Wednesday,
February 21, 2024
Market recap
Dow Jones
38,563.80
-64.19 (-0.17%)
S&P 500
4,975.51
-30.06 (-0.60%)
Nasdaq
15,630.78
-144.87 (-0.92%)
Top Story
Is the Ozempic craze driving Greek yogurt sales?
In the mood for a snack? We sure are. Sales in the low-sugar yogurt segment surged nearly 18% last year, coinciding with the surging popularity of weight-loss drugs. Are these phenomena related?
US stocks finished lower on Tuesday after a decline in tech stocks, and ahead of the Fedâs meeting minutes
• Walmart beat expectations, partly due to strong e-commerce sales, leading its stock to jump 3.2%. The retailer also announced it would acquire TV maker Vizio for $2.3 billion to bolster its ads business, sending Vizioâs stock 16.3% higher.
• Capital One plans to acquire Discover Financial Services in a $35.3 billion all-stock deal. Shares of Capital One rose 0.1% on the news, while Discoverâs stock jumped 12.6%.
• Ford announced price cuts for its Mach E electric SUV. The model now undercuts its direct competitor, Teslaâs Model Y crossover, by nearly $3,000. Teslaâs shares fell 3.1% Tuesday.
• Shares of space exploration company Intuitive Machines soared more than 50% as the companyâs first mission nears the moon.
• Shares of chipmaker NVIDIA, which are up roughly 40% this year, fell 4.4% ahead of its earnings report. Other semiconductor companies including AMD, Applied Materials, and Broadcom also sold off.
What to be on the lookout for today
• The FOMC January meeting minutes and weekly mortgage applications.
• In earnings, Cheesecake Factory, Etsy, Jack In The Box, Lucid, and NVIDIA will report.
Get ready for home buying season
Mortgage rates are starting to cool and home inventory levels in January were higher than they were a year ago. So if youâre in the market, this could be your year.
If youâre thinking about buying your first home, the first step is determining what â or how much â you can afford.
Find your price
Thereâs a rule of thumb that suggests you shouldnât spend more than 28% of your gross monthly income on housing.
For example, if you bring in $7,000 a month, under this rule you could budget up to $1,960 for a mortgage and monthly housing expenses.
Keep in mind any other debts you might have so that your debt-to-income ratio doesnât grow too high. Some suggest using 36% as a guideline, meaning no more than 36% of your gross monthly income goes toward your mortgage and other debt payments, such as student loans or credit cards.
Getting pre-qualified for a mortgage and learning how much you may be able to borrow can also help set your budget.
If youâre ready to buy a home this year, check out our first-time homebuyer guide to get ready for this homebuying season.
Todayâs top stories
Does the economy need lower rates? The U.S. economy is doing pretty well â it's growing faster than expected and unemployment is historically low. So does the Fed have reason to cut interest rates at all this year? We look at the implications. Read more >> Remember the Great Resignation? Hereâs the role home prices played While other generations got blamed for the mass resignations that took place during the pandemic, some data shows a peculiar correlation to home values. Read more >> In the market for a house? Hereâs what to ask your realtor Working with a professional real estate agent can make buying or selling a home easier. Ask these 15 questions when interviewing a realtor. Read more >>Other news that caught our eye
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American Airlines raised prices for checked baggage but reduced fees for overweight bags.
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The Biden administration intends to provide $1.5 billion in funding to chipmaker GlobalFoundries to grow the domestic production of computer chips in New York and Vermont.
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Elon Musk said Neuralinkâs first brain-chip patient can control a computer mouse with their thoughts.
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Starbucks launched the âAbundant Year Savory Latteâ, a braised pork espresso drink, in China for the Lunar New Year.
Financial planner tip of the day
âYour Debt-to-Income Ratio, or DTI, tells lenders how much of your monthly income is being used to pay your debts. In general, lenders prefer to see less than about 30% of an applicantâs income going toward debt payments each month. Paying off debts can improve your DTI to a more creditworthy percentage for lenders to consider when assessing your mortgage loan application.â
Brian Walsh, CFPÂŽ at SoFi