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5,000 points on the S&P 500. What does this mean?
The broadest stock gauge on Wall Street hit a historic level. We put it in perspective for you, and what it could mean in the week ahead.
The S&P 500 closed above 5,000 points for the first time ever on Friday, a fresh all-time high
• The CPI revisions showed inflation was even lower in December than initially reported, with prices increasing just 0.2% month-over-month, rather than 0.3%, fueling hopes that the Federal Reserve will eventually cut interest rates.
• Earnings results were mixed Friday, with shares of Pinterest tumbling 9.5% after missing sales estimates and forecasting first-quarter revenue below expectations. Pepsi stock also fell 3.6% after missing revenue estimates with its first decline in quarterly sales in 14 quarters. Expedia stock TK% after reporting lower-than-expected gross bookings.
• Shares of cloud-based security provider Cloudflare jumped 19.5% after beating top- and bottom-line estimates and issuing first-quarter guidance above estimates.
• Buy Now, Pay Later company Affirm saw its shares slide 10.9% despite beating expectations on a disappointing revenue forecast for the second half of its fiscal year.
What to be on the lookout for today
• Consumer inflation expectations for January, along with the latest U.S. government budget statement.
• In earnings, Monday.com and Goodyear Tire & Rubber Company will report.
Do you need to hire a tax pro?
Filing your tax return can be intimidating, after all, this isnât something you want to get wrong.
While many people can probably handle doing their taxes with the right preparation, there are some circumstances where it might make sense to hire a tax professional. Maybe your tax situation is complicated because you have a variety of income streams or run a small business. Or maybe you simply want the assistance.
What to look for in a tax pro
Check credentials: There are different types of tax professionals, including certified public accountants (CPAs), enrolled agents and tax attorneys. Paid tax return preparers need an IRS Preparer Tax Identification Number. You can check credentials with the IRS. The person working on your taxes will know a lot of your personal and financial information, so hire someone trustworthy.
Ask about payment: Costs vary, so be sure to ask if youâre paying by the hour or a flat fee. The IRS suggests avoiding anyone who promises bigger refund checks or bases fees on a percentage of the refund.
Donât forget: Always review a return before you sign it. And donât be afraid to ask questions to make sure you understand whatâs on the return.
Todayâs top stories
âMade in Mexicoâ is the new âMade in Chinaâ Mexico has overtaken China as the leading source of goods imported by the U.S. last year. Hereâs how trade wars played a role. Read more >> âCoolâ is subjective, right? Letâs ask Gen Z to be sure⌠A new study found surprisingly uniform results across a wide age range. Read more >> Know your retirement contribution limits! We all want to save for retirement in the most efficient way. Thatâs why it pays to know what you can contribute to different savings pots. Read more >>Other news that caught our eye
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Delta Airlines plans to launch premium airport lounges this year to cater to high-spending travelers and address overcrowding in its Sky Club lounges.
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OpenAI CEO Sam Altman is looking to raise trillions of dollars to reshape the global semiconductor manufacturing capacity.
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Walmart and Target are gaining on Costco as the number one retailer in customer satisfaction after both launching initiatives to improve customer experience.
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NVIDIA is building a business unit around the $30 billion custom AI chip market.
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EV-maker Nikola rejected all five of former CEO Trevor Miltonâs board nominees following his criminal fraud convictions, citing lack of experience.
Financial planner tip of the day
âThe home office tax deduction is available to self-employed people â independent contractors, sole proprietors, members of a business partnership, freelancers, and gig workers who require an office â who use part of their home, owned or rented, as a place of work regularly and exclusively.â
Brian Walsh, CFPÂŽ at SoFi