Top Story
Americans can’t agree on much, but they can agree on this
When asked about their faith in certain institutions, there’s one clear winner that defies politics.
The Dow and the S&P 500 rose to fresh all-time highs Wednesday, buoyed by more company earnings
• Ford beat expectations, which sent its shares 6.1% higher, while video game developer Roblox beat estimates and reported its highest quarterly bookings ever, sending its stock 10.2% higher. CVS shares added 3.1% after beating expectations.
• On the other end of the spectrum, Snap shares plummeted 34.6% after missing estimates and issuing guidance below expectations.
• Alibaba announced a $25 billion increase to its share buyback program, but its shares fell 5.9% after missing revenue expectations.
• Minneapolis Fed President Neel Kashkari said he expects “two or three” interest rate cuts this year.
• The 30-year mortgage rate rose to 6.8% in the week ended February 2, and refinancing applications rose by 12% from the previous week.
• The U.S. trade deficit shrank to $773.4 billion for all of 2023, narrowing the most since 2009.
What to be on the lookout for today
• December wholesale inventories and sales, and the weekly jobless claims.
• In earnings, Hershey, Philip Morris, Ralph Lauren, and Spirit Airlines are among the companies that will report.
Jobs Can Love Me Better Than Inflation Can
Federal Reserve policy has been front and center for the market for quite a while, with high expectations for interest rate cuts at some point this year. When exactly they will come is another question. Market expectations of a first cut in March have dwindled, and comments from Fed Chair Jerome Powell in last week’s press conference and the past weekend’s 60 minutes segment have all but confirmed the delay.
In light of a later start to rate cuts, investors will probably spend more time laser-focused on economic data, particularly jobs numbers, which seem to have surpassed inflation numbers in their relative importance for the moment. SoFi Head of Investment Strategy Liz Young breaks down what investors care about right now.
For more on what we might expect from the Fed and the markets in the months ahead, tune into the latest episode of The Important Part podcast.
Today’s top stories
Red flag for the economy? Why this datapoint is raising questions Consumer spending is the driving force behind the U.S. economy, but rising credit card and auto loan delinquency rates are calling it into question. Read more >> DINKs are creating their own American Dream Double income, no kids? No problem. DINKs are shouting their lifestyle from the rooftops and the data is backing them up. Read more >> Thinking about retirement? This is the best age to do it Is an earlier retirement always better? Here’s a look at how age affects your retirement — and things to consider when planning your personal timeline. Read more >>Other news that caught our eye
-
Target is considering a paid membership program similar to Amazon Prime to help boost sales and fuel growth.
-
Coca-Cola announced its first new permanent flavor in three years. The new addition, Coca-Cola Spiced, is designed to cater to fans of seltzer and fruit-flavored drinks.
-
Amazon cut hundreds of roles within its medical division.
Financial planner tip of the day
“For individuals who want to invest in the markets and not think about it, then the broad exposure — and generally lower fees — offered by index funds may make sense. Investing in index funds tends to work best when you hold your money in the funds for a longer period of time, or use a dollar-cost-average strategy, where you invest consistently over time to take advantage of both high and low points”
Brian Walsh, CFP® at SoFi