Thursday,
September 14, 2023
Market recap
Dow Jones
34,575.53
-70.46 (-0.20%)
S&P 500
4,467.44
+5.54 (+0.12%)
Nasdaq
13,813.58
+39.97 (+0.29%)
Top Story
Just because your returns are āfixedā doesnāt mean your tax bill will be
Fixed income investments, such as Treasury bonds or inflation-protected bonds, have seen returns rise this year. But while investors are cheering, they should keep in mind that with higher yields come higher tax bills.
US stocks were mixed on Monday as Wall Street digested slightly hotter-than-expected inflation data
• The consumer price index rose 0.6% in August, the biggest monthly gain of the year, bringing inflation to 3.7% year-over-year, more than economists had expected. Rising energy prices played a significant role in the increase. Meanwhile, core CPI, which excludes food and energy, accelerated 0.3% for the month, and 4.3% annually. Housing costs accounted for the majority of the increase in core inflation.
• The average 30-year fixed-rate mortgage rose to 7.27%. After a modest decline the previous week, borrowing costs are once again nearing their highest level in two decades.
• Citigroup (C) CEO Jane Fraser announced a major management reorganization to simplify the bank's structure. The restructuring is expected to include job cuts.
• Apple (AAPL) announced a September 18 release date for its new operating system iOS 17. The update will include FaceTime voicemails, a more powerful search function in Messages, and a catch-up feature for group chats. Apple also introduced StandBy mode, enabling users to turn their iPhones into bedside clocks.
What to be on the lookout for today
• August retail sales will provide details about consumer spending at the end of the summer. Meanwhile, August PPI ā or wholesale inflation ā will show how price increases are affecting American producers.
• It will be the busiest day of the week in terms of company earnings. Adobe (ADBE), energy drink maker GURU Organic (GUROF), and Canadian conglomerate Empire Company (EMLAF) will report.
Liz looks at: August inflation
The U.S. economy, American consumers and the Fed are still at the mercy of inflation metrics. August data showed core inflation, which strips out the more volatile components like food and energy, is trending down. But people can't remove food and energy costs from their lives. With the U.S. consumer making up nearly 70% of our economy, this is an on-going problem. If consumers are under stress, itās only a matter of time before the economy might come under stress.
SoFiās Head of Investment Strategy Liz Young breaks down the August inflation report.
Todayās top stories
The mammoth task to regulate AI While companies and investors are excited about what the advent of AI might bring, lawmakers are hoping to regulate the space. Hereās what you need to know about big techās Washington hearings. Read more >> CEOs make millions and workers feel disheartened CEOs rake in almost 400 times the average worker's earnings, but that comes at the cost of worker morale. Read more >> Hereās how long it takes for a mobile deposit to clear You deposited a check using an app on your mobile phone, but when are those funds available for use? Hereās what you need to know. Read more >>Not-so-breaking news
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Multiple U.S. airlines cut summer profit forecasts due to high fuel and labor cost, including American Airlines, Spirit, Southwest, and Alaska.
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Ford is doubling its production of its F-150 hybrid as sales for its all-electric lineup slow. According to a Ford executive, the pickup truck could become the best-selling hybrid in America.
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TikTok officially launched its ecommerce platform in the U.S. TikTok Shop features a dedicated shopping tab, live video shopping, shoppable ads, and affiliate programs for creators.
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Global oil prices hit a 10-month high in response to deadly flooding in Libya, which will temporarily disrupt supply from the North African nation.
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In 2022, U.S. poverty saw increases for the first time in more than a decade, largely in response to the end of pandemic-era federal support. Child poverty increased sharply.
Financial planner tip of the day
"You could set up automatic transfers to a designated college savings account, so you wonāt even have to think about it. You can transfer from your checking account or, if itās an option, opt to direct deposit a portion of your paycheck directly to your savings account."
Brian Walsh, CFPĀ® at SoFi