Friday,
January 26, 2024
Market recap
Dow Jones
38,049.13
+242.74 (+0.64%)
S&P 500
4,894.16
+25.61 (+0.53%)
Nasdaq
15,510.50
+28.58 (+0.18%)
Top Story
Is rent growth rising or falling? Different data tell different stories
Most of us spend a significant amount of our income on housing costs, so the direction of rent growth really matters. The data can’t agree on what’s going on, so we break it down.
Better-than-expected economic growth pushed the S&P 500 to yet another record high
• U.S. GDP grew at an annual rate of 3.3% in the fourth quarter of 2023, easily beating estimates of a 2% growth rate. For the full year, the economy grew 2.5%, outpacing the 1.9% growth rate of the prior year, driven by strong consumer spending, investments, and government spending at the local and federal levels. In other economic data, first time jobless claims rose to the highest level in a month.
• It was a busy earnings day: Tesla shares plummeted 12.1% following missed expectations and warnings of slower vehicle sales in 2024.
• Health insurer Humana saw its stock slide 11.7% after a weak full-year earnings forecast due to higher medical costs.
• Comcast’s stock rose 3.4% after topping expectations and raising its dividend by 8 cents.
• IBM also beat forecasts, leading its shares to jump 9.5%.
• Shares of investment giant Blackstone added 2.4% after topping earnings expectations.
• In airlines, American Airlines stock soared 10.3% after beating analyst estimates, Alaska Airlines also beat expectations, sending its shares 4.5% higher, even as the Boeing 737 Max 9 groundings will cost it $150 million.
• Shares of Southwest fell 2.3% after trimming its growth plans due to higher cost.
What to be on the lookout for today
• The Federal Reserve’s favorite inflation index, core PCE. The report will also highlight consumer income and spending for December.
• In company earnings, American Express and Colgate will report.
Making your car insurance fit into your budget
If you are getting behind the wheel, you need to have car insurance.
If you’re involved in an accident, having insurance can protect your finances by helping to pay for damage to vehicles and medical bills. Plus, most states require drivers to have car insurance.
But insurance premiums can weigh on your budget. That’s why it’s key to determine what kind of insurance you need, and to shop around for what fits you best.
There are different types of car insurance coverage, including auto liability, collision and comprehensive coverage, and states vary in what they require.
What affects the price
• Type of car: More expensive cars tend to cost more to insure. That means that dream sports car likely means you’re going to pay a higher premium.
• Who’s driving? A driver’s age and driving history can also play a role determining the cost of auto insurance. For instance, a new driver may pay more.
• Where do you drive? Insurance costs vary by state, but insurers will also take into account where in your home state you live to determine your rate.
Looking for car insurance? SoFi Protect has teamed up with Experian® to help with that.
Today’s top stories
Millennials don’t feel great about the economy. Can you blame them? The Great Recession, the pandemic, and a 200% increase in college costs have made it harder for millennials to accumulate wealth. Read more >> An AI unicorn is born AI startup ElevenLabs has been valued at $1 billion after its latest financing round. Read more >> How disability insurance can fit into your financial planning Insurance — for your home, car, health, or life — is part of prudent financial planning. Disability coverage gets at a different part of it. Here’s everything you need to know if you want to protect yourself against being unable to work. Read more >>Other news that caught our eye
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General Motors and Honda started commercial production of hydrogen fuel systems as a zero-emission alternative to electric vehicles.
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Microsoft laid off 1,900 video game workers across its Xbox, ZeniMax, and newly acquired Activision Blizzard divisions.
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More than 4,700 U.S. auto dealerships urged President Biden to halt enforcement of the EPA’s stricter vehicle pollution standards.
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DISH Network is moving assets to a new subsidiary to issue more debt and putting existing bondholders in a peculiar situation.
Financial planner tip of the day
“Before you start shopping for a car loan, it's important to understand how you might look to a potential lender based on your credit history. Reviewing your credit reports and credit scores can provide you with some perspective on what kind of loan terms you're likely to qualify for.”
Brian Walsh, CFP® at SoFi