Monday,
October 2, 2023
Market recap
Dow Jones
33,507.50
158.84 (-0.47%)
S&P 500
4,288.05
-11.65 (-0.27%)
Nasdaq
13,219.32
+18.05 (+0.14%)
Top Story
Retailers scramble as warm weather puts a chill on winter sales
This sweater season might not actually require sweaters — and retailers are feeling the heat. But stifled sales could mean fire sales for consumers.
US stocks were mixed on Friday, ending September deep in the red for the worst month of the year
• The Fed’s favorite inflation measure rose at the slowest pace since November 2020. August core PCE increased by just 0.1% on the month and 3.9% on the year. Headline inflation rose 0.4% in August and 3.5% year-over-year.
• American consumers also kept reaching into their wallets, with personal spending increasing 0.4% in August; the largest contributions came from housing and gasoline. Personal income growth matched the spending increase at 0.4%.
• Cruise operator Carnival (CCL) reported its first quarterly profit since before the pandemic, as well as income of more than $1 billion and all-time high revenue of $6.9 billion. Its shares closed down 5%.
• Shares of meal kit company Blue Apron (APRN) jumped 134% after the company announced it would be acquired by delivery company Wonder Group for roughly $103 million.
What to be on the lookout for today
• The ISM manufacturing PMI will be released for the month of September. In August, this metric of economic activity showed that the manufacturing sector contracted for the tenth consecutive month.
Student loan repayments: understanding your loan
When it comes to repaying your student loans, you may feel like a deer in the headlights. However, knowing the basics might make you feel more confident in your repayment strategy. Before repaying your student loans, take some time to learn more about your loan’s interest rates, principal, and type to inform your strategy.
Interest rate
The interest rate is the amount you pay your lender for borrowing money. Several factors affect student loan interest rates, including government legislation and the types of loans you choose. The higher the interest rate on a student loan, the more you'll pay in interest over time. Many borrowers choose to consolidate their loans or pay off the loan with the highest interest rate first.
Principal amount
The principal amount refers to the money you borrow, not including the interest rate or other fees. For example, if you borrow $10,000 at 4.99%, your principal is $10,000. Due to interest, you'll owe more than just the principal amount, but as you continue to make payments, the principal amount goes down.
Loan type
There's more than one type of student loan. The two most common types of student loans are federal student loans and private student loans.
What kind of student loans do you have? If you're not sure, your loan servicer can help you understand your loan types and the repayment options for your particular loan.
Today’s top stories
Can Levi’s comeback keep going? The 170-year-old brand reinvented itself over the past decade. How will it weather its post-pandemic slump? Read more >> Pay to spend the day at the airport You won’t even need a plane ticket! Day passes for the airport are the latest trend. Read more >> Alternate ways to pay off your student loans Grants and scholarships may offer a way to lower your student loan debt. Read more >>Other news that caught our eye
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A new strike on the horizon: 75,000 Kaiser Permanente employees across five states are set to walk off the job. The planned three-day strike will begin October 4 and be the largest healthcare strike in history.
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The U.S. Equal Employment Opportunity Commission sued Tesla, accusing the company of tolerating racism and retaliating against employees who spoke up about it. The EV leader was also sued earlier this year in a class action lawsuit by hundreds of Black factory workers.
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The Biden administration announced the next step in student loan relief for certain groups, including people experiencing financial hardship.
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Fast food workers in California will now earn a minimum of $20 per hour. In 2022, the median fast-food worker in the state made $16.60 an hour, while the nationwide hourly average was $13.43.
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Uber and DoorDash have failed to block NYC’s new minimum wage. The increase will go into effect in October, bringing the baseline wage for delivery drivers to nearly $20 an hour in 2025.
Financial planner tip of the day
“Once good credit has been established, using it wisely and responsibly can offer flexibility and freedom. Installment loans like mortgages, car loans, and student loans might make it easier to reach major life goals, while credit cards for smaller purchases can help build credit and possibly qualify for lower interest rates on those big purchases.”
Brian Walsh, CFP® at SoFi