Tuesday,
February 6, 2024
Market recap
Dow Jones
38,380.12
-274.30 (-0.71%)
S&P 500
4,942.81
-15.80 (-0.32%)
Nasdaq
15,597.68
-31.28 (-0.20%)
Top Story
Putting the âboomâ in âbaby boomersâ: The entire generation could retire in the next decade
While itâs not likely to be a singular wave of retirements, this demographic change will likely have knock-on effects for the economy.
US stocks moved lower Monday as Wall Street appears to adjust expectations for a near-term Fed rate cut
• Comments from Fed Chair Jerome Powell over the weekend added to the skepticism of a near-term rate cut. Powell said policymakers would consider cutting rates if there was "weakness in the labor market" during a 60 Minutes segment, shortly after Friday's blockbuster jobs report that showed hiring remains exceptionally strong. Powell also noted that Fed officials "want to be more confident that inflation is moving down to 2%," but cautioned that it's "not likely that this committee will reach that level of confidence in time for the March meetingâ. The yield on the 10-year Treasury note rose back above 4% in response.
• McDonaldâs shares dropped 3.7% after the company reported revenues below expectations, citing conflict in the Middle East for the miss.
• Shares of Snap dropped 1.8% after the social media company announced plans to lay off 10% of its workforce.
• Boeing stock retreated 1.3% following the news of new quality issues in roughly 50 undelivered 737 MAX aircraft.
• Novo Nordisk announced that it would buy contract drug maker Catalent for $16.6 billion, sending the targetâs stock up 9.7%. Novo Nordiskâs stock rose 4%.
• Caterpillar reached a record high after CEO Jim Umpleby called 2023 âthe best year in our 98-year historyâ. The stock closed up 2%.
What to be on the lookout for today
• Several Fed officials are due to speak and potentially give more insight into the central bankâs thinking around interest rates.
• It will be another big day on the earnings front, with BP, Chipotle, Eli Lilly, Ford, GE HealthCare, Spotify, and Toyota scheduled to report.
You got a raise! Now what?
Well done, you got a raise!
No more bringing your lunch from home. And itâs time to book a vacation, and buy all those clothes youâve been eyeing, right?
Not so fast.
Itâs great that you are bringing home more money, but donât fall victim to lifestyle creep â when your spending increases along with your pay.
Donât worry, we arenât total killjoys. You worked hard for your raise, so you should have a little fun with your added income. But letâs be smart about it.
Adjust your budget
How do your new paychecks compare to your old ones? And looking at your cash flow and budget, how will the additional money fit in?
Perhaps you can bulk up your emergency savings, or contribute more towards a long-standing savings goal. Beefing up your retirement contributions can also be a smart way to allocate your budget.
Another area worth looking at is your debt, and using the added cash to help pay down your debt.
Todayâs top stories
Got milk? Or do you only do oat? The milk wars have only just begun Dairy milk manufacturers face tough competition from plant-based alternatives. But they arenât backing down from the fight. Read more >> Kidults are playing right into the toy industryâs hands Adults bought $6.7 billion worth of toys for themselves in 2023, and toy companies like LEGO have taken notice. Read more >> How to get confident about negotiating your starting salary Many of us are nervous when it comes to telling prospective employers our desired salary. But thereâs a way to be methodical about it. Read more >>Other news that caught our eye
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Super Bowl LVIII is the most expensive on record when it comes to tickets. Even though the cheapest tickets dropped 15% in the past week to just below $7,000, the average purchase price is $9,850, 70% higher than last year.
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Owala and HydroFlask are marketing their water bottles lead-free as competitor Stanley faces backlash for using pellets containing lead in the vacuum insulation of its tumblers.
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Snapchat-parent Snap Inc. announced it will lay off another 10% of its staff, around 500 employees.
Financial planner tip of the day
"Whatâs one easy way to make saving money a regular habit? By paying yourself first. Within a few days of that paycheck hitting an account, a saver could transfer a percentage of that money directly into their savings."
Brian Walsh, CFPÂŽ at SoFi