Thursday,
December 7, 2023
Market recap
Dow Jones
36,054.43
-70.13 (-0.19%)
S&P 500
4,549.34
-17.84 (-0.39%)
Nasdaq
14,146.71
-83.20 (-0.58%)
Top Story
Gold prices are at record highs but the driving force may surprise you
We might expect an economic downturn, or market turbulence to be behind a rally in precious metals. Here’s what you need to know about why the precious metal hit a record high last week.
US stocks fell on Wednesday as markets digested labor data ahead of Friday’s jobs report
• Private payrolls rose less than expected, adding just 103,000 jobs in November, according to the ADP Employment Report.
• Shares of United Natural Foods dropped 6.8% after falling short of revenue expectations, while shares of Campbell Soup jumped 7.2% after beating profit expectations and raising its 2024 guidance.
• TikTok-owner ByteDance plans to buy back up to $5 billion in stock, valuing the company at roughly $268 billion.
• Oil prices fell more than 4%, sending U.S. oil prices below $70 per barrel and gasoline prices to an 11-month low. OPEC+ recently agreed to voluntary output cuts of 2.2 million barrels per day, but slowing economic growth, particularly in China, and production increases elsewhere have outweighed those concerns.
• Q3 labor productivity advanced at the highest rate in three years, rising 5.2%. Unit labor costs also decreased by 1.2%, reflecting an easing of wage-driven inflation.
• The 30-year mortgage rate fell to 7.17%, its lowest level since August. Refinancing applications rose 14% week-over-week.
What to be on the lookout for today
• The weekly update to unemployment claims, which fell last week after hitting a 3-month high.
• In earnings, Dollar General, Lululemon, DocuSign, and Broadcom will report.
Liz Looks at: The Labor Market
As inflation has eased — headline CPI has fallen to 3.2% from 6.5% at the end of last year — investors, policymakers, and economists are turning to the labor market. After all, the Federal Reserve has a dual-mandate: keep prices stable, and achieve maximum employment.
The U.S. jobs market has remained strong this year, but there are some signs of cooling. SoFi Head of Investment Strategy Liz Young explains what this means, and why it’s still a balancing act for the Fed.
Today’s top stories
Restaurant inflation is shining a new light on cooking at home Whether it's more expensive to eat at home or in a restaurant might depend on the joint in question, but if you ask inflation data the answer is simple (and gives a clue for what you might want to do to save money). Read more >> 2024 will be a record travel year Traveler numbers for next year are expected to surpass pre-pandemic levels, but that doesn’t mean there are no clouds on the horizon for the airline industry. Read more >> What actually causes inflation? We all learned a lot about what inflation feels like over the past years. But why do prices rise to begin with? Read on to learn about 7 factors that cause inflation. Read more >>Other news that caught our eye
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It’s been a big year for ticket sales, according to StubHub, with notable growth seen in women’s sports, U.S. soccer, and the NFL.
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McDonald's wants to grow to 50,000 restaurants worldwide by 2027 as part of its plan to accelerate expansion and boost global sales.
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British American Tobacco marked down $31.5 billion from the value of its U.S. cigarette brands, saying the market has no long-term future.
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Americans purchased more than a million electric vehicles in 2023, accounting for about 8% of all new vehicle sales.
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Apple is considering shifting its iPhone battery production to India as part of its diversification from China.
Financial planner tip of the day
"When figuring out how to become financially independent, it can behoove individuals to invest early and often. Even if it’s only $25 or $50 per month, small amounts can add up. By investing earlier than later, money has more time to grow and for interest to compound."
Brian Walsh, CFP® at SoFi