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Government shutdown: What happens next?
The U.S. government is hurtling towards a partial government shutdown this weekend. Here’s what that could mean federal workers, government agencies, and your portfolio.
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US stocks fell sharply on Tuesday, pushing the S&P 500 to its lowest level since June, as the 10-year US Treasury yield continued to inch higher
• The Conference Board’s consumer confidence index fell for the second month in a row as consumers expressed worries about rising prices.
• The Case-Shiller 20-city home price index for July saw its first year-over-year increase in five months. Despite the Federal Reserve driving mortgage rates higher, the national composite for housing prices has risen 5.3% in 2023. Meanwhile, new home sales fell nearly 9% in August. This was the largest decline in 11 months, highlighting the toll 7% mortgage rates are putting on homebuyers.
• UPS (UPS) is hiring more than 100,000 workers to assist with the upcoming holiday shipping demand. Due to the logistic company’s recent agreement with its Teamsters Union, the new hires will see starting pay of at least $21 per hour, an increase from the previous $15.50 per hour baseline rate.
• The Federal Trade Commission and 17 U.S. states are suing Amazon (AMZN), alleging the e-commerce giant exploits its monopolistic dominance to hike prices and sideline rivals using anti-discount strategies and the pricing of its fulfillment services. Amazon shares closed down 4% on the news.
What to be on the lookout for today
• We will get an update on August durable goods orders. In July, new orders for manufactured durable goods in the U.S. dropped by 5.2%. There will also be an update to the 30-year fixed-rate mortgage, which currently sits at 7.31%.
• The payroll provider Paychex (PAYX) will report results during this first earnings call since announcing the retirement of its CFO.
How to stay on top of your credit card payments
Credit cards allow you to purchase goods and services and pay for your charges at the end of your statement period. But there are advantages to keeping your credit card usage low. One way of doing so without compromising on the convenience of using your credit card, is paying off your statement using the 15/3 method.
This means you make two payments each month – the first one halfway through the cycle, or about 15 days before your statement date, and the second one three days before your card statement is due. Making credit card payments bi-monthly means that your credit utilization ratio never goes over 30%, which is the percentage generally recommended.
And if you’re in the market for a new card, check out if SoFi’s credit card might be right for you.
Today’s top stories
How the ‘pink tax’ extends to healthcare A new study shows women spend $15.4 billion per year more on healthcare than men. We diagnose this disparity. Read more >> AI is serving up solutions at restaurant chains across America Fries served up by a robot. Avocados cut by another. Here are some of the changes America’s fast food favorites might have in store for your next visit. Read more >> Key health care terms to know to pick your insurance plan Health insurance can be confusing. Learn more about common terms to be better equipped for your next benefit selection. Read more >>Other news that caught our eye
- The UAW strike is turning political. As a swing state Michigan will host two presidential visits this week. President Joe Biden visited the striking auto workers on Tuesday, and former President Donald Trump is expected to make the trip later this week.
- X is the biggest source of disinformation, a European Union official claimed. While other big tech names have signed up to comply with the EU rules on the matter, Musk’s social media network has not.
- Target will close nine stores, citing theft and organized retail crime as a safety threat to shoppers and staff. The stores in New York City, Seattle, Portland, Oakland, and San Francisco will close in October.
- Thousands of resort workers in Las Vegas are preparing to vote on a potential strike. If approved, the strike would come at an inopportune time for Sin City, with the Las Vegas Grand Prix around the corner, and Super Bowl not that far off.
- Meta’s Threads now ranks near the bottom of the most popular social media apps, only outranking Tumblr.
Financial planner tip of the day
"The risks of overspending on a credit card might dissuade students from using them during their college experience, but having one and spending wisely can help college students build credit . Building credit can help a young person improve their credit score. Post-grad, a strong history of on-time payments and responsible spending could make it easier to rent an apartment, apply for a car loan, or start a personal cell phone plan."
Brian Walsh, CFP® at SoFi