Wednesday,
October 18, 2023
Market recap
Dow Jones
33,997.65
+13.11 (+0.04%)
S&P 500
4,373.20
-0.43 (-0.01%)
Nasdaq
13,533.75
-34.24 (-0.25%)
Top Story
Americans are being priced out of having fun
The post-pandemic rebound in demand for live events has come back down to earth as concerts, sports events, theme parks, and more reckon with âfunflationâ.
US stocks were mixed on Tuesday as Treasury yields approached the 16-year highs reached last week, sending the U.S. 10-year yield back to 4.83%
• Retail sales data showed stronger-than-expected spending, rising 0.7% in September for the sixth consecutive month of growing sales. While last month was ever so slightly weaker than August sales, it still pointed to resilient consumer spending despite pressure from inflation.
• Goldman Sachs beat revenue and earnings expectations, citing strength in its mortgages and interest rate products. Even so, the bank still reported a 33% decline in profits compared to the previous year. Goldman shares closed down 1.6%.
• Bank of America earnings also topped estimates boosted by higher interest income, sending its shares 2.3% higher.
• Johnson & Johnson also beat earnings expectations and raised its full-year guidance on strong demand for its pharmaceutical and medical devices. The company saw a 6.8% year-over-year increase in sales last quarter. Its shares dipped 0.9%.
What to be on the lookout for today
• The 30-year mortgage rate, which recently hit its highest level since November 2000.
• Building Permits and housing starts for September.
• Heavyweights Morgan Stanley (MS), Netflix (NFLX), Procter & Gamble (PG), and Tesla (TSLA) will report earnings.
This debt payoff option is đĽ
Finding the right approach to tackling debt is important. After all, you want a plan you can stick with. So, if the debt avalanche or snowball methods donât exactly fit with what you are looking for, consider combining the tactics.
The debt fireball method takes a hybrid approach: You categorize by interest rate, but tackle the smallest debts first.
Step one: sort your debt
Not all debt is created equal, and thereâs whatâs referred to as âgood debtâ and âbad debt.â A mortgage or student loan, for example, may be considered âgoodâ, because of the potential to increase your net worth over time. Debts that donât bring long-term financial benefits â like high levels of credit card debt â are generally considered âbad.â
Take stock of all your debts and note their interest rate and amount owed and create two groups: Group A: debts with an interest rate higher than 7% that arenât considered âgood debtâ, and group B: outstanding balances with an interest rate below 7%.
Step two: rank your debt
List the amounts owed in Group A from smallest to largest. This is now your priority list. You will still make the minimum payments for all your debts, but any extra money will go toward paying off the smallest debt from Group A.
Once you pay off one debt, take that money and put it toward the next smallest amount, and continue the process. Happy debt slashing!
Todayâs top stories
What happens when all the drugstore close? Rite Aid just filed for bankruptcy, and CVS and Walgreens are shuttering stores, leaving a critical void for consumers. Read more >> Food delivery giants are going all-in on gamers DoorDash (DASH) found their new dream customer in the gaming community. Read more >> Why a low debt-to-income ratio matters If youâre in the market for a personal loan, mortgage, or even credit card, a provider will look at your debt-to-income ratio. The lower it is, the better. Here are some tips to get there. Read more >>Other news that caught our eye
-
Netflix may hike the price of its ad-free streaming plans, according to industry analysts. The streaming company added 6 million subscribers last quarter after cracking down on password sharing.
-
StubHub experienced a 60% jump in NBA ticket sales, driven by international interest. The L.A. Lakers lead the list of most in-demand teams.
-
Tyson Foods is venturing into insect protein after buying a stake in Dutch startup Protix. The two companies will build a U.S. facility to produce bug-based meal and oil as feed for fish and dogs.
-
Wyndham Hotels rejected a $7.8 billion takeover bid from Radisson-owner Choice Hotels that came after months-long private talks failed.
-
Tesla recalled nearly 55,000 2021-2023 Model X vehicles, citing a faulty vehicle controller failing to detect low brake fluid. The EV leader intends to fix the issue free-of-charge via software update.
Financial planner tip of the day
âYour Debt-to-Income Ratio, or DTI, tells lenders how much of your monthly income is being used to pay your debts. In general, lenders prefer to see less than about 30% of an applicantâs income going toward debt payments each month. Paying off debts can improve your DTI to a more creditworthy percentage for lenders to consider when assessing your mortgage loan application.â
Brian Walsh, CFPÂŽ at SoFi