Monday,
September 25, 2023
Market recap
Dow Jones
33,963.84
-106.58 (-0.31%)
S&P 500
4,320.06
-9.94 (-0.23%)
Nasdaq
13,211.81
-12.18 (-0.09%)
Top Story
What you need to know about delaying student loan repayments
Student loan repayments are coming back but not everyone is in the financial situation to resume paying the charges. Here’s what you need to know if you need to delay your student loan repayments.
US stocks rose on Friday to break their three-day losing streak, but still ended the week in the red.
• U.S. business activity teetered on the brink of contraction in September per the S&P Global's flash Composite PMI index, showing a reading of 50.1 where 50 denotes the threshold between growth and decline. Business activity was characterized by a sluggish services sector expanding at the slowest pace since February, while new orders declined. So far, the U.S. economy has sidestepped a downturn, thanks in part to resilient consumer spending.
• The UAW is expanding its strikes against two of the Big Three automakers, General Motors (GM) and Stellantis (STLA), to 38 facilities across 20 states. The union said it had made progress in negotiations with Ford (F), including wage tiers and profit sharing.
• McDonald’s (MCD) is raising its royalty fee for the first time in nearly three decades, increasing the fee collected from franchises to 5% from 4% of gross sales at all new locations starting January.
What to be on the lookout for today
• The week is starting out on a slower note, with RV-maker Thor Industries (THO) kicking off earnings. Investors will expect updates on recent management changes, as well as the company’s partnership extension with the Girl Scouts of America.
Investing 101 — make your money work for you
Investing can seem overwhelming. The world of financial markets is vast and often complex, not to mention the risk of losing money. But investing is a great way to make your money work for you, reach your financial goals, and contribute toward your retirement savings. By not engaging in the investing world, you limit your financial choices, potentially making it harder for you to reach your goals.
How to start investing
So where do you start? It’s worth thinking about what you’re trying to achieve first. Are you investing for the long or short term, and what is your risk tolerance? After addressing these fundamental questions, you may open a brokerage account, such as the SoFi Invest account, or decide to find a financial advisor. But don’t worry, you don’t need to be a stock picker to invest. ETFs, or Exchange Traded Funds, allow you to invest in themes like tech or indexes, such as the S&P 500 — the broadest index in the U.S. stock market.
It’s a good idea not to put all your eggs in one basket though. Diversifying your investing portfolio relative to your overall finances gives you some protection against downturns in the market. For example, you may invest some of your money in stocks and some in bonds, which have less upside but are also generally considered less risky.
Learn more about how to get into investing and how it may help you reach your goals.
Today’s top stories
Will Costco (COST) raise its membership fee? Costco tends to raise its fee once every six years – and, guess what, the last time it did was six years ago. Investors await the company’s earnings call to hear more. Here’s what’s ahead on Wall Street this week. Read more >> Luxury airport lounges as the ultra status symbol As travel bounces back, airlines are competing to offer premium lounge experiences, redefining the airport experience for travelers. Read more >> These are the best low-stress jobs for introverts without a degree Not everyone wants to put themselves out there to the same extent. Introverts may prefer to work independently, for example. If that applies to you and you don’t have a college degree, these might be some of the best jobs for you. Read more >>Other news that caught our eye
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Amazon will introduce advertisements to Amazon Prime Video in 2024. U.S. Prime members can pay an extra $2.99 per month to remove the ads.
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UAW announced an expansion of its strike against American automakers GM and Stellantis, while speaking of progress in the union’s negotiations with Ford.
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For the first time in almost three decades, McDonald's is raising its royalty fees for new franchised restaurants from 4% to 5% of gross sales. Franchisees operate around 95% of the fast food giant's U.S. locations.
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The United States Postal Service won’t include any additional surcharges during the upcoming holiday season. UPS and FedEx have already announced surcharges for the busy finish to the year.
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Microsoft’s $69 billion deal to buy Activision Blizzard is moving along after the U.K.’s Competition and Markets Authority signaled preliminary approval. The deal was restructured to address regulatory concerns related to the cloud gaming market.
Financial planner tip of the day
"Anyone who wants to flex good financial habits may find it worthwhile to come up with a debt repayment plan. In an ideal world, this might mean paying off credit card balances in full and making all other necessary debt payments on time, such as mortgage installments and student loan payments."
Brian Walsh, CFP® at SoFi