Monday,
January 8, 2024
Market recap
Dow Jones
37,466.11
+25.77 (+0.07%)
S&P 500
4,697.24
+8.56 (+0.18%)
Nasdaq
14,524.07
+13.77 (+0.09%)
Top Story
New year, new market worries?
It’s a new year, but investors aren’t quite ready to let go of themes that were important in the months past. Learn what’s ahead on Wall Street this week.
US stocks were up on Friday after a stronger-than-expected December jobs report
• 216,000 jobs were added to the economy last month, well above forecasts. The bulk of the gains came from government, hospitality, and healthcare sectors, and the number of multiple jobholders hit an all-time high of nearly 8.7 million. The unemployment rate remained unchanged at 3.7%.
• The U.S. 10-year Treasury yield pushed back above 4% following the jobs report.
• Peloton stock rallied for a second day on news of its content partnership with TikTok, adding 9.6% to yesterday’s near 14% gain.
• Shares of Costco rose 1.2% after reporting a near-10% rise in sales in December, largely driven by e-commerce.
• Shares of Agilon Health plummeted 28.6% after the company cut its revenue guidance and announced it expects to close the year with a loss.
• Services sector activity increased at a slower pace in December, while the sector still expanded for the 12th consecutive month.
What to be on the lookout for today
• December consumer inflation expectations, which fell to their lowest level since April 2021 last month.
• In company earnings, the investment bank Jefferies will report.
You can still lower your 2023 taxes
We’re already a week into the new year, but you can still make moves to lower your 2023 tax bill, and one way also benefits your retirement savings.
Contributions to traditional IRAs can be fully or partially tax-deductible. And here’s the good news: You can make contributions until April 15 that will count for the 2023 tax year.
With a traditional IRA, you contribute pre-tax money that grows tax deferred, and withdrawals are taxed as income for withdrawals after 59.5 years of age.
Keep in mind not everyone will be able to claim a deduction for their contributions. Eligibility is determined by different factors, including whether you have an employer-sponsored retirement plan (like a 401(k)), filing status and income level.
What to know for 2024
If one of your new year’s resolutions was to save more for retirement, the IRS increased the limit of annual IRA contributions to $7,000 up from $6,500 for the 2024 tax year. Those ages 50 and older can also save an additional $1,000 as a catch-up contribution.
If you don’t have an IRA yet, SoFi can help you with that.
Today’s top stories
The job market is strong, but it doesn’t feel like it to these workers U.S. jobs data surprised again on Friday with strong job growth. But there's one important sector where things really don’t feel as peachy. Read more >> The Consumer Financial Protection Bureau called out student loan servicers for errors Findings from the federal agency have led the Department of Education to withhold payments on federal student loans. Read more >> What to know about mutual funds in retirement planning If you’re thinking about what type of investments might fit into your retirement savings portfolio, here’s what you need to know about mutual funds. Read more >>Other news that caught our eye
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The Valentine’s Day Stanley Cup x Target collab sent shoppers scrambling and caused retail chaos.
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Average gas prices in the U.S. briefly fell below $3 per gallon last month.
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SpaceX is suing the U.S. labor board that accused it of illegally firing workers over a letter criticizing CEO Elon Musk.
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French supermarket chain Carrefour will stop selling PepsiCo products due to “unacceptable price increases”.
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Tesla will issue an over-the-air software update for more than 1.6 million vehicles in China due to an issue with Autopilot.
Financial planner tip of the day
“IRAs offer individuals an opportunity to save money for retirement in a tax-advantaged plan, without relying on an employer-sponsored plan like a 401(k). In addition, with a few different types of IRAs to choose from, it’s likely that many people will find an account that fits with their needs and goals.”
Brian Walsh, CFP® at SoFi