Wednesday,
January 31, 2024
Market recap
Dow Jones
38,467.31
+133.86 (+0.35%)
S&P 500
4,924.97
-2.96 (-0.06%)
Nasdaq
15,509.90
-118.15 (-0.76%)
Top Story
Thanks, America. The US economy is expected to boost global growth
Economic growth in America has been stronger than expected thanks to you, the consumers. And global growth stands to benefit this year.
The Dow finished at a record high Tuesday, as the market was mixed, ahead of the Fed’s rate decision
• Earnings boosted some stocks: Shares of GM jumped 7.8% after beating estimates and forecasting strong earnings for 2024. Similarly, Sysco stock jumped 7.5% after beating expectations, and shares of electronics manufacturer Sanmina soared 28.2% on better than expected earnings.
• But it didn’t look that good everywhere: Pfizer shares fell 1.7% after missing revenue estimates due to waning demand for its COVID-19 products. JetBlue expects revenue to drop 5-9% this quarter, sending its shares 4.7% lower. And UPS stock dropped 8.2% after falling short of estimates for a sixth consecutive quarter and announcing layoffs .
• Shares of oilfield service provider SLB dropped 7.2% after Saudi Aramco dropped plans to raise oil production capacity.
• Job openings inched up to 9 million in December, the highest level since September, and in housing news, the Case-Shiller home price index rose 0.2% in November, or 5.4% year-over-year. Portland, Oregon was the only city to report an annual decline, falling 0.7%.
What to be on the lookout for today
• The Federal Reserve’s first interest rate decision of the year. We’ll also get the weekly update to the 30-year mortgage rate.
• In company earnings, Boeing, Mastercard, Novo Nordisk, Qualcomm, and more will report.
Why should you know about alternative investing
Alternative investments can expand your portfolio beyond Wall Street.
What are alternatives? Think investments outside of stocks, bonds, and cash, such as real estate, private equity, art or collectibles.
The thing these different types of investments have in common is that their correlation to stock market moves tends to be low. That makes them potentially attractive for investors looking to diversify their portfolio.
Why diversify?
As the saying goes, it’s good not to put all your eggs in one basket. That goes for investing too: Having different types of investments may mitigate the effect you feel during times of volatility.
Look before you leap
You shouldn’t invest before informing yourself first. Also, you should have a clear idea of your financial goals (short-term or long-term investing), as well as your risk tolerance.
Alternatives can be complementary to a portfolio, but they also come with their own set of risks. Make sure you understand the product, potential risks, fees, and tax implications before you invest.
Check out SoFi’s Guide to Alternative Investments to learn more.
Today’s top stories
Baby boomers aren’t downsizing — and younger homebuyers are paying for it The high cost of smaller accommodations, interest rates, and potentially high tax bills are keeping baby boomers in their home. That’s bad news for the housing market. Read more >> The super rich want to live forever Who cares about space? The world’s richest investors increasingly invest in “longevity” startups, or companies attempting to keep people healthier for longer. Read more >> What to know before investing in currencies Foreign currency isn’t just what you encounter on vacation. You can invest in it, too. Here’s what you need to know. Read more >>Other news that caught our eye
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Boeing withdrew its request for a safety exemption that was intended to expedite regulatory approval for its new 737 MAX 7 jet.
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General Motors plans to release plug-in hybrid electric vehicles.
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An activist investor is calling for oil company BP to scale back its clean energy investments and refocus on its core oil and gas business, citing its “totally underwhelming” share price.
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Starbucks is launching its new olive oil-infused drinks across all U.S. and Canada locations.
Financial planner tip of the day
“Diversification is chief among an investor’s risk management tools. A diversification strategy means spreading money across multiple asset classes, such as stocks and bonds. A portfolio can be further diversified within each asset class.”
Brian Walsh, CFP® at SoFi