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Is the US dollar finished as a reserve currency?
The share of global foreign-exchange reserves in U.S. dollars is at a 25-year low. Does that mean the world is shaking its dependence on the dollar?
US stocks rose on Wednesday as Treasury yields retreated from their decade-plus highs
• A softer-than-expected ADP employment report showed private businesses hired just 89,000 workers in September, well below expectations and the weakest private job growth in over a year, suggesting a cooling U.S. labor market and taking pressure off the Fed. The government’s jobs report is due Friday.
• The 30-year fixed-rate mortgage saw its largest weekly increase since mid-August, rising to 7.53%. This was the fourth consecutive increase and the highest level since November 2000. In other economic data, the ISM Services PMI fell slightly in September but still showed that the services sector was expanding.
• Ford recorded a 7.7% increase in new vehicle sales in the third quarter. Electric vehicle sales increased by 15%. The UAW strike was not expected to affect third-quarter sales.
• Shares of lighting manufacturer Acuity Brands (AYI) popped 7% after earnings. The company posted an overall 9% year-over-year sales drop, while earnings per share rose 2 cents to $3.97, more than many analysts had expected.
• U.S. oil prices fell more than 5% to around $85 a barrel on concerns over demand and economic growth despite Saudi Arabia and Russia vowing to continue their oil output cuts through the remainder of the year.
What to be on the lookout for today
• Weekly jobless claims will be released. Last week, first-time unemployment claims hovered near a seven-month low.
• Levi Strauss (LEVI) will report its quarterly earnings.
Should I Pay Down Debt or Save Money?
If you have set up a monthly budget and are fortunate enough to have money left over each month, you might be thinking about how to use that extra cash. There are pros and cons to both paying off debts and saving money — here's a look at reasons you might consider one vs. the other.
Why You Should Save Money
One of the smartest financial moves you can make is setting up an emergency fund. This ensures that if your car breaks down, you have unexpected medical expenses, or some other emergency, you can pay for it without resorting to using credit cards. If you don't have any emergency fund yet, it's usually best to set that up first, even before paying down debt.
When To Pay Down Debt
There are different schools of thought as to how much money should be in your emergency fund; a good rule of thumb might be a few months' worth of expenses. But if you have high-interest debt, it's probably a good idea to put a smaller amount into your emergency fund and then get to work on tackling your debt. Once you've paid off most if not all of your debt, then you can get back to putting more money into your emergency fund.
Today’s top stories
Liz Looks at: Rates, Spreads, and Yields Government bonds are known to be stable and maybe a little boring. But a look at U.S. Treasurys over the past weeks paints a very different picture, as yields soared in response to the Fed’s assumption of higher interest rates for longer. SoFi Head of Investment Strategy Liz Young gets to all you need to know about the bond market this fall. Read more >> Luxury brands want you to shop in person Inflation might be high but luxury brands are alive and kicking, and want you to visit their probably new, probably shiny brick-and-mortar locations. Read more >> Pros and cons of using retirement funds to pay for college If you didn’t set up a 529 plan to fund your kids’ education, you may be inclined to use retirement funds instead. While that may be possible, here’s what you should consider. Read more >>Other news that caught our eye
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You can now use Uber to make returns. The service is available in 5,000 U.S. cities, and costs a flat fee of $3 for Uber One members or $5 for non-members.
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It’s new phone season: Google unveiled its Pixel 8 smartphone, including a chip that offers more use of generative AI for tasks like summarizing articles.
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More than 75,000 Kaiser Permanente workers just went on strike. The planned 3-day protest could affect nonessential services for as many as 13 million people. Hospitals and emergency services will not be affected. It’s the largest U.S. healthcare strike on record.
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General Motors secured a massive $6 billion credit line as it reckons with the UAW strike. The ongoing worker strike cost GM an estimated $200 million in Q3.
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President Joe Biden canceled $9 billion of student debt for 125,000 people. The relief was primarily targeted at borrowers with disabilities, working in public service, or enrolled in income-driven repayment plans.
Financial planner tip of the day
"How do parents save for college? Early and consistently. Those are two crucial elements to creating and sustaining a plan to meet your child’s college education costs. By starting as soon as possible, you’ll have more time to potentially help your hard-earned savings grow."
Brian Walsh, CFP® at SoFi