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There’s a literal gold rush at Costco (COST)
The wholesale retailer’s 1 ounce gold bars are selling like hotcakes. What on earth is going on?
US stocks rose on Thursday as Treasury yields gave back some of their gains from earlier in the trading session
• U.S. oil prices briefly rose to as high as $95 per barrel early Thursday, its highest level in more than a year, before retreating and taking some pressure off of stocks. Both energy prices and Treasury yields have weighed on equities this week.
• Consumer spending in Q2 was lower than initially thought, according to the final report on economic activity between April and June. The final estimates of second-quarter GDP showed the U.S. grew at an annualized rate of 2.1%, in line with the previous estimate, and a slight decline from the first quarter’s 2.2% growth rate.
• The number of Americans filing for first-time unemployment benefits increased to 204,000 in the week ending September 23. However, the figure was still below expectations and remains just above its seven-month low. Continuing benefit claims, which measure continuous filings for at least two weeks in a row, are hovering near an eight-month low.
• Professional services company Accenture (ACN) saw its shares dip 4% after posting mixed earnings results and guidance below expectations. CarMax (KMX) also fell short of expectations with a year-over-year decline in earnings, sending its shares 13% lower.
• Peloton (PTON) entered a five-year partnership with Lululemon (LULU). The athleticwear retailer will now be the primary maker of Peloton’s branded fitness apparel. The exercise equipment company’s fitness classes will also be featured in the Lululemon Studio app. Peloton shares were up 5% on the news; Lululemon was flat.
• Micron's (MU) shares fell more than 4% following earnings. Even with a smaller-than-anticipated loss for the fiscal fourth quarter and revenue surpassing expectations, the company foresees a larger per-share loss than analysts had estimated.
What to be on the lookout for today
• The Commerce Department will release more inflation data, including the Fed’s favorite core PCE. The July reading showed core inflation accelerating 0.2% month-over-month and 4.2% annually.
• Personal spending and income numbers will also shine a light on the current state of the American consumer.
• Cruise operator Carnival (CCL) will report its third-quarter earnings.
How to budget for big expenses
Drawing up a budget can feel overwhelming, and not being able to afford what you want can be frustrating, especially around the holidays, when you want to treat your loved ones as well. Meanwhile, higher rates of inflation over the past years have made shopping trickier and budgeting more important.
Holiday shopping can amount to a big expense, even if it’s many smaller purchases. Keeping track of how much you’re spending along the way, setting a budget for how much you want to spend per family member, and shopping around before making a purchase to find the best prices, can help you keep the lid on expenses.
Another way to avoid a big spending increase in the latter months of the year is to do your holiday shopping year-round. That way you can take advantage of savings events and ease the stress of having to buy too many presents at once.
Finally, consider how you spend: Your credit card might come with perks, such as miles or cashback rewards. This way you may be able to benefit from your holiday shopping down the line.
Today’s top stories
Home inheritance sounds great. But is it? Real estate plays a major role in building generational wealth. But there are pitfalls. Read more >> Meet the startup that reinvented the wheelchair Revolve Air designed a foldable wheelchair that can qualify as carry-on luggage. For those traveling with disabilities, it could be a game-changer. Read more >> Stock analysis: These are the chart patterns to know Candlestick charts are a popular tool to analyze patterns in stock prices. Learning how to read them can help you manage your portfolio better. Read more >>Other news that caught our eye
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U.S. consumer spending in the second quarter was much lower than previously estimated. Q2 consumer spending was originally estimated to be 1.7% but was recently revised to a 0.8% annualized rate.
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Delta is backtracking on recent changes to its frequent flier program, which made it harder for customers to earn elite status and access lounges. Following a backlash, the airline signaled it may reverse some of these changes.
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Ryan Cohen will step up as CEO of GameStop. The billionaire and Chewy co-founder will retain his roles as president and chairman of the electronics retailer as well.
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The Energy Department will provide more than $1 billion in grants to help fortify the nation’s power grid against extreme weather events.
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Inflation strikes again: Girl Scout cookies are set to become more expensive.
Financial planner tip of the day
“The primary advantage of buying partial shares is the ability to buy stocks or ETFs that might otherwise be too expensive. With partial shares, you get to control exactly how much money you want to spend on each stock. Partial shares make it possible for you to build out an investment portfolio when you are ready.”
Brian Walsh, CFP® at SoFi