Tuesday,
December 5, 2023
Market recap
Dow Jones
36,204.44
-41.06 (-0.11%)
S&P 500
4,569.78
-24.85 (-0.54%)
Nasdaq
14,185.49
-119.54 (-0.84%)
Top Story
Choppy, unreliable data is making the Fed’s job harder
The Fed never misses a chance to tell us that its policy is data-driven. But what if the data is spotty? Lower response rates to surveys, and complicated seasonal swings are forcing policymakers to think about the high cost of unreliable data.
US pulled back from five straight weeks of gains Monday as the 10-year Treasury yield rebounded
• Shares of Spotify rose 7.5% after the company announced it will cut 17% of its workforce, equal to about 1,500 jobs. Cloud communications company Twilio also announced a new round of layoffs, cutting 5% of its workforce.
• Uber said it would join the S&P 500 on December 18, leading its shares to rise 2.2%.
• Space tourism company Virgin Galactic shares fell 17.5% after founder Richard Branson ruled out additional investments.
• Shares of Alaska Airlines fell 14.2% after agreeing to buy Hawaiian Airlines in a deal valued at $1.9 billion. Other recent airline mergers have faced regulatory hurdles.
• Gold prices hit an all-time high, rallying to more than $2,135 per ounce before retracing its gains.
• U.S. factory orders fell 3.6% in October, the biggest decline since April 2020.
What to be on the lookout for today
• October job openings and the November services PMI will be released.
• Dave & Buster's and AutoZone will report earnings.
What you need to know about gifting stocks
Instead of giving the typical toys, video games, and clothes this holiday season, have you considered giving shares of the companies that make the products?
While toys might break, and batteries can run out, stocks may help the gift receiver take a first step in getting their money right. Plus, you don’t have to brave the crowds during holiday shopping!
For 2023, the annual gift tax exclusion is $17,000 per person ($34,000 per married couple).
The gift that keeps on giving
You can simply buy an actual stock certificate to gift it. Some financial institutions allow you to create a custodial account to transfer or buy stocks into. SoFi does not offer gifting of stock at this time.
Learn more about how to budget better this holiday season with SoFi’s Holiday Spending Guide.
Today’s top stories
Discover Financial wants to sell its student loan portfolio Discover wants to offload its student loan business, and will no longer accept new loan applications after January. Here’s what you need to know. Read more >> Not all food companies are panicking about weight-loss drugs It feels like the food conversation in America is really a conversation about Ozempic at the moment. But food companies aren’t so worried. Find out why. Read more >> How to pay for an engagement ring Thinking of making it official this winter? If you want to propose with a ring, you’re about to spend quite a few dollars. Learn more about how you can pay for it. Read more >>Other news that caught our eye
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A Pew Research Center report showed the net worth of lower-income households grew at a faster pace than higher-income households during the pandemic, according to a Pew report examining December 2019 to 2021.
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Spotify laid off 1,500 employees, or 17% of its workforce, citing overhiring and slower growth.
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80 media outlets in Spain sued Meta for nearly $600 million over alleged noncompliance with European data protection laws.
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Swiss healthcare company Roche has entered the obesity drug market with a $2.7 billion acquisition of Carmot Therapeutics.
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Beyoncé's Renaissance film made over $20 million in its box office debut — the first movie in two decades to do so on the weekend following Thanksgiving.
Financial planner tip of the day
"Creating a budget in college means anticipating both estimated expenses, like club dues, tickets to athletic events, and books, as well as “for sure” expenses, things like rent or room and board, utilities, and tuition that are essential in the college experience. From there, it’s about determining what money can be allocated to fun things, like nights out and spring break."
Brian Walsh, CFP® at SoFi