Tuesday,
February 27, 2024
Market recap
Dow Jones
39,069.23
-62.30 (-0.16%)
S&P 500
5,069.53
-19.27(-0.38%)
Nasdaq
15,976.25
-20.57 (-0.13%)
Top Story
How much do you need to make to afford a home in the US?
What does it take to afford a home in this market? New data shows the average buyer needs to earn 22% more today than they did in 2022, placing homeownership further out of reach.
US stocks slipped Monday
• Major indexes took a breather from last week’s rally that culminated in the Dow Jones Industrial Average and S&P 500’s all-time highs on Friday.
• Building permits declined slightly in January, while approvals for buildings with five or more units fell to the lowest level since October 2020. New home sales rose less than expected, despite sales in the Northeast surging 72% month-over-month.
What to be on the lookout for today
• January factory and durable goods orders, as well as the Case-Shiller home price index for December.
• In earnings, AutoZone, eBay, and Lowe’s will report.
Alternative investments: your guide to investing in commodities
We’re exploring alternative asset classes this week, which can help you diversify your investment portfolio. Today, we’re talking about commodities.
Commodities include oil and gas, gold, soybeans, dairy, and even frozen orange juice.
The commodities market is largely driven by supply and demand, and are less correlated to the stock market. But there’s risk here too.
Unpredictable factors can influence commodity prices, including weather, political events, crop diseases, or workforce issues.
Commodities investing 101
You have different options when it comes to investing in commodities.
Commodities are traded on the futures market, which involves buying or selling assets at a predetermined price at a particular future date. Commodity futures are traded on commodities exchanges.
You can also access the world of commodities through ETFs (exchange-traded funds), or mutual funds.
And you could even buy physical assets, such as a gold bar or silver bullion.
Today’s top stories
Inflation is cooling but few things are getting cheaper Retailers and consumer goods companies are saying that after years of high inflation, high prices are here to stay. Read more >> IKEA is coming to a mall near you The main operator of IKEA stores is betting big on malls to keep in-person shoppers interested. Read more >> Think you need a financial advisor? Take this quiz No matter what your savings goals are, you might feel overwhelmed. If you’re not sure how to get started, you might be thinking about hiring a financial advisor. Our quiz can help you figure out if that’s the right path for you. Read more >>Other news that caught our eye
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AT&T will give $5 to every customer affected by last week’s network outage, which left some without cell services for nearly 12 hours.
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The FAA panel investigating Boeing issued more than 50 recommendations to improve safety protocols after concluding the aerospace company’s current measures fell short.
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The husband of BP’s former M&A manager pleaded guilty to insider trading after eavesdropping on his wife’s calls regarding the oil giant’s acquisition of TravelCenters of America.
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The Federal Trade Commission is suing to block the Albertsons-Kroger merger, arguing it would result in lower wages for employees and higher prices for consumers.
Financial planner tip of the day
"Real estate is one example of an alternative investment (along with cryptocurrency, emerging markets, and commodities) that can be attractive to some investors. Alternatives are not strongly correlated to stock market movements, so they may continue to perform well even when stocks are shaky. They can also hedge against inflation but should still only make up a small (yet valuable) part of your portfolio."
Brian Walsh, CFP® at SoFi