Friday,
January 12, 2024
Market recap
Dow Jones
37,711.02
+15.29 (+0.04%)
S&P 500
4,780.24
-3.21 (-0.07%)
Nasdaq
14,970.18
+0.54 (+0.00%)
Top Story
Excited for Fed rate cuts in 2024? It may have gotten more complicated
Consumer price inflation unexpectedly rose in December, potentially throwing a wrench into market hopes for swift interest rate cuts this year.
US stocks struggled on Thursday following a hotter-than-expected inflation report
• Consumer price inflation increased 0.3% in December, and 3.4% annually, both of which were above expectations and the previous month’s figures, on the back of higher shelter costs. In other economic news, fewer workers than expected filed for jobless benefits last week.
• Tesla shares fell 2.9% after the company raised wages for production workers across its U.S. factories, and Hertz announced it is selling 20,000 EVs from its fleet, including Teslas, due to higher costs relative to gas cars.
• Shares of Paramount Global and Warner Bros. Discovery fell 5.5% and 3.9%, respectively, following analyst downgrades from Redburn Atlantic, citing concerns over linear advertising.
• Shares of Occidental Petroleum inched up 0.6% after a filing from Warren Buffett’s Berkshire Hathaway showed it owned 34% of the energy company.
• Oil prices rose just below 1% after an oil tanker in the Gulf of Oman was seized by the Iranian navy.
• Next week will be a shortened trading week, as the stock market will remain closed for Martin Luther King Junior Day on Monday.
What to be on the lookout for today
• Producer price inflation for December will be released.
• It’s also a busy day of earnings, particularly in the finance sector, with Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, and BlackRock reporting.
How to prioritize your debt payments
If you’re feeling swamped with different types of debt you might wonder which one should get priority.
Take the example of student loans versus credit card debt.
Credit card debt will likely have a higher interest rate than student loans, which means it will cost you more in the long run. That’s why it might make sense for you to put any extra funds towards paying down your debts with the highest interest rate first. Once it’s knocked out, you can focus on the debt with the next highest interest rate.
But paying off debt can be a long game, and sometimes, you just need a win. Paying off the smallest debt can give you a boost and keep you motivated in your repayment journey.
Whichever method you choose, remember: Focusing on one type of debt doesn’t mean ignoring your other obligations. You should still make at least the minimum payments on all your other bills.
Find solutions that work for you
If you are struggling with your student loan bills, there are some options that can help ease the burden: Refinancing your student loans, which involves consolidating your loans with a new loan from a private bank or lender, can result in a lower interest rate.
If you have federal student loans, you may be eligible for an income-driven repayment plan, which sets your monthly payments at a certain percent of your income.
Today’s top stories
Electric vehicle infrastructure is getting a boost The White House announced a package of more than $600 million in grants to bolster America’s electric vehicle charging network. Is this enough to reignite the EV revolution? Read more >> New Year, new career goals. Here’s how to achieve them Got career ambitions for 2024? This is how to set goals, track them, and reach your targets in 2024 to take your career to the next level. Read more >> How to be a helpful resource for someone applying to college College application season is here. This is how you can best support someone in the college application process. Read more >>Other news that caught our eye
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Amazon will bring its Just Walk Out cashier-less technology to healthcare facilities, debuting at a hospital café in Savannah, Georgia.
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Chesapeake Energy and Southwestern Energy agreed to a $7.4 billion merger. The deal would create the largest natural gas producer in the U.S.
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OpenAI is in talks with dozens of publishers, including CNN and Fox, to license content for its AI products.
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Google cut hundreds of jobs across its engineering, hardware, and virtual assistant divisions.
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Hertz is selling 20,000 EVs from its fleet, including Teslas, due to higher costs relative to gas cars.
Financial planner tip of the day
“It’s best to contact your credit card company if you get behind on payments. Credit card companies may be willing to help you if you’ve fallen on hard times. They may offer a hardship plan, which can lower your monthly payments or reduce your interest for a set amount of time, and ultimately help you get back on your feet.”
Brian Walsh, CFP® at SoFi