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Soft saving: Gen Z does retirement
Prefer to spend now rather than put money away for later? You might be soft saving.
US stocks fell on Wednesday as Treasury yields pushed higher, and key earnings disappointed
• The tech-heavy Nasdaq entered correction territory, defined as a 10% drop from the most recent peak, after a rocky day for tech stocks.
• Shares of Google parent Alphabet shares dropped 9.6% after falling short of Google Cloud revenue estimates. The company beat overall earnings and revenue projections.
• Microsoft rose 3.1% after beating estimates, and showed 19% growth for its Intelligent Cloud segment.
• The average 30-year fixed-rate mortgage pushed to 7.9%, another multi-decade high. This was the seventh consecutive weekly increase.
• Single-family homes sales jumped more than 12% on a seasonally adjusted annual basis in September, reaching their highest level since February 2022. Building permits declined 4.5% from their 10-month high in August, while approvals for multi-segment buildings fell 14.3%, reaching the lowest level in three years.
What to be on the lookout for today
• It will be a busy day with the first look at how the U.S. economy fared in the third quarter. Expectations put growth above the prior quarter’s 2.1% annual rate. September durable goods orders data will also come out.
• On the earnings front, we’ll get several major reports, including Comcast, Chipotle, Mastercard, Southwest Air, UPS, and Ford.
Liz Looks at: Home Sales & Mortgage Rates
It’s spooky season, and to prospective home buyers, U.S. housing data offers plenty to be scared about.
For one, national home prices have risen more than 43% since December 2019. And then there are interest rates, pushed up in response to rampant pandemic-era inflation.
Today’s top stories
Big Oil is betting $100 billion on, well, oil Despite growing momentum for green energy, Chevron, and ExxonMobil just doubled down on fossil fuel production. We break down the trend. Read more >> This trial could make it cheaper for you to sell a home Broker fees are on the chopping block at a trial against the National Association of Realtors. Read more >> Travel hack: What to do with leftover foreign currency You’re at the end of your international vacation but got lots of local cash left in your wallet. Here are some tips on what to do with it. Read more >>Other news that caught our eye
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Boeing reported a $1.6 billion loss for the third quarter after delivering fewer 737s. The defense contractor also lowered its annual forecast for 737 Max production.
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Shell will lay off 15% or more of its low-carbon solutions division’s workforce as new CEO Wael Sawan plans to prioritize the company’s efforts on higher-margin oil and gas projects.
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Leading chocolate brands contain concerning levels of lead and cadmium, according to Consumer Reports. The nonprofit consumer group identified high metal content in products from Target, Trader Joe’s, Nestlé, and Starbucks.
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GM and Honda canceled a deal to build more affordable electric vehicles. The two automakers determined the deal was not financially viable but maintained they remain committed to EVs.
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Apple hiked the price of several of its services, including Apple TV+, Apple Arcade, and News+. Other major media companies like Netflix and Disney also implemented price increases earlier this year.
Financial planner tip of the day
"Traditional IRAs or 401(k)s allow you to contribute pre-tax dollars to an account. You can save money on taxes now and only pay taxes on your investments when you withdraw from the account."
Brian Walsh, CFP® at SoFi