutical industry.
What to be on the lookout for today
• It’s a quiet start to this shortened week for investors, who will get an update on July factory orders. In June, new orders increased by 2.3% from May to $592 million, the biggest jump since January 2021.
• Thanks to the Labor Day holiday, it will be a busy day for earnings, with reports coming in from Asana (ASAN), AeroVironment (AVAV), Gitlab (GTLB), and Zscaler (ZS). In particular, investors have high expectations for Gitlab’s call, as the AI-powered DevSecOps platform was just awarded the 2023 Google Cloud Technology Partner of the Year award for the third year in a row.
Should you get a home mortgage, even if you can pay in cash?
There are several ways that people end up paying for a home. In addition to taking out a mortgage or paying in cash (which are the two most common ways), you might use owner financing, gifts from friends or family, crowdfunding, or equity from another property. While most people may not be in a financial position where they can pay cash for a house, if you do have that luxury, it gives you some options to consider.
Deciding whether to buy a home with cash vs. taking out a mortgage is a complicated decision with pros and cons. On the one hand, there's something comforting about not having any debt, including a home mortgage. But there are also compelling reasons to save your cash:
• Having all of your money tied up in your house could leave you "house rich and cash poor"
• You may be able to get a higher return by investing that cash in the stock market or other assets (admittedly, this was easier when mortgage interest rates were much lower)
• If this is a business or rental home, you might qualify for a tax deduction on the interest that you pay on your mortgage.
There is no one single right answer to this question — instead, examine the pros and cons to make the best decision for your specific situation. Here’s what else to consider.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help. Learn more and check your rate!
Today’s top stories
Kroger’s (KR) is charging ahead A successful acquisition of Albertsons (ACI) could help Kroger compete with America’s largest retailers. But, the deal is being stalled by regulators. Tune in to the company’s earnings report this Friday to hear the latest. Read more >> Slowing job growth: Why that could be good news The U.S. added 187,000 jobs in August, marking a slowdown in job growth. But there might be a silver lining for the economy. Read more >> August 2023 Market Lookback Growth data surged in August, yet stocks were down. What gives? Read on for a closer look. Read more >>Not-so-breaking news
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X — formerly Twitter — will start collecting biometric data on its users starting later this month. The social media company plans to use this data for “safety, security, and identification purposes.”
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United Auto Workers has filed unfair labor practice charges against General Motors (GM) and Stellantis (STLA). The union has accused its employers of not negotiating in good faith.
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Finally, Kia is recalling 319,436 cars, according to the National Highway Traffic Safety Administration. The company needs to fix a trunk latch that can crack, and therefore not be opened from the inside. Regulations require that trunks can be opened from the inside.
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LG Electronics and Hyundai (HYMTF) are investing another $2 billion on their Georgia battery plant. In this joint venture, the two companies plan to spend a total of $7.6 billion and create 8,500 jobs over eight years.
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Roz Brewer has stepped down as Walgreens Boots Alliance’s (WBA) CEO. The drug store chain wants to bring in another CEO that has “deep health care experience.”
Financial planner tip of the day
“ETFs are very similar to mutual funds and offer investors easy diversification since buying into an ETF is also buying into a collection of different assets. ETFs are generally passively managed. ETFs generally have lower fees than mutual funds. There are also differences in how ETFs and mutual funds are traded. ETFs can be traded like stocks, while mutual funds trade once per day.”
Brian Walsh, CFP® at SoFi