Tuesday,
January 16, 2024
Market recap
Dow Jones
37,592.98
-118.04 (-0.31%)
S&P 500
4,783.83
+3.59 (+0.08%)
Nasdaq
14,972.76
+2.58 (+0.02%)
Top Story
Your raise could be a bit smaller this year
Here’s how much the average private sector salary will grow in 2024.
U.S. stocks were mixed on Friday as the market digested two day’s worth of inflation data, as well as a slew of earnings
• Wholesale inflation decelerated for the third straight month in December, painting a different picture than consumer price inflation, which ticked up last month.
• Many major U.S. banks reported earnings at the end of last week, including Citigroup, which announced staff cuts and losses, Bank of America, which posted a decline in profits, and Wells Fargo, which warned of potentially lower interest income.
• JPMorgan stock declined 0.7% after topping revenue estimates and reporting earnings that would have exceeded expectations when excluding a $2.9 billion fee related to the government seizures of various regional banks last year.
• Shares of UnitedHealth fell 3.4% due to higher-than-expected medical costs.
• Shares of Delta Air Lines dropped 9% after lowering its earnings forecast for 2024.
• Tesla stock fell 3.7% after announcing price cuts in China and a pause on most production at its factory in Germany following the Red Sea attacks, which affected its supply chain.
What to be on the lookout for today
• Fedspeak: Governor Waller on the economic outlook and interest rates.
• Earnings: Goldman Sachs, Morgan Stanley, and PNC.
Investing 101: This Is Your Year
Investing sounds great, but how do you know where to start?
First things first: Investing isn’t only for people who already have a lot of money. You can start your investing journey at any point in your life.
In fact, if you’re saving for retirement through an employer-sponsored 401(k) plan, you might already be investing! A 401(k) often allows you to choose from pre-selected investments, like index funds and target-date funds.
Other ways to invest include mutual funds or exchange-traded funds (ETFs), as well as buying stocks outright. Always be sure to assess the risks before investing. Learn more about how to get started in our Investing 101 hub.
Dipping your toes into the financial waters
Set goals. Your investment strategy should align with your goals. Some investment vehicles are better suited for long-term savings goals like retirement, while other options could help you save for nearer term needs like a downpayment on a house.
Don’t look too often. If you’re saving for the long-term, time is your friend. Try to avoid making knee-jerk decisions when the market is turbulent. However, if you are worried about long-term economic trends, it could be time to reassess your strategy.
Today’s top stories
The U.S. travel industry isn’t doing so hot Foreign tourism in America still hasn’t recovered to pre-pandemic levels. Now Washington wants to do something about it. Read more >> Look out for growth data and Fedspeak This is what’s ahead on Wall Street this week. Read more >> What to know before to an investment portfolio Investing can seem intimidating, that’s why information is key. Here’s what you need to know to build your portfolio. Read more >>Other news that caught our eye
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The Federal Aviation Administration plans to audit Boeing’s production line after the recent 737 Max 9 incident.
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President Joe Biden announced a new wave of student debt cancellations for certain borrowers enrolled in an income-driven repayment plan who received less than $12,000 in federal loans and have made payments for more than a decade.
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Citibank will cut 20,000 jobs in the next two years in the hopes of saving $2.5 billion, although the bank expects to incur up to $1 billion in severance expenses.
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Anheuser-Busch will be the first-ever beer sponsor of the Olympics and Paralympics, advertising its non-alcoholic Corona Cero beer at the next three Olympic games.
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BlackRock agreed to acquire private equity firm Global Infrastructure Partners for $12.5 billion, which would be the investment firm’s largest acquisition in 15 years.
Financial planner tip of the day
“When making a decision about how to build a portfolio, you may want to keep in mind that risk and reward are two sides of the same coin. You cannot have one without the other.”
Brian Walsh, CFP® at SoFi