Friday,
October 27, 2023
Market recap
Dow Jones
32,784.30
-251.63 (-0.76%)
S&P 500
4,137.23
-49.54 (-1.18%)
Nasdaq
12,595.61
-225.62 (-1.76%)
Top Story
Is this time-tested investment strategy losing its edge?
The weird market environment is weighing on the stock-standard investing method of splitting money between stocks and bonds. Here’s what you need to know.
US stocks fell sharply on Thursday after more disappointing earnings sent the Nasdaq deeper into correction territory, defined as a 10% drop from the most recent peak
• Shares of Meta fell 3.7% after it raised concerns around the ad market. Still, overall revenues increased more than expected, 23% year-over-year, and CEO Mark Zuckerberg said AI was the company’s premier investment priority.
• Mastercard shares dropped 5.6%, after warning that consumer spending could slow. However, still resilient consumer spending buoyed the company’s earnings to beat expectations.
• UPS (UPS) shares slumped 6% after reporting a 12.8% decline in revenue year-to-year and a near-57% decline in profits, attributed to challenging macroeconomic conditions.
• Comcast beat earnings expectations but saw its shares drop 8.4%, as broadband subscribers and ad revenue fell.
• Shares of Barbie maker Mattel (MAT) dropped 7.6% as it warned of soft holiday demand.
• The U.S. economy grew at an annualized rate of 4.9% in the third quarter, well above the prior quarter’s rate of 2.1%, and the most since the fourth quarter of 2021, according to initial estimates by the Bureau of Economic Analysis. Growth was driven by consumer spending, which rose by 4%, as well as investments, exports and government spending.
• September durable goods orders rose by 4.7%, the largest monthly increase since July 2020, mainly driven by a surge in transportation equipment, especially civilian aircraft.
What to be on the lookout for today
• The Fed’s favorite inflation index, core PCE, will be in focus today. Inflation has remained well above the Fed’s inflation target of 2%. The same report will include data on personal income and spending.
• Exxon Mobil and Colgate-Palmolive will be among the companies rounding out the earnings of the week.
Are you getting the most out of your 401(k)?
You have a lot of demands on your paycheck, including immediate strains such as housing, food, and loan repayments. But then there’s also the long-term need to save for retirement — however far away it is.
As we head into the last months of the year, it’s time to review your 401(k) contributions. This year, you can contribute $22,500 to your plan, per the IRS. Workers 50 and older can contribute an additional $7,500.
Taking it to the max
If possible, you want to get as close as possible to your maximum contributions to help build your nest egg, while still being able to maintain other financial goals like having an emergency savings fund.
When you contribute to a 401(k), the money is taken from your paycheck before it’s taxed. You only pay taxes once you withdraw money in retirement.
This can lower your tax obligations: Every pre-tax dollar you funnel into your 401(k) account shrinks your taxable income, and as a result, reduces your income taxes for the year.
If your employer offers a company match to your contributions (matching an your contributions up to a certain percentage), is an additional benefit — think of the match as free money.
Eager to learn more? Join our webinar Get an IRA Education with SoFi Financial Planner Brian Walsh to learn about other ways you can save for retirement. With our new 1% IRA match, now’s the perfect time to tune in. Save your seat!*NOTE: Only contributions made via ACH are eligible for the match. ACATs, wires, and rollovers are not included. Offer ends 12/31/23.
Today’s top stories
College enrollment rose for the first time since Covid High school grads are keener on college again as a changing job market keeps the stakes high. Read more >> The weight loss craze has reached startups Signos just raised $20 million to continue developing a wearable sensor that tracks glucose levels and offers personalized advice to help cut pounds. Read more >> Want to retire at 60? Here’s how you might be able to Early retirement sounds like a dream. Maybe you’re well on your way to saving for it, or maybe you’re only getting started. This is what you need to know to ensure your financial stability. Read more >>Other news that caught our eye
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Pfizer’s combination Covid and flu vaccine just entered its final-stage trial. A combination jab aims to make it easier for people to get protected against respiratory viruses in one fell swoop.
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Google Maps will soon let you see an AI-powered preview of your biking, walking, or cycling route. This feature will be rolling out this week starting in New York, London, Paris, San Francisco, and Las Vegas.
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Ford and the UAW have reached a tentative agreement, including a 25% pay increase over 4.5 years that will start with an initial 11% bump.
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The number of X’s monthly active U.S. users fell 17.8% year-over-year in September. Other metrics — like average time spent and app downloads — were also down.
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GM is opening its API to let developers build applications for vehicle hardware. This could potentially lead to an “App Store for cars” where third-party developers can create new car apps.
Financial planner tip of the day
"Depending on your employment circumstances, there are many possible retirement plans in which you can invest money for retirement. Some are offered by employers, others can be set up by an individual. Likewise, the benefits for each of the available retirement plans differ, though they all share one positive attribute: Investing in them is an important step in saving for retirement."
Brian Walsh, CFP® at SoFi