Tuesday,
October 3, 2023
Market recap
Dow Jones
33,433.35
-74.15 (-0.22%)
S&P 500
4,288.39
+0.34 (+0.01%)
Nasdaq
13,307.77
+88.45 (+0.67%)
Top Story
Gen X has struggled to save for retirement
A recent study reveals concerning savings trends among Gen Xers. We’ll look at the forces at play as well as ways to help mitigate a potential savings shortfall.
US stocks were mixed on Monday after Congress reached a last-minute deal over the weekend that averted a government shutdown
• Treasury yields continued their march higher, putting more pressure on stock valuations. The U.S. 10-year yield now sits just shy of 4.7%.
• The ISM Manufacturing PMI rose to 49 in September, the slowest contraction in ten months. Still, the latest reading marks nearly one full year of contraction across the manufacturing sector.
• Tesla (TSLA) saw a decline in vehicle deliveries and production in the third quarter due to planned factory upgrades. Despite this, the company said it's on track for its 2023 target of 1.8 million vehicles. The EV maker also introduced a new version of its Model 3 sedan dubbed the Highland. Tesla shares were up 0.5% to end the day.
• Rivian (RIVN) saw record deliveries with a 23% increase from the prior quarter. The automaker remains on target to produce 52,000 EVs this year. Despite the beat, Rivian shares were down 2.5% at the close.
• Sphere Entertainment's (SPHR) stock rose over 11% after a successful opening of its new Las Vegas venue. The futuristic arena was built earlier this year for $2.3 billion and boasts 1.2 million dome-shaped LED screens.
What to be on the lookout for today
• The JOLTS Job Openings will be released. Last month, openings reached their lowest level since March 2021, indicating the labor market has been cooling.
Update your budget to make room for loan repayments
Imagine your budget allows you to seamlessly fit your student loan repayments into your day-to-day life. Here are a few tips to redo your budget.
Determine your financial goals
How can you budget if you don't know where you're going? Setting financial goals can help give your money a purpose. Consider short- and long-term goals, such as paying off loans in a specific period of time, or saving up for a specific purchase or life event.
Calculate your income
How much do you make after taxes? All you have to do is look at a paystub and any other income, such as from a side hustle. You might have investments that pay you dividends or other forms of income. Whatever you have, add it all up!
Review your expenses
How much money flows out of your checking account every month? Look at loan payments, insurance costs, mortgage payments or rent, utilities, food, childcare, healthcare, IRA deductions, and everything else that belongs in the category of expenses.
Make adjustments
Consider where you can make adjustments based on your income and expenses so your student loans nestle right into your budget.
What percent should go toward student loans? Keep the 50/30/20 budgeting rule in mind:
• 50% toward needs
• 30% toward wants and discretionary expenses
• 20% toward savings and paying off debt
Today’s top stories
Going green is going red $11.4 billion has been pulled from sustainable funds this year as money managers feel pressure to post positive returns. Is ESG investing at an end? Read more >> Netflix (NFLX) takes its content beyond the screen The world’s largest streamer is taking advantage of its popular and acclaimed content by doubling down on fan experiences and merchandising. But this strategy is not without its risks… Read more >> Here’s what was going on in markets in September SoFi’s Head of Investment Strategy Liz Young brings you the market lookback. Read more >>Other news that caught our eye
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X partnered with Paris Hilton to promote its new video and shopping features as part of Elon Musk’s plan to turn the platform formerly known as Twitter into an “everything app.”
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Increased interest rates have sent borrowing costs to a two-decade high, putting pressure on the profitability of many S&P 500 companies.
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U.S. lawmakers passed a short-term deal to avoid a government shutdown. The deal extended the funding deadline to November 17 and excludes billions of dollars in funding for Ukraine.
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U.S. auto regulators are probing Ford Motors over engine failures, which have impacted nearly 709,000 vehicles, including the F-150, Explorer, Bronco Edge, Lincoln Nautilus, and Aviator models.
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A film based on Beyonce’s Renaissance World Tour is set to debut in AMC theaters on December 1, as the theater chain looks to fill content gaps stemming from Hollywood strikes.
Financial planner tip of the day
“IRAs offer individuals an opportunity to save money for retirement in a tax-advantaged plan, without relying on an employer-sponsored plan like a 401(k). In addition, with a few different types of IRAs to choose from, it’s likely that many people will find an account that fits with their needs and goals.”
Brian Walsh, CFP® at SoFi