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AI probably won’t take your job — at least not yet
A new study suggests human labor will keep the upper hand for now for this one reason.
U.S. were mixed on Wednesday, but the S&P 500 clinched another record high
• Netflix shares jumped 10.7% after beating revenue estimates and adding more than 13 million subscribers in the fourth quarter.
• AT&T stock slipped 3% after missing profit expectations and forecasting lower-than-expected earnings.
• Spotify rose 2.1% after announcing it would add in-app purchases on iPhones.
• Chemicals company Dupont’s stock dropped 14% after saying weak demand in China is likely to weigh on first-quarter sales.
• AMD shares rallied 5.9% after an analyst upgrade citing a positive outlook for AI-related data center spending. Shares of competitor NVIDIA also jumped 2.5%.
• Microsoft stock rose, briefly sending its market valuation above $3 trillion for the first time ever.
• The 30-year mortgage rate inched up to 6.78%, while mortgage applications to purchase a home rose 8%.
• Activity in the services sector pushed above expectations to a 7-month high, while the manufacturing sector also surprised to the upside, jumping into expansion territory with its highest reading since October 2022.
What to be on the lookout for today:
• A first look at fourth-quarter GDP. We’ll also get the weekly update to unemployment claims and durable goods orders for December.
• In company earnings, we’ll get several reports from the aviation sector: Alaska, American, and Southwest Airlines. Blackstone, Comcast, Intel, T-Mobile, and Visa will also report.
Want your investments to pay dividends – literally?
The economy stands to go through a change in 2024: The Federal Reserve is expected to cut interest rates a few times, and buoyant U.S. GDP growth is expected to come down a notch.
Where does this leave investors? The market is still flirting with record highs, but the outlook isn’t looking quite so peachy. In moments like this, the prospects of a more stable – dare we say boring – option might be an interesting choice.
Today’s top stories
Diamonds are forever, but they’re getting more expensive After plunging some 30% in 2023, diamond prices are projected to climb this year on tighter supply and heightened demand. Read more >> Gift-giving can cause as much stress as taxes — but Etsy hopes to change that Enter “Gift Mode” as Etsy is looking to differentiate itself in a crowded e-commerce market. Read more >> Be roadtrip ready: Do you need roadside assistance for a flat tire? Imagine this: You’re still miles from your destination, maybe the weather is bad, maybe you have kids in the car, and suddenly you get a flat tire. Here’s how much roadside assistance might cost. Read more >>Other news that caught our eye
- Chipotle is stepping up benefits targeted at Gen Z as the fast-casual restaurant chain is gearing up for “burrito season” between March and May for which it plans to hire 19,000 employees.
- Ford recalled 1.9 million of its 2011-2019 Explorer SUVs for a faulty windshield trim.
- Buy Now, Pay Later company Klarna announced a $7.99 monthly subscription to boost revenue.
- eBay will cut roughly 9% of its full-time employees and scale back contracts with its alternate workforce
- Tyson Foods dropped CVS as the drug benefits manager for its 140,000 employees, switching to startup Rightway in the hopes of saving 15% on pharmacy benefit costs.
Financial planner tip of the day
"A well diversified portfolio helps maximize the expected return for a given level of risk. It also helps smooth returns over time compared to the drastic swings of investing in one or two riskier investments."
Brian Walsh, CFP® at SoFi