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Here’s what might happen to the economy if Americans spend less
Consumer spending is the engine behind the U.S. economy But this engine might need an oil change.
US stocks fell on Tuesday, led by a sharp decline by the Nasdaq
• Shares of Apple (AAPL) fell 1.7% after the company unveiled a new round of products. The company announced new Apple Watches, Airpods, and a steeper price tag on its new iPhone.
• Oil prices pushed to their highest levels since last November following an optimistic outlook on global energy consumption for the remainder of the year and 2024. Given the already tight supply elevated energy prices could put upward pressure on inflation.
• Oracle’s (ORCL) shares dropped more than 13% after falling short on earnings expectations, and offering weaker-than-expected revenue guidance. However, the company saw its cloud infrastructure revenue increase by 66%, and announced new database hardware as well as AI software features.
• The NFIB Small Business Optimism Index in the United States fell for the first time in four months. Almost a quarter of small businesses named inflation as a major concern impacting their profits, and fewer respondents are expecting better business conditions over the next six months than in previous rounds of the survey.
What to be on the lookout for today
• One of the most important economic data points of the week will be published this morning: August consumer price inflation. In July, this inflation index accelerated to 3.2% year-over-year, the first increase after falling for 12 months straight. Investors will also get an update on the current 30-year fixed-rate mortgage, which currently remains above 7%.
• Cracker Barrel (CBRL) will report earnings results. Investors will be interested to hear about the company’s off-premise business model, catering business, and new store openings.
How to budget on a fluctuating income
Setting up a budget can be one of the most important things to do for your financial health and success. But budgeting on a fluctuating income can be particularly difficult.
Constantly adjust your budget
When you have a regular income, your budget will likely look the same each month. But when your cash inflow is irregular or fluctuating, you have to take a more hands-on approach. If you don't get paid as much, you may have to go without or defer some expenses. Regularly monitoring and adjusting your budget as you go is key when you have a fluctuating income.
Don't spend more when you make more
Be careful when you make more money than expected for a month. Rather than just spending your windfall, it's a good idea to make sure that you have an adequate emergency fund. That way, if (or when) you have leaner months, you have a safety net to draw on to make sure you can still pay your bills and obligations. Here’s 6 steps to get started.
An inconsistent income makes it all the more important that you budget well to make sure that you can cover necessary expenses while still working toward your financial goals. Here’s more on how to do just that.
Today’s top stories
Google’s massive antitrust trial could change the game for big tech The Justice Department’s case against the search giant challenges its dominance and partnership with other tech giants. Read more >> Lyft shifts user and driver safety into high gear The ridesharing app wants to protect both drivers and riders with its new feature. Read more >> Here’s what you should know about the 11 S&P 500 sectors The S&P 500 is the broadest measure of the U.S. stock market, and encompasses 11 distinct sectors. Find out more about them and learn how you may diversify your portfolio. Read more >>Not-so-breaking news
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Amazon (AMZN) is investing in carbon capture by purchasing 250,000 metric tons of carbon removal over the next decade.
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Coca-Cola (KO) released a new flavor of soda created by AI, in its latest attempt to attract younger consumers. The 100-year-old brand’s new beverage reportedly tastes like “the future”.
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UPS (UPS) estimates its new union contract will increase costs by 3.3% annually. The five-year deal covers 340,000 workers.
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Online prices registered the sharpest drop in three years in June, dropping 2.6%, according to the Adobe (ADBE) Digital Price Index, which is modeled after the Consumer Price Index.
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McDonald’s (MCD) is planning to remove self-serve soda machines by 2032. As more traffic comes via digital orders and drive-thru, the fast food chain is looking to reduce the size of its dining areas.
Financial planner tip of the day
“Diversification is chief among an investor’s risk management tools. A diversification strategy means spreading money across multiple asset classes, such as stocks and bonds. A portfolio can be further diversified within each asset class.”
Brian Walsh, CFP® at SoFi