Wednesday,
December 13, 2023
Market recap
Dow Jones
36,577.94
+173.01 (+0.48%)
S&P 500
4,643.70
+21.26 (+0.46%)
Nasdaq
14,533.40
+100.91 (+0.70%)
Oracle
$100.81
-$14.32 (-12.44%)
Macy's
$19.05
-$1.72 (-8.28%)
Lucid
$4.22
-$0.39 (-8.46%)
Top Story
What to know ahead of today’s Fed meeting
For the last time this year: It’s Fed week! Inflation is cooling and markets expect that rates will remain unchanged. Here’s what you need to know ahead of this afternoon’s decision.
US stocks traded higher on Tuesday ahead of the Federal Reserve’s latest interest rate decision
• November CPI didn’t derail market hopes that the central bank will leave rates unchanged. Consumer price inflation increased 0.1% month-over-month, and slowed to 3.1% year-over-year. Core inflation, which strips out the more volatile components like food and energy, rose 0.3% on the month and stayed flat at 4% year-over-year.
• Shares of Oracle fell 12.4% after missing revenue expectations and issuing lower-than-expected revenue growth for the current quarter.
• Macy’s stock fell 8.3% as traders digested the news of a $5.8 billion takeover bid of the department store that was reported at the start of the week.
• Shares of electric vehicle maker Lucid fell 8.5% after its Chief Financial Officer resigned.
• ExxonMobil shares declined 1.6% to a 52-week low as oil prices fell more than 3.5% amid concerns about oversupply and softening demand.
• Shares of Hasbro declined 1.1% after announcing it would cut 1,100 workers as weak toy sales continue into the holiday shopping season.
What to be on the lookout for today
• The Federal Reserve's final interest rate decision of the year is due at 2pm Eastern.
• The weekly update to the 30-year mortgage rate and producer price inflation for November will also be released.
• Adobe will report earnings.
Who has the most debt?
Becoming a fully-fledged adult can often mean taking on debt. Major life milestones like going to college, buying a home or even a car usually require taking out loans. Case in point, some 86% of families in the age group of 35-54 have debts.
The median household debt for the Millennial-Gen X crossover group aged 35-44 is nearly $94,000. Student loans still tend to be a major burden, but mortgage debt makes up for much of the overall debt increase compared to younger groups.
Some 50% of households in this age group have housing debts. Buying a home can be expensive, especially in this era of high mortgage rates. To help ease the burden, make sure you know how much home you can afford.
Older, wiser, and slightly less in debt
There is good news: The debt burden starts to wane a touch as you get older.
For people ages 45-54 – Generation X – the total median debt per household is just below $90,000.
That small drop in debt could be because this population is further along in their careers, are bringing in higher paychecks, and have had more time to pay down their debts. Because of that, balances for things like student loans are lower.
If you want to track your money, SoFi can help you take the first step to financial wellness.
Today’s top stories
It’ll be another record holiday travel season Over 115 million travelers are expected to hit America’s roads and skies at the end of this month. Here are the best, and worst, times to travel. Read more >> Americans love to freelance More U.S. workers are shunning full-time office jobs in favor of more flexibility and autonomy promised by freelance gigs. Here’s who’s leaving the typical 9-to-5 behind. Read more >> What is inflation anyway? It’s Fed week and everyone is talking about inflation again. But what exactly is it? Here’s all you need to know. Read more >>Other news that caught our eye
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Ford cut its 2024 electric F-150 production plans in half, citing lower market demand for electric vehicles.
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Pfizer received approval for its $43 billion acquisition of Seagen after agreeing to donate royalties from its cancer drug to the American Association for Cancer Research.
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Choice Hotels launched an $8 billion hostile takeover of rival Wyndham Hotels & Resorts following several failed attempts to reach a deal.
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Google lost an antitrust lawsuit to Fortnite-owner Epic Games over anti-competitive practices in its Android app store.
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Ernst & Young will lay off 30 partners and 100 consultants across all U.S. businesses due to slowing demand. The Big Four accounting firm already cut 3,000 employees earlier this year.
Financial planner tip of the day
“The sooner you can start investing, the quicker you can start taking advantage of compounding interest, which can accelerate your ability to save. Compound interest is the return you earn on your returns, which can help your earnings grow exponentially over time.”
Brian Walsh, CFP® at SoFi