Friday,
October 13, 2023
Market recap
Dow Jones
33,631.14
-173.73 (-0.51%)
S&P 500
4,349.61
-27.34 (-0.62%)
Nasdaq
13,574.22
-85.46 (-0.63%)
Top Story
Have you started your holiday shopping yet?
Sales are starting earlier and earlier, and younger consumers are here for it, new data show.
US stocks fell on Thursday following the latest inflation data and a rebound in Treasury yields that sent the 10-year yield back above 4.7%
• Consumer price inflation rose 0.4% month-over-month to match the previous month’s annual rate of 3.7%. Core inflation, which strips out energy and food prices, increased by 0.3% month-over-month, and 4.1% over the year. Housing costs accounted for more than half of the September increase.
• First-time claims for unemployment benefits were unchanged at 209,000, remaining near the seventh-month low seen in mid-September.
• Walgreens reported lower-than-expected earnings and offered an underwhelming profit forecast for the upcoming fiscal year, attributed to reduced demand for COVID vaccines and tests. The company reported growth in its international and healthcare segments, and announced a $1 billion cost-cutting plan. Walgreens shares were up 7%.
• Delta Air Lines saw its profits soar some 60% in the third quarter following strong summer travel demand. The company also expects that trend to continue into the fourth quarter, projecting a 9-12% year-over-year increase in revenue. Delta shares finished down 2.3%.
What to be on the lookout for today
• The University of Michigan’s Consumer Sentiment survey will give us more insight into how American consumers are feeling at the start of October.
• Three of the country’s largest banks — JPMorgan Chase (JPM), Citigroup (C), and Wells Fargo (WFC) — will share how their businesses are faring in the high-interest rate environment. The reports from these three banking giants are often considered the official kickoff of earnings season and can set the tone for the quarter.
Don’t Let Superstition Keep You From Reaching Your Financial Goals
It’s Friday the 13th, so let’s take a look at how superstitions may affect your investment choices. Here are some common pitfalls.
Not Investing For Fear Of Losses
One superstition that many people fall victim to is not investing out of worry about losing money. While it's true that investing comes with risks, not investing keeps you from the opportunity to grow your net worth. This is particularly true over a long-term horizon, as the U.S. stock market has historically appreciated over time.
Not Staying Invested During Market Volatility
Similarly, many investors get nervous during turbulence in the market. When the stock market goes down, you may be tempted to pull your money out to minimize your losses. The risk here: Selling at market lows means you might miss the rally when stocks rise again. Instead of focusing too much on the short-term, sticking to your long-term investment thesis might help you keep your cool when the market is wobbly.
Check out Investing 101 to learn more about how investing might fit into your finances.
Today’s top stories
America runs on soybeans The legume contributes billions to the U.S. economy each year. But the U.S. has lost its title as the world’s top soybean producer, thrusting the market into uncertainty. Read more >> Seniors lose billions in scams. This startup wants to help Fintech firm Carefull raised $16.5 million in new funding to stop scammers in their tracks. Read more >> How to stay motivated to reach your savings goals Keeping up with saving money can be challenging. Here are 8 easy ways to stay motivated to save and meet your goals. Read more >>Other news that caught our eye
-
The Social Security cost-of-living adjustment will be 3.2% in 2024, putting it below the annual rate of consumer price inflation. The average recipient will receive more than $50 extra per check starting in January.
-
Talks between Hollywood actors and studios have stalled, with the SAG-AFTRA union accusing studios of using “bully tactics” during the ongoing labor dispute.
-
A surprise strike at Ford’s largest and most profitable factory is putting increased pressure on the nation’s Big Three automakers to reach a deal with the United Auto Workers union.
-
The Department of Justice is suing eBay for allowing “rolling coal” pollution devices on its platform, which violate environmental laws. eBay could be on the hook for as much as roughly $2 billion in fines under the Clean Air Act.
-
The White House is intensifying its crackdown on hidden fees. A newly proposed FTC rule would ban businesses from charging hidden fees and require companies to show full prices upfront.
Financial planner tip of the day
“To help curb your impulse to pull out of the market when it is low — and continue investing instead — you may want to consider dollar cost averaging.”
Brian Walsh, CFP® at SoFi