Wednesday,
October 25, 2023
Market recap
Dow Jones
33,141.38
+204.97 (+0.62%)
S&P 500
4,247.68
+30.64 (+0.73%)
Nasdaq
13,139.88
+121.55 (+0.93%)
Top Story
U-S-A! U-S-A! Our economy defies expectations
We said it before, and we’ll say it again: The expected recession of 2023 just hasn’t happened. Here’s what economic data tells us and what that means going forward.
US stocks rose on Tuesday after a slew of strong third-quarter earnings reports
• Spotify shares surged 10.4% after the company announced it returned to profitability.
• General Motors beat Wall Street's expectations despite ongoing labor strikes by the United Auto Workers union. The strikes have cost the automaker roughly $200 million a week in lost vehicle production, leading it to lower its earnings guidance from $12-$14 billion to $9.3-$10.7 billion for the year. Hours after posting earnings, the UAW announced it was expanding its strike to GM’s SUV plant in Texas, including roughly 5,000 workers. GM shares finished 2.3% lower.
• Coca-Cola topped Wall Street’s estimates and raised its full-year forecast. The food and beverage giant saw an 11% increase in organic revenue and a modest gain in overall volume despite a 9% increase to its prices. Coca-Cola shares were up 2.9%.
• 3M stock bounced higher as the company raised its full-year outlook.
• Oil prices fell more than 2.9% after a slew of European economic data pointed to waning energy demand. However, fossil fuel demand is expected to peak by 2030, according to the International Energy Agency.
What to be on the lookout for today
• We’ll get an update on the 30-year fixed-rate mortgage, which recently reached its highest level since November 2000 at 7.7%.
• New home sales data will be released, following an 8.7% slump in August.
• Fed Chairman Jerome Powell will give a speech in the afternoon.
• Investors will also get earnings reports from Boeing and Meta Platforms.
Fitting your student loan repayments into your budget
With higher prices on just about everything these days, paychecks are being stretched to the max.
If you feel your federal student loans are consuming your income, you might be able to get some relief through income-driven repayment plans.
(Note: Other ways to get help with federal student loans include deferment and forbearance.)
Monthly payments that make sense
Your monthly payments are calculated as a portion of your discretionary income. (What’s discretionary income?) Generally, under income-driven repayment plans the size of your paycheck and your family are taken into account.
Details to keep in mind
Depending on the plan, any remaining debt is forgiven after a set number of years.
This summer, the Biden Administration introduced the Saving on a Valuable Education (SAVE) plan, which replaces the Revised Pay as You Earn (REPAYE) plan. The SAVE plan will lower monthly loan payments for many borrowers, with some payments coming in at $0.
Here’s where you can enroll.
Today’s top stories
Are software companies colluding to keep rent high? Dozens of the nation’s largest landlords rely on just two software companies to set their rents. But are they breaking the law? Read more >> Disruptive tech is threatening jobs dominated by this group Emerging technology like generative AI is poised to eliminate thousands of jobs in the coming decade. This could put one demographic at higher risk than others. Read more >> What you need to know to establish credit You need a credit score for everything from renting an apartment to financing a car. This is what needs to be on your radar to build credit. Read more >>Other news that caught our eye
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Overstock is rebranding as Beyond Inc, and will transfer its shares to the New York Stock Exchange from Nasdaq, where it will trade under the ticker BYON. The online retailer purchased Bed Bath & Beyond’s IP for $21.5 million after the home goods chain declared bankruptcy earlier this year.
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Sony released a new gaming controller designed for people with disabilities. The Access controller is available for pre-order and will launch on December 6 for $89.99.
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Panera Bread is facing a wrongful death lawsuit following a customer’s death after consuming its “Charged Lemonade” drink. Panera is a private company but is in preparations to IPO.
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The UAW went on strike at RAM-parent Stellantis’ largest assembly plant. Roughly 27% of the Big Three automakers’ workforce is now on strike.
Financial planner tip of the day
“As you are establishing credit, it’s critical that you protect your credit score. The goal is to have access to cheaper credit when you need it. That means if you are not sure whether a hard inquiry will be performed, it is best to ask before approving a credit check.”
Brian Walsh, CFP® at SoFi