Monday,
December 18, 2023
Market recap
Dow Jones
37,305.16
+56.81 (+0.15%)
S&P 500
4,719.19
-0.36 (-0.01%)
Nasdaq
14,813.92
+52.36 (+0.35%)
Top Story
How does the âdonut effectâ change American cities?
No, this is not about a new trend dessert. Instead, the donut effect is describing trends in U.S. cities that have seen residents depart for the suburbs.
US stocks were mixed on Friday, but the Dow notched its third record close in a row.
• Shares of Costco jumped 4.5% after beating expectations and announcing a $15 per-share dividend. The company also said it sold more than $100 million in gold bars last quarter.
• Shares of Olive Garden-owner Darden Restaurants fell 0.4% after missing revenue expectations .
• General Motors stock fell 1.4% after announcing plans to cut 1,300 Michigan workers early next year.
• New York Fed President John Williams, who is a voting FOMC member, dampened investor optimism for rate cuts in 2024, saying cuts are not currently being discussed as the committee remains focused on whether its policy is sufficiently restrictive to quell inflation.
• U.S. industrial production rose in November, helped by the resolution of autoworker strikes. Meanwhile, the New York Fedâs Empire manufacturing index showed the sector is struggling this month.
What to be on the lookout for today
• The December NAHB Housing Market Index. This measure of homebuilder sentiment fell to its lowest level since December 2022 last month.
Using a credit card responsibly
Holiday spending might give your credit cards an extra workout this month.
Make no mistake, just because you donât see money coming out of your bank account at the time of purchase, doesnât mean you havenât spent any. This is even more important to remember when you do your holiday shopping.
Credit card use 101
Be proactive with your payments
You donât have to wait for a bill to make a credit card payment. One of the factors that determines your credit score is your credit utilization ratio, or how much of your available credit youâre using. Generally, the goal is to keep the ratio below 30%. If youâre approaching this limit, making an early payment can help prevent your credit score from being affected.
Automate it
Take the hassle out of remembering to pay your bill by setting up alerts or automatic payments.
Watch your impulse
Impulse shopping can be a way to blow up your budget if you donât stay on top of it. One way to do so: If youâre contemplating an extra purchase, pause and think if you would still buy it if you were using cash.
For this holiday shopping season, check out this smart spending guide full of tips and tricks to help you, no matter what your spending style is.
Todayâs top stories
Key inflation data to close out the year With its latest policy decision, the Federal Reserveâs rate hike cycle appears to be nearing an end. But weâve got a last inflation report before year-end to inform what may come in 2024. Hereâs whatâs ahead on Wall Street. Read more >> The subtle art of getting five-star reviews With consumer choices driven by online reviews, fake reviews have come to the attention of federal regulators. Read more >> What you need to know about credit score updates How often does your credit score update, and why does that matter? Read more >>Other news that caught our eye
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Delta is adding 11 new Austin, Texas-bound flights this April, as passenger growth at the high-traffic airport continues to outpace the broader U.S.
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General Motors plans to cut 1,300 workers at two Michigan plants early next year as the automaker ceases production of the Chevrolet Bolt and Camaro.
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Major retailers such as Amazon, Target, and Walmart will suspend sales of water-bead products for children over safety concerns.
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WeightWatchers launched a new subscription to support customers prescribed weight-loss drugs like Ozempic and Wegovy, providing access to doctors and nutrition plans.
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The IRS is increasing the optional standard mileage rate used to calculate tax deductions by 1.5 cents per mile in 2024, bringing the total to 67 cents per mile.
Financial planner tip of the day
âItâs not necessarily a problem to have a balance on your credit card â as long as you pay it off every billing cycle. In fact, using credit cards for rewards or to build credit can be a financially healthy choice. And getting into the habit of paying off your statement balance in full by the due date is important.â
Brian Walsh, CFPÂź at SoFi