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New quarter, new economy?
After the U.S. economy beat expectations in the last quarter, the first economic reports are trickling in for the last months of the year. Will job growth keep roaring on? Also on the docket: the Fed! Hereâs whatâs ahead on Wall Street.
US stocks were mixed on Friday as markets digested a new round of earnings and the latest inflation data
• The Fed's favorite inflation gauge â core PCE â showed prices rose 0.3% in September, the most since May. Looking at the longer-term, however, inflation is indeed cooling, or at least not getting worse: Year-over-year, core prices rose 3.7%, the lowest level since May 2021, while overall inflation rose 3.4%.
• Amazon shares rose 6.8% after announcing it more than tripled its year-over-year profits, as consumers continued to support e-commerce, and the companyâs cost cutting measures took effect. Its key Amazon Web Services business grew less than expected.
• Ford shares continued to sell off, falling 12.3%, following the companyâs earnings on Thursday. The legacy automaker relayed that the UAW strike has cost it $1.3 billion, leading it to withdraw its full-year guidance.
• ExxonMobil shares fell 1.9% after announcing a 54% year-over-year decline in profits. However, the oil giant also reported its cash reserves increased 10% to $33 billion, and said it was on track for $17.5 billion in stock buybacks this year.
• Intel shares jumped 9.3% after vowing to cut costs by roughly $3 billion. The chipmaker saw revenue and earnings decline year-over-year, but still beat estimates.
• Colgate beat estimates and raised its full-year earnings guidance, attributed to an increase to prices. Still, its shares finished 1.8% lower.
What to be on the lookout for today
• McDonaldâs, ON Semiconductor, and Pinterest will kick off the earnings week.
• The Dallas Fed Manufacturing Index will be released.
âTis the season⊠to budget
Itâs the time of year for pumpkin-spiced everything, family and friend gatherings, shopping, and⊠budgeting.
You donât want to start 2024 with a massive spending hangover. Get ahead of it this year and create a budget.
Review last yearâs spending: If 2022 holiday shopping left you in the red, donât repeat past mistakes and review them. How much did you spend? Are there any areas you can cut back on this year?
Create a budget: Ideally you already have a general budget, but if you donât, it's a great time to create one.
You can create your budget with pen and paper, a spreadsheet or use an app. (SoFi has one here.)
The hard part: sticking to it
Youâre making a list⊠checking it twice. Donât let last-minute purchases blow your budget. Take the time to make a list of all your expected expenses this season, including: gifts, decorations, food for parties and travel. Then assign how much you can spend on each category, including how much you can spend per gift.
Track your spending: Track purchases in your budget. If you overspend on one thing, you can make up the difference by cutting back somewhere else.
Todayâs top stories
Groundhog day: What history teaches us about rising rates As the markets and consumers reckon with soaring Treasury yields and the Fedâs âhigher for longerâ interest rate policy, history has some pointers for the future. Read more >> What deodorant sales tell us about work culture Strong sales growth of the personal care product could have something to do with return-to-office orders. Read more >> Whatâs considered good credit? Your credit history matters if youâre looking to make a big purchase and get financing. Here are 8 reasons why good credit is so important. Read more >>Other news that caught our eye
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At 33 years old, Taylor Swift is officially a billionaire. The pop singer can credit her financial success to her expansive discography, international Eras Tour, and new blockbuster tour film.
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McDonaldâs is making its McFlurry more environmentally friendly by using a new mixing process and swapping the large McFlurry plastic spoon for a smaller one.
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BP bought $100 million worth of EV chargers from Tesla, marking the first time Tesla has sold chargers directly to another company. BP plans to rebrand the devices as its own.
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Unilever will sell Dollar Shave Club to private equity firm Nexus Capital Management. The company paid $1 billion to acquire the razor company in 2016.
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Ford will press pause on $12 billion in EV investment. The legacy automaker cited slowing interest and customer unwillingness to pay a premium for EVs.
Financial planner tip of the day
âPayment history is the main factor that affects a personâs credit score, accounting for 35% of an overall FICOÂź score. By making on-time payments, limiting the number of new inquiries on their credit file, and working to pay down credit card balances, home buyers could potentially boost their credit score and qualify for a lower mortgage rate.â
Brian Walsh, CFPÂź at SoFi